All Forum Posts by: Leo Watts

@Joaquin Camarasa has been organizing one in Northern Virginia. 

@Justin Carter

I think clarifying your investing goals a bit more would help us. How would you fund your fix and flips? How much experience do you have flipping houses? How do you evaluate your criteria for a long term hold? Cash flow VS appreciation? Do you want to house hack, buy a condo or SF to rent, look for a duplex? What type of financing are you looking at?

But to answer your question without more details, I’d tell you to check out NE DC, Northern PG county across the DC line, or NoVa in or around Alexandria.

@Jonathan Goohs

What type of property are you targeting? House hack? Home where you can rent the basement? Do you want move in ready, or something that needs some work? I think there are still diamonds in the rough in this market, especially with low interest rates.

You will get numbers all over the place. There are lots of factors. The digging out work, extra foundation work, hauling out debris, additional concrete work for a new entry way. You’re probably looking at 50k for a relatively modest project and 100k or more for a large scale excavation, rebuilding entry ways, concrete work for new entryways, permits, materials etc. Being able to negotiate separate parts of the project with different subcontractors can save you money but open up more potential logistical headaches.

@Matthew Koss

There’s generally less room for big value add in townhomes especially in Virginia for a number of reasons.

1. Most of them aren't that old. You're looking at 10 - 40 year old properties, not 100 year old in DC. Most of them have not severely deteriorated. HOA also generally does not let a home fall into major disrepair. Mostly they are in livable shape. Can do a cosmetic rehab but that won't include a crazy value add generally.

2. Cannot add Sq footage. Townhomes in master planned communities (as opposed to DC or older parts of Alexandria or arlington for instance) forbid adding on additions generally. A big value add in a flip is doing an addition of some sort, or splitting the home into condos.

3. Prices are capped due to similar comps. If all the townhomes in one community are nearly identical or at least quite similar, it’s difficult and unwise to try to break the comps with a big reno. VS in an area with more heterogenous properties, you’re generally required to be priced fairly similarly to other comps in the development. As such, if your top end is 550, it’s unlikely an informed seller will sell at such a discount to allow a flip with big profit, as they will think their property is worth close to that if they do some cosmetic repairs.

One value add I do see in some townhouses is adding another legal bedroom. I have seen 2 bedrooms and 3 bedrooms that can be cheaply turned into 3 and 4 bedrooms. Make sure to verify legal bedroom requirements and any HOA covenants.

Are you getting more than market rent for the property?

@Phil K.

He’s probably selling now because he needs the money to do something else, right? Why would he want to sign something that allows you to lock up the property and cancel with no recourse to him? Why are you so hesitant to buy if there is a potential for 100k in equity? What do you think could be lurking in the home that would wipe out 100k in equity? Almost any home that goes sold has some defects, but unless there’s many many egregious issues all together (completely shot foundation requiring total overhaul, multiple HVAC units on their last legs, unsafe electrical needing rewiring, total plumbing disaster, broken sewer lateral, holes in roof) you should be fine, as long as you are pulling good comps and you have an even half way competent home inspector that can identify most or all of these potential issues.

Hard to say without looking at more details, comps, etc. I’d say 75-80% of the time, you’re going to get a better deal if you get a lot more eyeballs on the home, as opposed to taking your first offer, especially in this market, as long as you have a realistic idea of what it’s worth. I’d be happy to run some comps and let you know what I think!

Welcome! Househacking is a great way to get started and build equity!

@Eugene Gibbs

How big of a property?