Investor · Herndon, VA · Member since 2015 · 185 posts · 74 votes
Where are NOVA (Northern Virginia) investors investing? I am a beginner in REI and prices around this area is a big roadblock for someone to start. It needs good amount of money to start in buy and hold strategy. Any NOVItes investors who have invested elsewhere 1-2 hours away or out of state in cash flow properties? I am seriously considering something out of area/state if numbers look promising...
Where are NOVA (Northern Virginia) investors investing? I am a beginner in REI and prices around this area is a big roadblock for someone to start. It needs good amount of money to start in buy and hold strategy. Any NOVItes investors who have invested elsewhere 1-2 hours away or out of state in cash flow properties? I am seriously considering something out of area/state if numbers look promising...
You are roughly equidistant from Baltimore and Richmond, I think. I invest in Baltimore, having grown up there and feeling comfortable in the neighborhoods. In your place I might look to Richmond, though, which is reported to have one of the best returns on investment on rentals in the country. It may be easier for you to stay in ur own state.
There is a very cool new REI group that started last year called Capitol Investors Meetup that meets in Falls Church. Actually they are meeting this Wednesday, I think. Look them up online. Very education oriented and meetings are free. I'm planning to go.
Investor · Fairfax Station, VA · Member since 2014 · 95 posts · 23 votes
11y
I'm in northern va and had to get out to find properties that fit my budget and cash flow. I've invested in Virginia Beach and have recently started looking into Richmond.
I factor in property management so honestly I only really go down to property hunt. Once I closed I haven't really had to go down there. Knock on wood everything is going smoothly. I'm still new to investing. Good luck to you.
That's great. How do you go about finding those properties? Do you have any leads from people local there/ check on BP through networking or you look on MLS site for potential investing properties. I am sure PM is required and need to factor in the cost of the property monthly budget..did you go for bank financing? does bank have any min down payment restriction to qualify for investment properties?
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
11y
@Mayank S. you can do much better in terms of cash flow just across the river in PG county or in Baltimore. I would guess areas farther out like Culpepper, Winchester,or may be Martinsburg WV would also offer better cash flow.
Where are NOVA (Northern Virginia) investors investing? I am a beginner in REI and prices around this area is a big roadblock for someone to start. It needs good amount of money to start in buy and hold strategy. Any NOVItes investors who have invested elsewhere 1-2 hours away or out of state in cash flow properties? I am seriously considering something out of area/state if numbers look promising...
You are roughly equidistant from Baltimore and Richmond, I think. I invest in Baltimore, having grown up there and feeling comfortable in the neighborhoods. In your place I might look to Richmond, though, which is reported to have one of the best returns on investment on rentals in the country. It may be easier for you to stay in ur own state.
There is a very cool new REI group that started last year called Capitol Investors Meetup that meets in Falls Church. Actually they are meeting this Wednesday, I think. Look them up online. Very education oriented and meetings are free. I'm planning to go.
Investor · Staunton, VA · Member since 2014 · 42 posts · 1 vote
11y
Elizabeth O is exactly right, you have to get out and look. Property management and any (legitimate) guarantees are a big deal and make it possible to put together an appreciation package with nominal or breakeven cash flow that are a great addition to your portfolio. Don't count out central VA, there are some stable markets with aggressive appreciation that are a good deal right now.
I am open for out of state if numbers doesn't make sense here. Any nearby states that you think of with good cash flow opprtunities...
@Ned Carey I am currently researching on the market on I-95S Culpeper/Richmond also. I am not sure how much net cash flow should I realistically target to start my REI portfolio with. As said I am newbie and gathering experienced investor inputs.
@Nancy Roth Thanks! I will see if I can get attend Capital REI meetup this wednesday. It would be great to network from local like minded people.
@Jeremy Vogan Do you know any stable market in central VA with low housing price range and decent rental income on regular basis.
Investor · Leesburg, VA · Member since 2015 · 16 posts · 5 votes
11y
@Mayank Saxena I own 2 Townhomes in Charles Town, Wv. Not bad at all, they cash flow pretty well. Would like to buy here in Leesburg VA, but just way too pricey.
Investor · Herndon, VA · Member since 2015 · 185 posts · 74 votes
11y
@Aischa B.
How do you manage your properties in Charles town? Is is through PR or self since CT is not far from Leesburg. Also how did you find properties I mean through MLS/local leads or new homes? I am also inclined on investing here since that is not too far from Herndon ~50 mins. I have another partner who is willing to inves with me on 50/50 split with buy and hol strategy.
Any inputs on if rental properties be put in LLC or on our names on the title with ubmrella insurance for asset protection standoint.
@Mayank S. you can do much better in terms of cash flow just across the river in PG county or in Baltimore. I would guess areas farther out like Culpepper, Winchester,or may be Martinsburg WV would also offer better cash flow.
Is there much rental demand in areas like Culpepper and Winchester? My impression is that generally people are attracted to those areas because they can afford to buy there.
I think PG county is worth a look. I think Baltimore and Richmond markets are going to have a lot of similarities pluses and minuses.
How do you manage your properties in Charles town? Is is through PR or self since CT is not far from Leesburg. Also how did you find properties I mean through MLS/local leads or new homes? I am also inclined on investing here since that is not too far from Herndon ~50 mins. I have another partner who is willing to inves with me on 50/50 split with buy and hol strategy.
Any inputs on if rental properties be put in LLC or on our names on the title with ubmrella insurance for asset protection standoint.
Yes, I go through PM for those properties in Charles Town. But the one in Leesburg/Lansdowne, I managed myself since it's nearby. I found the ones in WV thru Keller Williams listing. No, I don't have them on LLC, but I'm in the process of getting Umbrella Insurance from State Farm.
I sent out some faxes with my basic criteria and picked up the phone and started to find realtors who would be a good fit and who did deals with investors. I must have talked with about 8. I found two I liked. The one I didn't pick may have had more investor knowledge and I keep his card.
My property management has been exceptional so far. In fact, they do a lot of business is Richmond and thats why I am now looking there. I pay 10% for property management.
I started in Va beach because I have some family there and my husband travels there for work. I felt somewhat familiar with the area. First property was a Short Sale and the second was a HUD deal.
I did both deal with financing through SunTrust. 10% down on first and 20% down on second. My lender is very helpful. Closed both times up here.
Its hard to jump in but once you do its a good feeling.
Investor · Hampton, VA · Member since 2014 · 38 posts · 18 votes
11y
New(er) NOVA investor here too! Just finished my first B&H deal in Chesapeake VA (Hampton Roads area) which is 2.5 hours away from me in Woodbridge VA. Just handed over the keys last weekend - 2 year lease, cash flowing VERY WELL (including PM). It can be done and the job market there (high military/health care/maritime industry components) support a transient population and solid rents. NOVA was cost prohibitive for me. Happy Hunting!!!!
Can you let me know how much fee (flat or %age) should I factor in for PM if end up buying in Charles town or else where? I am running some numbers in my spreadsheet to see if some of the listed properties make sense there.
@William Randolph Congrats on closing on your first B&H. I will check properties in Chesapeake also. Thanks for pinting that out as cost in NOVA area is ridiculous for beginners to start...No cash flow practically.
Just a question- how much cash flow should I practically target to start with. I am not looking property for more than 150-170k with conventional financing with 10% down (Seller financing even better), including PM and umbrella insurance cost also for liability coverage. whatever properties in my price range I am plugging with all the cost like PITI/HOA/Warranty insurance/vacancy rate @8%/HOA/PM etc. I am coming close to 100-150 on an average. Is that typical monthly net CF for someone in that rpice range and downpayment.
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Investor · Fairfax, VA · Member since 2014 · 18 posts · 8 votes
11y
@Mayank S. given your price range of $150 - $170k, you should look at some properties in the Dale City / Quantico area. You can find cash flowing properties on the MLS that should fit what you are looking for.
I dont know if I qualify as someone to give advice as I am so new at this but having tried with varying degrees of success stock market investing and ...well 8% ROI is the historical returns, so my target was 12% cash on cash returns for however much money I put in the deal (1% a month) going in. So for my first deal I put $28K into it (20%DP, CC and $9K in repairs) on a foreclosure townhouse I paid $78K for, appraised at $90K on day 1 and appraised at $121K after repairs were complete in Chesapeake. So my target cash flow was $280/mth (1%) after PITI, PM and 10% reserves. With a 2 year lease in place at $1195/mth -- its performing at $495/mth ...or 1.76%/mth or...21.1% annual. I am very pleased and in the process of getting the next one. 12% is an easy calculated target... for me.
Investor · Hampton, VA · Member since 2014 · 38 posts · 18 votes
11y
In NOVA, the appreciation play has to play a larger role in the overall investment game. If youre comfortable with that and dont need CF ...NOW...you can make it happen! Much success!