ALLENSTOWN – In an era where homeownership seems like an elusive dream for many young Americans, Zachary Oak, an active-duty Army veteran, 24, defies the odds and emerges as a beacon of hope.
Currently residing in the quaint town of Francestown, Oak’s journey from military service to real estate investment is nothing short of remarkable. This is especially true when so many young Americans feel that they will never be able to make a purchase due to rising home prices and interest rates.
Amidst soaring housing prices and escalating interest rates in the Northeast, the dream of homeownership appears distant for most. The affordability index, a crucial metric reflecting the gap between income and home prices, has plummeted to 102 percent, signaling a challenging landscape for prospective buyers. Just a year ago, the index stood at a staggering 110.2 percent, underlining the stark contrast in affordability over a short span.
However, within this daunting scenario, Oak’s story stands out as a testament to resilience and strategic planning. With my assistance as a seasoned real estate professional, Oak embarked on a journey to secure his foothold in the multifamily market after much research and consultation with his real estate agent. Discussing the cost to buy land and build new, purchasing manufactured homes and placing on land, purchasing a single-family home and condos, etc., there are many options to choose from.
Oak had originally thought that buying land and waiting to build was going to be the smartest way to go. This might have been true if new construction materials and labor were not so inflated along with the land in the southern New Hampshire area. Serving as Zach’s exclusive buying and listing agent since January 2024, I facilitated a groundbreaking deal that defied conventional norms.
Negotiating on behalf of Oak, I am orchestrating the acquisition of a duplex in Allenstown, demonstrating the power of strategic leveraging and savvy negotiation. Through a VA loan, Oak secured the property with zero down payment, clinching a deal $7,000 below the asking price.
Furthermore, the seller’s agreement to cover all closing costs, totaling $13,000, added another layer of financial advantage. This means that Oak doesn’t have to bring any money to the closing table; in fact, he is expected to receive money at the closing table! Did you ever think that you might be able to purchase a property in southern New Hampshire for less than $400,000, pay only $1,200 a month and get paid to do it? It is possible to do!
The duplex, poised to become Oak’s first foray into real estate investment, holds immense potential for wealth accumulation. With a monthly mortgage payment estimated at $1,200 after rental income from the other unit, Oak’s investment promises not only financial stability but also the opportunity for substantial equity growth as it does need repairs and updates. This is only more of an opportunity for him as it opens the door to sweat equity. Oak is handy, so this makes complete sense for him. This may not make sense for other types of buyers.
In a strategic move, Oak plans to retain his condo in Francestown while embarking on renovations for the Allenstown property. Once the updates are complete, I will list the Francestown condo, paving the way for him to capitalize on its sale and further bolster his investment portfolio.
This will allow Oak the time he needs to update the units in Allenstown and bump up the rental rate in the other unit and prepare his unit for occupancy while moving in and getting his condo prepped for sale at the same time!
It is a great strategy if you own a home and are able to hold onto it for even just one or two months before selling.
This is possible for Oak, as he has what the VA calls “entitlement.” This is when the VA allows our veterans the opportunity to own multiple properties at the same time as long as they don’t use all of their entitlement. This depends on the amount you owe on your other property and the amount you are looking to request from the lender.
There are so many great benefits that our veterans are afforded thanks to the Veteran Administration when it comes to housing! If you are ever interested in learning more about your veteran benefit please reach out to a local veteran real estate expert. As the brother of a navy submariner, I value and respect our veteran community greatly and would be honored to help.
Oak’s journey emphasizes the significance of strategic investment and putting in the time consulting with your local real estate agent in the current real estate landscape. He underscores the viability of multifamily properties as a means to navigate the challenges of affordability and generate substantial returns through sweat equity and strategic leveraging. Knowing the local market and what towns can offer you these types of opportunities is also essential.
As Oak prepares to embark on this transformative journey, his story serves as a beacon of inspiration for aspiring homeowners and investors alike. Through perseverance, strategic planning, and the guidance of seasoned professionals, the dream of homeownership in the Northeast remains within reach, even amidst turbulent market conditions.
For those seeking to emulate Oak’s success and carve their path in the real estate market, I extend an invitation to explore the possibilities. With expertise and dedication, I stand ready to guide aspiring homeowners and investors towards their goals, one strategic investment at a time.
Contact Tony LaCasse, Main Street Man & Associates at eXp Realty:
603-716-5769
tony@themainstreetman.com
120 Main St., Suncook, NH 03275
