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Eugene Carson
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New to BP and looking to invest in the DMV

Eugene Carson
Pro Member
  • Greenbelt, MD
Posted Dec 2 2022, 16:05

Hello BiggerPockets team,

My wife and I have decided it's time to get serious with RE investing. We're starting this journey of Buy and Hold in the DMW and so far, we're learning that everything is super expensive, and most properties aren't great income generators, but we're not deterred. We also realize that we really don't know much about this industry (yet), however I can say we've learned a great deal about investing reading Brandon Turners "Rental Property Investing". While we're still grappling with understanding the Cash-On-Cash Return formula and searching for that one property that has our name on it to purchase, we thought we'd come here to learn if the DC Metro is a good or not so great area to invest in. Also, to anyone that would care to share some wisdom and is currently investing in the DMV, what tips can you share with us newbies on anything, such things as:

> What areas of the DMV should I avoid, and what areas are up and coming? 
> Is this the best time to buy, or should we wait until interest rates come down bit?
> Where would I find a great buyer's agent?
> Is it smart to buy some land near great amenities and build a new multi-family property?

Thank You all in advance!

~ E.

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Russell Brazil
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Russell Brazil
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ModeratorReplied Dec 2 2022, 17:03

I actively invest in the DC area and have for 13 years now.

"What areas of the DMV should I avoid, and what areas are up and coming?"

This simply goes to your risk tolerance. There is no good or bad areas, just areas of varying risk. I personally invest in Petworth, Shaw, Silver Spring and Rockville. Ive helped clients purchase and invest just about anywhere you can think of in the DMV though. It is important to find the risk tolerance and strategy that work for you though.

"Is this the best time to buy, or should we wait until interest rates come down bit?"

You can get better deals now while interest rates are higher. More negotiation, more seller subsidy, more repairs after inspections. Once rates come back down, we will be back to no negotiation, escalations, and no inspections.  Choose your poison.


"Where would I find a great buyer's agent?"

There are plenty right here on BP.

"Is it smart to buy some land near great amenities and build a new multi-family property?"

Buy and large you can not build multifamily anywhere in the metro area. That could change with the Thrive Zoning Plan that Montgomery County is passing...but thats still really only going to be available to major builders. Individual small wont be able to build most likely. 

And welcome to BP @Eugene Carson







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Jack Seiden
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Jack Seiden
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Replied Dec 2 2022, 17:36
Quote from @Eugene Carson:

Hello BiggerPockets team,

My wife and I have decided it's time to get serious with RE investing. We're starting this journey of Buy and Hold in the DMW and so far, we're learning that everything is super expensive, and most properties aren't great income generators, but we're not deterred. We also realize that we really don't know much about this industry (yet), however I can say we've learned a great deal about investing reading Brandon Turners "Rental Property Investing". While we're still grappling with understanding the Cash-On-Cash Return formula and searching for that one property that has our name on it to purchase, we thought we'd come here to learn if the DC Metro is a good or not so great area to invest in. Also, to anyone that would care to share some wisdom and is currently investing in the DMV, what tips can you share with us newbies on anything, such things as:

> What areas of the DMV should I avoid, and what areas are up and coming? 
> Is this the best time to buy, or should we wait until interest rates come down bit?
> Where would I find a great buyer's agent?
> Is it smart to buy some land near great amenities and build a new multi-family property?

Thank You all in advance!

~ E.

The answer your questions in order, DMV tends to be much more of an appreciation market than a cash flow market, the key is finding enough cash flow to keep the property while it goes up in value ( I have one rental that went up about 100k in one year while it barley made money as an actual rental)  As far as areas to look for it all depends on your goals risk etc, I personally like to invest in Montgomery county which especially on the northern part is a good mix of cash flow, appreciation and relatively low risk.

is it a good time to buy tbh it really depends on the discount you are getting the property for, most of the metro area needs to see another 10%+ decline from here imo however there a few pockets  of the area mainly in D.C. that are already down 15-20% and could be considered a potential value at this point. Feel free to reach out with any other questions!

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Stephanie P.
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Stephanie P.
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Replied Dec 3 2022, 06:27
Quote from @Eugene Carson:

Hello BiggerPockets team,

My wife and I have decided it's time to get serious with RE investing. We're starting this journey of Buy and Hold in the DMW and so far, we're learning that everything is super expensive, and most properties aren't great income generators, but we're not deterred. We also realize that we really don't know much about this industry (yet), however I can say we've learned a great deal about investing reading Brandon Turners "Rental Property Investing". While we're still grappling with understanding the Cash-On-Cash Return formula and searching for that one property that has our name on it to purchase, we thought we'd come here to learn if the DC Metro is a good or not so great area to invest in. Also, to anyone that would care to share some wisdom and is currently investing in the DMV, what tips can you share with us newbies on anything, such things as:

> What areas of the DMV should I avoid, and what areas are up and coming? 
> Is this the best time to buy, or should we wait until interest rates come down bit?
> Where would I find a great buyer's agent?
> Is it smart to buy some land near great amenities and build a new multi-family property?

Thank You all in advance!

~ E.


 Hey Eugene

Welcome to BP.  

The DMV is a great place to invest for appreciation.  Cash flow, not so much.  You're better off buying a multi-family in a smaller market like Richmond or Pittsburgh or Kansas City.  The rents aren't that high, but neither are the prices.

All the best

Stephanie

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Nathan Gesner
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Nathan Gesner
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ModeratorReplied Dec 3 2022, 06:43
Quote from @Eugene Carson:

Welcome to the BiggerPockets forums!

I'll give you some basic beginner advice that may have a nugget or two for you.

It's not the greatest time to buy investments, but there are still opportunities for those willing to put in the effort. Some markets - like DMW - are better suited for appreciation and very hard to find properties that cashflow. This is a terrible time to bank on appreciation because the market hit a peak this summer. You're more likely to see values drop in 2023 and it may be 3-4 years before prices get back to where they were six months ago.

There are still markets that cashflow. Search the blogs or YouTube for Dave Meyers with BiggerPockets where he gives information on the best markets to invest in right now.

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.

3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.

5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.

6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.

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Eugene Carson
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Eugene Carson
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Replied Dec 3 2022, 10:46
Quote from @Russell Brazil:

I actively invest in the DC area and have for 13 years now.

"What areas of the DMV should I avoid, and what areas are up and coming?"

This simply goes to your risk tolerance. There is no good or bad areas, just areas of varying risk. I personally invest in Petworth, Shaw, Silver Spring and Rockville. Ive helped clients purchase and invest just about anywhere you can think of in the DMV though. It is important to find the risk tolerance and strategy that work for you though.

"Is this the best time to buy, or should we wait until interest rates come down bit?"

You can get better deals now while interest rates are higher. More negotiation, more seller subsidy, more repairs after inspections. Once rates come back down, we will be back to no negotiation, escalations, and no inspections.  Choose your poison.


"Where would I find a great buyer's agent?"

There are plenty right here on BP.

"Is it smart to buy some land near great amenities and build a new multi-family property?"

Buy and large you can not build multifamily anywhere in the metro area. That could change with the Thrive Zoning Plan that Montgomery County is passing...but thats still really only going to be available to major builders. Individual small wont be able to build most likely. 

And welcome to BP @Eugene Carson

@ Russell Brazil -- Thank You for your reply and sharing your wisdom of the DMV market. I've since watched your video “How To Be Cash Flow Positive on A $750,000 Investment Property” and the one statement “Real Estate is about people, it’s not about properties” has truly motivated me. With that said, we’d like to start growing our network of people with you and replicate your blueprint for success. I’m not sure what we can do to add value to your business however we’re open to learning what can be possible. We’ll reach out soonest.
~ Eugene

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Eugene Carson
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Eugene Carson
Pro Member
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Replied Dec 3 2022, 10:51
Quote from @Stephanie P.:
Quote from @Eugene Carson:

Hello BiggerPockets team,

My wife and I have decided it's time to get serious with RE investing. We're starting this journey of Buy and Hold in the DMW and so far, we're learning that everything is super expensive, and most properties aren't great income generators, but we're not deterred. We also realize that we really don't know much about this industry (yet), however I can say we've learned a great deal about investing reading Brandon Turners "Rental Property Investing". While we're still grappling with understanding the Cash-On-Cash Return formula and searching for that one property that has our name on it to purchase, we thought we'd come here to learn if the DC Metro is a good or not so great area to invest in. Also, to anyone that would care to share some wisdom and is currently investing in the DMV, what tips can you share with us newbies on anything, such things as:

> What areas of the DMV should I avoid, and what areas are up and coming? 
> Is this the best time to buy, or should we wait until interest rates come down bit?
> Where would I find a great buyer's agent?
> Is it smart to buy some land near great amenities and build a new multi-family property?

Thank You all in advance!

~ E.


 Hey Eugene

Welcome to BP.  

The DMV is a great place to invest for appreciation.  Cash flow, not so much.  You're better off buying a multi-family in a smaller market like Richmond or Pittsburgh or Kansas City.  The rents aren't that high, but neither are the prices.

All the best

Stephanie


 @ Stephanie,

Thank You for your reply. We'll be sure to expand our search; it's ironic you mentioned Kansas City as another market. A family member and really good friends of ours are currently investing in the Wichita, KS area. In your opinion is that also a good place to invest in?  

~ Eugene

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Eugene Carson
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  • Greenbelt, MD
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Eugene Carson
Pro Member
  • Greenbelt, MD
Replied Dec 3 2022, 11:00
Quote from @Nathan Gesner:
Quote from @Eugene Carson:

Welcome to the BiggerPockets forums!

I'll give you some basic beginner advice that may have a nugget or two for you.

It's not the greatest time to buy investments, but there are still opportunities for those willing to put in the effort. Some markets - like DMW - are better suited for appreciation and very hard to find properties that cashflow. This is a terrible time to bank on appreciation because the market hit a peak this summer. You're more likely to see values drop in 2023 and it may be 3-4 years before prices get back to where they were six months ago.

There are still markets that cashflow. Search the blogs or YouTube for Dave Meyers with BiggerPockets where he gives information on the best markets to invest in right now.

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.

3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.

5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.

6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.


 @ Nathan,

Thank You for replying, we'll be sure to check out Dave Meyers "best market to invest in" right away. Also, we truly appreciate you giving us the six steps to success, we plan to "Jump In" soonest. 

~ Eugene

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Eugene Carson
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Eugene Carson
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Replied Dec 3 2022, 11:22
Quote from @Jack Seiden:
Quote from @Eugene Carson:

Hello BiggerPockets team,

My wife and I have decided it's time to get serious with RE investing. We're starting this journey of Buy and Hold in the DMW and so far, we're learning that everything is super expensive, and most properties aren't great income generators, but we're not deterred. We also realize that we really don't know much about this industry (yet), however I can say we've learned a great deal about investing reading Brandon Turners "Rental Property Investing". While we're still grappling with understanding the Cash-On-Cash Return formula and searching for that one property that has our name on it to purchase, we thought we'd come here to learn if the DC Metro is a good or not so great area to invest in. Also, to anyone that would care to share some wisdom and is currently investing in the DMV, what tips can you share with us newbies on anything, such things as:

> What areas of the DMV should I avoid, and what areas are up and coming? 
> Is this the best time to buy, or should we wait until interest rates come down bit?
> Where would I find a great buyer's agent?
> Is it smart to buy some land near great amenities and build a new multi-family property?

Thank You all in advance!

~ E.

The answer your questions in order, DMV tends to be much more of an appreciation market than a cash flow market, the key is finding enough cash flow to keep the property while it goes up in value ( I have one rental that went up about 100k in one year while it barley made money as an actual rental)  As far as areas to look for it all depends on your goals risk etc, I personally like to invest in Montgomery county which especially on the northern part is a good mix of cash flow, appreciation and relatively low risk.

is it a good time to buy tbh it really depends on the discount you are getting the property for, most of the metro area needs to see another 10%+ decline from here imo however there a few pockets  of the area mainly in D.C. that are already down 15-20% and could be considered a potential value at this point. Feel free to reach out with any other questions!

@ Jack Seiden -- Thank you for your reply. As we continue on this journey, it appears the consensus of the DMV market is appreciation. In your example of $100K in a year, is that typical or was that a byproduct of the housing market price boom as of recent?

~ Eugene

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Eugene Carson
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Eugene Carson
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Replied Dec 3 2022, 11:23
Quote from @Russell Brazil:

I actively invest in the DC area and have for 13 years now.

"What areas of the DMV should I avoid, and what areas are up and coming?"

This simply goes to your risk tolerance. There is no good or bad areas, just areas of varying risk. I personally invest in Petworth, Shaw, Silver Spring and Rockville. Ive helped clients purchase and invest just about anywhere you can think of in the DMV though. It is important to find the risk tolerance and strategy that work for you though.

"Is this the best time to buy, or should we wait until interest rates come down bit?"

You can get better deals now while interest rates are higher. More negotiation, more seller subsidy, more repairs after inspections. Once rates come back down, we will be back to no negotiation, escalations, and no inspections.  Choose your poison.


"Where would I find a great buyer's agent?"

There are plenty right here on BP.

"Is it smart to buy some land near great amenities and build a new multi-family property?"

Buy and large you can not build multifamily anywhere in the metro area. That could change with the Thrive Zoning Plan that Montgomery County is passing...but thats still really only going to be available to major builders. Individual small wont be able to build most likely. 

And welcome to BP @Eugene Carson







@ Russell Brazil -- Thank You for your reply and sharing your wisdom of the DMV market. I've since watched your video “How To Be Cash Flow Positive on A $750,000 Investment Property” and the one statement “Real Estate is about people, it’s not about properties” has truly motivated me. With that said, we’d like to start growing our network of people with you and replicate your blueprint for success. I’m not sure what we can do to add value to your business however we’re open to learning what can be possible. We’ll reach out soonest.  (My apologies if this is a repeat post)
~ Eugene

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Jack Seiden
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Jack Seiden
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Replied Dec 3 2022, 11:46
Quote from @Eugene Carson:
Quote from @Jack Seiden:
Quote from @Eugene Carson:

Hello BiggerPockets team,

My wife and I have decided it's time to get serious with RE investing. We're starting this journey of Buy and Hold in the DMW and so far, we're learning that everything is super expensive, and most properties aren't great income generators, but we're not deterred. We also realize that we really don't know much about this industry (yet), however I can say we've learned a great deal about investing reading Brandon Turners "Rental Property Investing". While we're still grappling with understanding the Cash-On-Cash Return formula and searching for that one property that has our name on it to purchase, we thought we'd come here to learn if the DC Metro is a good or not so great area to invest in. Also, to anyone that would care to share some wisdom and is currently investing in the DMV, what tips can you share with us newbies on anything, such things as:

> What areas of the DMV should I avoid, and what areas are up and coming? 
> Is this the best time to buy, or should we wait until interest rates come down bit?
> Where would I find a great buyer's agent?
> Is it smart to buy some land near great amenities and build a new multi-family property?

Thank You all in advance!

~ E.

The answer your questions in order, DMV tends to be much more of an appreciation market than a cash flow market, the key is finding enough cash flow to keep the property while it goes up in value ( I have one rental that went up about 100k in one year while it barley made money as an actual rental)  As far as areas to look for it all depends on your goals risk etc, I personally like to invest in Montgomery county which especially on the northern part is a good mix of cash flow, appreciation and relatively low risk.

is it a good time to buy tbh it really depends on the discount you are getting the property for, most of the metro area needs to see another 10%+ decline from here imo however there a few pockets  of the area mainly in D.C. that are already down 15-20% and could be considered a potential value at this point. Feel free to reach out with any other questions!

@ Jack Seiden -- Thank you for your reply. As we continue on this journey, it appears the consensus of the DMV market is appreciation. In your example of $100K in a year, is that typical or was that a byproduct of the housing market price boom as of recent?

~ Eugene

Some combo of knowing the market well
enough to find an undervalued neighborhood, for sure the pandemic house boom, and also a severe shortage of houses in the d.c. area which does push prices up. As I said earlier it is my belief that a lot of the metro area needs to have a correction, however once prices correct you can usually historically count on 5-7% price increases a year historically.
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Replied Dec 3 2022, 13:10
Quote from @Eugene Carson:

Hello BiggerPockets team,

My wife and I have decided it's time to get serious with RE investing. We're starting this journey of Buy and Hold in the DMW and so far, we're learning that everything is super expensive, and most properties aren't great income generators, but we're not deterred. We also realize that we really don't know much about this industry (yet), however I can say we've learned a great deal about investing reading Brandon Turners "Rental Property Investing". While we're still grappling with understanding the Cash-On-Cash Return formula and searching for that one property that has our name on it to purchase, we thought we'd come here to learn if the DC Metro is a good or not so great area to invest in. Also, to anyone that would care to share some wisdom and is currently investing in the DMV, what tips can you share with us newbies on anything, such things as:

> What areas of the DMV should I avoid, and what areas are up and coming? 
> Is this the best time to buy, or should we wait until interest rates come down bit?
> Where would I find a great buyer's agent?
> Is it smart to buy some land near great amenities and build a new multi-family property?

Thank You all in advance!

~ E.


 Happy to chat about KC. Great area for investing

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Stephanie P.
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Stephanie P.
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Replied Dec 3 2022, 14:23
Quote from @Eugene Carson:
Quote from @Stephanie P.:
Quote from @Eugene Carson:

Hello BiggerPockets team,

My wife and I have decided it's time to get serious with RE investing. We're starting this journey of Buy and Hold in the DMW and so far, we're learning that everything is super expensive, and most properties aren't great income generators, but we're not deterred. We also realize that we really don't know much about this industry (yet), however I can say we've learned a great deal about investing reading Brandon Turners "Rental Property Investing". While we're still grappling with understanding the Cash-On-Cash Return formula and searching for that one property that has our name on it to purchase, we thought we'd come here to learn if the DC Metro is a good or not so great area to invest in. Also, to anyone that would care to share some wisdom and is currently investing in the DMV, what tips can you share with us newbies on anything, such things as:

> What areas of the DMV should I avoid, and what areas are up and coming? 
> Is this the best time to buy, or should we wait until interest rates come down bit?
> Where would I find a great buyer's agent?
> Is it smart to buy some land near great amenities and build a new multi-family property?

Thank You all in advance!

~ E.


 Hey Eugene

Welcome to BP.  

The DMV is a great place to invest for appreciation.  Cash flow, not so much.  You're better off buying a multi-family in a smaller market like Richmond or Pittsburgh or Kansas City.  The rents aren't that high, but neither are the prices.

All the best

Stephanie


 @ Stephanie,

Thank You for your reply. We'll be sure to expand our search; it's ironic you mentioned Kansas City as another market. A family member and really good friends of ours are currently investing in the Wichita, KS area. In your opinion is that also a good place to invest in?  

~ Eugene


 Hey Eugene

Any of those secondary markets would be a good place.  Housing is still affordable so they cash flow pretty easily.  Find a multi family close to a hospital and rent it to travel nurses.  $$$

All the best

Stephanie

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PassivePockets will help you find sponsors, evaluate deals, and learn how to invest with confidence.

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Joaquin Camarasa
  • Real Estate Agent
  • Springfield VA
370
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448
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Joaquin Camarasa
  • Real Estate Agent
  • Springfield VA
Replied Dec 4 2022, 05:57

It is very challenging to invest in our market. The most common strategy is to househack to reduce expenses as much as you can while you live in it. Eventually you can rent it out in the future when rents have matched or are superior to your monthly mortgage payment. Sometimes with condos valued below 200k you can break even. In addition to that currently sellers are still not accepting the new reality of the market and negotiations take significantly longer than usual. 

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147
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40
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Dustin Street
  • Real Estate Agent
  • Kansas City, MO
40
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147
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Dustin Street
  • Real Estate Agent
  • Kansas City, MO
Replied Dec 5 2022, 14:03
Quote from @Eugene Carson:
Quote from @Stephanie P.:
Quote from @Eugene Carson:

Hello BiggerPockets team,

My wife and I have decided it's time to get serious with RE investing. We're starting this journey of Buy and Hold in the DMW and so far, we're learning that everything is super expensive, and most properties aren't great income generators, but we're not deterred. We also realize that we really don't know much about this industry (yet), however I can say we've learned a great deal about investing reading Brandon Turners "Rental Property Investing". While we're still grappling with understanding the Cash-On-Cash Return formula and searching for that one property that has our name on it to purchase, we thought we'd come here to learn if the DC Metro is a good or not so great area to invest in. Also, to anyone that would care to share some wisdom and is currently investing in the DMV, what tips can you share with us newbies on anything, such things as:

> What areas of the DMV should I avoid, and what areas are up and coming? 
> Is this the best time to buy, or should we wait until interest rates come down bit?
> Where would I find a great buyer's agent?
> Is it smart to buy some land near great amenities and build a new multi-family property?

Thank You all in advance!

~ E.


 Hey Eugene

Welcome to BP.  

The DMV is a great place to invest for appreciation.  Cash flow, not so much.  You're better off buying a multi-family in a smaller market like Richmond or Pittsburgh or Kansas City.  The rents aren't that high, but neither are the prices.

All the best

Stephanie


 @ Stephanie,

Thank You for your reply. We'll be sure to expand our search; it's ironic you mentioned Kansas City as another market. A family member and really good friends of ours are currently investing in the Wichita, KS area. In your opinion is that also a good place to invest in?  

~ Eugene

 @Eugene Carson

I sell investment properties in Kc, and I agree with @Stephanie P. that it's more affordable here. As far as Wichita, I have a customer who is looking to expand to KC from there. So it is a good market to be in however, some people that work there are even looking for better markets. I'm biased because I was raised and work here, but we have some of the best prices in the country, and we are planning on seeing an increase in rental demand, an increase in rental prices, and a decrease in properties that work for rentals, in the next 1-2 years. If you ever want to talk about the KC market feel free to contact me 

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Eugene Carson
Pro Member
  • Greenbelt, MD
6
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8
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Eugene Carson
Pro Member
  • Greenbelt, MD
Replied Dec 5 2022, 14:21

@ Dustin,

Thank You for that great insight in the Kansas market. We'll definitely give that market another serious look.

~ Eugene

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38
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29
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Nathan K.
Pro Member
  • Investor
  • Northern Virginia
29
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38
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Nathan K.
Pro Member
  • Investor
  • Northern Virginia
Replied Dec 5 2022, 14:51

Welcome to the community, E! 

Your questions answered in order, then some comments on others' postings, and then some parting words.

1)  What areas of the DMV should I avoid, and what areas are up and coming? Nothing I can provide here that @Russell Brazil would not be able to tell you in a 5 minute phone conversation. He's spot on and knows his stuff. I personally do not know the DC area as well because I focus just within the beltway and out from there. Everyone is spot on when they say you won't get cashflow in most of the Northern Virginia unless you buy the property outright. 
2) Is this the best time to buy, or should we wait until interest rates come down bit?

I tend to side with David Greene here in that I practice my own advice. I just helped 3 clients buy investment homes in the last month and just closed on one in Annandale, Virginia myself. I believe the next 6-8 months is actually a prime time to buy, albeit a little risky. History states that as rates go up, so do mortgages. When buyers are priced out of the market, sellers get scared and the buyers left retain all the negotiating power. Between last year and this year alone it's been unreal. I bought in Springfield, VA last year at sub-3% rate and $25k over asking on a $625k house 2 days after listing. They had 72 showings that weekend and I was one of 18 offers. Now, in Annandale, just last week and 5 minutes north of Springfield, someone else sold me a similar $625k list house with $15k in closing costs and $615k final sale price. They had been on the market for 13 days with 1 offer that fell through due to rates rising and buyer getting cold feet. And I had all inspections/contingencies in place. Not floating my own boat here, but anyone who says now isn't a good time is A) misinformed B) not a good negotiator or C) hasn't been watching trends/human psychology long enough

> Where would I find a great buyer's agent?

Again with @Russell Brazil here, use the BP search tool or if you'd like, I can help you meet some stud friends of mine who match your goals and personality.

> Is it smart to buy some land near great amenities and build a new multi-family property?

Forget who mentioned it, but the only place you'll find land up by us is west on 66 in Centreville/Chantilly. Another option could be a buy/tear down/rebuild project. But you're talking at least $1.5m or so to do that right. 

And that brings me to my closing comments. I won't insult your intelligence on getting your money right or knowing which books to read - sounds like you know exactly what you're doing and just need general rudder steer in a specific market. Recommend you consider Annandale (between Orange and Blue lines and near Inova Fairfax Hospital); Springfield (same reason); and anywhere in Fairfax County. As you head south on 95 you hit Woodbridge which can have good renters for MCB Quantico (which I know well). Going West on 66 might be your best bet for cashflow and equity growth combinations. They're usually $100-300k less than 10 miles East on 66 but have the same builds. 
Best of luck to you and your wife in your endeavors and if you ever wanna shoot the **** or get set up on an MLS search non-committed, I'd be honored to help! Again, welcome to the BP fam.

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225
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98
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Jacob Sloop
  • Rental Property Investor
  • Virginia Beach, VA
98
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225
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Jacob Sloop
  • Rental Property Investor
  • Virginia Beach, VA
Replied Dec 29 2022, 08:32

I would also consider down where I'm located in the Hampton Roads area.  South-eastern Virginia.  Great market

Would be happy to help, feel free to send me a message 

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8
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Eugene Carson
Pro Member
  • Greenbelt, MD
6
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8
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Eugene Carson
Pro Member
  • Greenbelt, MD
Replied Apr 10 2023, 12:19

Hello BP Team,

It’s been a while since we’ve posted however today we need help from anyone well versed in the Southern Maryland territories (Charles County).
My wife and I have a lead on an off-market 3-bd, 2-bath, 1-1/2 story SFH. The current owner is in the Military and wants to sell the property.
We know and like the area however being newbies to the industry we’d like some guidance on how we approach the owner along with which strategies should we use to assess the property. (i.e., 2% Rule or 50% Rule). Currently, we’re thinking of buying, hold and rent.

Any feedback will be greatly appreciated.

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36
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15
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Callaway Pate
  • Real Estate Agent
  • Washington, D.C.
15
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36
Posts
Callaway Pate
  • Real Estate Agent
  • Washington, D.C.
Replied Apr 12 2023, 06:27

Hey @Eugene Carson, these are interesting questions.

I'd first highlight the fact that cashflow is difficult to achieve in the DMV due to the high property values. I know investors looking for cashflow usually take there investments up towards Baltimore where property values are lower and you can get higher CoC. The DMV is a big equity market where if you find under-valued property, renovate and put in place good tenants the property value can skyrocket putting you in a good position to cash out.

To your question about areas of the DMV to avoid, there really isn't an area that is off limits. Many people would say that East of the River (SE/NE DC) are too risky due to crime rates; however, it truly comes down to your tenant screening and management. Additionally, there are slightly more bargains in that area as its reputation often scares off investors. It may be a bit much for a first property but I think is worth considering.

Best of luck!

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River Sava#2 New Member Introductions Contributor
  • Lender
  • Charlotte, NC
1,105
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966
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River Sava#2 New Member Introductions Contributor
  • Lender
  • Charlotte, NC
Replied Apr 12 2023, 08:13

Hi Eugene! 

It's great to hear that you and your wife are serious about getting started with buy and hold in the DMW area.

As you've discovered, the DMW area can be expensive, but don't let that deter you. There are still opportunities to find properties that can generate good cash flow, it just takes some research and patience.

To answer your questions, here are some tips for investing in the DMV:

  • - Areas to avoid: Every market has its share of rough areas, so it's important to do your research and understand the local market. Some neighborhoods to avoid in the DMV area may include areas with high crime rates, low job growth, or declining populations.
  • Up and coming areas: Some neighborhoods in the DMV area that have seen recent growth and development include H Street Corridor, Brookland, and Navy Yard in DC, and Hyattsville and Riverdale Park in Maryland. However, it's important to note that these areas may have already seen a price increase and may not offer the same deals as other areas.
  • -Best time to buy: It's difficult to predict exactly when the best time to buy is, as it depends on various factors such as the local market, interest rates, and the state of the economy. However, if you find a property that meets your investment criteria and you can afford it, it may be a good time to buy regardless of interest rates...don't fall into analysis paralysis. 
  • -Finding a great buyer's agent: One way to find a great buyer's agent is to ask for referrals from other investors or real estate professionals in the area. You can also research agents online, read reviews, and interview them to find someone who understands your investment goals and has experience in the local market. Facebook is a great place for this, check out different investing groups. 
  • -Building a new multi-family property: Building a new multi-family property can be a smart investment if you have the resources and expertise to do so. However, it's important to conduct thorough due diligence and understand the local zoning laws, construction costs, and potential rental demand before embarking on such a project. Having a solid lender is also crucial for this. 

I hope this information helps, and I would love to connect!