3Br 1.5Ba First Purchase

[Douglas Huyge]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $169,000
Cash invested: $7,000

Acquired via VA loan, currently primary residence. Will switch to rental in 2023.

What made you interested in investing in this type of deal?

Leasing was not generating wealth. It was time to expand and start building equity at the very least!

How did you find this deal and how did you negotiate it?

Real Estate agent showed it to us. Seller was motivated to sell at asking price no exceptions, no closing costs. There was a list of repairs that we negotiated the seller to cover, including a warranty for one year. Asking price was $169,000, we offered $165,000 and the seller countered back to $169,000. Given the rising costs of housing and others offering above asking price, we accepted the offer.

How did you finance this deal?

VA Loan with New American Funding.

How did you add value to the deal?

N/A

What was the outcome?

We purchased the house with very little hassle! Property was previously a rental, Seller wanted to get out of the market due to personal reasons, previous buyers walked last minute. Current rent will put my cashflow at +$100, but currently living in this residence until I have enough reserves to buy second house.

Lessons learned? Challenges?

Overall excellent learning experience. Lessons learned:
1. Buying a house in the winter leaves your lawn a mystery.
2. For seller covering repairs, we probably could have gotten away with asking more. The seller was pretty thorough in their counter, so I shouldn't have been afraid that if I asked for too much, the Seller would have walked. That likely would not have happened.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Brenda Lewis from Prodigy Reality made this purchase EASY. Available for all questions and walked us through any processes. Very professional!