Newbie looking to invest in first rental property. Help!

Newbie looking to invest in first rental property. Help!

Member since 2019 · 2 posts · 1 vote

Hi everyone,

Long time lurker here. I'm looking to invest in my first long term rental property. Specifically, I'm looking at townhouses that cash flow in the NoVA or MD Suburbs. This rules out many of the good areas.

The areas where I can find houses matching this criteria seems to be Gaithersburg, Germantown, Reston/Herndon, Centreville, and Lorton.

For NoVA, I don't want to go as far as Manassas or Woodbridge.

I grew up in North Potomac so I'm pretty familiar with MD. The Gaithersburg and Germantown neighborhoods are a little worse off than what I'd ideally want. I'm not familiar with the NoVA cities.

Can someone shed some light on rental properties in these cities or other cities that might work. Specifically, I'm most interested in Reston/Herndon.

Lastly, once I find a property where I'm comfortable with the numbers and neighborhood, how can I gauge how long it will take me to rent out this property. One of my biggest concerns in vacancy rate.

Thanks everyone in advance.

1Reply
38 views

Most Popular Reply

Real Estate Consultant · Chattanooga, TN · Member since 2018 · 384 posts · 330 votes
7y

Hi! Congratulations on being one step closer to being a real estate investor. I'm familiar with housing in Herndon and Reston, and generally think favorably of those areas. 

I always recommend using crimereports.com and greatschools.org to gain insight into unfamiliar areas. There are also paid services, such as rentometer.com, that you may find worth it considering the investment involved in your purchase. 

A good strategy to get a ballpark for vacancy rate is to look at the Zillow rental listings. You can get a good idea of market rental rates in addition to seeing how long the listings are sitting on the market.

Considering your concern re: vacancy rate, I would highlight there are a lot of factors that affect it. Some you can control (quality of unit, rent amount) and some you cannot (time of year). 

Let me know if you have more questions or there's any other way I can help! Thanks!

See this reply in the discussion

7 Replies

Jump to latestLatest
  • Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    Wow so much analysis paralysis just start putting out offers

  • Realtor · Gatlinburg, TN · Member since 2018 · 261 posts · 155 votes
    7y

    Welcome, @Wei Yan. Finding a cash flowing townhouse will be tough in the DC commuter zone. I lived there in early 2000s and even then, it was difficult to cash flow without a sizable down payment or you buy a fixer/upper distressed sale but then you'll be competing with professionals who know far more about buying distressed and rehab costs. 

    I don't think you'll have a worry with vacancy in those markets. Even during the recession, DC area had a far more stable real estate market b/c the Fed Gov kept more people employed than almost everywhere else. 

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    Woodbridge and manassas would be substantially less desireable than Gaithersburg. So if you arnt comfortable owning in Gaithersburg, you probably wont be comfortable owning in Woodbridge.

  • Member since 2019 · 2 posts · 1 vote
    7y
    Thanks for your responses
    @Matt Castle I plan on putting 25% down. The areas I listed will cash flow or at least break even but they're less desirable areas as compared to for example Bethesda, Mclean, Arlington, etc. 
    @Russell Brazil Yep, I'm aware. So how do you feel about the Reston/Herndon area. I'm personally not very familiar with it other than a few short trips, but the area seems better than Germantown/Gaithersburg.
  • Investor · Clinton, MS · Member since 2019 · 83 posts · 85 votes
    7y

    Are you planning on doing traditional finance?  

    It all depends on your comfort level. Difficult areas cashflow more, but they also increase your number of grey hair.  

    Defining your goals and comfort level goes a long way. 

  • Real Estate Consultant · Chattanooga, TN · Member since 2018 · 384 posts · 330 votes
    7y

    Hi! Congratulations on being one step closer to being a real estate investor. I'm familiar with housing in Herndon and Reston, and generally think favorably of those areas. 

    I always recommend using crimereports.com and greatschools.org to gain insight into unfamiliar areas. There are also paid services, such as rentometer.com, that you may find worth it considering the investment involved in your purchase. 

    A good strategy to get a ballpark for vacancy rate is to look at the Zillow rental listings. You can get a good idea of market rental rates in addition to seeing how long the listings are sitting on the market.

    Considering your concern re: vacancy rate, I would highlight there are a lot of factors that affect it. Some you can control (quality of unit, rent amount) and some you cannot (time of year). 

    Let me know if you have more questions or there's any other way I can help! Thanks!

  • Realtor · Reston, VA · Member since 2017 · 19 posts · 3 votes
    7y

    Reston is a great area to invest and rapidly expanding and developing. Easy to get renters as well due to demand. Its still going to be hard to cash flow unless you house hack or use other creative strategies. I'm a local Reston native and a real estate agent if you need some help with your search, feel free to reach out.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.