First time home buyer using VA Loan

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First time home buyer using VA Loan

Giovanni Kenneth
Member since 2021 · 1 post · 1 vote

Good afternoon! I have been living in the DMV area since 2015 and I am now looking to purchase my first home. I have zero debt and approved for $425,000K. I would like a buy and hold that would serve as my primary residence for the next 5 years. I am a federal worker and in the National Guard so there is a relatively high chance that I would leave after 5 years. Given the fact that I will eventually move, I'd like something that also has great buy and hold potential. I have zero interests in condos, apartments, and homes with a high HOA. Where in the DMV would you suggest I look to achieve a great buy and hold with a yard within my budget? I have seen great opportunities in Rockville, Deanwood, and Fairfax CO. I am open to all areas in the DMV but would like to leverage the expertise of seasoned investors in the DMV area.

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Tom HarkinsPro Member
Rental Property Investor · DC Area · Member since 2019 · 101 posts · 54 votes
5y

@Giovanni Kenneth I second what @Russell Brazil said. I was looking for the same thing you describe when I first moved to the DMV area. Last year I converted our family house into a rental which I self-manage, and it is poised for rent growth. It is in Silver Spring near the red line. I bought a second SFH not far away and will rinse and repeat.

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  • Ronald Allen Barney
    Real Estate Agent · Tampa, FL · Member since 2020 · 411 posts · 373 votes
    5y

    I don't have local location expertise but there are a few investment principles to keep in mind since this will serve as a possible future rental:  for the location of any candidate properties check the rental comps of that property, paying even more attention to that than the purchase comps.  If the monthly rental potential is at least 1% of the listed price, it's worth looking into further.  Other estimates of numbers will take some finesse, such as estimating expenses, but you can calculate a reasonably accurate guess of cash on cash return for the property, going by closing costs and rehab budget as the cash investment "bottom" of the cash on cash ratio, and 12 months cash flow at the "top".  If potential cash on cash return is past 10% it can be a good investment.

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    @Giovanni Kenneth All 3 areas you mentioned are generally good...but the Maryland side of the border generally has strongest rents for equivalent price points compared to Virginia.  One of my rentals is in Rockville, and has been great. Ive got a bunch in Silver Spring that have been great as well.  The areas in proximity to the metro lines experience not only strong appreciation, but really strong rent growth as well.

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  • Tom HarkinsPro Member
    Rental Property Investor · DC Area · Member since 2019 · 101 posts · 54 votes
    5y

    @Giovanni Kenneth I second what @Russell Brazil said. I was looking for the same thing you describe when I first moved to the DMV area. Last year I converted our family house into a rental which I self-manage, and it is poised for rent growth. It is in Silver Spring near the red line. I bought a second SFH not far away and will rinse and repeat.

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