Single-family residence buy & hold investment in Severn.
Purchase price: $353,000
Cash invested: $1,000
As a military member with enough years in service, I was able to use my VA benefits to purchase a four-year old property right outside of Fort Meade, MD. The property is a townhouse that has 3 bedrooms, 2 full baths, and two half baths.
What made you interested in investing in this type of deal?
The house looked gorgeous, was recently built (2015) and I had no money to put down on it, but knew I could afford the monthly payments. So, I decided to stop renting and just pay my own house down.
How did you find this deal and how did you negotiate it?
Nothing crazy here. No off market or wholesale. Just simple zillow search and I got to see the property with my agent. I knew I didnt have any money to buy a house, but I was able to buy one anyway since you can put ZERO down payment when using your VA benefits. So, I didnt want a house that needed work, because I couldnt afford doing the work. The fit was perfect. Now I have tenants living in it (Because I deployed) and they're paying the whole mortgage plus 50$ extra.
How did you finance this deal?
Using a VA Loan
How did you add value to the deal?
What was the outcome?
I now have my first rental property.
Lessons learned? Challenges?
I should have negotiated more. I could have bought the property for a cheaper price.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, but he was mainly concerned with getting me to use his own network so he can get a cut (all that he offered was overpriced: such as title company, home insurance, etc)
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