All Forum Posts by: Billy Mcavoy

@Ozzy Sirimsi I've briefly looked at real estate in Alexandria (Mount Vernon, Rose Hill, Franconia) but welcome feedback on other comparable areas in DMV.  What are up and coming areas with low crime rate, good school system, townhouses in my price range?  I'm going to due my own research, but welcome feedback from the experts :)

@Chris Seveney yes, that's the one challenge I've run across in initial searches.  Honestly long term rentals would be great as well.  I'm not incredibly familiar with renting habits in areas comparable to the aforementioned towns.  I'm just beginning to educate myself on these areas, but welcome the opportunity to partner with an agent who can be a sounding board and help me find a property in the next 6-9 months.   

Hey All, 

I’m looking to invest in townhouses or multi family as medium-term rental properties in the DMV area. I’m seeking a highly motivated, responsive, and knowledgeable broker.  Price range is $150-350k and timeline is 6-9 months. Happy to chat about other details in property I’m searching for to help refine search. Broker will also need to have good references for contractors, CPA, and property managers. 

Thanks for the help!

Bill

Thanks @Wendy Patton! Yes, just about all of the advice is to forgo paying the additional $250 which it what I expected. Everyone’s feedback has been great and I think I’ve got a good idea of how to proceed. At the end of year 5 is when my mortgage payments will be 51% principal 49% interest. 

 Thanks Paul - I’m currently looking at other properties in DC and would love to pick your brain. 

@Joe Villeneuve to question #4.  Once this transitions from owner occupied to rental my property taxes will increase slightly because I will lose my $78,500 deduction on tax assessed value that I qualified for via DC Homestead Deduction. 

@Joe Villeneuve and @Scott E. thanks for the quick feedback and insight.  For a bit more context.. I'm currently 29 y/o and purchased this condo during the pandemic because I wanted to stop paying rent and start building equity.  I planned to live in my condo for 5+ years, and assess my options, but that changed when my girlfriend got place for residency in NYC :)  I just recently became fixated on generating wealth thru renting which has me reevaluating this investment. Curious to get your thoughts based on the added detail I provided below.  Thanks guys!

1. @Scott E. I forecast rent growth to increase $75/year (3%) based on what I've seen the last 2 years.   I believe it will take ~3-5 years before this property will turn cash flow positive. 

2. @Scott E. Right now I'm forecasting standard 2% appreciation with 5%/year upside.  My condo is near the US Capitol in DC, and very close to the NW/NE boarder.  It's a newer building and has better amenities than comparable condos in the area.  Historically, NE DC isn't the greatest area, but new apt complexes and restaurants are sprouting up rapidly which is making the area more attractive.  I believe this will accelerate appreciation. 

3. @Scott E. You're spot on. I put down 10% ($44,500) and will achieve 20% equity in ~18 months (assuming I don't pay any additional principal). This will eliminate $70/month I pay in PMI.

I’m a first time home buyer and looking for some advice. I purchased a condo in December 2020 (in DC) and currently live in my unit. I’m moving to NYC in mid May and will be renting out my DC condo around June 1st. I have a good interest rate (2.75% rate) and have been paying an additional $250 down on principle each month. At this rate it’s estimated that I’ll pay off my loan 10 years early saving ~$31k in interest payments.

If I stop paying additional $250/month on my principal my cash flow will be more or less break even on month. However, if I pay down $250 extra on principal each month I’ll have negative cash flows but I’ll build equity in the property faster and avoid paying more interest in long run. What’s the general guidance when considering additional monthly payments on principal?  Am I doing the right thing or should I forgo paying extra down on principle each month?