Northern Virginia Market Information

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Northern Virginia Market Information

Hunter L.
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!
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William RandolphPro Member
Investor · Hampton, VA · Member since 2014 · 38 posts · 18 votes
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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...

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  • Roger Lin
    Burke, VA · Member since 2013 · 163 posts · 63 votes
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    Carson:Thanks for talking up our group! I got to check out Caza some time. I've heard good things about it too. I am really glad that there are other groups that don't just up sell. I understand it's a way to pay for the rent and everything but the nature of the meeting shifts when it becomes more about the marketing. 

    In my opinion, seasoned investors really just want a place to meet and get the latest updates on market information and things that people are doing. New/recent investors really need a place to learn from people they can trust. I am glad we are providing that at the Capital REI and others are doing the same thing. This is grassroots real estate investing!

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  • Jimmy Nguyen
    Investor · Annandale, VA · Member since 2015 · 54 posts · 10 votes
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    @Cheryl P. I have a great contractor if you ever need one for any of your investments. He has come up half of the cost as other contractors I have gotten estimates for. 

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  • Cheryl P.
    Rental Property Investor · Indianapolis, IN · Member since 2014 · 105 posts · 43 votes
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    @jimmy Nguyen absolutely interested in getting your contractor referral.  I'll IM you.  Thanks

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  • Cheryl P.
    Rental Property Investor · Indianapolis, IN · Member since 2014 · 105 posts · 43 votes
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    Ok, now that I figured out how the @member name feature works, I say again@Jimmy Nguyen I would be grateful for your contractor referral.

    Thanks,
     

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  • Sam Sharata
    Real Estate Agent · Annandale, VA · Member since 2015 · 30 posts · 15 votes
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    A very interesting discussion thread, and while it is true that you will be hard pressed to find a positive cash flowing (or high cap rate) investment in the NOVA area, I found that buy and hold to be an effective investment strategy for this area. You will be building equity while having a tenant or roommate subsidize the purchase of your investment. This is especially beneficial if you can manage your own properties.

    After 11 years, I am selling 2 rental townhomes in the Northern Virginia area. One is located in the Pinecrest Heights community of Annandale, close to 395 and Duke Street, and the other is located in the Carlyn Springs community in Falls Church (close to Bailey's Crossroads). Both properties have been fully updated and are completely turnkey, so you don't need to do anything but either rent them out or move in and start enjoying. 

    They are both currently rented and will be vacated by the end of July. Current tenants have taken excellent care of the places, so they will be ready for immediate occupancy with little or no rehab.

    You may view them on Craigslist here: http://washingtondc.craigslist.org/nva/reo/5055430...

    and here:

    http://washingtondc.craigslist.org/nva/reo/5054501...

    These homes are not foreclosures, short sales, or flips, and the prices listed reflect a realtor commission. I am looking to sell these properties before the end of June and close by the end of July. I am open to reasonable offers, especially if we can forgo the realtor fees, so drop me a line if you're interested.

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  • Brian C.
    Baltimore, MD · Member since 2015 · 80 posts · 18 votes
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    @Jimmy Nguyen I would be interested in your GC referral as well. Do they do DC as well?

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  • Jimmy Nguyen
    Investor · Annandale, VA · Member since 2015 · 54 posts · 10 votes
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    Hey @Brian C. DM me when you're ready! Right now, only VA

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  • Lacey Russell
    Investor · Ogden, UT · Member since 2014 · 24 posts · 18 votes
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    I'm a realtor that focuses on working with investors in the greater DC/ northern VA area. From what I've seen:


    1. Best areas for multi-family investments - there's a ton of activity in the district for this. I've seen a lot of investor activity in NE and NW DC for multifamily or small mixed use (store on bottom, 2+ apartments above), most of these are rehabs, sometimes they'll sell the upper units and lease the commercial space.


    2. Best areas for single family for buy and hold - this is much more geographically specific. Taxes and HOAs vary so much between counties and states that it's hard to make generalizations. If you're interested you can message me and we talk about what your goals are and your financing options and can narrow it down from there. Buy and hold is tricky in this area because in a lot of places you simply can't get the numbers to work; that being said there are areas where the numbers will work, but it's more of a case by case basis.


    3. Areas currently focusing on - Prince Georges and Baltimore county have been huge national investment hotspots (especially for rehabs). I know different investors that have different goals in mind that focus on different areas. Some like to purchase newer houses to rent in loudoun county because they don't plan on staying in the area and maintenance costs over the next 20 years are typically lower with newer homes. Some like woodbridge, burke, manassas, centreville in VA for buy and holds. It's all based on what they're comfortable with.

    I know a lot of people became unintentional landlords by purchasing homes in 2005-2008 and the current value isn't back up to what they bought it at but they've had to move. With lower interest rates in the past few years many have refinanced, and rented out their home for a monthly profit.

    Hope this is helpful

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  • Jon Dow
    Wholesaler · Bristow, VA · Member since 2015 · 21 posts · 8 votes
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    Anyone know of an investor friendly title company in Prince William County (prefer one in Manassas). Thanks.

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  • Eddy Dumire
    Investor · Stafford, VA · Member since 2014 · 246 posts · 83 votes
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    @Jon Dow

    I'm a very loyal customer of Nageotte, Nageotte, and Nageotte (aka lawyer's title) in Stafford (off 610).  I know they're not very close to you, but if it were me, I would drive from Manassas to use them. www.nageottelawfirm.com

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  • Kevin L.
    Residential Real Estate Agent · Ashburn, VA · Member since 2015 · 35 posts · 4 votes
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    Haven't read every post, but here is my thoughts.

    I devide monthly rent by house price (in thousands), example, a 300k house with 2000 rent, its 2000/300=0.67.

    If you get <0.55, its unlikely generate positive cash flow, i.e. not great investment.

    If you get <0.6-0.65, its an "OK" investment property, very likely, no cash flow, but no cash in to maintain the mortgage either.

    If you get >0.7, its a good investment property.

    Any number in between, are all case by case.

    Certainly, those numbers are not bible, every house / community is different, but when I do CMA on rent/house for the same community, DOMP, ... ... I get a good idea if this will make a good investment property.

    1Reply
  • Edson Cortes
    Palm Beach Gardens, FL · Member since 2015 · 10 posts · 4 votes
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    Just had a chance to catch up on this thread, but really enjoying this one! As a beginner in REI in the NoVa area, I can completely relate to a lot of these posts. It's not easy to get started in this area since, as it's been mentioned many times already, it's hard to get the numbers to work. I've focused a lot of my searches in MD (PG County and Baltimore) and VA (Woodbridge, Manassas, and Stafford), but like the thought of looking NW in VA (ie Winchester).

    It's also cool to see people partnering up on deals, like @Jimmy Nguyen and @Mike Hudson about Logan's properties. Not sure if you guys partnered up, but if you did and are interested in a 3rd wheel, feel free to message me directly.

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  • Cheryl M.
    Bristow, VA · Member since 2015 · 1 post · 0 votes
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    I am looking for a few things to get rolling with wholesaling and to build up my cash reserves. If anyone is able to help I would greatly appreciate it. I am eager to start as the tuition bill is a knocking. (I am looking at properties in the Gainesville, Manssas, Fredericksburg, Stafford, Woodbridge, as well as potentially Hampton/New Port News areas)

    * Cash buyers

    * a wholesale friendly title company in NOVA/Or title service any of VA that can possibly work virtually

    * a contractor who is willing to work with me to get repair cost estimates and in the future work on rehabs. 

    Thanks ahead of time, Cheryl

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  • Eddy Dumire
    Investor · Stafford, VA · Member since 2014 · 246 posts · 83 votes
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    @Cheryl M.

    I'm buying in Stafford and Fredericksburg if you find something. I generally look for both SFRs and townhouses that need some work but are less than 25 years old or so. I'm a buy and hold investor but aim for a BRRRR strategy.

    I'm looking forward to doing business together.

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  • Nathan W.
    Alexandria, VA · Member since 2014 · 140 posts · 45 votes
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    Originally posted by @Hunter L.:

    Older thread, but going to revive it anyway with my advice. If you can swing it, get into a SFR with a basement and convert it to a studio. There is a LOT of potential for that in this area, with studio rents in some areas up to $1200/month. You will find that this quickly covers the renovation rehab and puts a nice little check into your pocket every month.

    SFR's can be expensive, but look at one that needs a little TLC since you will be rehabbing it anyway. With FHA loans, you can put 3.5% down and hopefully you are ina better situation than renting.

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  • Hunter L.
    OP
    Investor · McLean, VA · Member since 2013 · 53 posts · 18 votes
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    Thanks for the reply, Nathan. SFR's are on my radar. Do you think that any of the SFR deals out there would be able to cash flow with an FHA loan at 3.5-5% down? They seem pretty tight with 20% down. I spoke with a local investor recently who told me that my best bet for cash flow in the area was in townhouses. Do you have an opinion on that?
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
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    In regards to making the basement a studio - in fairfax county and most of NOVA be careful as it is illegal to do so. In regards to cash flow on FHA at only 3.5% down and paying PMI it will not happen in northern Virginia. Northern Virginia market is not a cash flowing market at purchase. Two options are to buy and hold and build equity in property or fix and flip (which is super tough because of so many people in the area doing it) This is just a tough area to get into without a lot of cash and being well connected.
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  • Nathan W.
    Alexandria, VA · Member since 2014 · 140 posts · 45 votes
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    Originally posted by @Hunter L.:
    Thanks for the reply, Nathan. SFR's are on my radar. Do you think that any of the SFR deals out there would be able to cash flow with an FHA loan at 3.5-5% down? They seem pretty tight with 20% down.

    I spoke with a local investor recently who told me that my best bet for cash flow in the area was in townhouses. Do you have an opinion on that?

     No I don't, but instead of thinking of your residence as a cash machine, think of it as a way to build up your equity like the poster above me stated while reducing your debt burden by taking on a roommate.  He is right that many municipalities in NOVA prohibit an "ACTUAL" studio being built, but there are many nuances to that which will allow you to build out a nearly separate unit that still meets their ridiculous requirements.  

    If you can get a mortgage on a $500k place and rent out your basement for $1200, you have just cut your mortgage in half.  That is a good price of admission to me.  Controlling a half a million dollar asset for half the cost (and basically less than what you would be paying for rent anyway).

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  • Hunter L.
    OP
    Investor · McLean, VA · Member since 2013 · 53 posts · 18 votes
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    For the Fredericksburg investors: what are the hot neighborhoods in Fredericksburg and what are the neighborhoods to avoid?
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  • Maritza Davis
    Wholesaler · Chantilly, VA · Member since 2015 · 10 posts · 0 votes
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    @Hunter L.

    Hey! how is your search going? did u get to look into Fredericksburg?

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  • Hunter L.
    OP
    Investor · McLean, VA · Member since 2013 · 53 posts · 18 votes
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    @Maritza Davis

    So far I've determined that Fredericksburg is my favorite market within driving distance on a macro-level. I need to learn more about the individual neighborhoods.

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  • Joel Huff
    Stafford, VA · Member since 2015 · 7 posts · 1 vote
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    Hi Nick Ye!,

    I'm a very new investor whose beginning focus is wholesaling. Because you

    spot Fredericksburg as a potential sweet spot, any knowledge of potential cash buyers in the area would be appreciated.

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  • Eddy Dumire
    Investor · Stafford, VA · Member since 2014 · 246 posts · 83 votes
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    @Joel Huff As I mentioned above, I'm buying in the Fredericksburg area.  Let me know when you find something.

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  • Moe Rehman
    Fairfax, VA · Member since 2016 · 11 posts · 3 votes
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    @Hunter L.

    I'm a new member and very interested in interesting in real estate. I was reading through the discussion on this post and was wondering have you had any luck with finding potential properties within the Northern VA area that you can rent out and potentially generate cash flow?

    Thanks and I look forward to hearing from you. 

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  • Jessica Swingle
    Springfield, OH · Member since 2012 · 155 posts · 50 votes
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    @Hunter L.

    For Winchester and Front Royal insights you may want to chat with @Ben McMahon. He is an experienced income and rehab investor/contractor out there ~ knows the market intimately. 

    As for the Meetup groups, I've found the best way to vet them is to attend one event and check out the "vibe." Some groups are higher quality than others. I started a list of local groups ~ email me and I can send it to you. There are over 20 Meetup groups in our region alone (and counting). 

    I also have an investor/Realtor contact for you in Fredericksburg. Again, feel free to email me for Jay's info (last time I published contact info on BP they deleted my post). He's a super nice guy and is very active in the market. 

    Hope this helps!

    ~ Jessica 

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