Northern Virginia (NoVa) MFR - Non Existant?

Question

Hi everyone,

I've been reading a lot on MFR and I was interested in looking at properties to utilize either an FHA loan or a VA loan to get a 2-4 unit MFR owner occupied with intention of renting all units out after the required year time frame. After searching online and finding next to nothing in the entire Nova region regarding MFR, I reached out to a local RE agent for some help. She also was unable to find much of anything. Does anyone know if there are some decent MFR in Nova? Any contacts I can reach out to in regards to this? I am looking for some type of house hacking situation so I am not against finding a SFR with a basement and turning it into a house hack but I would certainly prefer the MFR route if it is possible. I appreciate any input that is given from BP!

Antone JAmes · Answer

I too have been in the hunt for a multifamily in the DC area, and finally after roughly 6 months I've landed one utilizing the VA loan. You will have a better chance landing them if you can find them before they hit the market. Properties usually last a week before a cash investor swoops in, so you have to move fast. In regards to the NOVA area, I'm not to sure of there being a good supply of 2-4 unit apartments out there.

Heather Skowronsky · Answer

With regard to renting out the basement of a home or finding a home with an inlaw suite, while many people do it, it's not allowed if the home is zoned single family - which most are here in Nova.  Realtors aren't even allowed to list a basement for rent on the MLS.  Of course, they still do it.  I have seen the local jurisdiction find basements for rent on the MLS and the owner gets in trouble - I'm not sure to what extent though.  I don't know if they enforce the fines but I wouldn't be surprised if they did.  So yes, many people still do it, it's just technically not allowed unless you get the home rezoned as a multifamily (which most likely isn't going to be approved by zoning anyhow).  They don't make it easy on us here...LOL.

Russell Brazil · Answer

Multifamily, 2-4 unit properties are incredibly rare throughout the DC metro area.  Northern Virginia has nearly zero of them. Some of the locations you will find them are Takoma Park MD (Incredibly restrictive rent control),and in DC in the neighborhoods of Trinidad, Ivy City, East Capital Hill, Deanwood,  Petworth.  But even in these areas, they exist in only the tiniest numbers.

To give you an idea, I sold 2% of all multifamily properties in the metro area last year, and that was a total of 4 properties. Only about 200 multis a year trade in the metro area.  You are talking about an asset class that has maybe a total of 1-2000 total properties in the metro area that even exist.

Jessica Frasier · Answer

@Aaron Hall

Unfortunately, NoVA does not have a large supply of multi-family properties (2-4 units). Having lived in the area and speaking to others who have searched for them, they are very difficult to come by. I do know that there is more supply in parts of DC and Maryland- which has its disadvantages as well. You may also consider having a longer commute and looking beyond Fredericksburg (south of Northern Virginia). I recently saw some multi-families on the market, but not a lot.

If you're flexible, you'll have more options if you choose to rent out spare bedrooms or a basement in a single-family home.

Gregg Hutton · Answer

This was one thing I had issues finding as well! Everyone's input was really great, thanks! I am also here in NoVA and would love to connect!

Linda S. · Answer

@Aaron Hall,

If you want multi-families, and don't mind traveling a bit, norfolk/hampton roads have a lot available!      Also, check out the tri-cities in Richmond.   Good luck!

Jimmy Dudley · Answer

Unicorns man. You are chasing unicorns. If you are really dedicated work with someone on an open ended project to find what you want. Of course by the time you find it you may have saved enough to buy it outright.

Jessica Frasier · Answer

@Aaron Hall

Funny, last night I was talking to a friend in the area who is house-hunting and figured I share another possibility. Depending on your budget and neighborhood restrictions, there are homes with in-law/guest suites attached to a single-family house with their own entrances. There may be a chance that you could rent out the suite (again, check if there are any zoning issues). I'm not sure of the supply in NoVA but we found a handful last night.

Julie Dike · Answer

When I said zoning issues, I meant that areas zoned for single family housing often don't allow you to convert SFR to MFR.  If you're living in a home and rent out a basement or spare room, it's usually no big deal.  Residents are allowed roommates.  But that doesn't mean local authorities will turn a blind eye if you move out and try to rent it as more than one unit.  There are two houses on my street like that, and when they were rentals, the landlord rented them as single units, occasionally to tenants who subleased the extra space.  They're now owner-occupied -- rumor was they weren't cashflowing.

Northern Virginia (NoVa) MFR - Non Existant?

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