BRRRR in DC, Maryland, and Virginia
New to Real Estate · DC Maryland, VA · Member since 2020 · 6 posts · 7 votes
BRRRR in DC, Maryland, and Virginia
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Kyle DeutschmannPro Member
Investor · Washington, DC · Member since 2017 · 428 posts · 205 votesQuote from @Emily Lien:
Hi everyone! I bought my first fixer-upper in 2020 in Prince William County, VA and have been living in it since. I've overstayed my plan and am eager to find my next place. I have a 150k HELOC on my house approved and pending 340k HELOC on my parents place. I've been reading that BRRRR isn't very possible in NOVA and with 490k of capital I'm priced out of DC.
I've been thinking of shifting my focus to Maryland since I've been reading that in PG and Baltimore county, BRRRR is a lot more viable. Please let me know if you have any recommendations for REA, handyman, and wholesalers in the DMV. I grew up in NOVA so I'm not very familiar with the neighborhoods in Maryland, so any advice on that would also be greatly appreciated! Excited to chat more with the folks here :)
I might be biased since I own in both PG and Baltimore but I think both areas have a lot of potential. College Park and the surrounding areas are seeing a ton of growth. Might be slimmer margins there, but it's a strong rental market and has good long term growth potential in my opinion being close to UMD and DC.
In Baltimore, I would agree with Jack - those areas are seeing a lot of growth and redevelopment and are generally popular areas, although there are certainly other areas of the city where you could find cheaper properties depending on what your goals are and what you're comfortable with. I would do some research into the city's "Impact Investment Areas" where they are really pushing investment and where first time home buyers can get a large forgivable loan from the City as down payment assistance. Morgan State University is also doing a lot of expansion and there is some efforts to improve and redevelop the areas near Druid Hill Park as some examples of other areas to look.
Either way - I'd recommend you come up to both areas and attend some local networking events - there are usually wholesales, agents, lenders, etc. that attend. I could send you some events I like to attend in central MD.
10 Replies
- Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 654 votes4y
Quote from @Emily Lien:
Hi everyone! I bought my first fixer-upper in 2020 in Prince William County, VA and have been living in it since. I've overstayed my plan and am eager to find my next place. I have a 150k HELOC on my house approved and pending 340k HELOC on my parents place. I've been reading that BRRRR isn't very possible in NOVA and with 490k of capital I'm priced out of DC.
I've been thinking of shifting my focus to Maryland since I've been reading that in PG and Baltimore county, BRRRR is a lot more viable. Please let me know if you have any recommendations for REA, handyman, and wholesalers in the DMV. I grew up in NOVA so I'm not very familiar with the neighborhoods in Maryland, so any advice on that would also be greatly appreciated! Excited to chat more with the folks here :)
Brrring is getting harder everywhere, to the extent it’s possible it’s about hitting gross margin (Labor costs are fixed so you’d much rather them work on a house that has a 200-300k gross margin than 100k.) The places that work best for that are canton,fells point, fed hill hampden and some parts of Baltimore county such as cantonsville and Towson. I’d also strongly consider buying and holding right now as the interest rate could be totally different 6 months from now. Feel free to reach out with any questions:)
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes4y
Quote from @Emily Lien:
Hi everyone! I bought my first fixer-upper in 2020 in Prince William County, VA and have been living in it since. I've overstayed my plan and am eager to find my next place. I have a 150k HELOC on my house approved and pending 340k HELOC on my parents place. I've been reading that BRRRR isn't very possible in NOVA and with 490k of capital I'm priced out of DC.
I've been thinking of shifting my focus to Maryland since I've been reading that in PG and Baltimore county, BRRRR is a lot more viable. Please let me know if you have any recommendations for REA, handyman, and wholesalers in the DMV. I grew up in NOVA so I'm not very familiar with the neighborhoods in Maryland, so any advice on that would also be greatly appreciated! Excited to chat more with the folks here :)
@Russell Brazil is a top contributor here and is a good agent to know. I recommend attending the REIA events in the area and get to know the players. Also several decent FB groups for the area as well.
7e investments53 Reviews - New to Real Estate · DC Maryland, VA · Member since 2020 · 6 posts · 7 votes4y
Thank you @Jack Seiden! I was also thinking about how buying and moving in as a primary residence doesn't have that much draw right now with the high interest rates.
Thanks @Chris Seveney! Do you remember the names of any of the groups off the top of your head? Or how I should go about finding it?
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes4y
Quote from @Chris Seveney:
Quote from @Emily Lien:
Hi everyone! I bought my first fixer-upper in 2020 in Prince William County, VA and have been living in it since. I've overstayed my plan and am eager to find my next place. I have a 150k HELOC on my house approved and pending 340k HELOC on my parents place. I've been reading that BRRRR isn't very possible in NOVA and with 490k of capital I'm priced out of DC.
I've been thinking of shifting my focus to Maryland since I've been reading that in PG and Baltimore county, BRRRR is a lot more viable. Please let me know if you have any recommendations for REA, handyman, and wholesalers in the DMV. I grew up in NOVA so I'm not very familiar with the neighborhoods in Maryland, so any advice on that would also be greatly appreciated! Excited to chat more with the folks here :)
@Russell Brazil is a top contributor here and is a good agent to know. I recommend attending the REIA events in the area and get to know the players. Also several decent FB groups for the area as well.
Thanks for the tag Chris.
BRRRR is going to be possible in the following locations....16th St Heights, Columbia Heights, Riggs Park, Shaw, Capitol Hill, Kingman Park, Trinidad, Logan Circle, Deanwood, Anacostia, River Terrace, Bloomingdale, Eckington, Petworth, Brightwood.
Expect to leave some money in the deal.
MD and VA sides of the border generally are not providing large enough margins to BRRRR or flip currently. Also possible in Baltimore.
District Invest Group546 Reviews - 4yKyle DeutschmannPro MemberInvestor · Washington, DC · Member since 2017 · 428 posts · 205 votes
Quote from @Emily Lien:
Hi everyone! I bought my first fixer-upper in 2020 in Prince William County, VA and have been living in it since. I've overstayed my plan and am eager to find my next place. I have a 150k HELOC on my house approved and pending 340k HELOC on my parents place. I've been reading that BRRRR isn't very possible in NOVA and with 490k of capital I'm priced out of DC.
I've been thinking of shifting my focus to Maryland since I've been reading that in PG and Baltimore county, BRRRR is a lot more viable. Please let me know if you have any recommendations for REA, handyman, and wholesalers in the DMV. I grew up in NOVA so I'm not very familiar with the neighborhoods in Maryland, so any advice on that would also be greatly appreciated! Excited to chat more with the folks here :)
I might be biased since I own in both PG and Baltimore but I think both areas have a lot of potential. College Park and the surrounding areas are seeing a ton of growth. Might be slimmer margins there, but it's a strong rental market and has good long term growth potential in my opinion being close to UMD and DC.
In Baltimore, I would agree with Jack - those areas are seeing a lot of growth and redevelopment and are generally popular areas, although there are certainly other areas of the city where you could find cheaper properties depending on what your goals are and what you're comfortable with. I would do some research into the city's "Impact Investment Areas" where they are really pushing investment and where first time home buyers can get a large forgivable loan from the City as down payment assistance. Morgan State University is also doing a lot of expansion and there is some efforts to improve and redevelop the areas near Druid Hill Park as some examples of other areas to look.
Either way - I'd recommend you come up to both areas and attend some local networking events - there are usually wholesales, agents, lenders, etc. that attend. I could send you some events I like to attend in central MD. - Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 654 votes4y
Quote from @Emily Lien:
Thank you @Jack Seiden! I was also thinking about how buying and moving in as a primary residence doesn't have that much draw right now with the high interest rates.
Thanks @Chris Seveney! Do you remember the names of any of the groups off the top of your head? Or how I should go about finding it?
Actually moving as a primary is the best draw right now with the combo of low down payment, and rates are significantly lower on a primary (usually low 5's vs high 6's for investment.) Definitely check out the Central MD ReI social event we have one every month and it's the biggest meetup in the area as far as am aware.
- Realtor · Baltimore, MD · Member since 2020 · 255 posts · 182 votes4y
Depending on your budget and cost of capital the hot neighborhoods of Baltimore could be a good bet particularly if you are owner occupant. If not, there are some great up and coming neighborhoods outside the downtown core where acquisition cost is low enough that you could get away with BRRRR margins - just expect to leave money in the deal no matter where you buy in this climate. Shoot me a PM if you have more questions about neighborhoods I can give you more specific info
- 4yCassidy BurnsBusiness MemberInvestor · Alexandria, VA · Member since 2016 · 859 posts · 460 votes
You definitely aren't priced out, just have to know which assets will be the best bang for your buck (in your case, $490,000 bucks.)
You should be able to turn that into 3 properties in 18 months if you play your cards right.
Good luck!
- Investor · Knoxville, TN · Member since 2015 · 2 posts · 1 vote4y
Quote from @Kyle Deutschmann:
Quote from @Emily Lien:
Hi everyone! I bought my first fixer-upper in 2020 in Prince William County, VA and have been living in it since. I've overstayed my plan and am eager to find my next place. I have a 150k HELOC on my house approved and pending 340k HELOC on my parents place. I've been reading that BRRRR isn't very possible in NOVA and with 490k of capital I'm priced out of DC.
I've been thinking of shifting my focus to Maryland since I've been reading that in PG and Baltimore county, BRRRR is a lot more viable. Please let me know if you have any recommendations for REA, handyman, and wholesalers in the DMV. I grew up in NOVA so I'm not very familiar with the neighborhoods in Maryland, so any advice on that would also be greatly appreciated! Excited to chat more with the folks here :)
I might be biased since I own in both PG and Baltimore but I think both areas have a lot of potential. College Park and the surrounding areas are seeing a ton of growth. Might be slimmer margins there, but it's a strong rental market and has good long term growth potential in my opinion being close to UMD and DC.
In Baltimore, I would agree with Jack - those areas are seeing a lot of growth and redevelopment and are generally popular areas, although there are certainly other areas of the city where you could find cheaper properties depending on what your goals are and what you're comfortable with. I would do some research into the city's "Impact Investment Areas" where they are really pushing investment and where first time home buyers can get a large forgivable loan from the City as down payment assistance. Morgan State University is also doing a lot of expansion and there is some efforts to improve and redevelop the areas near Druid Hill Park as some examples of other areas to look.
Either way - I'd recommend you come up to both areas and attend some local networking events - there are usually wholesales, agents, lenders, etc. that attend. I could send you some events I like to attend in central MD.Hey, do you ever find it tough to cash flow in PG due to the taxes?
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