Recently I helped a fellow West Point Grad purchase his first home using his VA Loan benefit in Tacoma, WA. What I didn’t know was that this was going to become one of the best stories that a client of mine has had while maximizing his VA Loan benefit!
When I found Eric his house, it had been on the market for a bit longer than usual and it was at a great price. We immediately went to check it out and we both saw a great opportunity in this home. Through this entire process, Eric began to learn and understand that the purchase of his first home needed to be comfortable enough for him to live in for at least a year, but it had to make sense enough for him to turn it into a rental property in the future. This house was perfect for that. So we discussed the terms of the offer we’d make for the home, and of course I got all of his closing costs paid for in full. However, the best thing about the whole situation is that when the appraisal report came back, the home is worth $13,500 more than Eric bought it for! That means that he essentially walked into the home with $0 thanks to closing cost negotiations, as well as $13,500 in equity in his home!
Whenever Eric decides that it’s time for him to purchase his next property and turn his current home into an investment, he will have a cash-flowing property, positive equity, and he’ll have plenty of room in the VA County Loan Limit for Pierce County to purchase another home with his VA Loan! Eric and I both have a similar way of thinking about buying homes with our VA Loan, and both of us are proof that using your VA Loan to get started in investing is extremely beneficial!
Congrats Eric, and Beat Navy!