23 year old looking to buy a property in DC for 350k

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23 year old looking to buy a property in DC for 350k

Chanel Bostic
Member since 2019 · 3 posts · 3 votes

I am currently 23 years, looking to buy a property inside of DC between 330-380k. I am making about 75 k a year, and ideally, I would like to buy a 2/3 bedroom to house hack and offset my mortgage cost. From what I have seen on the market, my budget may not get me much of anything, but I would like to know if there is anywhere in DC that I may be able to afford. I would like to stay out of the SE area for safety reasons, but I know I will be looking at mostly up and coming areas. I have considered going through NACA for their great interest deals and no down payment program, but will this take me out of the running for these competitive properties. I am open to reno jobs. please help. I would like to buy within the next 3-6 months.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y

NACA is a no go in this market.

Your price point, Id probably look at Hyattsville or that area. You arnt really going to get anything in an optimal DC neighborhood at that price, unless youd go to SE like you said.  Maybe Deanwood/Benning Rd which wouldnt be too bad. 

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  • Marlen Weber
    Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
    6y

    You can also consider passive investing in multifamily deals. This was you are investing in real estate, without taking up any of your time. 

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    NACA is a no go in this market.

    Your price point, Id probably look at Hyattsville or that area. You arnt really going to get anything in an optimal DC neighborhood at that price, unless youd go to SE like you said.  Maybe Deanwood/Benning Rd which wouldnt be too bad. 

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    2Reply
  • Teresa F.
    Residential Real Estate Broker · Clinton, MD · Member since 2008 · 297 posts · 178 votes
    6y
    Hi Chanel!  My initial thought was that it would be hard for you to find something at that price point that was not in SE and you might have trouble finding something suitable in SE.  However, I took a quick look at the MLS and there was one property in NE on Blaine.  There were 40 properties overall and the rest were in SE and SW.  As I'm sure you know, SE is getting a lot of attention and you may end up competing with cash buyers.  My husband was trying to buy in SE and although we were paying cash we either weren't quick enough or were outbid. 

    It seems like the market is still moving up but my guess is that won't continue.  You may want to explore NACA while keeping your eyes peeled for something in the meantime.  Possibly, by the time you are ready with NACA the market will have cooled a bit and you'll have a better selection.  Wishing you much success!  Teresa
    1Reply
  • Mike Shahi
    Washington, DC · Member since 2017 · 54 posts · 25 votes
    6y
    Originally posted by @Russell Brazil:

    NACA is a no go in this market.

    Your price point, Id probably look at Hyattsville or that area. You arnt really going to get anything in an optimal DC neighborhood at that price, unless youd go to SE like you said.  Maybe Deanwood/Benning Rd which wouldnt be too bad. 

    Russell- just curious. Why is NACA a no go? I know someone personally that mentioned they want to go this route

    1Reply
  • Account Closed
    Real Estate Agent · Washington, DC · Member since 2018 · 14 posts · 14 votes
    6y

    That price point is going to limit you to SE and NE East of the river. Maryland might provide you better options.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y
    Originally posted by @Mike Shahi:
    Originally posted by @Russell Brazil:

    NACA is a no go in this market.

    Your price point, Id probably look at Hyattsville or that area. You arnt really going to get anything in an optimal DC neighborhood at that price, unless youd go to SE like you said.  Maybe Deanwood/Benning Rd which wouldnt be too bad. 

    Russell- just curious. Why is NACA a no go? I know someone personally that mentioned they want to go this route

     The market is far far far too competitive to be using products like that right now. Any appropriatly priced property in DC has 10-25 offers right now. Its hard enough competing with conventional financing with a fully underwritten buyer who can close in 3 weeks....using a product that takea 60+ days to close under current market conditions, is essentially impossible.

    Just as an example, just this week I wrote an offer that was all cash, no contingencies, $70k over list....the property received 15 offers, 8 of which were all cash no contingencies,....we were only the 5th best offer. 

    Buyers using financing are realisticly going to need fully pre-underwritten...this is deeper than a preapproval, a lender will typically charge a fee upfront to do this, and are going to need to waive inspection, and probably need to waive the appraisal and financing contingencies too if they have the ability to.....or simply be ok purchasing one of the few overpriced properties that are sitting and be ok paying more than they really should.

    [email protected]301-893-4635Podcast Guest on Show #192
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    1Reply
  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    6y

    Chanel,

    Just keep in mind there are a lot of DPA programs out there like NACA, CHENOA and others. They can be great for a first time home buyers intending to occupy the home for 5-10 years and not concerned with taking cash out for investing. But as an investor you have to take in consideration the wait period. You have to wait three to five years like many of them to sell or do a cash out refinance without having to repay back the DPA portion. Not only that but the rates are higher and some of them come with second mortgage with higher rates with/without a forgive able clause.

    I would consider the Home possible and home ready loans that also include renovation costs up to 105% TLTV.  Income brackets and caps change from one year to another so you may need to check your income tract.  If you have or can put together $18-19K that would be a good 5% down on a $350K-$380K home going Fannie/Freddie 30YR option.  You could get a personal loan right now with good to fair credit "Non-collateralize".  Not to mention you can close in less than 30 days and have an Approval letter with that conventional style loan.  You my not be aware of this but you can request a "Rush" close from certain banks.  That rush may cost you around $250 or more but you could close in less than 3 weeks to meet sellers request or be more aggressive in offer.  Let me know if you have any questions.

    [email protected]727-637-4289
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    6y

    @Chanel Bostic are you open to looking in the VA or MD suburbs, or do you want to stay in the city proper? If you're willing to move a ways out you may be able to find a SFH to house hack. But, this may not work for your commute (or may not be something you're interested in.) Figured I'd ask.

    0Reply
  • Chanel Bostic
    OP
    Member since 2019 · 3 posts · 3 votes
    6y
    Originally posted by @Nicholas L.:

    @Chanel Bostic are you open to looking in the VA or MD suburbs, or do you want to stay in the city proper? If you're willing to move a ways out you may be able to find a SFH to house hack. But, this may not work for your commute (or may not be something you're interested in.) Figured I'd ask.

    I am open to looking in maryland, that was my first thought, but I prefer DC. And, I am trying to get away from this maryland property tax. It takes away from some of my buying power. 

    0Reply
  • Micah Peel
    Member since 2018 · 5 posts · 0 votes
    6y

    @Russell Brazil hey can you explain why Naca is a no go in this market?

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y
    Originally posted by @Micah Peel:

    @Russell Brazil hey can you explain why Naca is a no go in this market?

    see above, I answered that question above. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
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    0Reply
  • Mike Shahi
    Washington, DC · Member since 2017 · 54 posts · 25 votes
    6y
    Originally posted by @Russell Brazil:
    Originally posted by @Mike Shahi:
    Originally posted by @Russell Brazil:

    NACA is a no go in this market.

    Your price point, Id probably look at Hyattsville or that area. You arnt really going to get anything in an optimal DC neighborhood at that price, unless youd go to SE like you said.  Maybe Deanwood/Benning Rd which wouldnt be too bad. 

    Russell- just curious. Why is NACA a no go? I know someone personally that mentioned they want to go this route

     The market is far far far too competitive to be using products like that right now. Any appropriatly priced property in DC has 10-25 offers right now. Its hard enough competing with conventional financing with a fully underwritten buyer who can close in 3 weeks....using a product that takea 60+ days to close under current market conditions, is essentially impossible.

    Just as an example, just this week I wrote an offer that was all cash, no contingencies, $70k over list....the property received 15 offers, 8 of which were all cash no contingencies,....we were only the 5th best offer. 

    Buyers using financing are realisticly going to need fully pre-underwritten...this is deeper than a preapproval, a lender will typically charge a fee upfront to do this, and are going to need to waive inspection, and probably need to waive the appraisal and financing contingencies too if they have the ability to.....or simply be ok purchasing one of the few overpriced properties that are sitting and be ok paying more than they really should.

    Is this a bad strategy for buying investment properties? or homes in DC in general? Investment properties I can see why NACA would be bad with the amount of competition out here. My friend wants something renovated in the 450-500 range. Her co-worker bought a renovated home off Eastern Avenue NE using NACA for $480k- she was told she only put down like 4k and was immediately sold. I told her there has to be a catch with these programs

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    6y

    @Chanel Bostic I totally understand. It'll just be tough / impossible to find a SFH to house hack in DC.

    0Reply
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