Live-In DIY BRRRR from VA to Conventional

[Joel Schaarschmidt]

Investment Info:

Single-family residence buy & hold investment in Niceville.

Purchase price: $312,000
Cash invested: $10,000

My wife and I bought the worst house in the nicest neighborhood with the intent to DIY rehab and rent out after two years. The DIY turned was more challenging than I anticipated while working a full-time job. We got lucky since I didn't know anything about real estate investing going into it, but turned out to be a slam-dunk. It appreciated so well that I refinanced out of my VA loan into a Conventional Loan in just over a year.

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

This was my first investment property and I got lucky considering the limited amount of knowledge I went into it with.

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

I used a rockstar realtor recommended by a friend and who had amazing Zillow reviews. There wasn't much negotiating other than having the seller pay for a few small items discovered during the inspection.

How did you finance this deal?

I used a zero-down VA loan.

How did you add value to the deal?

- Updated the master bathroom with fresh paint, lighting, a new double sink marble-top vanity, mirrors and shower fixtures.
- Updated guest bathroom with fresh paint, lighting, mirrors, marble-top vanity, and a new tub & tub surround.
- Updated entire home with LED lighting, new can lights in the living room and kitchen.
- New Electric Breaker Panel

What was the outcome?

We now rent it out for $1000 over our monthly expenses before maintenance/cap-ex/vacancy.

Lessons learned? Challenges?

- I learned that DIY is not my skillset and that its better to higher help rather than waste time and money redoing my own shoddy work.
- I learned that a VA loan is only "fully restored" if I sell the property. Since I still own the property my VA has only been restored to the local VA loan limit. Not really an issue unless I plan to buy a 4-unit house-hack on the beach...