All Forum Posts by: Heather Skowronsky

At that price point it's most definitely going to be negative cash flow. In our area (Northern VA) it's extremely difficult to find cash flowing property. Most buy and hold investors up here are buying for appreciation (speculation). I'd just show her your numbers, be up front and honest with her about the profit you and your wife intend to make and PUT IT ALL IN WRITING. She wants to help her daughter, so she understands you guys need to make a profit. Also you don't have to go with some hard and fast rule about how much profit you should make. You decide that on your own. My husband and I don't have a percentage we need to make. We have a minimum amount we'll be willing to flip a house for and we go from there. Don't forget about the tax implication! Taxes will eat up close to 50% of your profit - yay capital gains. Also your Mother in law is probably right. If she put it on the market for $400k in its present condition and ARV is $550k there is absolutely some "investor" out there that is going to over pay for the property. I see it every single day.

Best of luck to you and your wife!

I found my rental from a wholesaler in the Richmond area.  Richmond proper is more expensive and tough to find cash flow but if you go out to the suburbs, there is cash flow and where there is cash flow, there are investors!  

Yes there are conventional loans that are 3% down, your loan officer might have those programs but if not, shop around.  If you are living in the property then it is not an investment property, it's a primary residence and you get to take advantage of the lower down payment (3%, 3.5%, etc).  If you aren't living in the property then it is considered an investment property and therefore you will need at least 20% down.  Good luck!

With the BRRRR strategy you would avoid the tax implication because you would be refinancing out of the loan that you purchased the property with (most likely an FHA 203k or something along those lines, I'm assuming since you mentioned you'll be using your first time home buyer eligiblity) and not selling it. Just know that you will have mortgage insurance which will make your payment significantly higher than if you purchased with a conventional loan or refinanced into a conventional loan. With the FHA 203k loans (and the other similar loan programs they have with which you can finance distressed properties) you don't necessarily have to be a FTHB. You also don't need 20% down to obtain conventional financing either. There are 3% down conventional programs as well. Find a reputable lender that can tell you what they offer in your area!

This is a tough question to answer but as an agent I can tell you that having a CLEAN home really helps the appeal of the home when buyers are looking at it.  Clean floors, clean smells, clean everything.  

If you are able to find a multi family property that you can purchase with that $30k that would be ideal as a single vacancy is easier to handle when you have more than 1 unit.  As you will discover on this forum, multi families are harder to come by than single families.  Use the calculators here and analyze deals that you see in the market(s) you are interested in investing in.  Then start making some offers - just make sure that you'll be cash flow positive!

I use Platinum Property Management.  Brittney and/or Becky.  They are a mother daughter team and do an excellent job. I'll send you their contact info.

@Lou LaMedica I don't have anything set in stone but I would really prefer something built in 1978 or newer as you don't have to worry about lead based paint with those properties.  My rental in Richmond was built in the 50s though.  It will need some structural work to it prior to us ever selling it though.

Hi @Lou LaMedica I live in NOVA and invest in rentals in Richmond and have been looking in Winchester as well.  I have been looking for multifamily properties for a few years now but there aren't many in Virginia.  The ones that do exist are very old which can lead to some very expensive repairs so I tend to steer clear of them.  

Those are both good areas to look at- you can find properties that cash flow.  

Good luck!

I have a great property management company that services all of NoVa.  They don't have turn key properties or anything but they do the property management side.  

Platinum Property Management - http://platinumva.net/

Tell them Heather sent you!