I'm a relatively new to real estate investing, but trying to learn more. I am most interested in rentals, and I currently rent rooms in my primary residence, and purchased a rental townhouse. I went into the townhouse with the idea of minimizing interest and rushing to own it outright as soon as possible, which seems to be the opposite of a lot of strategies I see.
I'm interested in learning more, specifically about how to find the best deals. I'm open to partnering, and I'm really curious to hear about any success anyone else has found in rentals in the area, as the ratios just seem really tough around here (ie. I don't think I've ever seen a deal that suits the 2% or 1% rule).
Thank you! :)
Jared
Locations: Reston, Herndon, Fairfax County, Loudoun County, Arlington, Alexandria, Ashburn, Leesburg, Oakton
Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
6y
Great connecting with you, @Jared Rohlfs. Being active on here is definitely important for your learning experience in real estate investing. Best of luck on your journey.
Leesburg, VA · Member since 2019 · 34 posts · 19 votes
5y
Hi @Muoki Musau which meetup is that? I'm in Leesburg as well and there is a NoVA REI Meetup that I participate in once per month but I'm not familiar with another specific to Leesburg/Loudoun that meets biweekly.
Real Estate Consultant · Chattanooga, TN · Member since 2018 · 384 posts · 330 votes
5y
Hi @Frances Marquez! I'll message you the details. Bigger Pockets has blocked past posts I've attempted about meetups, so it's easier to PM you. @Muoki Musau thanks for thinking of me! You're the best. :-)
Real Estate Agent · Washington, DC + Central VA · Member since 2018 · 16 posts · 13 votes
5y
@Adrienne Green If you wouldn't mind sharing details with another NoVA (Alexandria) investor as well, please let me know! My usual meet-up has been on a hiatus, but would love to connect more with DMV investors.
Investor · Alexandria, VA · Member since 2016 · 859 posts · 460 votes
5y
Hey @Jared Rohlfs , welcome! And you are correct the 1 & 2% rules are not available in this market, this is a high IRR, higher anticipated appreciation market.
In terms of "finding deals" I think the key is concentrating on "value" .
-Current rental value (know the rents up front before you buy it)
-Long Term Potential Value (what is the projected appreciation, DMV is historically 2.7% appreciation over the last 20 years)
-Location Value: Will people want to live in this location for the long term, remember you will own this for 30 years, not just the 1st year
Investor · Hampton Roads, VA · Member since 2020 · 8 posts · 6 votes
5y
@Jared Rohlfs
I'm also a fan of higher equity, lower debt ratios on investments. You're right, it's not the most popular strategy, because it takes less advantage of the leverage potential of real estate. You will find though that having high equity on at least some of your investments can be a powerful part of your portfolio - it reduces your holding costs, gives you collateral you can get future loans against, etc etc.
I guess what I'm getting at is: your strategy doesn't have to be the most common to be best for you.