400k cash, no loan, VA, need cash flow

[Thu Minh Dam]

Hi everyone!

I will move from FL to McLean, VA in next several months. With 300k - 400k cash (no loan), which area / city in VA should I buy a rental property (SFH) while I need cash flow (more than appreciation) ?

I really need your help and highly appreciate your all comments. Many thanks from a newbie 🥰

[John Norman]

Quote from @Thu Minh Dam:

Hi everyone!

I will move from FL to McLean, VA in next several months. With 300k - 400k cash (no loan), which area / city in VA should I buy a rental property (SFH) while I need cash flow (more than appreciation) ?

I really need your help and highly appreciate your all comments. Many thanks from a newbie 🥰

questions: 
1) What monthly/yearly cash flow are you wanting on your $400k? $2,500 a month gets you a 7.5% CAC
2) Are you wanting to keep it longterm or looking more for cash flow for lower amount of time?
3) Avoid HOA homes. HOA eats into your cash flow and can be a nightmare with rentals
4) The closer you get to DC, the higher your rents will be. But $400k doesn't go far.

Do you have to buy real estate with the $400k? Is it a 1031 exchange? 

You'd get much higher returns as a Private Money Lender or as an equity partner in a renovation project to refi into a DSCR once rents are established