Good Afternoon Everyone,
I am a young investor (age 20) and I plan on buying a fourplex in the Washington D.C area. I have been seeing prices from 250K- 1M. I am looking to buy and occupy one unit to live rent free, but I will probably only be able to afford a property for 300K or less. Has anyone been able to successfully do this with the high prices in DC. I have been running some numbers using the 50% rule and it seems like I would need to buy a 4 plex for 180k-200K, which seems like a hard price to negotiate to, but maybe not? Can anyone help?
Devonte, I'm not familiar with the DC Metro, but I know from experience that if you're ready for the investment and you're patient, the right investment will come your way. Assuming you're ready for it, you can jump on it before others can.
Thank you, I think I just need to be patient and continue to search for deals. I rather wait than end up with a property that I really don't want.
The Dc area you may want to see if you can get one that needs alot of work or get a two unit that you can convert to a four by going a floor up I am a GC in the DC area and have done work for 15 years so that may be a good idea or go out to suitland or seapleasent or even the baltimore area. We just did one for a client in the baltimore area were he was able to stay rent free and rented it to medical student . Keep you options open and be flexible. to your area but it can happen
Thank you. I have actually thought about converting, but I haven't had a contractor I could ask questions to. I don't plan on going as far as baltimore since I will be investing right out of college, so I plan to stay in the DC/PG area, possibly Alexandria as well. How much does conversion of a 2 unit typically cost, is it cheaper based on the layout of the home?
Hello I am also from the DMV area! 4plex in DC for 300K or less is going to be hard! But you might be lucky to find some in VA or MD! Also I know a GOOD contractor who can help your needs! feel free to contact me if you have any questions!!
I am closing on my first 4 plex in DC at the end of this month. From what I have seen, the 50% rule will be very difficult to achieve in DC. The property prices are high and the rents are not all that high where you will even find 4 plexes for sale.
On a positive note, you will recieve tax breaks. You will write off your whole mortgage payment where as you would not be able to do so if you rented.
I am subscribing so I can see what more experienced people than me have to say.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.