Property Deal Analysis Overview
Our investor client purchased a detached single family home in Westminster to Nomad™. He purchased the home with a 0% down VA loan which means he had to bring less than $10,000 total to the closing table to buy this property!
He was on a tight deadline to buy and move into a house, since his lease was ending. Normally we have our clients spend a couple extra hundred dollars to rush the appraisal, but with VA loans you can’t. With all the refinances going on due to the low interest rates, the VA had a backlog for their appraisers.
We were sweating the timeline, but fortunately, it all worked out, because the VA appraiser was able to make it quickly. This property works for the client now and makes for a great future rental property.
This property closed Q1 2020.
Read more about the Nomad strategy and how it works by viewing these case studies on Nomad properties.
- Buy and hold investor whose goal is to build a rental portfolio for retirement.
- He is a veteran and used a 0% down VA loan to acquire the property.
- Needed a house with a yard for his dog and wanted a garage.
- Listen to the podcast “#185: Future Rental Property in Westminster, CO” on the Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom.)
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
Deal Quadrant: MLS
Read about the deal quadrant and finding Denver Investment Properties.
Investment Property Details
- Type: Single Family
- 3 bedroom, 2 bathroom
- Location: Westminster, near 108th Ave and Wadsworth
- List Price: $349,000
- Purchase Price: $349,000
- Why we liked it:
- Roof was recently repaired and certified
- Updated kitchen and newer appliances
- House was move-in ready.
Property Contract Details
- Finding the property: This property came off the MLS. It was under contract before but fell out due to the previous buyer having financing issues. There was nothing wrong with the property! The sellers wanted someone who could close. We wrote a strong offer, worked with Joe Massey, and presented our buyer as ready to go.
- Under contract: Qualified buyer and Secret Sauce
- Inspection Concerns:
- Roof needed spot repairs and certification
- Inspection negotiation outcome:
- Roof certification received
Property Financing Details
- Lender: Conventional
- Loan Type: 0% down VA loan
- Appraisal: above value!
- Seller Concessions: 0
- PMI: No because it’s a VA loan.
- Interest Rate Buy Down?: Yes
Spreadsheet Rental Analysis
Property Operating Expenses
First Year Returns
Download free rental property analysis spreadsheets like the ones above.
This is another solid future rental property that also works for our client while he is living there. We don’t discuss VA loans often on the deal analyses, but as you can see they are a great way to buy properties for very little cash out of pocket. If you have access to a VA loan, then use it for house hacking or Nomading™!