Williamsburg VA Home Sold Well Below Market Value

A new bargain property investor recently closed on their first investment home. It is a 1350 sq. ft. Rancher near where they live in Williamsburg, VA. Willamsburg real estate tend to be on the pricey side and usually will not make good rental property because the inflated prices prevent making any type of cash flow. Not this time !

We feel that VA under priced this home to begin with. The buyer submitted an offer, was rejected for being too low, and then submitted a slightly higher offer immediately thereafter. The second offer was accepted by the VA.

As is common, VA will finance their properties to either owner occupants or investors. Investors normally pay 10 % down and can now get 7 % financing for 30 years. If you do the math, you’ll see that the payments work out very low. A perfect situation for long-term rental property.

The VA spec sheet also listed a lot of repairs. Turns out that the house was in far, far better condition than the VA had stated. The roof was fine, but listed as defective. The electrical and plumbing only needed very minor repairs but were listed as defective. On and on. Most of the repairs ended up being just cosmetics to cure a bad case of the uglies!

The buyer hit several homeruns on this because.

• The attractive VA financing gave them a low payment
• The low payment provide an attractive cash flow once the property is rented
• The property was sold well below market value
• The condition was better than anticipated