Old Town Alexandria House Hacking (near Washington D.C.)

Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes

Hello!

Does anyone have experience with house hacking in Old Town Alexandria, VA, near Washington D.C.? My fiance and I are really enjoying our first house rack right now in the Huntington neighborhood, and next year, we'd like to move to Old Town. Price points are obviously super high on rowhomes, so, we thought living in a 1 bedroom condo and renting it out on Airbnb once we move out a year later might be a good strategy. We're also open to purchasing a rowhome with the potential to AirBnB the basement as its own unit. A live-in flip would be cool too. Is anyone making money in this area? Would love to connect with some Old Town Alexandria investors :)

Alex

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Russell BrazilBusiness Member

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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Almost universally condos require that leases are 1 year minimum. So a short or midterm rental strategy will generally not work on most condos in the DC area. In fact I only know of 1 single condo building in the metro area that allows short term rentals, and it is in Foggy Bottom.

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
Almost universally condos require that leases are 1 year minimum. So a short or midterm rental strategy will generally not work on most condos in the DC area. In fact I only know of 1 single condo building in the metro area that allows short term rentals, and it is in Foggy Bottom.
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Nicole Masters
Realtor · Sacramento, CA · Member since 2019 · 242 posts · 152 votes
3y
If considering a conodo to rent out, like @Russell Brazil said, make sure you are allowed to rent it out, and what stipulations there are around that. All condos will have an HOA, and there can be laws around what % of the homeowners are allowed to rent out their units, and there's usually very strict laws in place to keep condos from becoming STR hubs. Find an investor friendly agent (which sounds like Russell is!) in the area and they should be able to help sort this out for you :)

Also, total side note but Foggy Bottom is a very funny name for an area lol
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Mike WebberPro Member
Real Estate Agent · Reston, VA · Member since 2020 · 84 posts · 53 votes
3y
Hey Alex,
I've actually helped several people (many from Bigger Pockets) house hack in Old Town Alexandria. Russell is correct, short term rentals are almost universally a no-go in the condos in the area. Some people still give it a shot, but I can say I've seen several get caught doing this and wouldn't recommend anything outside of the condo associations rules. I would definitely look for something Fee simple if you are set on a short term rental. Otherwise, you can still house hack and rent it out medium/long term (over 30 day leases).
I love Old Town and think it is an excellent market. I'm also a fan of Huntington and think it is a good long term hold market. Just curious, do you plan on keeping the house in Huntington to rent it out (my choice lol).
I'm happy to answer any house hack or rental questions about the Alexandria area. I work with a lot of investors in that area so I have a decent finger on the pulse.
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Alex Petsopoulos
OP
Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
3y
@Russell Brazil, yeah, I would definitely look into the STR policy for each condo association before buying. Perhaps I'll need to find a new strategy.

@Nicole Masters, I am definitely wary of HOA bylaws, and, their ability to change bylaws in the future to restrict STRs. Russell actually just helped me close on a deal I've been meaning to do a write-up on, and he was super helpful! Foggy Bottom is indeed a goofy name for a neighborhood, maybe L'Enfant also had a hand in naming Dumfries, VA :P

@Mike Webber, that's reassuring to hear- it is possible! My fiance and I have no desire to intentionally break condo rules, that sounds like a massive headache. What does "Fee Simple" mean? We'd definitely be open to doing an MTR in Old Town, our experience has been great in Huntington so far. I love Old Town as well! The walkability of Old Town, combined with its proximity to grocery stores, our church, and the Woodrow Wilson Bridge make it a very attractive place to live. Our biggest concern is obvious, prices are so high there cashflow seems nigh impossible with a 3% down loan. We absolutely plan to keep the Huntington house as a rental. The neighborhood is a hidden gem, and I am confident rents will continue to rise over time. If you wouldn't mind, I would love to see some analysis of your successful Old Town clients' deals! As an engineer, I am a numbers guy through and through. :)
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Mike WebberPro Member
Real Estate Agent · Reston, VA · Member since 2020 · 84 posts · 53 votes
3y

@Alex Petsopoulos
Fee Simple is an ownership style that just means you actually own the land and structure that is on it. My point was that you wanna avoid condo associations at all costs haha. So owning a townhouse vs a "townhouse style" condo, will make your life way easier in this pursuit.
I'd be happy to shoot you what the numbers look like (I'll send you a DM). You are right about a 3% down payment cash flowing. In one case I had a VA buyer with 0% down (actually walked away with money at closing) that still manages to look appealing. The City of Alexandria is the most forward thinking jurisdiction in NOVA when it comes to using your property to make money, another reason I love it.
That makes me happy to hear you are keeping the one in Huntington. I couldn't agree more, rents will rise. Property values will rise. I think that neighborhood is gonna crush it over the next couple decades.
Keep it up bro, you're crushing it.
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Alex Petsopoulos
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Investor · Alexandria, VA · Member since 2021 · 27 posts · 16 votes
3y
Quote from @Mike Webber:

@Alex Petsopoulos
Fee Simple is an ownership style that just means you actually own the land and structure that is on it. My point was that you wanna avoid condo associations at all costs haha. So owning a townhouse vs a "townhouse style" condo, will make your life way easier in this pursuit.
I'd be happy to shoot you what the numbers look like (I'll send you a DM). You are right about a 3% down payment cash flowing. In one case I had a VA buyer with 0% down (actually walked away with money at closing) that still manages to look appealing. The City of Alexandria is the most forward thinking jurisdiction in NOVA when it comes to using your property to make money, another reason I love it.
That makes me happy to hear you are keeping the one in Huntington. I couldn't agree more, rents will rise. Property values will rise. I think that neighborhood is gonna crush it over the next couple decades.
Keep it up bro, you're crushing it.

Thank you so much for the advice, Mike! Okay, we will try and target a townhome instead. Looking forward to hearing more from you, I like to hear that the city of Alexandria is favorable to STRs. Thank you!!
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