Househacking in Northern Virginia

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Househacking in Northern Virginia

Don L.
Member since 2018 · 8 posts · 1 vote

I want to househack in Northern Virginia, right outside of DC. However, many of the common BP rules of thumb, like the 2% rule and 50% rule, are hard to apply in this high priced area. Anyone have any tips on how to make househacking work in high priced markets?

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  • Aaron Poling
    Realtor · WV · Member since 2018 · 454 posts · 310 votes
    6y

    I have a great tip! Look in the Eastern Panhandle of WV! We have affordable deals in this area, and a lot easier to find deals that meet your criteria! 

    Thanks Aaron

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    Adjust expectations to what the market offers. Yield is a function of risk in the asset and or market. A property whose yield is 2% (based on monthly tent/divided by value) is on the higher end of the risk spectrum. DC is amongst the lowest risk markets.in the country, this the low yields here.

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  • Adrienne Green
    Real Estate Consultant · Chattanooga, TN · Member since 2018 · 384 posts · 330 votes
    6y

    Hi Nic! I'm in Leesburg too. Yes, the Northern Virginia real estate market is different from a lot of the markets BP investors are in, and not everything on BP applies here. We also don't have the multifamily housing that so many BP articles and members love, it just isn't built here.

    That being said, Northern Virginia does have a strong rental market with low vacancy and high annual appreciation on real estate.

    Since we don't have multifamily housing in the area, what a lot of house hacking looks like in NOVA is renting out a basement as its own self-contained rental unit (with a kitchenette, bedroom, bath, etc), or renting out bedrooms in a house and sharing the space.

    Personally, I got in to real estate investing by renting out my basement. 5 years later, I charge 50% more than I did initially, and it covers about half my mortgage payment (PITI). One thing I've learned in Northern Virginia is that I like the properties to cash flow from the beginning, but the rental rates (and my rate of return) will improve in the span of just a few years.

    I don't have any quick and dirty rules of thumb that I use to evaluate investment properties. I do have some resources on rental history in the region, which I'll send you in a message.

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  • Don L.
    OP
    Member since 2018 · 8 posts · 1 vote
    6y

    Thank you for the advice! It sounds like Northern Virginia is a a safe place to invest, but with lower initial return. I will keep that in mind as I am searching for my first house hack. 

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