Guidance for an Eager BP Newbie

[Iliana Herrman]

Good evening. This is my first post on the BP forums. 

I have been listening to the BP podcasts and Brandon Turner's books. I have not finished a book yet, so this may be somewhat jumping the gun. Still... I've been running the numbers on different properties using a variety of online calculators for properties that I initially thought looked like there may be potential. Everything I see for the northern VA area and beyond market is just so unattainable; it seems like unless you have a down payment, that is way way way more than 20 percent, there is no way to get any positive cash flow. I'm wondering how anyone does it in this area, or maybe I just have not been looking for long enough.

I really would like to purchase in my area as it would be my first rental property, and I am most familiar with the northern VA area If this is not to be, I also am wondering what markets nearby would be better.

[Nathan Gesner]

Quote from @Iliana Herrman:

Brandon wrote his book over ten years ago and the market was very different at that time. Some of his advice didn't age well. You have to adjust your expectations to match current reality, which includes higher mortgage rates, higher prices, more expensive taxes and insurance, more competition, etc.

[Chris Seveney]

Quote from @Iliana Herrman:

Good evening. This is my first post on the BP forums. 

I have been listening to the BP podcasts and Brandon Turner's books. I have not finished a book yet, so this may be somewhat jumping the gun. Still... I've been running the numbers on different properties using a variety of online calculators for properties that I initially thought looked like there may be potential. Everything I see for the northern VA area and beyond market is just so unattainable; it seems like unless you have a down payment, that is way way way more than 20 percent, there is no way to get any positive cash flow. I'm wondering how anyone does it in this area, or maybe I just have not been looking for long enough.

I really would like to purchase in my area as it would be my first rental property, and I am most familiar with the northern VA area If this is not to be, I also am wondering what markets nearby would be better.

I'm also in Fairfax County, and you're absolutely right: Fairfax County and much of Northern VA are tough markets for cash flow, especially starting out without a substantial down payment. These are what we call "A-class" markets—areas with strong fundamentals, high demand, and typically excellent long-term appreciation. While cash flow may be harder to achieve here, these markets often shine in their ability to withstand market downturns and provide solid appreciation over time.

The key in markets like this is understanding your goals. If you’re looking for short-term cash flow, you might need to explore nearby markets with lower entry costs and higher cash-on-cash returns, even if they aren’t as familiar to you. Areas in PG County Maryland or West Virginia, for example, might offer better opportunities for cash flow with a smaller down payment.

That said, if you're willing to hold long-term, Northern VA can be a fantastic place to invest. Real estate often rewards patience, and holding in a market like this can allow you to build wealth steadily as property values grow.

[Iliana Herrman]

Hi Nathan, thank you for giving me some context. That is very true and good to think on.

[Kristian Sexton]

@Iliana Herrman while your local market may feel safer there are also markets that will withstand market downturns and appreciate. Your first invesment may need to be trusted out of state. There are definitely markets that allow Class A properties, and still cash flow! I'd love to chat. 

[Iliana Herrman]

Hi Kristian, would love to chat and hear about your expertise!