All Forum Posts by: Anthony Tortorello

Hello Bigger Pockets!

Looking for Duplexes - Five-plexes and SFHs in the following areas - Frederick, Takoma Park, Silver Spring, Gaithersburg, Rockville, Chevy Chase, Wheaton, Glenmont, Germantown, College Park

email - [email protected]

call - 732 589 1426

- Anthony T.

I am a first time home-buyer/ real estate investor in the DMV (DC, Maryland, Virginia). I am currently looking at properties with an agent and I have some questions about the pre-approval process. I know that I must secure my financing before I begin to make offers, but there is a lot I am still unsure about. I would welcome all wisdom and experience related to the following.

1. I am still trying to figure out my investment strategy. However I know that I will be house hacking/renting out rooms and holding. At this point I could go after a multi-unit home needing renovations or a SFH with rooms or basements for rent. I am looking at places that are recently renovated, to well maintained, to needing significant work in multiple areas (anywhere in greater DMV). Given these uncertainties, should I still go after a pre-approval?

2. In addition to the above uncertainties, I have private lenders who are interested in loaning my money for a decent rate. However the lender that my agent referred me to does not do split title or shared equity. Is it worth it to get pre approved from this lender? Would I still have the ability to get a loan from them but then privately borrow the personal money for renovations?

3. What is everyone's thoughts on the 203k loan? My agent seems to think a conventional is better suited for me.

4. Is it worth it to get pre approved from multiple lenders? How long do these letters of approval last and should I only get it if I know I am going to make an offer in a certain amount of time?

Thank you for your time and expertise, BP!

I would like to thank everyone for their insights and expertise in response to my introduction. This is why I knew that this would be a business for me, the support and the wealth of knowledge is incredible. 

@Russell Brazil It seems based on what you said that maybe flipping is not the right option for a first time buyer in the DMV, unless you come to the table with the necessary capital. For my particular scenario it might be something that I wait to do until I have more of the project costs covered. Might be too risky for my first investment, unless an off market deal pops up as a golden egg, as suggested by @Dan Bernstein. As you can probably tell, networking is one of my primary methods of learning about the market here.

I think I might stick to more of what the other options were, also mentioned by @David Fernandez and @Michael Garofalo. I think my most important task at this point is to define a clear goal, which this conversation has certainly began to shape.

I see two options at the moment :

1. Single family/town home in a ~ 1hr drive radius of the beltway to "house hack" and rent rooms. Large square footage and maybe something that has the potential for equity through remodeling or maybe enough space to build another bedroom/bath. One thing I'm not sure of is location in this case, I suppose I could either look in a well established area and expect equity to increase through remodeling or in a less desirable area that I'm gambling will attract more attention in the future. Another decision point here is what to do when it's time for me to look for my next home, do I sell or hold and rent out the rooms in the house to single renters? Has anyone had experience with renting single rooms in a SFR while not living there?

2. Single family/townhome in NE or SE DC in a less desirable neighborhood. This will definitely be a place that has a lot of remodeling work to put in with the hope (I'm confident) that the gentrification that is taking place here will continue. Also will be house hacking and renting rooms to single renters, taking on the risk of the type of renter that could pop up. I will also definitely be looking to tap into people's knowledge about finding a good renter.

If anyone is interested we could always take these conversations off of this thread. I just want you all to know how much I appreciate you taking the time to speak with me, a little information from you goes such a long way for a newbie and I already feel welcome here!

Thank you @David Fernandez These are great insights. As I’m sure you know my biggest concern in this area is funding my first purchase. I have a decent amount of startup capital but even a fixer SFH can be listed for over 450. Do you find that it is worth it to purchase properties close to their market listing or to try to really under cut the offer? How have you seen successful investors finance in the DMV? And are there any areas that look as though they are gaining more and more traction? Russell mentioned Areas in SE DC where I know that businesses (and a big government facility) are moving into and had a gut feeling that this could be the next popular area in the city (the next Navy yard). This is obviously just speculation but do you have any thoughts?

@Russell Brazil thank you that’s good to know. I’ve noticed that from searching on almost every platform I could think of (Zillow, trulia, Craigslist, Redfin, realtor). I’ve sent out emails to agents with inquiries because I hoped that maybe there were properties that were not being listed, so it’s good to know that the odds are still low so I can tailor my search to another type of investment. What investments do you see go well in this area? What would you recommend for someone looking to make their first deal? I see a lot of flips taking place so I assume that’s a popular one.

Hello BPers!

I am a government software engineering contractor from the Washington Metro area. I have decided that this life is not the life that I want to be living and I have been inspired by the bigger pockets podcast and community of investors. After a lot of soul searching I have determined that this is the life for me and I am ready to dive head first into my first deal. My goal is to own a multi family unit in the greater DC area (locations outlined below) by the end of this year. I am looking to put my heart and soul into making whatever property I buy into a place where people want to live and that I can house hack until eventually refinancing and expanding my portfolio. I am looking for a job that requires less hours and energy so I can spend more time analyzing and pursuing deals until eventually I reach financial freedom (let's call it passive 10k a month) and can quit my day job to further expand my real estate business. I realize that these are hefty goals and I figured that my "MINS" (most important next step) was to post on this forum and introduce myself to the community. So please - let's talk! I love to learn and this is a whole new world for me. I can't even describe how excited I am to be going on this journey with the BP community.

- Looking to buy- 

Multifamily homes in - Northern Virignia, Arlington, Fairfax, Washington DC, Silver Spring, Bethesda, Rockville, Hyattsville, Falls Church, DMV, Tysons Corner, Alexandria

  - People I'm looking to network with - 

EVERYONE! Especially realtors and investors in the DMV area! 

- Anthony Tortorello