All Forum Posts by: Lexie De Stefano

I'm seeing some amazing purchasing opportunities right now. I just did a pretty intensive search of PG County for an investor client and deals are available right and left if you're willing to be creative and think through various options. Just today, I flagged single family homes with excellent ADU potential, several homes with subdivision & build potential, BRRRR options near UMD, etc. With rates decreasing, I could see some buyers entering the market, but right now there's a real opportunity to find some diamonds in the rough. Happy to connect anytime!

Hi Billy, welcome to Bigger Pockets! There are many great opportunities available in the area depending on what you're looking to achieve. I particularly love the co-living/MTR model closer into the city, have an Airbnb about to go live further out, and am exploring Sober Living opportunities ideally as my next project in nearby West Virginia. Would love to connect to chat about all things BRRRR or local/semi-local real estate investing. I'll send you a DM! :)

I like this train of thought and think you should aim for option 3: conventional loan + lower downpayment (perhaps even lower than 10%). Your lender definitely should be able to count the 75%- I'm in Arlington and would be happy to connect you with my awesome lender who has been able to do all kinds of creative options to get to yes for me. For context, downtown Alexandria performs super well as a rental market and bringing in $5.5k+ as the monthly rental income if you choose to move out of the househack in the future will be absolutely feasible (depending on the property of course). Therefore, bringing as little to the table as possible at closing in both the downpayment + closing costs should hopefully still make your numbers work. Best of luck!

Hi Peter, I totally agree, and know a lot of folks believe in its potential. Its location at the end of the metro line makes it extremely accessible, and I wouldn't be surprised if down the line there are future expansion plans that direction. I've also seen lots of travel nurse interest in the Springfield area, and some of the nurses I've hosted on the MTR side end up selecting next locations out that direction. Sounds like it's time to open up shop! 

Hi Lewis, welcome to the DMV! It's a great place as an appreciation market, and there are a few strategies that you just might make work if you get creative here. I can't really speak to DC itself, but here are a few tips on the VA/MD sides:

BLUF: At your price point, breaking even will be tough. But with some creativity--and perhaps a willingness to commute--you may be able to make it happen. Here are a few ideas that perhaps might work at your budget in this area, and happy to chat offline anytime!

1. If you've got the capital and you know some of the homes you like require renovations, perhaps it's worth checking out an FHA 203k loan program (the renovation funds are built into the loan, and you don't pay them out of pocket!) A lender will be able to speak to specifics, but it might help with achieving any needed upgrades. Otherwise, picking an option that requires minimal renovation would be great for the VA loan.

2. On the Virginia side: LTR-There are a few pockets of townhomes that may work at your price point, and from what I've seen, you may be able to break even if you play around with the numbers and are willing to drive. MTR: you should be able to cashflow or break even if you employ the midterm strategy here. (Many options with this, and I'm happy to chat offline!) 

3. Maryland: there's a HUGE opportunity for affordable housing, and the MD counties are amazing at publishing the rates by zipcode, often up to 6 (Anne Arundel county) and 7 bedrooms (in PG & Montgomery Counties). You'll likely find cashflow with this investing strategy, even at your price point, because the counties are willing to pay DC rent for Maryland purchase prices. Just will need to convert dining rooms/basements into the last couple bedrooms to hit your target rent, but you can do that at the end of your time living in the home!

4. Condos will probably be the toughest to achieve cashflow and have the most restrictions. But...never say never though! A friend of mine has a DC condo that performs incredibly well with excellent cashflow! Just about the right unit and strategy to make it work.

Best of luck with your home search!

 47.5 percent! Wow! That's a crazy and intimidating statistic :(

On a micro level, I have had a decent amount of success with MTR's with my househack. I have a 2 bed/2bath in-law suite in Arlington, and I rent by the room on a midterm basis in the main house where I live. I get the most bites from transitioning pre- or post-PCS government personnel, interns, travel nurses with contracts at VHC (Arlington) or Medstar Washington Hospital Center in DC, or local people going through divorces that temporarily need somewhere to stay while they iron out life plans. 

My observations over the past year: I have more single people or married couples looking for a 1 bedroom separate unit than folks looking for a 2 bedroom, and that really surprised me. Fewer folks seem to want my in-law suite as a 2 bed unit, and I've only had single people that rent the whole thing instead of couples or friends traveling together. I also get a lot more interest in rooms that have a private bathroom than when I offer the same room as a shared bathroom (and it's decorated very tastefully). Most of my folks contact me via Furnished Finder or huge variety of local facebook housing groups. 

You'll want to keep in mind that parking restrictions can be tough here, in addition to the maximum amount of non-related people in a particular home. Virginia only allows 4, and I think Maryland 5, then DC 6 respectively...but I could have the last 2 accidentally swapped. Take a look at Furnished Finder and you'll be able to see the local demand...I've found it's pretty good, particularly when metro accessible. Best of luck!

This is amazing! I've always enjoyed reading your posts and helpful comments- particularly all of the DMV ones. Congratulations. :)

Yes! I love the one I bought from Home Depot- can't find the exact one but here's an example: https://www.homedepot.com/p/GE-2-4-cu-ft-White-High-Efficiency-120-Volt-Ventless-Electric-All-in-One-Washer-Dryer-Combo-GFQ14ESSNWW/312481993?

Hi! I paid my contractor to help me do this near the DC area, and my main couple of issues have been with soundproofing the basement unit from the main house and figuring out the temperature difference between the levels. I'd recommend ensuring that you sound PROOF (not just use dampening material, although of course finding better insulation between levels is great). For example, when testing out noise levels, I can hear my dog's footsteps walking above me (because of his nails touching on the floor) but I can't hear voices or the tv in the main house...so definitely ask around to find the right material! A builder friend recommended 2 layers of drywall on the ceiling between units instead of one that's been great for one of his duplexes, but it's too late for me to add that at this point to mine. I've been shocked how much I love my minisplit AC/heating systems that I had installed into the basement, but not sure what's typical in your area with central air vs. separate systems. 

Typically converting a unit into a legal bedrooms takes into account a few different things- square footage requirements, ceiling height minimums, a closet, and an egress. This does vary by state and location, so just double check your county requirements to ensure that no one will give you issues with one of these other items. For example, in the DC area you need 70 sq ft, a closet, an egress, and minimum 7 ft ceilings for most of the bedroom for it to count. (And please, BP community, correct me if I'm wrong!)

I've also found the egress window process to be pretty simple, and it added massive value to my homes- you certainly have the right idea! One tip- make sure that you look at city/county requirements for egress window heights to ensure that it complies with whatever the code dictates. In my area, one county requires that windows must be no higher than 44 inches above the ground, whereas adjacent counties have different requirements. Perhaps making sure the window is located a couple inches below whatever the requirement is would help stave off issues from future code modifications. If it's below ground, you'll need to add a window well with a drainage system (I did this for one of my properties) which cost a lot more, but at my current place it was much cheaper because the basement level was technically at grade and didn't require the window well. 

If you're hurting for space in your basement unit kitchen, I'd recommend finding an under the counter washer/dryer. You'll save costs on buying 2 separate machines, and this is pretty common in other countries, particularly Europe. Your tenants will thank you for having it there! I'd also recommend keeping to lighter-colored selections for the basement- you can assume it will already be darker, so lighter paint colors, lighter flooring, white cabinets, lighter counters, lighter backsplash, etc., will make it seem so much more luxurious and less like a basement.

Best of luck, you've got this!!