Apartment Buildings investing in Northern VA

Starting Out
13yFollow

Apartment Buildings investing in Northern VA

Account Closed
Manassas, VA · Member since 2013 · 4 posts · 0 votes

Hi all,

I'm new and need some help here. I'm interested in investing in apartment buildings, but I'm having some issues. First issue is that all the cash I have is about $30K at the moment. The second issue is that I live in a very expensive real estate market in Northern VA where prices are so high. I've been looking for small apartment buildings to buy, but the nearest ones for sale are at least 1.5 hours away. I don't have much experience in property management and I'm not sure I can be an absentee investor. Please advise. Ash

0Reply
14 views

6 Replies

Jump to latestLatest
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    You might could swing a duplex, tri-plex, quad etc. outside your market if your local area is too expensive.

    30,000 is not very much at all if you are looking at 5 plus units for MF properties.

    You will spend around 6k to 14k just on due diligence and closing costs and need reserves. That leaves nothing for putting a down payment on a property.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    0Reply
  • Gary Clark
    Chicago, IL · Member since 2013 · 82 posts · 7 votes
    13y

    Welcome to the site. I'm new here too but I recently read an article on here about investing out if you market. There is lots of information available. Educate yourself.

    0Reply
  • Account Closed
    OP
    Manassas, VA · Member since 2013 · 4 posts · 0 votes
    13y

    Joel- thank you for your reply. What if i find seller financing? Also, if i buy a duplex/tri/ etc, i will have no way of managing it myself and i will have to rely on a management company which will eat a big chunk of the profit.

    0Reply
  • Account Closed
    OP
    Manassas, VA · Member since 2013 · 4 posts · 0 votes
    13y

    Hey Gary- where can i find those articles? Thanks.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    Easy formula:

    Take gross expected income of property and then times .50.
    So example of 2,000 a month X 12 months = 24,000 GEI / .50 = 12,000 NOI

    Value of property at a 10 cap would be 120,000 sales price going in if the property doesn't need immediate work to get rent ready.

    If landlord paid utilities make the number .60 expenses.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    0Reply
  • Account Closed
    OP
    Manassas, VA · Member since 2013 · 4 posts · 0 votes
    13y

    Hey joel- thanks for your reply. But would you please elaborate with more details? I'm fairly new at this. Ash

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free