All Forum Posts by: Lexie De Stefano

@Dave Skow Thanks for the heads up!!

Wish I could attend! Will have to aim for the next one :)

Thank you all so much for your responses! @Stephanie Medellin, this is a super interesting technicality I didn't know about and will share with my co-signer, thanks so much for flagging!

@Robin Simon Does a DSCR loan only work for an investment property? I've essentially converted this home into a multifamily property (multifamily doesn't exist in my area), to be the perfect househack. I probably would run into the same issue for anything less than a tiny condo for a new primary residence, as home values are quite pricey in my area (Arlington VA/DC area).

BP Fam,

I've run into an interesting dilemma with my primary residence BRRRR/househack: The new ARV will probably be too high for my single income to qualify for DTI ratio requirements for the mortgage post-cash out/refinance (even though the payments will decrease and I'll earmark the funds to pay off the remaining costs). The kicker- a family member co-signed the loan with me, and needs to be removed during the cashout/refinance process so she can qualify for a new home herself. I have one long term tenant, (so that income might help to reduce DTI) but am doing short/medium-term rentals for the other rooms, so that probably will not be enough to decrease the DTI. I'd love to hear any ideas you may have for how to handle this, as I love the home/the househacking financial freedom it will eventually provide, and don't want to have to sell. :(

Thanks so much in advance for your help!

Super excited to attend and meet you all! FYI- there's free parking after 5pm if you go toward 9th St. N so you don't have to use the garage. :)

@Logan Karanovich: I've mainly looked for places with a separate entrance to a basement, in neighborhoods with good schools (for when I eventually move onto my next house hacking setup), and have tall basement ceilings. At least 7/7.5 ft. ceilings in the basement is a must, because a legal bedroom requires 7 ft. ceilings with 70 square feet of space in the area. (Also didn't want to limit my renter pool as short ceilings aren't all that appealing, and I couldn't afford to dig the flooring level deeper.) I also wanted a space that had pre-existing plumbing in the basement, even if it wasn't finished, so it would be simpler for my contractor to create a bathroom/wet bar setup that would work for a future renter (if there wasn't a pre-existing bathroom). Like what @Russell Brazil said, I'd advocate for a row home over a townhouse or condo because there are fewer rules restricting what you do (as long as things are up to code with the city of course). Flexibility is key when you're trying to be creative with your housing situation. 

Hey Logan!

This is what I've done in the area, and it's been an absolute blessing. I'm happy to chat about my experiences...I've certainly learned a lot while testing this all out. 

I ended up with a townhouse in Arlington, VA, and it's been perfect for my purposes and amazing for a rent by the room strategy. However, it got to the point that having "roommates" has become a problem as I've gotten older, and I am now under contract for House #2 (also in Arlington) that will have a fantastic mother-in-law suite situation that has a separate entrance. I'd 100% advocate for going this route because you'll be able to maintain some privacy! You can even live in your little suite for awhile, and renting out the main part of your residence might cover the whole mortgage.

I've come close to breaking even with my mortgage, but I wouldn't worry as much about that here, because the appreciation has been fantastic and you're able to treat your primary residence as a "rental property" when it comes to taxes. Ex. You're able to depreciate the portion of the house that is rented (20%, 50%, etc.), which will assist with your bottom line. Ultimately these 2 factors combined will help you to break even on paper, even if the money you receive isn't exactly cash flowing from first glance. (PS- HOA + condo fees are tax deductible, which makes it a little more palatable to purchase a townhouse/condo with those hefty fees for house hacking. *I'm not an accountant, but have just learned some of these rules over time for house hacking.*)

I'd recommend looking for a townhouse, row home, SFH, etc. that will allow you to have a mother-in-law suite in the basement or elsewhere, that you can add a wet bar and some smaller appliances for a renter (a range + stove can be tough permit-wise, but think air fryer, really nice combo small countertop convection oven, etc). That might end up being a good solution if you crave the privacy like I have. Separately, the closer to the metro you are here, the higher rent you can charge. Some people even rent out their parking spaces for condos because of the limited parking situation...another source of possible income for you.

Long term, I'd suggest thinking about how your numbers are for your property for if you were to rent the entire thing today (and you wouldn't live there). How do the numbers look? If they seem ok for now, a couple years down the line (if you use that 'nomad' strategy referenced above), then you'll be golden because of appreciation + increasing rental prices! That's the approach I've taken as well- this area is tough! But totally doable.

Best of luck :)

I second all of this. Your best bet in this area is probably going to be a house hacking situation, or finding a way to turn a basement/some portion of a home into a mother-in-law suite situation. Arlington county has pretty decent accessory dwelling unit (ADU) regulations, and Fairfax county also recently eased restrictions (still stricter than arlington), so you may have some success there too.

Hi! I'm a former renter in the area and now current Arlington homeowner. The following are just my own observations/things that I've learned from talking with realtors/investors/families with children in the area. Hopefully the below helps! :)

I personally think this is doable, although as others have pointed out, the cashflow will be pretty low. I've consistently been checking out places for rent/sale over the last couple years, (as both a renter, and now a property owner) and when townhomes under.5 miles from the metro go up for rent in the area, it can even be around the $3800-$4000 mark IF they're nicely renovated. Those with garages go for even more...parking can be brutal when close to the metro. A lot of the homes that I've seen rent at the above price point are usually valued around $850k+. 

At the $2800 price point, you probably would be able to make it happen depending on the place and location. For a somewhat updated place without a garage (we're talking 3 bed 2/3 bath) and probably a few miles from the metro, those can rent at that price point. With your budget, you'll probably be limited to South Arlington, where I'd recommend Shirlington/Del Ray as those are cute, trendy areas with lots of young professionals. (Lots of stuff within walking distance, and the Potomac Yard metro will be finished by 2022/2023.) You're less likely to get a family (although it might appeal to a military family because of the Pentagon, Ft. Myer, etc.), because many would prefer to remain in North Arlington (north of the 50) because the schools are perceived as higher rated. You also should check out some townhomes that are technically one side of a duplex (weird I know, but typical for the area), or rowhouses, because those don't have HOA fees. That can definitely help your bottom line, and is something I wish I'd considered!

Alternatively, Falls Church City (which is perceived differently from Falls Church itself) has some townhouses at this price point, that might also rent for what you're looking at. Falls Church itself can be a mixed bag, as you want to pay attention to the neighborhood. Falls Church city is just above 2 square miles and has highly ranked schools, although there are a couple of regular Falls Church neighborhood pockets that feed into the Mclean school districts, which means you may end up appealing to families, if that would be of interest. The housing price points immediately drop a significant amount outside of those school districts- so if you're seeing discrepancies in prices, I'd guess the schools possibly could be a factor.