What are the advantages of buying a VA or HUD home as a “first-time” investor?
1. Immediate results. You will know within a few days if you have a viable transaction. There is new inventory each week and the game is always moving. If you are a dedicated investor you will get your share. 2. Low Down payment. As an investor buying a VA property with seller financing, you will have a low fixed rate loan with no PMI (mortgage insurance). This increases your cash flow potential as a rental unit. 3. Backup offers. A good offer in second or third place may be accepted within two weeks of sale. 10% of first place offers fall out, so there is a small chance of winning in second place with a good price. 4. Purchase prices below $75,000. These numbers work for most new investors. Because of the lower prices, there is less financial risk. First-time investors are more confident in taking the risks required to purchase investment properties. There is always risk in any real estate transaction (see Disadvantages below). 5. Mobility and Internet technology makes it easy. You ca
