Greetings BP. I'm attempting to find a place for either flip or rent, but I live in Loudoun County Virginia. I haven't found anything in the last 3 months (am using MLS - I'm not interested in direct marketing) that will work. I have 50K+ in cash to use as a down payment, but I have to finance the rest. With closing costs and points plus rehab costs on the places I'm looking at, I can't even squeeze 10K out in profit. The most recent place is $157K with 20-25K rehab to flip or 27-35K to make it sturdy and nice enough for a &1600 a month rental. This place is a condo, so has a nearly $400 a month condo fee that includes all utilities. That would be fine if I could charge $2000 a month to include that, but the highest rent in the complex is 1600 INCLUDING utilities, which would mean that I have to get a mortgage that costs me no more than about $825 a month, and to do that I'd need to put down about 50%. I'd love to do a townhouse with no condo fees, but those are 50-100K higher in price, and I think I'd be in the same boat. How is it that I have 50K in CASH and I can't make this work?? I thought about looking in Winchester or West Virginia where the prices are lower, but the rents are also lower. What am I missing here?
Thank you for your time.
$50k limits your purchase price to about $250k. Some things in that proce range I might look at are 150-175k condos in Germantown MD, $125k condos in Frederick MD or $200k townhouses there, $250k condos in Alexandria, VA, $200k condos in Falls Church, VA, or $250k single families in Ft Washington.
Thanks, but as I said, I already have a property at $157K that won't work with putting even 35% down, so finding another more expensive property probably won't do me much good. I'm wondering if in this area people just use cash for the full purchase.
I feel your pain. Part of the problem of being MLS only is your paying retail cost. In this area it is hard to work out. I would switch markets or try and get off market properties so you can use creative financing. I look for creative deals in NOVA and look for mls deals in other markets.
Unless you have the time to do mass marketing to find off market properties then I would say don’t waste your time in this area. Are there deals - absolutely but there are a ton of investors in the area who have the cash and or hard money that can close in no time. Sorry if this puts a damper on things but it is the reality.
A HA! I found a mistake in my calculations. The sheets my mortgage broker has been giving me list the HOA fees for the condos in the same section with P&I, taxes and insurance, and I didn't realize that until tonight. So the Total Payment line that I thought was the mortgage, was actually the mortgage PLUS the HOA, which I had also been recording separately in my spreadsheet. So the instant I fixed it, my monthly income went from red to black. Huzzah.
@Elizabeth Campanella I grew up and lived in Purcellville for the last 18 years, good luck flipping or renting, lol. Try crossing into Clarke County, numbers seem to start acting nicer. Of course not as much demand, but depending on your strategy you could get a 1-1.5% property.
I’ve got one property that was trying to wholesale about a month ago, but had to back out of contract because no buyers wanted to touch it(has about 1000 unpermitted square footage the owner won’t verify with the county
Let me know if interested. Purchase price around 140, rehab: 110(including a well and septic) and comps around 310-320. Not a great deal, but off market and spent a lot of time with seller
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