Trying to invest in DC Maryland Virginia area

Member since 2023 · 67 posts · 15 votes

Hello all, a newbie here.

I am trying to see the markets and be able to invest in the greater DMV area. I live around and would like to invest in buy and hold for rental properties.

What areas are really good focus as far rent is concerned. Also interested to know what kind of banks are more friendly to investors in this area?

Thanks a lot.

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Jason WrayPro Member

Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes

Kal,

Based on what I am seeing is out of your states Virginia seems to be doing fairly well versus DC and Maryland. DC & Maryland have some chunky home prices where in VA you can still stretch your dollar a little further.

Take a look at Indiana and Ohio they have some great STR and LTR options in and around Dayton and just outside Carmel in IN.

If you are looking for a good investment friendly program I would check out a Portfolio program. It allows you to put less down with lower rate if you have good to fair credit with 15% down with No Prepays. Avoid DSCR if you can show income or at least 1 year W2 or 1099's only because the rates and down payments are higher.

[email protected]727-637-4289

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Jason WrayPro Member
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
3y
Kal,

Based on what I am seeing is out of your states Virginia seems to be doing fairly well versus DC and Maryland. DC & Maryland have some chunky home prices where in VA you can still stretch your dollar a little further.

Take a look at Indiana and Ohio they have some great STR and LTR options in and around Dayton and just outside Carmel in IN.

If you are looking for a good investment friendly program I would check out a Portfolio program. It allows you to put less down with lower rate if you have good to fair credit with 15% down with No Prepays. Avoid DSCR if you can show income or at least 1 year W2 or 1099's only because the rates and down payments are higher.
[email protected]727-637-4289
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Kal Wol
OP
Member since 2023 · 67 posts · 15 votes
3y
Quote from @Jason Wray:

Kal,

Based on what I am seeing is out of your states Virginia seems to be doing fairly well versus DC and Maryland. DC & Maryland have some chunky home prices where in VA you can still stretch your dollar a little further.

Take a look at Indiana and Ohio they have some great STR and LTR options in and around Dayton and just outside Carmel in IN.

If you are looking for a good investment friendly program I would check out a Portfolio program. It allows you to put less down with lower rate if you have good to fair credit with 15% down with No Prepays. Avoid DSCR if you can show income or at least 1 year W2 or 1099's only because the rates and down payments are higher.

Thanks a lot Jason for the lightening fast response, much appreciated. Those are a very good points you mentioned. I am new to investing in general and not sure how I can do the out of state investing in real estates. It doesn't require me to be there like to see it and stuff? I think I already leaned something. I will take a look on the Ohio/Indiana.
For the financing, thanks a lot for the good insight. Do you know if there are services that are reliable providing the mentioned service?
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
@Kal Wol
the exurbs - Frederick, Fredericksburg, some of the suburbs in between DC and Baltimore - are going to have lower price points and higher rent to price ratios. but still lots of competition and demand. i'd encourage you to start locally / in person though rather than looking for a random property in the midwest that you make $98 a month on.
one of the nice things about the DC area is that there are TONS of meetups. you can go to 5-6 a month. so: go to meetups. get preapproved for a loan. visit properties. put the work in.
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Kal Wol
OP
Member since 2023 · 67 posts · 15 votes
3y
Quote from @Nicholas L.:

@Kal Wol
the exurbs - Frederick, Fredericksburg, some of the suburbs in between DC and Baltimore - are going to have lower price points and higher rent to price ratios. but still lots of competition and demand. i'd encourage you to start locally / in person though rather than looking for a random property in the midwest that you make $98 a month on.
one of the nice things about the DC area is that there are TONS of meetups. you can go to 5-6 a month. so: go to meetups. get preapproved for a loan. visit properties. put the work in.

Thanks a lot Nicholas. Thanks you for supporting the local property idea :) I am sure there might be a way but starting from the local one will give a good insight and better learning opportunity I believe.
Sure, are there any recommendation from the meetups you attended and think are good ones not to pass them? I really appreciate your and others time and willingness to help someone who is just starting.
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Chris Pelc
Investor · Philadelphia · Member since 2023 · 104 posts · 46 votes
3y
Have you looked into the Philadelphia market? Philadelphia is a great area for high rent-to-value ratio.

Are you looking into long term market rentals, or section 8?
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Brandon Wagner
Real Estate Agent · Northern Virginia · Member since 2021 · 106 posts · 50 votes
3y
Winchester, Stephens City, Front Royal, would be a few more I'd add to the list from Nicholas L.

If it matters to you, in the DMV Virginia has the most favorable landlord laws. DC has the worst.
My first recommendation to newbies is house hacking in the nicest area you can afford in an area you could live forever. Reduce your housing expenses as much as possible, learn how to be a landlord, get more favorable loan programs, and take advantage of tax benefits.
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
check on Facebook, Biggerpockets, and meetup.com for meetups
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Jacob Beg
Woodbridge, VA · Member since 2017 · 122 posts · 44 votes
3y
Kal- What is your budget? NOVA is overpriced, unless you have risk tolerance, capital, and legal know how or darn good attorney on board, to purchase directly through foreclosure auctions. If you are risk averse and looking for yield, as someone else said you will have to look further afield from NOVA.
PG County, Bmore city (not county), montgomery county has some of the highest property tax. Best bet for rental is Baltimore county (try buying houses built after 1978 to avoid dealing with lead abatement laws. Charles county is a good bet and so is Anne Arundel (their RE tax is low).
Plenty of flip opportunities in MD, but a lot of investors want the same thing that you do, so there is definitely a healthy competition.
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
Quote from @Jacob Beg:

Kal- What is your budget? NOVA is overpriced, unless you have risk tolerance, capital, and legal know how or darn good attorney on board, to purchase directly through foreclosure auctions. If you are risk averse and looking for yield, as someone else said you will have to look further afield from NOVA.
PG County, Bmore city (not county), montgomery county has some of the highest property tax. Best bet for rental is Baltimore county (try buying houses built after 1978 to avoid dealing with lead abatement laws. Charles county is a good bet and so is Anne Arundel (their RE tax is low).
Plenty of flip opportunities in MD, but a lot of investors want the same thing that you do, so there is definitely a healthy competition.

Montgomery Countys taxes are generally low. Theyre 70% lower than Baltimore cities, and 15% lower than PGs.
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Sara Frank
Realtor · Baltimore, MD · Member since 2020 · 255 posts · 182 votes
2y
Quote from @Kal Wol:

Hello all, a newbie here.

I am trying to see the markets and be able to invest in the greater DMV area. I live around and would like to invest in buy and hold for rental properties.

What areas are really good focus as far rent is concerned. Also interested to know what kind of banks are more friendly to investors in this area?

Thanks a lot.

Depends on your budget! If youre looking for cheap, Baltimore City. But dont spend less than 130/150k IMO. Property taxes are a bear though. If you have a little more capital - Baltimore county or Montgomery which has the lowest property taxes.
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Kal Wol
OP
Member since 2023 · 67 posts · 15 votes
2y
Quote from @Sara Frank:

Quote from @Kal Wol:

Hello all, a newbie here.

I am trying to see the markets and be able to invest in the greater DMV area. I live around and would like to invest in buy and hold for rental properties.

What areas are really good focus as far rent is concerned. Also interested to know what kind of banks are more friendly to investors in this area?

Thanks a lot.

Depends on your budget! If youre looking for cheap, Baltimore City. But dont spend less than 130/150k IMO. Property taxes are a bear though. If you have a little more capital - Baltimore county or Montgomery which has the lowest property taxes.

Thanks @Sara Frank yeah, I am looking in Montgomery as well it is a bit competitive in MOCO than in Baltimore.
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David Falcon
Member since 2024 · 4 posts · 1 vote
2y
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