All Forum Posts by: Cassidy Burns

@Matthew Perez congrats on getting started.  The best advice I could possible give you is "conduct your business with integrity."  There are to many wholesalers in this area that really put a damper on the market and are making it harder for true investors to conduct business because they are giving real estate investors a bad name by doing the following:

1.) Getting properties under contract without disclosing they will assign 

2.) Marketing properties that they do not even have under contract

3.) Getting something under contract, not being able to assign the contract because it is really not a deal and then the seller is skeptical about future investors that are trying to pursue the property.

Good luck!

@Account Closed Condos in DC rent fairly easily, especially in more desirable areas in the NW and NE locations.  With 100k you are looking at having 20% down for around 400k but you will also have to cover closing costs.  I would highly recommend, if you do condos to stick with 2+ bedrooms as they are renting quicker than the 1 bedroom units.  

Seems that most individuals are wanting more affordable rent so they are getting roommates and splitting the rents.

For Instance: 

2 Bedroom in Eckington, NE is going for roughly $2,500/month.  A 1 Bedroom is going for $1,750-$2000.  Now individuals are splitting that $2,500/month= $1,250/each instead of paying the higher price for having their own place.

Now there is always a renter that will rent by themselves but just a little insight when you are searching. 

Good luck.

@Olivia Umoren welcome to BiggerPockets.  As Russell said, its all about quality of life and picking a location where you feel comfortable living.  There are plenty of pockets in DC where you can find good valued properties that will also drive healthy rents in the multifamily space.

Another way to "house hack" in the district if the multifamily space is to expensive for you is to purchase a single family house or condo with multiple bedrooms and rent out the rooms to friends/like minded individuals that you wouldn't mind living with. 

You could purchase a 4 bedroom home in Columbia Heights/Petworth and rent the rooms out for $1,200/each putting your monthly potential income at $3,600 and you still have a place to live.   This works for some!  Just a suggestion.

Good luck!

@Jon Holdman Thanks for this.  

Another question: 

How is the principal pay down calculated if they own free and clear?  Set up an escrow account that I make payments to?

Also, the seller is an older gentleman, if something were to happen to him how is the contract continued?  

Thanks so much

Hi BP,

I have an opportunity to do my first seller financed deal.  My property manager knew that I was looking to acquire more units and brought this deal to me, power of networking!  Below I have included some of the details that I have, I am going this weekend to view the properties and find out more details:

2 Different Duplexes:

*$39,000 for Duplex #1 (Assessed at $47,500)

*$20,000 for Duplex #2   (Assessed at $36,200)

Duplex #1 Rents: 

*$600 and $400

*$600 and $200

All In $1,800/month.  After running numbers i'm looking at around $780/month in positive cash flow .

The seller owns these properties free and clear and wants 5% interest and for me to pay any transfer/closing costs, i'm estimating $1,500.

My question is, how do you pay down principal on a deal like this?  Would it be worth it to do maintenance/renovations?  I typically like to add value by doing about $7,500 each building, $15,000 (dependent on viewing this weekend).  

Are you typically just doing seller financing for cash flow?  Eventually if I do renovation would I want to do bank financing?  

Thanks so much for any feedback.

@Daniel Pitta you most likely will have to put the person moving into the den on the lease as most leases require all individuals living in the unit above the age of 18 to be stated on the lease!

Hope this helps

Welcome @Eugene Cho

Thank you @Debbie W. and @Christine Kankowski I have asked the tenant for proof of deposits!

Hi BP,

I just had a new tenant apply for one of my rental properties.  Older gentleman, very nice guy and checks all the boxes that he would be a great tenant, BUT.... I have no way of verifying his income.  He is collecting a check from social security and then has retirement income as well.  Any advice on how to verify?

Thanks in advance.

@Rhonda Harrison agreed with @Russell Brazil.  Yes investors are actively purchasing but in my opinion it is good for the district's economy.  With growing population, taking a single family lot and putting it to its highest and best use, based on zoning, is giving more individuals the opportunity to move into the area.

That being said, there are still plenty of ares that the middle class can purchase.  Once they purchase it is a great opportunity for them to begin to generate wealth as the developers/investors help their property appreciate in value by increasing the comps.

5-10 years down the road they will be extremely pleased that they purchased when they did.