All Forum Posts by: David Fernandez

Hi @Andrew L.!

Reviews, number of transactions, and experience are very important metrics that you can easily check here on BP or other sites like Zillow, google, etc. But then you need to interview agents to see if you'd like them to work with them. I always offer my clients a complimentary Buyer Consultation before we go see any homes or talk real estate. It is an opportunity for me to learn about my client's goals, and to educate them about the market and the buying process. It is also an opportunity for my clients to ask any questions they have and, more importantly, to see if they like me personally and how I work. 

Lots of online positive reviews are a great starting point, but it only tells you what other people think about a particular agent. You still need to do your due diligence to see if you like this agent. Ask for a one-on-one consultation with any agent you are considering working with and ask him/her all the questions you have about why you should choose him/her. 

Hi Alex! 

You are right that this strategy is more profitable than some others, and definitively one of the best strategies in our market. However, you need to find the right property in the right location to maximize your profit. I'm doing this with one of my properties and I helped a few newbie house hackers execute it. Happy to share with you what I know about it!

You won’t find in DC / Norther Virginia the types of properties and coc returns on day 1 that are discussed on the BP podcast.

However, I own properties in cash flowing markets as well as in NOVA and when comparing 5-year returns, NOVA/DC wins by a landslide. Not only the properties appreciate faster, but also rent appreciation is higher, lower tenant turnover/vacancy, and plenty of great tenants to chose from. My time managing properties here is 10 times less than in other markets. 

The biggest mistake people make when analyzing properties here is to only look at Day 1. If you project how the property performs in 3-5 years, you’ll see that this area is great for investing, especially for house-hacking. 

 Hi @Eric Olsen, the low money down mortgages are available when buying a primary residence, it doesn’t matter if it is your first or your third. If you put less than 20%, you will pay mortgage insurance though. 

If you buy an investment property, you will have to get a loan for an investment property (20-25% down is usually required and the interest rate will be a bit higher). 

When I look at rent increases on my rentals I always check first what is the market rent for my property and then I increase it to slightly below market rent so the tenants have an incentive to stay and I save on vacancy/turnover. Sometimes it is $25, other times is $300. My biggest increase this year was $350 on a $925/month rent from a property I bought and I inherited the tenants. They stayed.

Treat your rentals like a business. When you only have one property, $50/month more doesn't seem like a big deal, but if you plan on scaling and end up with 100 doors, $50/month/property is $5,000/month or $60,000/year. 

When I had fewer units, I used Cozy.co (now Apartments.com). It is free and it can do all you need to manage tenants effectively: pay rent online for free, maintenance requests, store documents, late fees and other charges, communicate with tenants, etc.

When I crossed ~50 units I switched to Buildium. I knew I was going to keep growing my portfolio and I wanted something more robust. Apartments.com was easier to use in some ways, but Buildium is a better all around product. You pay for it though! 

 If you are getting started, I’d go with a free solution that offers free online rent payments, maintenance requests, document storage, and easy communication with tenants. Everything else are bells and whistles that you won’t be using on a daily basis when managing a fee tenants. 

After a few years in the business or if you join a team where you can leverage its relationships, you'll start getting off-market deals. If you are a newer agent, you should focus on:

1. Upfront work with your clients: Explain to them that the DMV is competitive and that most properties that are well priced will go fast, most likely above asking price, and without contingencies. Set the tone so they know what to expect and they are not surprised by how aggressive they might need to be when they want to submit an offer. 

2. Needless to say is that they need to be pre-approved by a lender you (and them) trust that will 100% close on the loan. This will give them peace of mind that they can waive the financing contingency.

3. If they are uneasy about waiving home inspection contingency, they can do a pre-offer inspection. Most of my clients waive it, but some don't like buying a $1M home without inspecting it, so they do it before we submit the offer. 

4. Take time to understand the seller's needs and be nice to the listing agent! Build rapport with him/her and explain to him/her why your clients are the best Buyers for this home. In the end, this is a people business. Most times my clients' offer is accepted and they are not the highest bidders.

It's easier than it seems, but setting expectations clear from day 1 is key.

Hi @Koo Sharifi!

Here it is a good article comparing the short-term rental regulations for the biggest counties in Northern Virginia: https://www.nvar.com/realtors/....

Please keep in mind that these regulations only affect short-term rentals, usually defined as when you rent a room/house for less than 30 consecutive days. There are areas in NOVA with big demand to rent furnished rooms for 3-6 months at above-average long-term furnished room rental prices. Although there are other occupancy regulations such as the number of unrelated people that can live in one house, usually a 30+ days rental does not fall in the short-term rental category, plus your operating costs are lower due to lower turnover. 

Welcome @Michael Thomas and @Laleh Omaraie! 

The DMV is a great area to invest and there are many local investors sharing knowledge in these forums. 

I’m a seasoned agent and investor with properties in northern Virginia, Baltimore, and a few places in between these two areas. Please feel free to reach out if you have any questions.

Welcome to the DMV @Rachel Riley! There are a few great REIA groups here to meet and connect with like-minded investors, I will send you a PM with my favorite groups. Thank you for your service!