Northern Virginia (NOVA) newbie

[Spencer Flagg]

Hi all,

I'm a web developer out of Tyson's Corner who is new to REI and new to BP. Just trying to get my feet wet in the last few weeks. I'm specifically interested in buying and holding.

I've noticed a lot of NOVA / DC Metro Area folks in the forums are not happy with the cash-flow opportunities in this area. In you opinions, is investing in rentals in this area generally a losing proposition?

I've been trying to get a handle on the numbers myself, but I don't have enough expertise to be certain.

Looking forward to the discussion,

Spencer

[Roger Lin]

Spencer,

Investing in the DMV is not easy due to the higher barrier of entry. However, that is not to say that deals cannot be found. Case in point, I recently closed on a four-plex in Quantico that was a turnkey long-term hold that I purchased at a 9.6% Cap.

I bought it with no money out of my own pocket. Of course, there was some groundwork that I laid for the deal to "find me", for me to convince the bank to lend me 75% of the purchase price and I did have a small line of credit that I used to come up with the down payment. 

Additionally, in the last two years I've been able to acquire two townhomes (Leesburg and Herndon), both at about 60% of the value and they both cash flow at 7 and 6% Cap. These are both in solid, nice neighborhoods that will likely appreciate in value.

I am not trying to brag. I just want to give you some real live examples of some of the opportunities out there. You have to be creative, persistent and make a lot of friends. None of which are bad things. 

There is a group of investors that meet up monthly in Fairfax. We happened to have a meeting next Tuesday evening. If you are interested in visiting, I can get an evite out to you. You can also check out our FB group here.Capital REI

I look forward to exchanging notes with you.

Roger