Flipping in Washington DC
Hi all,
My name is Tal and I am new to the business. I am starting out now and DC is the area I am looking into.
I was wondering if there are any DC investors here. Perhaps I can draw from some of your experiences. How do you find the DC market for flips? What in your opinion are good neighborhood to flip? Is there a good investor association in DC that I should check out?
Any insight would be greatly appreciated. Most of all, I wanted to introduce myself and meet fellow investors.
Thank you!
Tal
I have been checking this place out seems like a good group. I been currently learning to get started http://www.meetup.com/realinvestors/events/1960107...
I am trying to actually start in Maryland first because DC is a little expensive to get started in. @Tal B. Will you be traveling down here often for properties?
Hi @Tal B. I am a contractor in DC and Maryland. Most of my clients that flip in DC have had major success in the NW quadrant. Most say homes are a little more expensive but once rehab is complete the re-sale value is amazing. I recommend Washington, DC to anyone that can afford it.
@Account Closed How long have you been working with other investors in flips? I am curious if what mistakes you have seen and what they have done well. Have you done any personally yet?
Hi @Tony McCray and @David Taylor!
Pleasure to e-meet. We are 3 friends who will be collaborating. I intend to come to DC at least once a week. It's not that bad... 3.5 hour ride from Brooklyn. One of us lives in DC so that helps. Otherwise I wouldn't be considering it. Brooklyn is on fire and I can't afford flipping here, nor do I think that there are many opportunities here. I haven't been looking hard here though.
David, I will check the group you mentioned. thanks.
Cheers!
Tal
Hey @Tal B
Washington DC is a great place to flip property but the price point is high for most new investors. DC has been undergoing major revitalization and as a result you can find good deals in all four quadrants (NW,NE,SW &SE) in DC. Competition is fierce but if there is competition then there is money to made. The Petworth neighborhood in DC is one of the hottest areas to flip right now. The average deal price is about 350K and ARV is around $650K, so with a spread of $300K and average rehab cost of about $120K you can see why competition in Petworth is fierce. Here a some rehabs in Petworth that closed in the last 90 days -
http://mrislistings.mris.com/DE.asp?k=3489715XJ4WL&p=DE-246865875-439
There are other areas in DC that have a lower price point but with good flip results as well.
Hi @David Taylor I've been working with investors for about 5yrs now. The best thing successful investors have done is Buy the property right. They've created their profit in buying the property for the right price. The things unsuccessful investors have done is buy wrong buy rushing and not really understanding how to buy and going cheap on the rehab. They end up wasting money on holding cost because ppl will not buy that house.
Thanks! @Johnson Ejalu
Welcome @Tal B. to the site! Are you focused solely on DC or are you interested in the other cities surrounding the District, such as in Northern VA?
Hi @Rashad Dove
Thank you. I am focused on DC NW and NE.
By the way, a realtor told me that there is a law in DC tha prevents banks from foreclosing on homeowners who are behind on their mortgage. Do you know anything about that? Same for @Tony McCray , @David Taylor and @Johnson Ejalu
From your DC experience, what is a good way to buy distressed properties here? Do you go through the MLS, Short Sales, direct marketing? etc
Thanks!
Tal
Your other tags didn't work for the other two @Account Closed
I have not heard of such law but I'm also new at this as well. Hopefully one of these guys will have a definite answer to your question.
Dave
@Tal B. That realtor gave you false information. I've worked on homes that have been foreclosed on and an investor i've worked with has purchased the home. I know for a fact it happens everyday in the DC market. That is one of the biggest drivers of Real Estate.
Clients have shared working with Realtors, Some times working with a Wholesaler, and sorting through the MLS. Direct mail is hit or miss in DC.
I have never heard of such a law in DC. Investors buy foreclosed properties in DC all the time...all that "Realtor" had to do is search the MLS :-)
Maybe he/she was referring the DC's rent control and tenant friendly rules.
There was a moritorium on foreclosures but I believe it was lifted last month.
Competition in the DC metro area (like most of the rest of the country) is fierce for beat up properties that are priced well. If you're a new investor with limited funds, you're best bet is to find the lower price point counties in the DC area and focus there- Prince George's County, Waldorf, Anne Arundel, Montgomery (certain areas), Baltimore, etc (really most of Southern MD is pretty decent)
Trying to go into the District itself as a new investor can certainly be done, but a) prices are going to be higher than surrounding areas so for the same amount of money to spend you're going to do less houses, and b) it's harder to comp properties- DC property values can often vary block by block, proximity to metro station matters, finishes matter, whether or not they've 'dug out' the basement to increase ceiling height matters, the exterior style of property- federal, victorian, etc matters. A lot more complex than comping simple, say, 1200SQFT ramblers in PG County.
I've completed about 45 flips now since I started in the DC area but only done 3 so far in DC- and all of those were this year. That was the first time I felt comfortable with it because of the added complexities when figuring out what the houses will re-sale for, plus the fact the price points are higher (though price points vary based on where in DC you are, of course).
So if I were you, I'd check out Southern MD
Originally posted by @Tal B.:
Hi all,
My name is Tal and I am new to the business. I am starting out now and DC is the area I am looking into.
I was wondering if there are any DC investors here. Perhaps I can draw from some of your experiences. How do you find the DC market for flips? What in your opinion are good neighborhood to flip? Is there a good investor association in DC that I should check out?
Any insight would be greatly appreciated. Most of all, I wanted to introduce myself and meet fellow investors.
Thank you!
Tal
Yes. In DC. Email me at [email protected]
Hi Tal,
I'm fascinated that you chose the DC market to go after even though you are based in Brooklyn. I am finally acquiring my first property in DC and love DC but as a new investor I just can't afford to grow my business here.
Perhaps through learning more I will learn more creative approaches to finance that will help but it is a tough sled out here if you don't have a lot of capital.
Ro
The key that I have found in the DC Market is having as many boots on the ground as possible. I personally live in DC and know the neighborhoods well, which has made me a valuable asset to my partners that live outside of the city. Having as many agents and wholesalers that you have confidence in, and training them to do a little homework before they present you a deal will save you time and work in your favor.
If you are an out of state investor looking for insight on any neighborhoods you are looking at, feel free to drop me a line!
Hello fellow DC professionals -
If interested; we have a new RE Meetup group that meets last Wednesday of each month in Columbia Heights, DC. The next event is scheduled for October 29th at 7pm and there is only 10 spots left. Here is the link to the Meetup group:
http://www.meetup.com/DC-MD-VA-Real-Estate-Investi...
Look forward to meeting everyone.
I agree with @Johnson Elaju that Petworth is a great neighborhood to flip in. Also Brightwood just to the north of that, Trinidad, and Brookland are all areas with good flipping numbers.
One thing to keep in mind though with a flip in DC is that this is not a paint and carpet type flip market. Individuals buying flips expect top notch quality work. They expect high end fixtures, kitchens, etc. You cant put that $29 a square foot Home Depot granite countertops in a kitchen here. Buyers know the difference between high, medium and low quality work, and expect the best here.
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- http://www.DistrictInvest.com
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Shane, congratulations getting started on your Peabody flip. It looks like the house is semi-detached. How is it going? And it looks like there was a house down the street that sold for $535,000. How did you arrive at your ARV? This is a public forum, but others are probably interested in hearing about it too. Thanks