All Forum Posts by: Leo Watts

You can find row houses in solid areas for that price point and even some detached single families farther out from downtown. It’s almost too broad of a question because I think it matters more where the person wants to live, and then back tracking house hacking numbers (roommates + basement)  to see if the numbers check out. I would target a row house that has 3 bedrooms upstairs (ideally 4 or the possibility to add a fourth) then a close to or already legal basement. Then there’s three rentable rooms upstairs with roommates (700 - 1000 each room) then a separate 1200 - 1500 from the basement. The numbers more than pencil out for a house hack then. Something like this property https://www.homesnap.com/DC/Wa..

In regards to the cyclical nature of real estate prices, there’s a notion of the dmv being recession proof, which has components of truth. Yet this chart shows a not insignificant dip in median housing price after 08.. then a fairy sharp and quick recovery. Persistent low inventory coupled with high demand for the area is driving continued rising prices. How that plays out in the face of an economic crisis is up for debate.

@Jeffrey Morel

I think there are a lot of factors causing people to be cautious right now, including me.

Firstly, real estate is cyclical, like the stock market. There are peaks and valleys, and we are at all time high in the housing market. Some of that may be rational, depending on where you are (housing shortages), but much of what is driving buying is a fear of missing out, coupled with low interest rates and a stratification of unemployment (most white collar workers haven’t missed a paycheck and many are looking to upgrade right now). History shows that markets dip after a decade of wild growth (again depends on market).

I think there are lots of factors that are causing people to stockpile cash: huge amounts of homeowners in default, millions of renters that will be evicted as soon as moratoriums are lifted, 25+% of restaurants / bars closing, major impending correction to the office market, potential large change to geographic requirements of work, not to mention an increasingly interconnected banking system, where if enough corporations / homeowners default on loans, it will send a ripple effect through the greater economy. Also large amounts of unemployed people (can’t trust official numbers as many people have stopped searching for full time work right now). The only reason the economy hasn’t entered a more severe recession is the trillions we just printed to prop up industries and literally give people and businesses money.

If the money printing stops before a vaccine, which it seems likely it will, I don’t see how there’s not some macro level correction. How quickly / significantly that ripples down into housing prices is anyone’s guess and location dependent. If you’re getting deals at 50 cents on the dollar, keep buying. If you’re buying at 110 cents on the dollar in a bidding war, assuming your asset will be worth 120 cents on the dollar in a year from now, we have different tolerances for risk.

@Dana Powell

If you have home owner’s insurance and require roommates to get renter’s insurance that should be sufficient I believe.

Yes but you have to follow the above steps correctly if you want it to be a legal 2 unit as opposed to an illegal one.

There are a lot of fairly stringent hoops to jump when it comes to basement rentals, if you are to completely separate the upstairs and downstairs, and they vary by jurisdiction.

Generally, they require a certain height, normally 7 feet, two forms of egress (emergency exits), and sometimes require additional zoning board approval before granted.


DC: https://realestateinthedistric...

MoCo: https://www.montgomerycountymd...

750 is a pretty nice budget. Just depends where you want to be. The basement living plus renting each room individually upstairs furnished if it’s a 3 or 4 bedroom probably gives you the most cash flow.

@James G.

What’s your budget?

There’s a pocket called Garrett Park near you that is relatively inexpensive and has some good options for house hacking imo

1. There’s lots of basement + upstairs plus rentals all around DC, Virginia, and Maryland. Where do you live now and where do you want to live?

3. Price point varies widely. I personally think Mount Rainier / Hyattsville is showing strong appreciation (but higher taxes than DC) and has such properties in the 300s with easy access to DC. If your budget is 750 you have a lot more options.

@Neil Quinn

What part of town are you targeting?

Adding extra bedrooms in a basement plus converting a garage gives you an up to code triplex so to speak.

@Antonio Barnes

So my friend AJ has about 200 rental properties in the area. He is buying deals every week. Him and his business partner who does high end flips opened a coworking space for real estate professionals in West Dallas called Colectivo. I think it’s $200 a month but if you go and pick their brain you will be able to learn how to get cheap rentals and get hooked up with their network of contractors.