Real Estate Friendly Agents in Washington DC

[Charlene Isoh]

Hi Guys,

I've been searching for the ideal property to invest in that makes ultimate sense for my bottom line for what seems like a while after moving to DC a little under a year ago and putting an offer on a propertin in Baltimore (fell through due to foundation and electrical issues)...My strategy is buy and hold and looking to invest in multi families in Washington DC with the idea of househacking (living in one unit renting out the rest). I would not be opposed to an FHA loan as i realize this might be the only option of affording this crazy market (my budget all in is 25k). Any pointers or agents that can guide me to options that might be viable? Thanks in advance!

[Russell Brazil]

Well as you might be aware, multifamilies are incredibly rare in the DC area.  in 2017 218 in total sold, and so far this year about 170 of them. So this is one of the most competitive parts of an already competitive market. So be well aware of that going in. 

With a budget of $25k, with closing costs, you are limited to the low $400ks on price point.  That is going to likely put you EOTR (East of the River).

The other thing to keep in mind is that FHA has strict condition requirements, and many of these properties are not going to meet FHA condition guidelines.

Also be aware that you will be at a competitive disadvantage because you are using FHA financing, on an asset that a lot of cash buyers are looking to buy, and then cut up into separate condos.

As a first step, Id suggest using a strong lender, and going through preunderwriting so you can get an actual loan commitment as opposed to a generic preapproval, to help boost your position. @Upen Patel is a lender in the area that has one of these programs.

Also to be aware of, 3-4 unit properties in the area typically will not meet the FHA self sufficiency test, so you may be limited to 2 unit properties.