All Forum Posts by: Benjamin Whitney

Hi @Emily Achey,

Congrats on getting started on this journey! I myself am also a "need to know everything" type person, and spent a solid 2 years researching, reading, and getting ready for my first purchase. Looking back while that was definitely way too long, it did help guide and shape the type of REI I wanted to focus on.

My wife and I are also on the journey together, so you have a huge leg up having someone else to work with and bounce ideas off of. My wife and I both have our own strengths in this business and relying on each other has definitely helped us to close on some great deals.

We primarily focus on multifamily and own some properties in the Hampton roads area. We did spend a large amount of time searching for duplex’s and quads in the area, so feel free to reach out if you want to chat more about our experience with that. Wish you all the best in your search.

Andries,

Congratulations on getting started on your REI journey! I am also a N. Virginia based investor who owns properties in the Hampton Roads area.

To your question of is now the right time to enter the market? I would say it really depends on what you are trying to do? Buy and hold, fix and flip, BRRRR, etc... I believe there are strategies and deals to be had for every market cycle, maybe it just might take more time to find them.

I find it is useful to talk to many people involved in REI in your area to get their opinions (and property managers are definitely a great source), but at the same time you need to formulate your own ones based off your own research. Have a look at the data related to vacancy, rents, collections in the Hampton Roads area, by in large the area has performed well. For my properties we have maintained 95+% occupancy and collection.

In terms of looking at mortgage forbearance going away, I would recommend looking at and underwriting deals where you are not factoring this into your strategy. While the forbearance may be being offered, it could make it harder down the line to secure loans as you look to grow your portfolio.

While these are certainly more uncertain times than normal, I still believe you can successfully underwrite deals. Something to think about; how big of a factor will a potential end to renter assistance be? If your property is in an area that rents heavily to govt/military (like some areas of Hampton Roads), then this may not be as big of a factor as these jobs are likely more secure. If it is a factor, and say for example much of the tenant base is in the service industry, then have this discussion with the seller and ensure the risk is reflected in your purchase price. Keep in mind the concerns you have buying, the seller likely also has in holding so may be more willing to negotiate on price.

Wish you all the best in your search, feel free to reach out or direct message me if you ever want to discuss REI more.

Hi @Paulette Midgette

I have worked with an agent also who works specifically with investors that are based out of the area. They will do video walk through, etc, and cater to investors specifically. Send me a message and I will link you up.

@Thuan Tidwell I would recommend @Taylor Hudgins if you are looking for a single family home. She works with a bunch of investors and can help make sure you purchase a good investment for when you move to rent it. She also has a lot of knowledge of the area. Good luck! 

@Dan L. Actually as I look closer at the second picture you posted of the exterior I am guessing that the doggie door exits onto a deck that is beside a sliding glass door. Owner likely didn’t want to go with the sliding glass doggie door solution (which is often more expensive and entails you losing about 15” of door space). That’s my best guess of why they went the exterior wall route which isn’t as common.

@Dan L. It looks like a Doggie door. Not sure why someone would place it on an exterior wall vs. a door given the ease of placement/removal. From your first picture there is a plastic pane that slides into place so that it can stay closed/locked and keep the dog (or other animals) from climbing in and out. Normally you would also have some sort of plastic flap to ensure when this pane was removed it wouldn’t be completely open to airflow.

The design appear identical to a doggie door I installed on a door in my house years ago.

I do totally agree with not just for the most part, but in entirety. This is why wholesaling is a business, because people who are able to go out and find deals can market them to others for a higher price. My thought is that even a 1% cap rate change is a very big number (particularly when you get into larger and more expensive properties). Is it doable? I’m sure it is, just not easy. 

One thing to potentially keep in mind is I have seen wholesalers renovate/begin renovations/get quotes or even contracts for deals to show investors the potential value add and costs. I don’t know enough about wholesaling to know how much costs this carries for them, but have seen it used to improve the property/justify the sales price. 

@Gaurav K. I was recently quoted similar terms on a multifamily C class property (14 units) at 650k (5 year fixed, 4.25%, 25 year amortization, 20% down). I suppose only difference was no balloon payment (which is typical and most other terms I was quoted had), and a lower LTV.

This was from a semi-local community bank in my area. Hope it is helpful from a reference standpoint.

Devon, I will preface this that I have no experience in wholesaling, but only in looking at cap rates for multifamily properties. I do not believe your math is wrong, however I fear it may be an overly simplistic way of looking at the topic at hand. Cap rates in general will be dictated based on your market and the class (stability) of the asset. In most markets, particularly in commercial real estate, I feel buyers and sellers have a pretty good idea of what an A, B, or C class goes for. I think where you would come into trouble as a wholesaler would be finding a seller willing to sell at a higher cap rate than the market, and/or a buyer willing to purchase at a lower cap rate than the market. This of course is the general model and challenge of wholesaling. From your math, a 1% change in cap rate is a BIG difference, and I would anticipate it may be hard to find a seller willing to sell that far below market, or a buyer that high above. I would also keep in mind additional costs you may carry as a wholesaler (renovations to increase your rents/NOI, closing costs, legal fees, etc), however I will leave it to a wholesaler to discuss this more at depth.

@Ganesh S. If you are willing, I think you will widen your aperture of markets if you are willing to drive an additional hour from the NOVA region. If you look into the Hampton Roads area (a ~3 hour drive from Herndon), there are several investment opportunities at a lower barrier to entry. I am also a NOVA based investor and personally have found more success here than in Richmond (although I know there are still many opportunities there). The Hampton Roads area is also the second largest metropolitan area in the state after of NOVA and you can easy go down and back in a day if needed. 

Looking at the DC/NOVA region specifically, if you haven't checked out this bigger pockets podcast yet, it can be pretty helpful and offer some food for thought. https://www.biggerpockets.com/... It follows an investor who has made the pricey DC market work through a specific angle.

Best of luck!