New Investor Looking to House Hack near Washington D.C.!

Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes

Hey BiggerPockets! I am a senior graduating from Virginia Tech in May and getting married in November :) For the last six months, I've analyzed a real estate deal every day, listened to over 100 BP podcasts, read The House Hacking Strategy, and I'm currently reading Long-Distance Real Estate Investing.

My fiance and I are hoping to set up our first house hack sometime before we get married, and are looking in this purple area!

Where would you all recommend investing? I have been looking at single-family homes in the Fort Washington area, and the numbers seem to work out alright there. Does anyone have experience in this area? Does anyone know what room rentals are worth in Fort Washington?

My fiance and I care less about how the numbers work while we're living in the property and care more about how the numbers will work after we move out in one year. The plan is to move once a year for five years, turning each former house hack into a rental property when we leave. We have nearly no home repair/renovation experience, but we've put a bunch of tools on our wedding registry and we love to learn! Really looking forward to meeting some fellow DMV investors and connecting with other BP members! :)

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Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

This really depends on your price point. More moderate prices SFH in Ft Washington or rowhouse/multi in Deanwood. More expensive price point Capitol Hill multifamily. SFH in Alexandria.

Hey @Russel Brazil, thanks for the reply! We're definitely thinking about starting at a lower price point for our first property and then maybe moving into the higher price but higher rent areas for our second. Is this a good strategy? Downpayment shouldn't be an issue, we're both engineers and should be earning a good wage. If we've got the funds, does it make sense to buy a more expensive property? We originally thought about Alexandria, but I just couldn't find a way in my analysis to make the numbers work there.

We are in a rising interest rate environment. So Im trying to lock in as much low interest debt as I can. The era of sub 4% rates has come to an end, and I think we will never see it again in our lifetimes.

I know, it kills me that I won't be graduated and start my higher-earning job until this summer!! I'll probably have missed the low-interest rate train by just a few months. I remember in your BP podcast episode you were talking about investing in areas with high rent growth to make the numbers work in our expensive market. If you were going to house hack anywhere in the map I posted, with the hopes of cash flowing after you move out of the property, where would you do it?

Shaw, Columbia Heights, Noma, Kingman Park, Capitol Hill. Im actually planning on purchasing a multifamily in that stretch of the city this year.

Oh okay, so you would definitely go into DC proper then. I originally considered purchasing multifamily there, but everything seems to be in the millions of dollars. Are you buying a rowhome and then turning it into a multi? With a quick check on Zillow, it doesn't look like there's anything in Capitol Hill or NOMA that would even remotely cashflow. My fiance and I should have a combined income of around $150k, how expensive would you go if you were in the same position? I really appreciate your time and advice :)

All properties (with paying tenants) cashflow. I'll say it again....all properties cash flow.

Now when you say they dont cash flow....it is probably not the property you are talking about that isnt cash flowing, but rather the debt service that is causing the issue. If you are too highly leveraged, then your debt service may create a negative cash flow, but it is vitally important to understand that the issue isnt with the property, it is with the individual person taking on a highly leveraged position.

There are ways to improve the amount of rent a property can yield in certain circumstances as well. There are 4 major ways to look at how much a unit can rent for in the DC area, all with widely drastic rent amounts.

1) Market Rate Rent

2) Section 8 Rent

3) Rent By the Room

4) Corporate Rental.

Each will yield a different rental amount, and will have pluses and minuses based on the specific location.

Just as an example, in Kingman Park on a rowhouse, you might get $4,000 a month in a Market Rate Rental, but $5,757 on a section 8 rental on the same house. So in that neighborhood, Id be doing Section 8 for instance.

[email protected]301-893-4635 Podcast Guest on Show #192

District Invest Group545 Reviews

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y
Quote from @Alex Petsopoulos:

Hey BiggerPockets! I am a senior graduating from Virginia Tech in May and getting married in November :) For the last six months, I've analyzed a real estate deal every day, listened to over 100 BP podcasts, read The House Hacking Strategy, and I'm currently reading Long-Distance Real Estate Investing.

My fiance and I are hoping to set up our first house hack sometime before we get married, and are looking in this purple area!
Where would you all recommend investing? I have been looking at single-family homes in the Fort Washington area, and the numbers seem to work out alright there. Does anyone have experience in this area? Does anyone know what room rentals are worth in Fort Washington?
My fiance and I care less about how the numbers work while we're living in the property and care more about how the numbers will work after we move out in one year. The plan is to move once a year for five years, turning each former house hack into a rental property when we leave. We have nearly no home repair/renovation experience, but we've put a bunch of tools on our wedding registry and we love to learn! Really looking forward to meeting some fellow DMV investors and connecting with other BP members! :)

This really depends on your price point. More moderate prices SFH in Ft Washington or rowhouse/multi in Deanwood. More expensive price point Capitol Hill multifamily. SFH in Alexandria.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
1 Reply
Justin WindhamPro Member
Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
4y
@Alex Petsopoulos
Welcome to Bigger Pockets!

You’ll find plenty of friendly, knowledgeable people willing to respond to your posts.

The site has quite a few tools that can be helpful for new members. For example, if you are looking to connect with other members near you, want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users

I really like the alerts feature that can quickly guide you to current topics that may be of interest: http://www.biggerpockets.com/alerts
0 Reply
Alex Petsopoulos
OP
Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
4y
Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Hey BiggerPockets! I am a senior graduating from Virginia Tech in May and getting married in November :) For the last six months, I've analyzed a real estate deal every day, listened to over 100 BP podcasts, read The House Hacking Strategy, and I'm currently reading Long-Distance Real Estate Investing.

My fiance and I are hoping to set up our first house hack sometime before we get married, and are looking in this purple area!
Where would you all recommend investing? I have been looking at single-family homes in the Fort Washington area, and the numbers seem to work out alright there. Does anyone have experience in this area? Does anyone know what room rentals are worth in Fort Washington?
My fiance and I care less about how the numbers work while we're living in the property and care more about how the numbers will work after we move out in one year. The plan is to move once a year for five years, turning each former house hack into a rental property when we leave. We have nearly no home repair/renovation experience, but we've put a bunch of tools on our wedding registry and we love to learn! Really looking forward to meeting some fellow DMV investors and connecting with other BP members! :)

This really depends on your price point. More moderate prices SFH in Ft Washington or rowhouse/multi in Deanwood. More expensive price point Capitol Hill multifamily. SFH in Alexandria.

Hey @Russel Brazil, thanks for the reply! We're definitely thinking about starting at a lower price point for our first property and then maybe moving into the higher price but higher rent areas for our second. Is this a good strategy? Downpayment shouldn't be an issue, we're both engineers and should be earning a good wage. If we've got the funds, does it make sense to buy a more expensive property? We originally thought about Alexandria, but I just couldn't find a way in my analysis to make the numbers work there.

0 Reply
Alex Petsopoulos
OP
Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
4y
Thanks, @Justin Windham! I'm looking forward to getting to know the community better, and I'll definitely check out the alerts and search features. :)
1 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y
Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Hey BiggerPockets! I am a senior graduating from Virginia Tech in May and getting married in November :) For the last six months, I've analyzed a real estate deal every day, listened to over 100 BP podcasts, read The House Hacking Strategy, and I'm currently reading Long-Distance Real Estate Investing.

My fiance and I are hoping to set up our first house hack sometime before we get married, and are looking in this purple area!
Where would you all recommend investing? I have been looking at single-family homes in the Fort Washington area, and the numbers seem to work out alright there. Does anyone have experience in this area? Does anyone know what room rentals are worth in Fort Washington?
My fiance and I care less about how the numbers work while we're living in the property and care more about how the numbers will work after we move out in one year. The plan is to move once a year for five years, turning each former house hack into a rental property when we leave. We have nearly no home repair/renovation experience, but we've put a bunch of tools on our wedding registry and we love to learn! Really looking forward to meeting some fellow DMV investors and connecting with other BP members! :)

This really depends on your price point. More moderate prices SFH in Ft Washington or rowhouse/multi in Deanwood. More expensive price point Capitol Hill multifamily. SFH in Alexandria.

Hey @Russel Brazil, thanks for the reply! We're definitely thinking about starting at a lower price point for our first property and then maybe moving into the higher price but higher rent areas for our second. Is this a good strategy? Downpayment shouldn't be an issue, we're both engineers and should be earning a good wage. If we've got the funds, does it make sense to buy a more expensive property? We originally thought about Alexandria, but I just couldn't find a way in my analysis to make the numbers work there.

We are in a rising interest rate environment. So Im trying to lock in as much low interest debt as I can. The era of sub 4% rates has come to an end, and I think we will never see it again in our lifetimes.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
1 Reply
Alex Petsopoulos
OP
Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
4y
Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Hey BiggerPockets! I am a senior graduating from Virginia Tech in May and getting married in November :) For the last six months, I've analyzed a real estate deal every day, listened to over 100 BP podcasts, read The House Hacking Strategy, and I'm currently reading Long-Distance Real Estate Investing.

My fiance and I are hoping to set up our first house hack sometime before we get married, and are looking in this purple area!
Where would you all recommend investing? I have been looking at single-family homes in the Fort Washington area, and the numbers seem to work out alright there. Does anyone have experience in this area? Does anyone know what room rentals are worth in Fort Washington?
My fiance and I care less about how the numbers work while we're living in the property and care more about how the numbers will work after we move out in one year. The plan is to move once a year for five years, turning each former house hack into a rental property when we leave. We have nearly no home repair/renovation experience, but we've put a bunch of tools on our wedding registry and we love to learn! Really looking forward to meeting some fellow DMV investors and connecting with other BP members! :)

This really depends on your price point. More moderate prices SFH in Ft Washington or rowhouse/multi in Deanwood. More expensive price point Capitol Hill multifamily. SFH in Alexandria.

Hey @Russel Brazil, thanks for the reply! We're definitely thinking about starting at a lower price point for our first property and then maybe moving into the higher price but higher rent areas for our second. Is this a good strategy? Downpayment shouldn't be an issue, we're both engineers and should be earning a good wage. If we've got the funds, does it make sense to buy a more expensive property? We originally thought about Alexandria, but I just couldn't find a way in my analysis to make the numbers work there.

We are in a rising interest rate environment. So Im trying to lock in as much low interest debt as I can. The era of sub 4% rates has come to an end, and I think we will never see it again in our lifetimes.
I know, it kills me that I won't be graduated and start my higher-earning job until this summer!! I'll probably have missed the low-interest rate train by just a few months. I remember in your BP podcast episode you were talking about investing in areas with high rent growth to make the numbers work in our expensive market. If you were going to house hack anywhere in the map I posted, with the hopes of cash flowing after you move out of the property, where would you do it?
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y
Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Hey BiggerPockets! I am a senior graduating from Virginia Tech in May and getting married in November :) For the last six months, I've analyzed a real estate deal every day, listened to over 100 BP podcasts, read The House Hacking Strategy, and I'm currently reading Long-Distance Real Estate Investing.

My fiance and I are hoping to set up our first house hack sometime before we get married, and are looking in this purple area!
Where would you all recommend investing? I have been looking at single-family homes in the Fort Washington area, and the numbers seem to work out alright there. Does anyone have experience in this area? Does anyone know what room rentals are worth in Fort Washington?
My fiance and I care less about how the numbers work while we're living in the property and care more about how the numbers will work after we move out in one year. The plan is to move once a year for five years, turning each former house hack into a rental property when we leave. We have nearly no home repair/renovation experience, but we've put a bunch of tools on our wedding registry and we love to learn! Really looking forward to meeting some fellow DMV investors and connecting with other BP members! :)

This really depends on your price point. More moderate prices SFH in Ft Washington or rowhouse/multi in Deanwood. More expensive price point Capitol Hill multifamily. SFH in Alexandria.

Hey @Russel Brazil, thanks for the reply! We're definitely thinking about starting at a lower price point for our first property and then maybe moving into the higher price but higher rent areas for our second. Is this a good strategy? Downpayment shouldn't be an issue, we're both engineers and should be earning a good wage. If we've got the funds, does it make sense to buy a more expensive property? We originally thought about Alexandria, but I just couldn't find a way in my analysis to make the numbers work there.

We are in a rising interest rate environment. So Im trying to lock in as much low interest debt as I can. The era of sub 4% rates has come to an end, and I think we will never see it again in our lifetimes.
I know, it kills me that I won't be graduated and start my higher-earning job until this summer!! I'll probably have missed the low-interest rate train by just a few months. I remember in your BP podcast episode you were talking about investing in areas with high rent growth to make the numbers work in our expensive market. If you were going to house hack anywhere in the map I posted, with the hopes of cash flowing after you move out of the property, where would you do it?

Shaw, Columbia Heights, Noma, Kingman Park, Capitol Hill. Im actually planning on purchasing a multifamily in that stretch of the city this year.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
0 Reply
Alex Petsopoulos
OP
Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
4y
Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Hey BiggerPockets! I am a senior graduating from Virginia Tech in May and getting married in November :) For the last six months, I've analyzed a real estate deal every day, listened to over 100 BP podcasts, read The House Hacking Strategy, and I'm currently reading Long-Distance Real Estate Investing.

My fiance and I are hoping to set up our first house hack sometime before we get married, and are looking in this purple area!
Where would you all recommend investing? I have been looking at single-family homes in the Fort Washington area, and the numbers seem to work out alright there. Does anyone have experience in this area? Does anyone know what room rentals are worth in Fort Washington?
My fiance and I care less about how the numbers work while we're living in the property and care more about how the numbers will work after we move out in one year. The plan is to move once a year for five years, turning each former house hack into a rental property when we leave. We have nearly no home repair/renovation experience, but we've put a bunch of tools on our wedding registry and we love to learn! Really looking forward to meeting some fellow DMV investors and connecting with other BP members! :)

This really depends on your price point. More moderate prices SFH in Ft Washington or rowhouse/multi in Deanwood. More expensive price point Capitol Hill multifamily. SFH in Alexandria.

Hey @Russel Brazil, thanks for the reply! We're definitely thinking about starting at a lower price point for our first property and then maybe moving into the higher price but higher rent areas for our second. Is this a good strategy? Downpayment shouldn't be an issue, we're both engineers and should be earning a good wage. If we've got the funds, does it make sense to buy a more expensive property? We originally thought about Alexandria, but I just couldn't find a way in my analysis to make the numbers work there.

We are in a rising interest rate environment. So Im trying to lock in as much low interest debt as I can. The era of sub 4% rates has come to an end, and I think we will never see it again in our lifetimes.
I know, it kills me that I won't be graduated and start my higher-earning job until this summer!! I'll probably have missed the low-interest rate train by just a few months. I remember in your BP podcast episode you were talking about investing in areas with high rent growth to make the numbers work in our expensive market. If you were going to house hack anywhere in the map I posted, with the hopes of cash flowing after you move out of the property, where would you do it?

Shaw, Columbia Heights, Noma, Kingman Park, Capitol Hill. Im actually planning on purchasing a multifamily in that stretch of the city this year.
Oh okay, so you would definitely go into DC proper then. I originally considered purchasing multifamily there, but everything seems to be in the millions of dollars. Are you buying a rowhome and then turning it into a multi? With a quick check on Zillow, it doesn't look like there's anything in Capitol Hill or NOMA that would even remotely cashflow. My fiance and I should have a combined income of around $150k, how expensive would you go if you were in the same position? I really appreciate your time and advice :)
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y
Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Hey BiggerPockets! I am a senior graduating from Virginia Tech in May and getting married in November :) For the last six months, I've analyzed a real estate deal every day, listened to over 100 BP podcasts, read The House Hacking Strategy, and I'm currently reading Long-Distance Real Estate Investing.

My fiance and I are hoping to set up our first house hack sometime before we get married, and are looking in this purple area!
Where would you all recommend investing? I have been looking at single-family homes in the Fort Washington area, and the numbers seem to work out alright there. Does anyone have experience in this area? Does anyone know what room rentals are worth in Fort Washington?
My fiance and I care less about how the numbers work while we're living in the property and care more about how the numbers will work after we move out in one year. The plan is to move once a year for five years, turning each former house hack into a rental property when we leave. We have nearly no home repair/renovation experience, but we've put a bunch of tools on our wedding registry and we love to learn! Really looking forward to meeting some fellow DMV investors and connecting with other BP members! :)

This really depends on your price point. More moderate prices SFH in Ft Washington or rowhouse/multi in Deanwood. More expensive price point Capitol Hill multifamily. SFH in Alexandria.

Hey @Russel Brazil, thanks for the reply! We're definitely thinking about starting at a lower price point for our first property and then maybe moving into the higher price but higher rent areas for our second. Is this a good strategy? Downpayment shouldn't be an issue, we're both engineers and should be earning a good wage. If we've got the funds, does it make sense to buy a more expensive property? We originally thought about Alexandria, but I just couldn't find a way in my analysis to make the numbers work there.

We are in a rising interest rate environment. So Im trying to lock in as much low interest debt as I can. The era of sub 4% rates has come to an end, and I think we will never see it again in our lifetimes.
I know, it kills me that I won't be graduated and start my higher-earning job until this summer!! I'll probably have missed the low-interest rate train by just a few months. I remember in your BP podcast episode you were talking about investing in areas with high rent growth to make the numbers work in our expensive market. If you were going to house hack anywhere in the map I posted, with the hopes of cash flowing after you move out of the property, where would you do it?

Shaw, Columbia Heights, Noma, Kingman Park, Capitol Hill. Im actually planning on purchasing a multifamily in that stretch of the city this year.
Oh okay, so you would definitely go into DC proper then. I originally considered purchasing multifamily there, but everything seems to be in the millions of dollars. Are you buying a rowhome and then turning it into a multi? With a quick check on Zillow, it doesn't look like there's anything in Capitol Hill or NOMA that would even remotely cashflow. My fiance and I should have a combined income of around $150k, how expensive would you go if you were in the same position? I really appreciate your time and advice :)

All properties (with paying tenants) cashflow. I'll say it again....all properties cash flow.
Now when you say they dont cash flow....it is probably not the property you are talking about that isnt cash flowing, but rather the debt service that is causing the issue. If you are too highly leveraged, then your debt service may create a negative cash flow, but it is vitally important to understand that the issue isnt with the property, it is with the individual person taking on a highly leveraged position.
There are ways to improve the amount of rent a property can yield in certain circumstances as well. There are 4 major ways to look at how much a unit can rent for in the DC area, all with widely drastic rent amounts.
1) Market Rate Rent
2) Section 8 Rent
3) Rent By the Room
4) Corporate Rental.
Each will yield a different rental amount, and will have pluses and minuses based on the specific location.
Just as an example, in Kingman Park on a rowhouse, you might get $4,000 a month in a Market Rate Rental, but $5,757 on a section 8 rental on the same house. So in that neighborhood, Id be doing Section 8 for instance.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
2 Reply
Nicole Heasley Beitenman
Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
4y
Welcome! Great work so far, and great head start!
0 Reply
Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
4y
@Alex Petsopoulos first you are already talking to the right guy @Russell Brazil
One thing to consider about Fort Washington is the traffic on Indian Head Highway will only continue to get worse as the area there continues to develop. Prince Georges county is the cheapest property available inside the Beltway. I believe long term that makes it a good prospect.
0 Reply
Alex Petsopoulos
OP
Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
4y
Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Quote from @Russell Brazil:

Quote from @Alex Petsopoulos:

Hey BiggerPockets! I am a senior graduating from Virginia Tech in May and getting married in November :) For the last six months, I've analyzed a real estate deal every day, listened to over 100 BP podcasts, read The House Hacking Strategy, and I'm currently reading Long-Distance Real Estate Investing.

My fiance and I are hoping to set up our first house hack sometime before we get married, and are looking in this purple area!
Where would you all recommend investing? I have been looking at single-family homes in the Fort Washington area, and the numbers seem to work out alright there. Does anyone have experience in this area? Does anyone know what room rentals are worth in Fort Washington?
My fiance and I care less about how the numbers work while we're living in the property and care more about how the numbers will work after we move out in one year. The plan is to move once a year for five years, turning each former house hack into a rental property when we leave. We have nearly no home repair/renovation experience, but we've put a bunch of tools on our wedding registry and we love to learn! Really looking forward to meeting some fellow DMV investors and connecting with other BP members! :)

This really depends on your price point. More moderate prices SFH in Ft Washington or rowhouse/multi in Deanwood. More expensive price point Capitol Hill multifamily. SFH in Alexandria.

Hey @Russel Brazil, thanks for the reply! We're definitely thinking about starting at a lower price point for our first property and then maybe moving into the higher price but higher rent areas for our second. Is this a good strategy? Downpayment shouldn't be an issue, we're both engineers and should be earning a good wage. If we've got the funds, does it make sense to buy a more expensive property? We originally thought about Alexandria, but I just couldn't find a way in my analysis to make the numbers work there.

We are in a rising interest rate environment. So Im trying to lock in as much low interest debt as I can. The era of sub 4% rates has come to an end, and I think we will never see it again in our lifetimes.
I know, it kills me that I won't be graduated and start my higher-earning job until this summer!! I'll probably have missed the low-interest rate train by just a few months. I remember in your BP podcast episode you were talking about investing in areas with high rent growth to make the numbers work in our expensive market. If you were going to house hack anywhere in the map I posted, with the hopes of cash flowing after you move out of the property, where would you do it?

Shaw, Columbia Heights, Noma, Kingman Park, Capitol Hill. Im actually planning on purchasing a multifamily in that stretch of the city this year.
Oh okay, so you would definitely go into DC proper then. I originally considered purchasing multifamily there, but everything seems to be in the millions of dollars. Are you buying a rowhome and then turning it into a multi? With a quick check on Zillow, it doesn't look like there's anything in Capitol Hill or NOMA that would even remotely cashflow. My fiance and I should have a combined income of around $150k, how expensive would you go if you were in the same position? I really appreciate your time and advice :)

All properties (with paying tenants) cashflow. I'll say it again....all properties cash flow.
Now when you say they dont cash flow....it is probably not the property you are talking about that isnt cash flowing, but rather the debt service that is causing the issue. If you are too highly leveraged, then your debt service may create a negative cash flow, but it is vitally important to understand that the issue isnt with the property, it is with the individual person taking on a highly leveraged position.
There are ways to improve the amount of rent a property can yield in certain circumstances as well. There are 4 major ways to look at how much a unit can rent for in the DC area, all with widely drastic rent amounts.
1) Market Rate Rent
2) Section 8 Rent
3) Rent By the Room
4) Corporate Rental.
Each will yield a different rental amount, and will have pluses and minuses based on the specific location.
Just as an example, in Kingman Park on a rowhouse, you might get $4,000 a month in a Market Rate Rental, but $5,757 on a section 8 rental on the same house. So in that neighborhood, Id be doing Section 8 for instance.
That makes sense, I suppose any property you pay for with all cash would cash flow. Definitely, at least at first, we'd be looking into a rent by the room strategy. I saw your BP video about cash flowing the $750k property, that's amazing! If you know what you're doing, it looks like Section 8 can be really profitable. Thanks so much for the info!!
0 Reply
Alex Petsopoulos
OP
Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
4y
Quote from @Nicole Heasley Beitenman:

Welcome! Great work so far, and great head start!

Thank you!!! Yeah, my finace and I want to get finances taken care of early, so that way once we have kids it won't be a stress point.
0 Reply
Alex Petsopoulos
OP
Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
4y
Quote from @Ned Carey:

@Alex Petsopoulos first you are already talking to the right guy @Russell Brazil
One thing to consider about Fort Washington is the traffic on Indian Head Highway will only continue to get worse as the area there continues to develop. Prince Georges county is the cheapest property available inside the Beltway. I believe long term that makes it a good prospect.
I think I am! He seems super in the loop about investing in the DMV. Ugh, traffic is the worst. But, if it's a good long-term prospect I'll definitely keep looking into Fort Washington. Thanks for the info :)
0 Reply
Daniel Amsalem
Investor · Alexandria, VA · Member since 2020 · 95 posts · 45 votes
4y
Hey @Alex Petsopoulos, sounds like you're in a very similar position to my wife and I last year. We recently closed on a house-hack in Alexandria. I just wrote it up a few minutes ago here: https://www.biggerpockets.com/...
I'd be happy to share everything I know (not that much lol). We also have monthly meetups in Tyson's Mall on the first Thursday at 6:30pm.

0 Reply
Alex Petsopoulos
OP
Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
4y
Quote from @Daniel Amsalem:

Hey @Alex Petsopoulos, sounds like you're in a very similar position to my wife and I last year. We recently closed on a house-hack in Alexandria. I just wrote it up a few minutes ago here: https://www.biggerpockets.com/...
I'd be happy to share everything I know (not that much lol). We also have monthly meetups in Tyson's Mall on the first Thursday at 6:30pm.

Hey Daniel, I read your article, your house hack sounds so cool!! That's totally what my fiance and I would love to do as well :) I would love to pick your brain! I'll send you a message outside this thread, and once I move back up to NOVA in August, I'll definitely check out the monthly meetups. Thanks so much for reaching out :)
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