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Updated almost 6 years ago on .

User Stats

4
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0
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Edwin Renninger
  • Rental Property Investor
  • Washington, D.C.
0
Votes |
4
Posts

[Newb] First Deal in SE D.C. - House Hack Lite on SFH

Edwin Renninger
  • Rental Property Investor
  • Washington, D.C.
Posted

Investment Info:

Single-family residence buy & hold investment in Washington.

Purchase price: $499,900

Currently have 4 br / 3.5 ba end-unit townhome under contract in Southeast D.C. Going to live in the smallest of the four bedrooms and House Hack Lite (HHL) by monetizing the remaining three. Trying to figure out whether Air BnB or traditional 6-month/12-month leases will produce better monthly cashflow.

What made you interested in investing in this type of deal?

Rental lease was up in an Alexandria, VA townhouse I lived in since 2016. Being debt-free and in a great-paying W-2 salaried job, I figured it was time I entered the game. I feel like D.C.-Maryland-Virginia (DMV) is such a safe bet and insulated against market forces by the dual presence of the Federal government and private industry perennially courting them. This is a market I learned by accident due to the career path I took from 10 years in the military, and now, the consulting world.

How did you find this deal and how did you negotiate it?

Redfin using a filter for single-family and multi-family homes with HOA off. Moved way too quick for my realtor so I pretty much networked with listing agents posted to property pages. When I found something exciting, such as this, I got my buyer's agent involved.

How did you finance this deal?

30-year fixed rate VA purchase loan.

How did you add value to the deal?

N/A. No substantial work needed; was constructed in 2008 and has been owned by the same family since. I'll be the second ever.

What was the outcome?

TBD.

Lessons learned? Challenges?

Using a VA loan, you're one of the least competitive buyers on the market with the exception of maybe FHA. While this property will cashflow nicely and potentially appreciate nicely, it wasn't my first choice. The original killer deal was a few blocks away : 10 br / 5 ba apartment building surreptitiously restructured to be a triplex for easier financing. Was the seller's second choice of seven offers (2/7). Lost hard to an all-cash investor with every contingency waived.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dana Rice, Senior Vice President at Compass Real Estate

https://www.compass.com/agents/dc/dana-rice/

Tell her I sent you lol