I'm a relatively new RE investor that's looking to up my game. I've owned one rental property in DC previously that performed okay for me, but not great, and I think I can do better going forward (mainly thanks to this community and various forms of self-education). So far, DC seems to be one of the least forgiving markets for cash-flowing rental properties, and I'm not keen on the idea of speculating for appreciation, so I'm really curious what the hivemind thinks: if you were based in the DC area and had, say, a $100k bankroll, what would you do and/or how would you start?
One thing to note: While I'm not dead-set on investing locally here in DC, much of the advice I read/hear on BP and elsewhere suggests that relative newbies should stick to the market they know until they get their feet under them. I'd be happy to hear advice/success stories to the contrary, if going out-of-market early on has worked out for others.
Many thanks in advance for any/all feedback!
Id invest in DC, one of the lowest risk markets in the country, then become a multimillionaire.
That's about what I have to invest- I'm looking to do fix and flips. Right now I'm focusing on what I know (Michigan Park, Fort Totten, Petworth, Trinidad). An as-is home in these neighborhoods range anywhere from $400k-$500k- ARV is anywhere from 550k-850k.
I'm also looking into Deanwood, Takoma Park, Hyatsville, Mt Ranier. I've seen stuff in these neighborhoods for 200-300 with an ARV of 350-400.
Montgomery county is another region I thought about investing in but finding a distressed home in this area will be hard.
Were you looking to buy and hold or fix and flip? What's your budget? How will you finance your purchase? Hard money loan?
I am also a newbie. And to be honest I have a similar question. Here are my thoughts :
House hacking :
Buying a SFU, which needs some repair, Fix it and rent a basement and a bedroom and live inside at the same time.
Find an MFU. but it seems hard to find or costly.
As you said, I am not sure buying a rental out of state when you start it is very wise.
Here are my plan.
What was yours?
I'm most familiar with the buy and hold rental strategy (that's what I did with my last property and is where the $100k came from), so that's the approach I'd feel most comfortable with, at least experience-wise.
I did that one with a conventional mortgage, 20% down. That feels like the most repeatable to me given my relative novice level, but part of my motivation for posting was to get some new ideas for strategies that might work better in this market, so it's definitely nice to hear that fix and flip has been a lucrative one for you thus far, @Mike Shahi !