Northern Virginia Investment rentals

[Lori N.]

Hi all, I'm looking to buy my first investment rental in the Northern Virginia area. Budget is 400K. Looking for appreciation and modest cash flow at least. (The more the better obviously.) I had high hopes about the area near where the new Amazon HQ is going to be, but don't think this budget will allow me to get anything besides a condo which I am very wary of because of their high HOA fees. Seems like townhomes are the better bet. I hadn't thought much about outside Fairfax county but places like Reston, Herndon, and Manassas seem like they fall more in that budget. Anyone with any experience in these areas? Is the appreciation good there?

Thanks in advance for your input.
 

[Adrienne Green]

Hi @Lori N.! You can certainly find an investment property that fits your list in Northern Virginia. I agree with what @Brian Beck said above.  Western Fairfax, Loudoun, and Prince William counties all have potential for you.

Condos can still cashflow, even with the higher condo fees. You must also take into account much lower maintenance costs for condos, which help offset the higher condo fees. That doesn't mean every condo will cashflow, but they can. Plus they appreciate very well. We have a shortage of affordable housing in the area, so that means condos, as the most affordable, have gone up in price.

As far as your question regarding appreciation, all of Northern Virginia is seeing 6-7% annual appreciation. Hot spots for appreciation have been near Amazon's new HQ2 and near the upcoming metro stations on the Silver Line. In those areas, keep in mind you'd be paying more, too.