House Hack - Northern Virginia
New to Real Estate · Northern Virginia · Member since 2020 · 20 posts · 14 votes
House Hack - Northern Virginia
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Real Estate Agent · Arlington, VA · Member since 2017 · 98 posts · 50 votes
5yWelcome to the community, Samuel! The first area that comes to mind for rent-by-room is Arlington County. It may be a little tougher to find something in your budget, but it's close to DC, has a solid professional community of young professionals, and is considered way too expensive by most people to just buy their own house (although ironically they could likely afford a condo easy peasy...). Alexandria is another option with similar reasons behind it.
A couple other random thoughts tied to your request:
- Keep in mind the various limits each jurisdiction puts on how many unrelated persons can live in one house. For example, some areas are lower, some are higher - this will affect how much you can anticipate realistically making in terms of profit).
- What are your goals? If you're looking for cash-flow, it may be tough. If you're looking to simply not pay anything out of pocket, you can probably pull it off. Appreciation is usually pretty solid for NoVA, so that's a win regardless.
- Are you completely tied to living in NoVA? There's no wrong answer here. NoVA just tends to have higher prices, when you could look in MD and find something a bit more in your range with similar benefits.
- Are you open to doing some manual labor to fix a place up? If so, that would open up the possibilities so much!
I'm an agent and have been in the area for a decent amount of time, and would be happy to help with anything you need!
34 Replies
- Member since 2020 · 20 posts · 20 votes5y
Hey I'll connect. I just purchased a place in Alexandria and am about to do the same thing you'll be doing. Place I bought is a 5 bed 4 bath with a finished basement. We're renovating the basement and will live in it. I will say you're going to pay quite a premium for buying right by the metro. For room rentals here, I know some investors that buy more by towncenters and are successful in renting their place out.
- Real Estate Agent · Arlington, VA · Member since 2017 · 98 posts · 50 votes5y
Welcome to the community, Samuel! The first area that comes to mind for rent-by-room is Arlington County. It may be a little tougher to find something in your budget, but it's close to DC, has a solid professional community of young professionals, and is considered way too expensive by most people to just buy their own house (although ironically they could likely afford a condo easy peasy...). Alexandria is another option with similar reasons behind it.
A couple other random thoughts tied to your request:
- Keep in mind the various limits each jurisdiction puts on how many unrelated persons can live in one house. For example, some areas are lower, some are higher - this will affect how much you can anticipate realistically making in terms of profit).
- What are your goals? If you're looking for cash-flow, it may be tough. If you're looking to simply not pay anything out of pocket, you can probably pull it off. Appreciation is usually pretty solid for NoVA, so that's a win regardless.
- Are you completely tied to living in NoVA? There's no wrong answer here. NoVA just tends to have higher prices, when you could look in MD and find something a bit more in your range with similar benefits.
- Are you open to doing some manual labor to fix a place up? If so, that would open up the possibilities so much!
I'm an agent and have been in the area for a decent amount of time, and would be happy to help with anything you need!
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes5y
Arlington, Alexandria, Falls Church, Fairfax.
District Invest Group545 Reviews - New to Real Estate · Northern Virginia · Member since 2020 · 20 posts · 14 votes5y
@Christopher Miller Congratulations man! You are right, I'm finding the metro areas to be priced at a premium for sure. Maybe I'll need to expand my search around town center-type areas around the neighborhoods mentioned in this thread. Let's stay in touch! I'd love to hear more about your basement renovation and how it's going!
- New to Real Estate · Northern Virginia · Member since 2020 · 20 posts · 14 votes5y
@Emily HowlettThanks for the thorough response! I used to live in Ballston so Arlington is definitely a great "rent-by-the-room" market but I always get scared off by the high prices and condo fees, but definitely worth a revisit.
- I believe Fairfax County and Loudon County have a max occupancy of no more than 4 unrelated persons, but are there more specific restrictions that I should be wary of?
- Goals - I would love to cash flow, but since this is my first purchase I'm focused on minimizing my housing costs and being able to save aggressively for my next deal. I would love to learn the BRRRR method or try a live-and-flip in the near future and having little to no housing costs let's me be comfortable taking those risks.
- For my first deal, I want to stick with Northern Virginia out of comfort really, stick with the neighborhood I know. Would definitely be open to MD and DC hopefully in the future.
- I'm not a handy man (not yet at least) so would contract out fixes. Trying to stay away from this on my first purchase but wouldn't be opposed to converting a half bath to full in the basement or adding walls to create a rentable bedroom.
Thanks again for connecting with me and I will definitely reach out if I have any questions!
- New to Real Estate · Washington DC · Member since 2020 · 3 posts · 0 votes5y
I recently purchased a primary dwelling in Falls Church, one mile from the metro. I rent the basement out and may rent out another 1-2 bedrooms depending on my inclination and tolerance for additional boarders. It won't cash flow with me living here--that was never the intent--but it's affordable and the house is great.
I was looking in the areas Russell listed for houses with finished basements.
I rented for quite some time in the Reston/Herndon area. It's a great place to live but I suspect it's not a great market for owners as there are tons of cheap, new condos. I had a fantastic 1BR condo that I was renting for $1425--my current tenant pays $1050 for a smaller, low-ceiling basement unit in Falls Church. That's all anecdote, of course, others may have different experiences.
- New to Real Estate · Northern Virginia · Member since 2020 · 20 posts · 14 votes5y
@Russell Brazil Thanks for the feedback! Seems like the general trend is the closer to DC the better "rent-by-room" market.
- New to Real Estate · Northern Virginia · Member since 2020 · 20 posts · 14 votes5y
@Andrew Buchwach Congratulations on the purchase! I appreciate the specific examples, it may be anecdotal but helps put ballpark figures on market rent. Agreed, Reston Town Center is just all condos, hard to compete with.
- Investor · Colonial Heights, VA · Member since 2015 · 78 posts · 53 votes5y
@Samuel Choi Have you considered Manassas? You will be able to buy a decent sized house for the price range you mentioned and you wont be crowded together as much especially if you are planning to have 3 roommates. It might be harder to find roommates but the demand for rent by the room arrangements should still be there.
- New to Real Estate · Northern Virginia · Member since 2020 · 20 posts · 14 votes5y
@Sudhanshu Singha I had considered Manassas Park at one point due to the VRE, but I think the vacancy rate for Manassas might be much higher than other areas unless I price them super cheap.
- Investor · Manassas, VA · Member since 2018 · 16 posts · 14 votes5y
@Samuel Choi I would be happy to connect, I just completed a house back in Manassas last year. I am happy to share my experience.
- Real Estate Agent · Reston, VA · Member since 2017 · 296 posts · 163 votes5y
@Samuel Choi Reston, Sterling and Herndon do well. All the three places have access to metro and more stations expected to open soon. In 2019 I saw more people at open houses who said they were coming from areas like Arlington and Falls Church. I think the biggest issue in NOVA is affordability in our area. It has allowed the room rentals to flourish. Lately I have seen subtle changes that are taking place in the rental market. This may be anecdotal.
I personally like the Reston-Sterling, and other areas like Annandale, Burke, Alexandria and even Springfield. Keep an eye on the HOA rules where the home is located but also make sure the property can be easily rented. I like walkout basement, lots of light in the basement, and separate entrance.
- Realtor · Reston, VA · Member since 2017 · 19 posts · 3 votes5y
Keep an eye on the bed to bath ratio too. Renting any rooms that have shared baths greatly increases the challenge, otherwise you'll need to adjust and lower the rental prices accordingly. Also, tough to find neighborhoods that can accommodate enough parking spaces/areas if you have a bunch of individual renters. It can be done though if you search long and hard. I house hack in Reston. Since co-vid its gotten tougher because I've noticed some rental rates dropping. I would not necessarily say the condos at town center are your competition so I would not worry too much about that. If the rooms are a lower price point, thats a different kind of renter than the one that can afford and is going to choose a private luxury rental at a higher price point and with a lot of additional fees at RTC.Happy to help- I'm a Reston Realtor too.
- New to Real Estate · Northern Virginia · Member since 2020 · 20 posts · 14 votes5y
@Ika Sargeant Thanks for the comment! Agreed, always on the lookout for walkout basements + separate entrances. What's an example of HOA restrictions that would restrict a property from renting easily (I'm not familiar with any)?
@Jenn Kinchen Yes, finding places with enough parking for house hacking has been difficult. I've been primarily focusing on townhouses with 3-bed,2-full bath (upper level) and 1-bed,1-full bath (basement) but parking for those listings are usually limited to 2 assigned spaces. If you don't mind sharing (no pressure) what are some areas that do have enough parking spaces/areas?
- Real Estate Agent · Reston, VA · Member since 2017 · 296 posts · 163 votes5y
@Samuel Choi some HOAs have rules regarding renters. I know Fairfax county and including cities have some limit the number of days, number of occupants on the property. A lot of the rules are directed at the B&B. You should be ok with tenants who have at 12 months lease.
- Member since 2020 · 20 posts · 20 votes5y
So I did some more research into this. The only county that will currently allow what you're trying to do is Arlington County. DC also if you're willing to look there.
Fairfax county is going through the process of getting their zmod rules done which will allow an easier process to the creation of a dwelling unit like a basement.
as far as Arlington is concerned, I don't think you're going to find that kind of place in your price range unless you get really creative with a property no one else wants.
Chantilly is an upcoming area that will definitely fit your price range. And I know there's room rental demand if youre able to provide good quality living with some good marketing because I tested the market.
- Real Estate Agent · Vienna, VA · Member since 2016 · 289 posts · 253 votes5y
Hi @Samuel Choi!
If your goal is cash flow/completely eliminate your living expenses, the areas you initially targeted (Reston/Herndon/Sterling) are great for what you are trying to do. The purchase price vs. room rental price are one of the best in NOVA. These areas are also employment hubs, have easy access to transportation (Dulles toll road, metro. etc.), and offer a variety of entertainment options and other great amenities for people to enjoy.
I just helped two different clients to buy a house hacking property in Reston and Herndon and they both eliminated their living costs. If you stay in the mid $400s, you’ll be good.I helped another client to buy a house hack in Falls Church and I’m helping another one now to find one in Old Town Alexandria / Del Ray. The closer to DC, the higher the prices, and the harder it is to cash flow or to completely eliminate all the living expenses. These clients had different goals when looking for their house hack.
To maximize your rental income:- Look for a home with 3/2.5 minimum (3 full bathrooms is preferred).
- Ideally, it will have also a walk out basement with a full bathroom (kitchenette is a bonus).- The size of the rooms matter.
- Parking is critical. Number of assigned parking spots + ease of street parking and/or size of driveway
Good luck! House hacking is a powerful investment option. - Real Estate Agent · Vienna, VA · Member since 2016 · 289 posts · 253 votes5y
Originally posted by @Christopher Miller:
So I did some more research into this. The only county that will currently allow what you're trying to do is Arlington County. DC also if you're willing to look there.
Fairfax county is going through the process of getting their zmod rules done which will allow an easier process to the creation of a dwelling unit like a basement.
as far as Arlington is concerned, I don't think you're going to find that kind of place in your price range unless you get really creative with a property no one else wants.
Chantilly is an upcoming area that will definitely fit your price range. And I know there's room rental demand if youre able to provide good quality living with some good marketing because I tested the market.
Hi Christopher, there are many more counties where he can do what he is trying to do. For example, in Fairfax Clunty he can also rent rooms and the basement as long as there are no more than 4 unrelated people living in the same house.
Creating a separate dwelling unit is a different story. This comes to play when you want to add a second full kitchen in an area of your house that has a separate entrance, living space, and bathroom. You can add a kitchenette, but as of right now, you can’t add a second stove without a special permit.You are right that there is a proposal in Fairfax County to ease the process to create an ADU. Hopefully it will pass soon!
Current regulation: https://nam10.safelinks.protec...
Proposed regulation:
https://www.fairfaxcounty.gov/...
https://nam10.safelinks.protec... - Member since 2020 · 20 posts · 20 votes5y
Originally posted by @David Fernandez:
Originally posted by @Christopher Miller:
So I did some more research into this. The only county that will currently allow what you're trying to do is Arlington County. DC also if you're willing to look there.
Fairfax county is going through the process of getting their zmod rules done which will allow an easier process to the creation of a dwelling unit like a basement.
as far as Arlington is concerned, I don't think you're going to find that kind of place in your price range unless you get really creative with a property no one else wants.
Chantilly is an upcoming area that will definitely fit your price range. And I know there's room rental demand if youre able to provide good quality living with some good marketing because I tested the market.
Hi Christopher, there are many more counties where he can do what he is trying to do. For example, in Fairfax Clunty he can also rent rooms and the basement as long as there are no more than 4 unrelated people living in the same house.
Creating a separate dwelling unit is a different story. This comes to play when you want to add a second full kitchen in an area of your house that has a separate entrance, living space, and bathroom. You can add a kitchenette, but as of right now, you can’t add a second stove without a special permit.You are right that there is a proposal in Fairfax County to ease the process to create an ADU. Hopefully it will pass soon!
Current regulation: https://nam10.safelinks.protec...
Proposed regulation:
https://www.fairfaxcounty.gov/...
https://nam10.safelinks.protec...
Thanks for the clarification, I may have been unclear. I assumed he was trying to create an ADU with the basement. Is adding a dishwasher to the kitchenette against regulations? - New to Real Estate · Northern Virginia · Member since 2020 · 20 posts · 14 votes5y
Thanks @Christopher Miller and @David Fernandez for the info! Glad to hear others have successfully house hacked in the areas I'm looking at!
Hope the approval for ADUs goes through but the restrictions are still pretty limiting. Per zMOD FAQs the owner must always reside on the property, the permits don't transfer in a sale, and it limits the number of renters (if I'm reading it correctly).
- Real Estate Agent · Vienna, VA · Member since 2016 · 289 posts · 253 votes5y
Originally posted by @Samuel Choi:
Thanks @Christopher Miller and @David Fernandez for the info! Glad to hear others have successfully house hacked in the areas I'm looking at!
Hope the approval for ADUs goes through but the restrictions are still pretty limiting. Per zMOD FAQs the owner must always reside on the property, the permits don't transfer in a sale, and it limits the number of renters (if I'm reading it correctly).
Hey Samuel, if you want to create an ADU, yes. However, you still can rent rooms and/or your basement without an ADU, as long as there are no more than 4 unrelated people living in the same house or no more than one family plus two renters.
I think Christopher at some point mixed room rentals with the ADU zoning ordinance. Just wanted to clarify that Arlington County is not the only county where you can offer rooms for rent. He was referring to ADUs since Arlington has already relaxed the zoning ordinance on this.
- 5yMike WebberPro MemberReal Estate Agent · Reston, VA · Member since 2020 · 84 posts · 53 votes
@Samuel Choi
I could be wrong but I don't believe there is an HOA in sterling. I know a few different people in Sterling that own chickens and I have to imagine an HOA wouldn't allow that. You are right the rent by room in sterling is very good. I don't know as much about Reston. A lot of the guys I work with rent rooms in manassas and sterling. If you wanna give me a shout after you buy, I could let the guys at my work know and maybe help you get a renter in there quick. We have like 150 employees. I only say that because one potential issue sterling has is a lot of the counties crime comes from sterling Park so finding the "right" renter would be harder than say, Ashburn. But these are all good guys you wouldn't have to worry about. Plus we're essential 😎 so no risk of covid job loss.
- New to Real Estate · Northern Virginia · Member since 2020 · 20 posts · 14 votes5y
@Mike Webber Thanks for the comment! From what I've seen, most of the properties I've reviewed in Sterling did have HOAs, but I think it's different for every neighborhood. I've actually broadened my search to include Manassas as well, so I'll definitely reach out for referrals!
My plan is to update this thread with the numbers once I buy a property and rent out the rooms (for my own accountability).
- 5yMike WebberPro MemberReal Estate Agent · Reston, VA · Member since 2020 · 84 posts · 53 votes
@Samuel Choi
Yeah man for sure do. It gives me a chance to help you and one or more of the guys I work with just by making a connection. Also, I think posting the details for your own accountability is a great idea. I like to do things like that for the days that I don't feel like "getting after it" haha keeps me on track. Good luck w the home search!
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