All Forum Posts by: Pierre E.

Quote from @Kwanza P.:

Anyone doing MYR in Washington DC (I think STR is out)? If so, what's been your experience ? Advice ? Tips ?

There are only a couple counties in the DC area that allow STR so yes, thats pretty much out unless it really is your primary (ie you have a rare duplex, or ADU setup and zoning allows HOA etc)

Were evaluating MTR in DC. People travel for different reasons, goverment and healthcare are the two biggest groups. Travel nursing and all of travel healthcare contracts have been cut significantly in many places which is why MTR even became a big thing. I don't know much about relocation and insurance but thats a different property size. so either you are doing 1-2 bed MTR or 4-5 Bed MTR.  Buying a new property with todays numbers seems outrageous to me. I haven't made it to one yet but it would be good to attend a reia and see what people are doing NEW... and how they are doing it. 

Quote from @Dylan Brown:

I have been watching this like a hawk - this is going to be huge for my clients.  Interestingly, the property needs to be acquired after January 19th 2025 (Trump’s Inauguration Day) - so if anyone acquired a property in those first 18 days of 2025 it would not apply to them

Right. I think at one point there was mention of it being also retroactive, but it doesn't look like it will be that way.

I think they key thing is finding the right way to use it. @Dylan Brown  maybe you could write a post on different ways clients have used it in the past. I know everyone talks about it in terms of STRs, but 100% Bonus Depreciation can apply in a few different ways from what I understand, and a lot of people don't understand the options or the process for which to use it. Its a buzz word, as opposed to a clearly defined strategy... If I can call it that. Really, it should be seen as icing on the cake for something you were already going to do. 

But the next 5 years is likely to be a major window of opportunity. If this passes, from what I am "hearing"...  gathering the gun powder this year and getting things in order to pounce on a 2026 or 2027 deal will likely be the move. Its looking like the cracks in the economy is getting ready to hit, and I think the effect will be further drops in prices in homes in the next year or two... and maybe again all speculation... a good buying opportunity in some markets that will allow and up swing in value.  

I wonder, if this is something that can be supercharged with other strategies? REPS, Cost Segregation, maybe 1031... 

There is some wrong information I saw, so I took a look at the full text and shared it below if anyone is interested and I added the sections to search for (use Ctrl+F) 

Bonus depreciation starts again for properties purchased on or after Jan 20, 2025.  
Properties before that date still follow the previous depreciation timeline. 

This is  still needing to go through the sensate but you can see its progress at the link below

Status of the Bill In Congress and FULL TEXT : http://www.congress.gov/bill/119th-congress/house-bill/1/text

H.R.1 - One Big Beautiful Bill Act 119th Congress (2025-2026)

Subtitle B Part 1 (Sec. 111001) - This section extends bonus depreciation for qualified property acquired and placed into service after January 19, 2025, and before January 1, 2030 (and before January 1, 2031, for some types of property with longer production periods).

Subtitle B Part 2 (Sec. 111001) - This section provides for an elective 100% depreciation allowance for nonresidential real property that meets certain requirements. (Some limitations apply.)

Subtitle B Part 2 (Sec. 111107) Some additional adjustments


https://www.congress.gov/bill/119th-congress/house-bill/1/te...

Especially with all the housing inventory in both regional vacation markets and standard residential areas this season.  

can someone share an example scenario of "numbers working" for a smokies STR

Quote from @Chris Seveney:

Quote from @Pierre E.:

I happened to come across this post again I appreciate this discussion. Totally understand and agree with what you guys who are far wiser and more seasoned than me have said. (as a side note, the question was more testing and idea, and generally I ask not about the beginning but with the end in mind, ie, if I decided to ever do real estate full time, would I focus on being a flipper in the DC area, SFH rentals, small multi rentals, large multi rental partnerships etc. )

@Matthew Paul you mentioned the number of buyers at 400k is higher than those at 1 mill which makes complete sense. I ran across the data below (I dont think it changes what you said but just adding more info)  

I am also curious based on what @Jay Hinrichs and @Chris Seveney said, in a place like DC what do flippers look for if they aren't getting that 70% ARV, and is there a different metric for flipping in the SF area that people use, or in other HCOL areas?

showing Median sale price is almost 750k across all residential property types, and closer to 850k for single family  

Performance by Property Type

Detached Single-Family Homes

Metric	Apr 2025	Apr 2024	Change
Closed Sales	2,126	2,101	+1.2%
Median Price	$873,667	$840,000	+4.0%
Days on Market	6 days	6 days	No change
Pending Sales	2,504	2,622	-4.5%
Active Listings	3,949	2,638	+49.7%
Months of Supply	2.09	1.47	+0.62

Townhomes

Metric	Apr 2025	Apr 2024	Change
Closed Sales	1,221	1,214	+0.6%
Median Price	$619,500	$630,000	-1.7%
Days on Market	7 days	6 days	+1 day
Pending Sales	1,315	1,367	-3.8%
Active Listings	2,285	1,598	+43.0%
Months of Supply	1.97	1.44	+0.53

Condos

Metric	Apr 2025	Apr 2024	Change
Closed Sales	1,106	1,197	-7.6%
Median Price	$400,000	$380,000	+5.3%
Days on Market	13 days	9 days	+4 days
Pending Sales	1,205	1,397	-13.7%
Active Listings	3,581	2,333	+53.5%
Months of Supply	3.24	2.02	+1.22

County-Level Highlights

Location	Median Price	Days on Market	Sales Change (YoY)
Washington, DC	$750,000	18 days	-6.3%
Montgomery County, MD	$670,000	7 days	+0.3%
Fairfax County, VA	$775,000	6 days	-0.9%
Prince George’s, MD	$454,445	14 days	-5.9%
Loudoun County, VA	$805,000	6 days	+6.3%
Arlington County, VA	$810,000	7 days	-9.5%
Alexandria, VA	$790,000	6 days	-12.8%
Falls Church, VA	$1,350,000	5 days	+133.3%

 If you were going to do it in the DC area and provide consistent cashflow, you would need to do it full time and have a nice marketing budget and get to networking with a lot of the players in this space. DC is ultra competitive due to lack of housing and I do not believe it will get better due to the zoning within the area which they may talk a big game about affordable housing but everything they do is anti-development/affordable housing.  

If I were to do it full time in DC I would have my own development and construction team so I was able to get work done at more affordable costs and providing some sort of differentiator.

I see. Good insight.  So not entirely impossible, there are properties that work with the numbers, just a lot of people trying to get them.  

And yea I know MoCo had a series of listening meeting about that (zoning changes) in the recent past and it didnt go too well 

Thanks again. I always appreciate your insight. Do you go to any local REIAs?  

Welcome!  

I happened to come across this post again I appreciate this discussion. Totally understand and agree with what you guys who are far wiser and more seasoned than me have said. (as a side note, the question was more testing and idea, and generally I ask not about the beginning but with the end in mind, ie, if I decided to ever do real estate full time, would I focus on being a flipper in the DC area, SFH rentals, small multi rentals, large multi rental partnerships etc. )

@Matthew Paul you mentioned the number of buyers at 400k is higher than those at 1 mill which makes complete sense. I ran across the data below (I dont think it changes what you said but just adding more info)  

I am also curious based on what @Jay Hinrichs and @Chris Seveney said, in a place like DC what do flippers look for if they aren't getting that 70% ARV, and is there a different metric for flipping in the SF area that people use, or in other HCOL areas?

showing Median sale price is almost 750k across all residential property types, and closer to 850k for single family  

Performance by Property Type

Detached Single-Family Homes

Metric	Apr 2025	Apr 2024	Change
Closed Sales	2,126	2,101	+1.2%
Median Price	$873,667	$840,000	+4.0%
Days on Market	6 days	6 days	No change
Pending Sales	2,504	2,622	-4.5%
Active Listings	3,949	2,638	+49.7%
Months of Supply	2.09	1.47	+0.62

Townhomes

Metric	Apr 2025	Apr 2024	Change
Closed Sales	1,221	1,214	+0.6%
Median Price	$619,500	$630,000	-1.7%
Days on Market	7 days	6 days	+1 day
Pending Sales	1,315	1,367	-3.8%
Active Listings	2,285	1,598	+43.0%
Months of Supply	1.97	1.44	+0.53

Condos

Metric	Apr 2025	Apr 2024	Change
Closed Sales	1,106	1,197	-7.6%
Median Price	$400,000	$380,000	+5.3%
Days on Market	13 days	9 days	+4 days
Pending Sales	1,205	1,397	-13.7%
Active Listings	3,581	2,333	+53.5%
Months of Supply	3.24	2.02	+1.22

County-Level Highlights

Location	Median Price	Days on Market	Sales Change (YoY)
Washington, DC	$750,000	18 days	-6.3%
Montgomery County, MD	$670,000	7 days	+0.3%
Fairfax County, VA	$775,000	6 days	-0.9%
Prince George’s, MD	$454,445	14 days	-5.9%
Loudoun County, VA	$805,000	6 days	+6.3%
Arlington County, VA	$810,000	7 days	-9.5%
Alexandria, VA	$790,000	6 days	-12.8%
Falls Church, VA	$1,350,000	5 days	+133.3%

I am trying to learn and understand... someone told me that its not just size of the home or level of the flip that determines profit, and that in some markets, what is considered a typical profit is 300k based on the 70% ARV formula. Is this true? Is anyone flipping in a market where this is "average"? I kinda get it if 4 and 5 bedroom properties are going for 1.5 million in that market but... thats just math wondering what reality is?

I am exploring the idea of buying land, with the plan to pass it down through family.  Has anyone done this? I know this may be an individual decision ultimately, but what types of land did you purchase, or what regions, or what characteristics and why?  

Farm Land? Lake Property? Mountain Property? Desert Land? Lots of Acres at lower cost?  Small lots in a prime location? Close to your primary residence?  Vacation areas? Areas that can be subdivided?