Hello from Washington, DC!

10 Replies

Hey, everyone. My name's Jared and I live in DC. I'm in my mid-20s and have become interested in real estate investing through my main passion of financial independence. I must've read and listened to every post and podcast on FIRE, and am now trying to take that same research to real estate. Ideally I'd like to pull off buying a multiplex and living in one of the units for a year.

I'm feeling a bit overwhelmed, especially because I've heard countless times that DC is not a good market, especially for a beginner. I'd love to hear your opinions! Thanks for reading.

Welcome to BP @Jared G. ! It's great that you're getting started with your education and looking to take action. Are you looking to buy a multiplex in DC? I know the price points are high there and the price-to-rent ratios may not be ideal. Are you looking to do a house hack? Or a straight rental property? 

Hey Jared! Welcome to BiggerPockets. It sounds like you're on the right track by learning as much as you can through the podcasts. I would recommend reading a few books like Millionaire Real Estate Investor, Rich Dad Poor Dad, etc...

Yes, the D.C. area is very expensive. Investing can work in the area by having more capital or being creative. There are areas in VA, PA, DE and MD that work for investing though. I would try branching out and investing in an area outside of DC to get started.

DC can  be a good market if you are liquid.  IF you are looking to house hack a multiunit in DC you may have to go to lower income / less desirable areas.  This is where you have to ask yourself:

1.) Are you ok with living in this area?

2.) If you aren't OK with living in this area, are the types of tenants that you are looking for going to want to live in this area?

I always suggest young individuals who want to get into it , have to live in the city, and only have the cap to put 3-5% down, to buy a condo or even better single family house and rent out the rooms to friends or even potentially AirBnB, if you have the single family house.  

Good luck, let me know if I can help!

There's very few multifamily properties in DC, unless you want to live in an unsafe area or have $1 million dollars in cash to buy one of the rare 4 unit properties that rarely come on the market that's not going to happen. Your best bet is to buy a rowhouse, or condo if you can't afford a rowhouse, in an attractive part of the district and rent it out by the room. Live in the smallest room (or sleep in the living room) and rent out the best rooms for maximum (and potentially the only way to) cash flow. 

@Jared G. Welcome to BP.  Who in the heck told you DC was not a good market? Careful who you listen to and understand what they are saying.

Hey Jared, I am in the same boat early 20s, and just recently jumped in. I am hooked on all the content here, and the books mentioned above. My solution to the DC price issue was buying a house in the area I grew up in, Lexington KY. It is a bit scary making a long distance investment, but I have multiple people on the ground who are co-investors, one of whom is managing the property. 

I am also starting the process of getting my RE license in VA, which will hopefully be helpful in getting out of my current 9-5 grind in consulting.

Don't hesitate to reach out on here if you'd like to chat sometime, always looking for folks to talk RE with. 

Best of luck, 

Brian 

Hi @Jared G. !

Thank you for introducing yourself. The BP forums are such a great resource. You just may find yourself addicted to growing and learning! Be sure to plug into your local BP community through meet-ups and investment groups.

The big thing about DC is the numbers. Can you get any cash flow there right now? I've not known DC or anywhere around it to cash flow in the last few years. Baltimore would be the closest. But run the numbers and make sure.

For house-hacking specifically, if you go that route-

https://www.biggerpockets.com/renewsblog/considera...

Hope that helps! If you need more info on running numbers, I can send that over too.

Hello! @Jared G.

Welcome to BP, and congratulations on making the decision to invest in your future via real estate.

I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.

First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:

https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp



The second is a post that will help get you focused with your real estate investing goals:

https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciated

The last one is a post that will help you choose an “investor friendly” real estate agent. There are many agents out there, but it’s important to choose the right one.

https://www.biggerpockets.com/blogs/5868/52724-im-new-to-investing-how-do-i-find-an-investor-friendly-agent

I love answering questions if you have any! Good Luck :)

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you