Investor · McLean, VA · Member since 2013 · 53 posts · 18 votes
I'm beginning the process of evaluating different locations to start my portfolio in Northern Virginia, so I thought it would be a good idea to defer to the knowledge of the BP members who invest in this area.
I'm currently interested in both multi-family (1-4 units) and single-family buy and hold investments in the Northern Virginia area.
My questions for the VA investors on this site are:
1. What are the best areas for multi-family investments? (For each cash flow and appreciation)
2. What are the best areas for single-family investments?
3. What area are you currently focusing on and why are you interested in that area?
I look forward to learning from your expertise!
Investor from Woodbridge VA. NOVA is tough unless you have alot of cash. Its definitely an appreciation play. I have looked at Quantico, Stafford and Fredericksburg, Culpeper and Warrenton and just havent found DEAL deals. I have lived in Woodbridge for 17 years and my new construction built back in 1997 has tripled in value. I made a move to invest in the Hampton Roads area last year -- primarily buy and holds but I am in the middle of my first flip now. Recommend real estate arbitrage -- make your money in NOVA and invest it elsewhere! Much success...
I'm very interested in hearing what others will say.
As for me, I'm just a homeowner in the NOVA area. I have been inching towards my next purchase and it seems like it may be hard to stay close. My research, which is not really that much, seems to show that the area is hard to find good cashflow and returns. I have yet to find a 2-4 unit and have found out it is due to many local restrictions on these type of properties.
I am more interested in getting more knowledge about further out markets like Winchester and Fredericksburg. Anybody have some insight?
I invest in Fredericksburg. It offers better return on investment in comparison to other northern Virginia cities. Growth in the area is still strong. Waiting to see how government budget cut will impact housing market in the area. I do both flip and buy/hold.
Hard to make the numbers work on SF or MF in NOVA. Also hard to find MF in NOVA at all. You should look at further out areas such as the ones mentioned above or a different market.
Here's an example of a NOVA duplex. $895,000 with gross rent of $4,200/mo.
I'm very interested in hearing what others will say.
As for me, I'm just a homeowner in the NOVA area. I have been inching towards my next purchase and it seems like it may be hard to stay close. My research, which is not really that much, seems to show that the area is hard to find good cashflow and returns. I have yet to find a 2-4 unit and have found out it is due to many local restrictions on these type of properties.
I am more interested in getting more knowledge about further out markets like Winchester and Fredericksburg. Anybody have some insight?
I'm having the same problems. Every property I analyze is priced at levels that will not allow for any type of positive cash flow.
I understand that NOVA is a hot region, and is not a great market for cash flow, but I will most likely be working in Tyson's Corner next year. My hope is to find a 3-4 unit MF that I can house-hack, but there don't seem to be many MF's for sale, and the few that are on the market are priced very highly.
Where have you been looking for your properties, Ryan? MLS, newspapers?
I invest in Fredericksburg. It offers better return on investment in comparison to other northern Virginia cities. Growth in the area is still strong. Waiting to see how government budget cut will impact housing market in the area. I do both flip and buy/hold.
Nick, I'm going to do more research into Fredericksburg because it's an interesting an area for me, but I'd really like to get your opinion on whether the market is better suited for buy/hold vs. flips and multi-family's vs. single-family's.
Hard to make the numbers work on SF or MF in NOVA. Also hard to find MF in NOVA at all. You should look at further out areas such as the ones mentioned above or a different market.
Here's an example of a NOVA duplex. $895,000 with gross rent of $4,200/mo.
I'm in WI and MN but neither of the cities I'm in is really good right now either. I'm familiar with them which is why I'm investing there.
If you are going to live in Tyson's, just buy a SF and rent out the rooms. Purchase something within walking distance of a metro station. Or rent in Tyson's and purchase somewhere else. MD is good but I'm not interested in dealing with their regulations. That might not bother you though.
I'm in WI and MN but neither of the cities I'm in is really good right now either. I'm familiar with them which is why I'm investing there.
If you are going to live in Tyson's, just buy a SF and rent out the rooms. Purchase something within walking distance of a metro station. Or rent in Tyson's and purchase somewhere else. MD is good but I'm not interested in dealing with their regulations. That might not bother you though.
What regulations make MD unattractive to you? It's just generally tenant-friendly?
I invest in the Stafford/Fredericksburg area. The numbers definitely don't meet a lot of the "rules" out there unless you go to C/D properties. I stay with A/B properties and still make positive cash flow, but don't come anywhere close to the 2% rule, or the 50/50 rule. I've stuck exclusively to REO properties so I'm not sure how the market is for other strategies. The area is definitely still growing quite a bit, but prices on older houses have been a little stagnant lately. I think this is because there are a ton of brand new homes on the market that are competing with the other inventory in the North Stafford area.
I invest in the Stafford/Fredericksburg area. The numbers definitely don't meet a lot of the "rules" out there unless you go to C/D properties. I stay with A/B properties and still make positive cash flow, but don't come anywhere close to the 2% rule, or the 50/50 rule. I've stuck exclusively to REO properties so I'm not sure how the market is for other strategies. The area is definitely still growing quite a bit, but prices on older houses have been a little stagnant lately. I think this is because there are a ton of brand new homes on the market that are competing with the other inventory in the North Stafford area.
Eddy, with your current knowledge of your market, what would your advice be to someone who is looking to get into SF or MF rentals in the area? Or would you suggest looking for another market?
There really aren't very many multi-families in Stafford at all. There are some in Fredericksburg but I'm really not in a position to speak about these knowledgeably.
There are definitely single family homes available and they can cash flow as I mentioned, but they are not as profitable as other areas of the country (from what I hear on the podcasts). If you really want profit and don't mind owning remote properties, I'd suggest looking elsewhere. If you have to have something close by, Stafford and Fredericksburg may be good options for you.
Have you looked into Winchester? I don't know anything about the real estate market there but it just seems like it would be a good idea to investigate it.
If you are going to live in Tyson's, just buy a SF and rent out the rooms. Purchase something within walking distance of a metro station. Or rent in Tyson's and purchase somewhere else. MD is good but I'm not interested in dealing with their regulations. That might not bother you though.
If you rent out rooms, that is probably going to be your best bet in the NoVa area. Not much looks great from a price/rent ratio in NOVA, but a lot of times the numbers are better for THs than SFHs. Also the TH layout may be more suitable for a roommate situation.
Although there are some condos that look affordable, by the time you factor in the condo fees and the potential difficulty in selling them, they look a lot less appealing.
I have Buy/Hold in the Manassas area, where the better cash flow seems to be in Town homes. But even those have risen quite a bit in the last few years, and it's getting harder. I've lived in NOVA for 16 years and most all of the MF 2-4 type seem to be closer in toward DC...Arlington, Alexandria, where the prices are very high. I've recently been considering looking into the market in Warrenton and Culpepper, and even Richmond and the Hampton area. The "NOVA" area just keeps expanding.
I'm trying to stay at 1%-1.5% monthly rent to total purchase price for my rentals in Fredericksburg and Stafford area. Although it doesn't generate 2% rent like other areas of the country, Fredericksburg area offers a strong buyer pool as people in government and defense industry constantly moving in and out of the area. Knowing I can unload my portfolio at market rate fairly quickly if needed adds quite some value to my long term investment strategy. To me that Fredericksburg area is just the sweet spot between PW county and Spotsylvania or Caroline county.
There really aren't very many multi-families in Stafford at all. There are some in Fredericksburg but I'm really not in a position to speak about these knowledgeably.
There are definitely single family homes available and they can cash flow as I mentioned, but they are not as profitable as other areas of the country (from what I hear on the podcasts). If you really want profit and don't mind owning remote properties, I'd suggest looking elsewhere. If you have to have something close by, Stafford and Fredericksburg may be good options for you.
Have you looked into Winchester? I don't know anything about the real estate market there but it just seems like it would be a good idea to investigate it.
I haven't looked much into Winchester. I have more research to do in that area. I'm open to investigating any potential markets that could provide cash flow.
It's not a necessity for me to own properties close by, but I would feel more secure making my first investments in areas within driving distance.
I have Buy/Hold in the Manassas area, where the better cash flow seems to be in Town homes. But even those have risen quite a bit in the last few years, and it's getting harder. I've lived in NOVA for 16 years and most all of the MF 2-4 type seem to be closer in toward DC...Arlington, Alexandria, where the prices are very high. I've recently been considering looking into the market in Warrenton and Culpepper, and even Richmond and the Hampton area. The "NOVA" area just keeps expanding.
The more I learn about the NOVA market, the more I am beginning to think that my original hope of house-hacking a 2-4 MF family just doesn't make sense. All indications point to the pricing in the area being too high, and that doesn't seem like the right situation for a new college graduate looking for cash flow.
Richmond has come to mind as a potential market as well. I'd be interested to see what areas you thought have good investment potential, if any.
I'm trying to stay at 1%-1.5% monthly rent to total purchase price for my rentals in Fredericksburg and Stafford area. Although it doesn't generate 2% rent like other areas of the country, Fredericksburg area offers a strong buyer pool as people in government and defense industry constantly moving in and out of the area. Knowing I can unload my portfolio at market rate fairly quickly if needed adds quite some value to my long term investment strategy. To me that Fredericksburg area is just the sweet spot between PW county and Spotsylvania or Caroline county.
1%-1.5% is much better than anything I've seen up my way.
im new to BP but i live in the fredericksburg area and im just starting to actually invest. I rehabbed and sold a house a few months back. In my opinion there are deals to be had in this area and of u want to cash flow i recommend the town house market.
I own a rental in Manassas area and I don't get much cash flow. I also just bought a TH in Annandale as a primary resident and I am house hacking to help out with mortgage. When looking at the numbers for NOVA areas, even if you rent/buy a house and rent out all rooms, you'll most likely just break even. It's a tough market. I'm trying to figure out my next move also, I keep my eyes open but it's been def hard. Thinking about looking into Maryland. I'm also wondering what other NOVA investors are doing. I see some potential in big properties in DC but mostly are like 1mil for MF, apartment complexes etc.
im new to BP but i live in the fredericksburg area and im just starting to actually invest. I rehabbed and sold a house a few months back. In my opinion there are deals to be had in this area and of u want to cash flow i recommend the town house market.