Hello BP,
First off, thanks for taking the time to read this. I will be buying my first primary residence in Central New Jersey here in the next few months. I obviously will only buy if it’s a deal that needs some work, nothing too extensive though. I ultimately want to re-hab while I live in it, then within a year or two, sell to get my feet wet in rehabbing or hold onto it for a long term rental.
I am pretty handy, and do HVAC for a living. I have three great friends who do plumbing and electrical for a living so that will be a big help.
My main question is this. What’s the best way to buy my first home with very little cash, while still getting a great deal? Before anyone say’s it, yes, I know I should just save until I have required rehab & acquisition costs, but please humor me, thanks!
- 1-I am ex- Navy so I will be using my VA benefits for 100% financing. To my knowledge, and please correct me if I'm wrong, all of the systems in the home must be operational and the home can't be in horrible condition to get any financing, especially a VA backed loan. So it can't be a dirt cheap home that needs a full gut rehab.
- 2-I could buy a home off the MLS, but most if not all great deals are off the MLS within hours because they are pocket listings and are paid for in cash. I am sure I can get a decent deal that needs some work if I go that route.
- 3-I look at Homepath and Homesteps all the time, and in doing comps they don’t seem to be good deals, even the “First Look” properties that are only for homebuyers.
- 4-I am a struggling wholesaler and in sending out letters to absentee owned properties I’ve received many phone calls. Most are typical unrealistic home owners, but even the one’s who have some equity and motivation just flat out rejected my offers. If I was more knowledgeable I am confident I could do go the sub 2, lease option routes but I am just getting my feet wet.
I think my best way to do this is to find an off market absentee owned property using my letter campaign in an area with low crime, above average to good schools, that needs some work for around 70% of FMV. I will use my VA loan to get 100% financing.
Please let me know your thoughts on how I can do this. I really appreciate it!
Rich
