Areas to Invest in Northern Virginia?

Question

To all the investors in Northern Virginia, which zip codes/cities are you targeting for buy and hold or flipping? Which areas are seeing the best appreciation? Can I find something under 250k which can get me an After Repair Value of $300k? Looking forward to hearing from investors and rookie investors like me.

David Fernandez · Answer

Hey @Aj Parikh!

For SFH and THs, at that price point, you can find some properties in Centreville-Manassas, Hybla Valley - Mt. Vernon, and Woodbridge - Dumfries. Inventory is low, but if that is your price point and are committed to NOVA, I'd look into these areas. Be ready to move quickly. If you want to go a bit further, you will find more opportunities in the Fredericksburg area or in Prince Georges County if you cross the river.

If you want to consider condos, there are plenty in Arlington - Alexandria within your price range. Condos and SFH/THs behave differently in the long run and under the same market conditions, so something to consider if you are thinking about holding long term.

Good luck!

David

David Fernandez · Answer

Did you consider working with local lenders instead? If hard money is the only way because you can't get regular financing, by no means go with it. However, if you can get similar, but cheaper financing, I'd rather go with the cheaper option.

I work with a lender that offers conventional loans as well as loans for investors (asset lending + investing background). I can introduce you to her so you can discuss your specific situation and goals, but last time I checked with her for an investment loan the terms were really good: 0.75 points and ~3% interest rate. They can close in ~21 days.

Russell Brazil · Answer

Thats going to be a hard price point in Virginia. Prince Georges County will be more possible at that price point.

Aj Parikh · Answer

Got it. Thanks @David Fernandez

David Fernandez · Answer

Hey Aj, a realtor can definitely help you with this or you can do it yourself if you have access to the MLS / Know an area and type of home really well.

It doesn’t happen often, but when you spot one, sometimes they can be worth it. I had success when looking for unfinished basements and/or homes where the listing agent doesn’t include the basement sq.ft. as part of the total finished sq.ft.

Aj Parikh · Answer

@David Fernandez How do I find those abnormal listings or listing mistakes? Can the realtor help me with that or I have to look for those on the MLS?

David Fernandez · Answer

In my experience, if a property is bankable (it can get a mortgage/appraisal), offering cash strengthens your offer, but you won't get the big discount you may be expecting. I lost properties by less than $10k offering all cash and no contingencies. The market is tough now for Buyers, it takes more than offering cash. Most offers I see accepted these days are above asking price and no contingencies (from a Seller point of view, they are almost equal to a cash offer).

Since you are interested in flipping, the old say of "know the true ARV and the reno budget" will serve you better than a cash offer in today's market. Also, looking for hidden values: unfinished spaces (basement), listing mistakes (missing sq.ft.), abnormal listings (too much sq.ft. for not enough bedrooms/bathrooms), etc

Aj Parikh · Answer

@David Fernandez Going for a conventional loan is not a problem. But what I am seeing is that I would have a better chance if I can come up with a cash offer to purchase as-is properties. Hence, I am trying to work with hard money lenders. But I am still a rookie, so feel free to share your feedback on that approach. Also, do share your contacts of lenders who do asset lending or even hard money lending.

Aj Parikh · Answer

@David Fernandez I am seeing inventory being low so I have started to reach out to hard money lenders to be ready to close on a deal with the funds ready to go. I am not trying to buy and hold but looking to fix and flip.

Aj Parikh · Answer

@Fabian Friedrich That's good. I might have to look into Warrenton or Manassas more closely because it would fit my range. Thank you for the response.

Areas to Invest in Northern Virginia?

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