All Forum Posts by: Joaquin Camarasa

I agree with you as well in many points. 

Airbnb is not completely hands-off. The 3 to 5 hours per week sounds about right, but those hours are often spread out during the day and are driven by guests who expect quick responses, not by your own schedule. 

Also, there is stress from needing to fix problems quickly to avoid bad reviews that can hurt the listing. If you have a demanding W2 job which is the case for many younger people in this property budget, this kind of schedule could easily become overwhelming.

Like everything, there are pros and cons, so it’s important to look at the full picture before jumping in. For people who are determined and have good systems in place, short-term rentals can definitely work. The tradeoff is some more work and some stress.

I also agree that for many younger people, this is one of the few ways to get into homeownership and build equity right now. With rent going up and many living with roommates, this can be a smart way to start building wealth if willing to put the extra work. 

Adding to what has been said, Airbnb can definitely be a strong strategy, but it is not hands off. You are basically taking on the role of a full-time property manager.

If you have not hosted before, it might be smart to start with long-term or mid-term rentals. Each step from long-term to mid-term to short-term brings more daily work and higher guest expectations. Short-term rentals in particular require fast communication and close attention to detail.

In today’s market, being more aggressive with short-term rentals can make sense because it is harder to make the numbers work with other strategies. But higher returns come partly because you are adding a job for yourself. You are trading your time and effort for better cash flow.

Also keep in mind that short-term rentals often represent the top of what a property can earn. If the numbers work for long-term rentals, they usually work even better for mid-term. But once you go short term, there may not be another strategy to push the returns higher.

I think it depends, if you are going to be in northern Virginia for more than 5 years, househack can definitely make more sense. If not, probably you are better off investing on the stock market or buying out of state. 

What's the address? I'd be happy to share my thoughts

Hey Blake,

I’d recommend continuing to save and waiting until you have a clearer idea of where you'll be staying for at least 3 years before making any kind of investment. A poor first investment can really set you back.

By the way, I'm based in Springfield, VA about 20 minutes from D.C.if you ever want to connect or chat more happy to do so.

Welcome, Aida!

I’m also based in Northern Virginia, specifically in Springfield, fairly close to you. Right now, it is a challenging market. It is a good time to slowly learn the ropes and define which strategy could work for you. 

I recommend first confirming where you'll be living next year and beginning your research on that area.

I'm not sure exactly where you're currently located in Virginia, but if you're in Northern Virginia, it generally doesn't make financial sense to purchase a home unless you're planning to stay for more than a year—especially if you're not putting down a significant down payment. If you were planning to stay for 4+ years, buying with a low down payment might start to make sense, depending on the specific market and type of property.

Hi Devid, 

You could potentially buy with 0% down with the maryland mortgage program MMP.  You could then negotiate the closing costs with the seller. However, eligibility requirements apply, such as income limits, credit score minimums, and completion of a homebuyer education course.

I believe with the MMP there is a way to avoid the PMI for people with disabilities. Best would be to talk to a local lender.

Some condo associations allow for 6 months leases. The average stay for MTR in our area is 3 months. I don't think MTR is a good strategy for condos due to this limitation. In terms of the monthly condo fees you need to look at the finances of the association as a whole and try to estimate future projections or potential special assessments.

Your approach sounds reasonable. You’re covering all the key points, proper notice, screening of any replacement, and maintaining tenant responsibility until a new leaseholder is officially approved. Just be sure to get everything in writing including any addendums to the lease and you should be good to go. 

Make sure the current tenants understand all the conditions needed for somebody to be approved as replacement to avoid drama later.