First Investment - SFR

4 Replies

Investment Info:

Single-family residence buy & hold investment in Nashville.

Purchase price: $295,000

First purchase; originally intended to be owner-occupied but ended up changing plans to stay in CA. Rents out easily, managed by RENU Properties.

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

I originally purchased the home to live in once I got out of the Navy; since I bought it a full year before I was slated to end my service, I rented the home out right away. My plans changed and the home continues to be rented out; I intend to renovate the kitchen and bathrooms summer 2020.

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

I was fortunate enough to be hooked up with an excellent realtor who understood what I was looking for and presented this option to me. It was the first home I even put an offer on.

How did you finance this deal?

VA Loan

How did you add value to the deal?

Repaired fence, new water heater, small utility improvements. Intend to update kitchen/bathrooms in summer 2020.

Lessons learned? Challenges?

Originally bought home for self with the idea that I would only rent it out for 1 year. I should have looked for something a little smaller that would rent out and provide more cash flow each month, but I am not losing money and the house has appreciated well thus far, so I am content for now. It was a solid purchase either way and I'm looking forward to improving it!

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

Bobby Johnson from Zeitlin Sotheby's in Nashville is THE BEST. I felt like his only customer, which was far from the truth. I am working with him to find my next deal - highly recommend him to anyone looking to invest or settle in Nashville!

Originally posted by @Daniel Beaulieu:

Just curious... VA rules require you to certify that you will use the house as your primary residence. How did you find a way around that?

Originally I planned to occupy the house within 12 months of purchase; however, my plans changed and I ended up getting a job closer to where I finished my time in the service. I had to write a letter of intent and submit that along with my resignation paperwork when I applied for the loan, which fit the requirements of the VA given my situation (purchasing a home outside of where I resided at time of loan application/purchase).

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