All Forum Posts by: Brandon Wagner

More detail would certainly help to make the best recommendation but here's a few high level options for you 

1) You can look into taking a HELOC on your investment property if you have enough equity in it. Can use that for short term debt to fund a flip/value add property. I wouldn't recommend it for long term debt. It'll cost more than getting normal financing.

2) You can move out of your current residence and rent it,  then buy another one.

3) You can sell one or both of your properties, and use that equity to purchase more properties, or better properties 

My recommendations:  

Good -  If you're certain you want a 400K or less property, I'd recommend Sterling, Manassas, or Woodbridge.  

Great -  If you're willing to take a loan of 100-200K I'd shoot for Reston/Herndon/Centreville area.  (You'll still cashflow, and get more appreciation)

Best - Find an assumable loan/seller financed deal in the NOVA area.  Expand your price range to about 600K-700K.  Take over a loan at ~3%.  It's like going back in time! You'll get your cash flowing property, it'll have better appreciation, you're further along the amortization schedule, and there is less competition, because most people don't have enough cash to make up the difference between the house value and the loan amount.

Winchester, Stephens City, Front Royal, would be a few more I'd add to the list from Nicholas L. 

If it matters to you, in the DMV Virginia has the most favorable landlord laws. DC has the worst.

My first recommendation to newbies is house hacking in the nicest area you can afford in an area you could live forever.  Reduce your housing expenses as much as possible, learn how to be a landlord, get more favorable loan programs, and take advantage of tax benefits.

It is certainly difficult right now in the NOVA region outside of the appreciation play.  Creative deals are the best option right now if looking for cash flow, but they are challenging to find.  

I am beginning to see more stressed sellers in the area though.  Of course it is not something you wish on people, but where there are problems the right investor can find solutions.  

Correct, if you are limited to only Single family homes and Fairfax City then yes 500K is going to get you a fixer upper at absolute best. If you're open to townhomes and the area at large, then there are far more options for you, that was my original point.

Even if you're willing to go direct to consumer and source your own deals, you'd be hard-pressed to find a SFH that meets that criteria.

I'd recommend expanding the search area, or the requirements to find success.  Determine which is more important to you...  Or pray for a real estate crash 😊

No one mentioned it here, but if your property is in an HOA or Property Association of some kind you do get 3 days to back out from the receipt of the HOA paperwork. That is a legal totally valid way to get out of the contract and get your EMD back. Based on the area, it isn't likely, but figured I'd give out the idea at least.

I'd still try to work it out with both agents involved, and see if they would be willing to make a sales addendum to change the sales price.  You have nothing to lose by having your agent create it and send it over.  It will be difficult to get the seller to sign it, and your agent won't look good, but it doesn't hurt to try.

Welcome to the BP team!  We all have to start somewhere.  At a high level...

Fix/Flipping is usually a more experienced investors play.  There are a lot of pitfalls to look out for.  That being said, if you acquire a property low enough, you can make up for a lot of mistakes and still end up in the green.  

LTR's are very difficult to make work in the DMV area with current prices and interest rates without significant down payments (roughly 40%).  

STR's really depends on the location. A lot of areas have regulation that makes it next to impossible to do, but there are some pockets.

I always recommend a house hack situation for any beginning investors.  It has the most upside, and the least risk.  Lower down payments, better rates, and it helps you purchase a primary residence as well.  You just have to be comfortable with the idea of having room mates.  

Always do a little prescreening of potential tenants before sending them to your home. You don't want to waste your time individually on them. 

That being said in an open house style environment, you don't have much to lose by unqualified people showing up.  In fact, more people there will make it look like there is a higher demand for your unit, and the serious renters in the bunch will be more willing to make a move quicker, and potentially pay more in rent to beat out the competition.  They don't know who is qualified or not, use that to your advantage.

Similar to what others have said, there are many that will waste your time. If they can't make it to one of your 2 open houses, they aren't that serious.  I wouldn't bend over backwards for an individual unless they have completed a basic questionnaire ahead of time. (income, credit, landlord reference, etc)  If people won't spend 5 minutes to fill out a basic form, don't waste hours+ on them driving to the property, doing a showing, and coming back. Chances are there is a reason they don't want to fill out the form.

In the build to rent world, you are going to waste a lot of time buying the land, finding a contractor, getting permits, and actually building the property. Unless you are an established developer with a lot of experience, I wouldn't recommend this strategy.  

Just purchase an already built home, and list it for rent within a month or 2.  you can start earning from your investment 6 months earlier if not more. If you're looking for a new property you can still buy a new construction property from a builder, vs building one yourself.

500K will still get you a nice property in Fairfax county which will appreciate better in price and rents over the years, compared to Fredericksburg.

My vote would be to pick a market you are closer to if the numbers look the same.  

Also don't forget to factor in management.  Managing or at least being able to drive to the property yourself will save you at least 8% a year, probably closer to 10-12%.  You will also learn a lot quicker than if you outsource everything.  

Ultimately if you can get a primary residence and rent out the rooms that is by far the best way to get started.  Better interest rates, lower downpayments, and more awareness of what is going on in your property for your first investment.