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...
@Mike Hudson 24k on a flip in the area is pretty good, I'd be interested in partnering on flips or buy/holds if there are other opportunties in the area. i started to look on Redfin, prices seem decent even for SF, I still have to check how much rent goes for though
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...
Do you believe the Metro will make home values appreciate?
Will rent prices go up when new Metro stops open close by the rental property?
I ask this since the Metro is planned to go into Loudoun county in the next 5-10 years. I figure this may create higher rental prices since people will be able to get to the airport and into DC much easier.
Yup of course it does, I believe Metro is one of the biggest reasons for higher home values and rental prices. Once Loudon gets that stop, it should be able to go all the way into DC. I know a lot of young adults who can't afford in Fairfax now are going out that way because of the Silver Line and houses are cheaper to buy. They won't have to drive all the way to Vienna or any other metro station to get to DC for work etc
I figured as much, but I just wanted to check with others' opinions.
The area is definitely hard to make cash flow. If anyone has any opportunities for deals and/or partnerships within the general NOVA area, let me know! I'm searching for a 2-4 unit within an hour or so driving, i.e. Winchester.
Do you believe the Metro will make home values appreciate?
Will rent prices go up when new Metro stops open close by the rental property?
I ask this since the Metro is planned to go into Loudoun county in the next 5-10 years. I figure this may create higher rental prices since people will be able to get to the airport and into DC much easier.
The metro has the potential to be a game changer, but it isn't a guaranteed boost to property values. It also starts to get priced into purchase prices before stations are complete.
I think the impact to rentals may be more dramatic, but there also is a danger of over-development. If something in the path of the metro is a good investment, the metro could make a great one. But just being in the path of the metro won't make a property a good investment.
One thing I see happening near the Herndon site is a lot of commercial property vacancies. I think this is because landlords are trying to price it into leases and companies aren't willing to pay for something that far on the horizon.
Just happened to run across this post. I wholesale in Winchester. I work with several full time re investors that are buying rentals from 20k to 70k and renting for 700. Sometimes less or more depending on property. For flips Winchester homes @ 150k and under fly off the shelf. Average house price is around 220k last I looked.
As far as a market goes Winchester has always been a gem. Diverse in economy, traffic flows from rt. 81, 66, 11 through and around it. Commuters to nova and dc are abundant. Has a good mix of life from country people like me to city and suburban. I could go on and on.
Just my 2 cents.
Just happened to run across this post. I wholesale in Winchester. I work with several full time re investors that are buying rentals from 20k to 70k and renting for 700. Sometimes less or more depending on property. For flips Winchester homes @ 150k and under fly off the shelf. Average house price is around 220k last I looked.
As far as a market goes Winchester has always been a gem. Diverse in economy, traffic flows from rt. 81, 66, 11 through and around it. Commuters to nova and dc are abundant. Has a good mix of life from country people like me to city and suburban. I could go on and on.
Just my 2 cents.
Interesting info about Winchester.
How are most of these 20k-70k leads being generated?
@Mike Hudson my ideal next move would be a flip if possible just to generate some cash. After a flip or two, I would like to do a multi-fam rental. Maybe we can talk to Logan about his properties
RE: the DC market. FYI - Saw this on our local MLS (M.R.I.S) today. See Core-logic article below indicating DC is one of the most overvalued markets. For more specific/granular information, if you have a real estate license, check out Getsmartcharts to delve in to historical appreciation by zip code, house type, neighborhood, etc. in the areas that are served by M.R.I.S.
In Northern Virginia, try the Caza Meetup group for Investors that is held the first Tuesday night of every month that is held out in Reston. It is hosted by Rob Chevez of KW and his development partners Lance Perscha and Mark Beckett. There are lots of seasoned investors in the room and at least in the past, there has been no selling. Every month they speak on a topic. This months topic is Rehabbing for big profit. Traction REIA holds a monthly meeting in Tysons/Falls Church, but they are more traditional in that they are usually pushing a product or a system.
In Northern Virginia, try the Caza Meetup group for Investors that is held the first Tuesday night of every month that is held out in Reston. It is hosted by Rob Chevez of KW and his development partners Lance Perscha and Mark Beckett. There are lots of seasoned investors in the room and at least in the past, there has been no selling. Every month they speak on a topic. This months topic is Rehabbing for big profit. Traction REIA holds a monthly meeting in Tysons/Falls Church, but they are more traditional in that they are usually pushing a product or a system.
Thank you, Chris! I will heed your advice and look into Caza.
Capital REI is a great group of people, and while they do allow for members to present current available deals, there is no selling of any products or the like.
@Rafael Reynoso I have attended Traction REIA as well and while they do have guest speakers and there is up sale, it is still a good opportunity to connect with local investors.
My goal is to do 1 flip each quarter for the next year to build up my cash reserves. I need to find (1) a experienced investor to help past this first deal and (2) a great general contractor to assist with ensuring I am properly estimating repair costs.
I don't know if I should be encouraged or discouraged by this post and comments regarding the NOVA market. I am still trying to build resources and more courage to do my first flip, focusing on Fairfax County markets. This past weekend I focused on looking at vacant properties on the code violation list, using the old worst house in a great neighborhood. I am in the process of tracking down the owners.
Here are numbers on a couple of vacant houses, I know the cost estimates are high as I have not seen the interiors and exteriors of some indicate some extensive rehab will be required and I'd rather overestimate than underestimate costs.
Property 1 (4 bed/2 bath, 1224 sq ft)
All brick house, online photos of inside show it has been demo down to studs (neighbor told me someone installed drywall about 3 months ago, but no one has returned since then.) Mailbox is packed with old mail, this was not on my original list, it was total drive for dollars find:
ARV: $534,133
Required Minimum Profit: $25,000 (to meet my 1 year goal of $100k reserves)
Repair Cost: $80,000 (large contingency)
Realtor fees @ 6%: $32,047
3-4 Month Holding Cost @ 10% (if I use hard money): $53,413
Closing Cost @ 4.5%: $24k
MAO: $319,635 (target cash purchase price $300k to $309k)