All Forum Posts by: David Fernandez

Hi @Mariana Vonder Born, as you probably know, MF is rare and expensive in our area. There are some properties that pop from time to time though. Your construction background, your level of reserves, and your experience running a small business will definitely come in handy when investing in RE. 

I have experience in the area both as an investor and as an agent helping clients buy/sell properties. I will send you a PM to connect. 

Good luck and welcome to the world of REI!

Hi @Frances Marquez, both Russell and Cassidy gave you great advice. Multifamily is rare and expensive in this area. Most clients I helped with house hacking properties end up buying either a single family home or a townhome and renting out the rooms while they live in the basement or in one of the rooms. 

If you stay in Arlington/Alexandria, you can find properties in the $500-$700k range. If you don’t mind going further out (Reston/Herndon or Manassas), you can find properties from the mid $300s to the mid $400s that are good fits for house hacking. 

Depending on the purchase price and other factors, you can qualify for a conventional loan with only 3-5% down. 

Hi @Nick Shri, why do you want to look at off-market properties? What’s your strategy? I receive some off market properties from local wholesalers, but 99% of them are not deals. They are overpriced for their condition. Additionally, you are very limited with your financing options (mostly cash or hard money. You can’t take advantage of today’s ridiculous low rates and different loan options).

In our market (VERY competitive and expensive) I believe you will be better off working with an agent who understands what investors are looking for, who knows how to scan the MLS for hidden gems to fit your investment strategy, and who can help you run analysis, estimating rehabs (if necessary), and knowing a true ARV.

Hey @William Segal, most people I know who househack in the DC area buy a 4BR townhome in the low to mid $400s in an area with easy commute options (metro and/or highways) to DC. They rent 3 rooms and live on the 4th one or in the basement for free or even making some money. 

You don’t need live 2-3 hours away and have to rent a couch in DC. You can live 30-40 minutes out of DC in your own private bedroom for free while owning a property in one of the most expensive markets in the US. 

Hey @Nick Shri, townhomes are on fire. It's a good product for people who don't want to live in an apartment as they want some extra space and/or outdoor space, but can't afford a SFH or don't want to deal with the yard and other maintenance of a SFH. They are also VERY easy to rent for similar reasons, plus people who move into the area usually gravitate to them (in my experience). Ika also made a good point about small SFH, don't discount those.

As to where to find them, I use the MLS and 1-2 wholesalers. The market is very competitive. I'd advice to narrow down your search criteria, communicate it clearly to your agent or wholesalers, go see a few properties to analyze them and understand what is a good deal and what is not. When you spot one, move fast. Good properties go under contract the same day they hit the market.

Hey Samuel, if you want to create an ADU, yes. However, you still can rent rooms and/or your basement without an ADU, as long as there are no more than 4 unrelated people living in the same house or no more than one family plus two renters.

I think Christopher at some point mixed room rentals with the ADU zoning ordinance. Just wanted to clarify that Arlington County is not the only county where you can offer rooms for rent. He was referring to ADUs since Arlington has already relaxed the zoning ordinance on this.

Hi Christopher, there are many more counties where he can do what he is trying to do. For example, in Fairfax Clunty he can also rent rooms and the basement as long as there are no more than 4 unrelated people living in the same house.

Creating a separate dwelling unit is a different story. This comes to play when you want to add a second full kitchen in an area of your house that has a separate entrance, living space, and bathroom. You can add a kitchenette, but as of right now, you can’t add a second stove without a special permit. 

You are right that there is a proposal in Fairfax County to ease the process to create an ADU. Hopefully it will pass soon!

Current regulation: https://nam10.safelinks.protec...

Proposed regulation: 
https://www.fairfaxcounty.gov/...

https://nam10.safelinks.protec...

Hi @Samuel Choi! 

If your goal is cash flow/completely eliminate your living expenses, the areas you initially targeted (Reston/Herndon/Sterling) are great for what you are trying to do. The purchase price vs. room rental price are one of the best in NOVA. These areas are also employment hubs, have easy access to transportation (Dulles toll road, metro. etc.), and offer a variety of entertainment options and other great amenities for people to enjoy.

I just helped two different clients to buy a house hacking property in Reston and Herndon and they both eliminated their living costs. If you stay in the mid $400s, you’ll be good.

I helped another client to buy a house hack in Falls Church and I’m helping another one now to find one in Old Town Alexandria / Del Ray. The closer to DC, the higher the prices, and the harder it is to cash flow or to completely eliminate all the living expenses. These clients had different goals when looking for their house hack.

To maximize your rental income: 

    - Look for a home with 3/2.5 minimum (3 full bathrooms is preferred). 
- Ideally, it will have also a walk out basement with a full bathroom (kitchenette is a bonus). 

    - The size of the rooms matter.

    - Parking is critical. Number of assigned parking spots + ease of street parking and/or size of driveway  

Good luck! House hacking is a powerful investment option. 

Hi Miguel,

If you don’t own a home, I’d suggest to buy either a single family home or a townhouse and rent spare rooms and/or the basement. By doing this, you will eliminate all or most of your current living expenses and you’ll own an asset that will appreciate more than a condo would.

Financing a home, townhouse, or a condo is very similar. The main difference would be to finance a primary home vs. an investment property. If you buy a property to house back, you’ll buy it as a primary residence and you will have more loan options to chose from and your interest rate will be lower. If you buy an investment property, your down payment and interest rate will most likely be higher, also you limit your lender pool.

Hi @Phil K., unless you can get in and out quickly (flip), I’m with Nate here. I wouldn’t jeopardize the opportunity to buy a great property you can house hack by buying this condo that can potentially generate (if everything works out well) $300/month. 

Condos are the last to appreciate and the firsts to get hurt when there is a downturn. You will most likely buy a TH or SFH to house hack. In my experience helping clients to find house hacking properties in NOVA:

    - You will eliminate all your living expenses (more than the $300/month you’ll get with this condo) 
    - Once you move out, you can rent the room where you were living for $700-$1,000 (range depends on location as well as size of room, private bath, etc.). 
- TH or SFH will appreciate more rapidly than a condo, helping you build wealth faster.