All Forum Posts by: Justin Dyer

@Russell Brazil Your comment is valid, and I agree with what you said, but not exactly what I meant. I meant that it makes more sense to sell this property and take the 150K equity. Then use that equity to purchase property in a more affordable market that meets or exceeds the 1% rule. We would still need to buy another property here to replace it.

@Andres Rodriguez Okay. So what I've come to is our homes are great. Great to live and/or raise kids in, basically forever. Cool. However, we can sell our homes, use that cash to invest in higher returns. No way I will risk 150K for a 200/mo profit (if we had perfect tenants). Our area is dependent on growth. The economy is likely going to ****, and soon. Growth during a recession is not what I want to bet on.

So, I want to invest out of market with people that have off market deals.

Just re-listened to episode 311, with J Scott, from earlier this year. He was talking about flattened yield curves 6 months ago pointing to a recession in about 18 mos. Here we are in July with an inverted yield curve. I am very bearish on just about anything financial. I am refinancing after the Fed meeting next week, opening a HELOC, and continuing to save. I will buy another house in the area, or a SFH (w/o HOA) in Annandale. I expect the housing market to dip enough in the near future that it is beneficial to hold off on buying another A/B property to possibly save 50-100K.

Amazon bought the old EDS/HP/Perspecta campus in Herndon and built a new data center that I can see from my deck. Google bought land for data centers in Arcola. Lots of tech here and it keeps expanding. Ashburn is building lots of multilevel data centers. Suggest taking a look in Ashburn/Herndon/Chantilly for future investment properties.

I'm waiting until the impending drop, which should drop rates by a .25-.50. Currently in a VA loan and I'm refinancing to conventional so I can potentially rent this house out and have my VA loan in my pocket to get my next house.

Also, saving cash for a third house, which will be our first rental, purchased as a rental.

I'm bearish on the economy. Recommend ensuring you have enough reserves to weather a dip. I am not overextending myself.

@Dan Bernstein this is an intriguing option. 🤔

@Dan Robinson I feel like this move would be just one facet of my plan. A solid B+ TH where I have equity to break even while someone pays the rest of the principle.

I've run RVA numbers, but they are above market. Properties there have tripled in the past three years and I don't think they can continue to run. Checked Baltimore. Can buy damn near a city block, but after checking Google Streetview, I saw where the latest murder took place from the front steps. Looking at South Dakota and Wyoming now to see if I can set up a business there and avoid corporate and state taxes.

Current home is a TH in Chantilly, valued at just over 500K, owe 350k. I have a VA loan on it now, which I am constantly checking Bankrate for a good rate for conventional non-VA, non-FHA loan. Rentometer is showing that a neighbor in my row of THs is renting out at 2200/mo. With current rates, taxes, and HOA, I would *make* $170/mo. This is not including any capex, repairs, warranties, property management, vacancy, etc. I feel I can charge 2300 since we have a larger deck and fence. I understand that $270/mo, saved away for expenses, is not an attractive deal, but I am still considering it because of appreciation. It has gone up over 100K in 9 years.

I want to buy another TH in the area and pay down its principle and repeat the process. Tons of tech jobs are surrounding the area, Google, Amazon, MS, etc. all have a major presence.  I can afford to float both THs for as long as necessary and pay for repairs, new roof, whatever. Is anyone else considering a similar move, or have already done it? 

@Stephen Glover we were checking out some properties just north of Broad Street. Ideally, we would like to be close to VCU, but we are open to other areas. Definitely open to your input on neighborhoods.

Nice work. My wife and I went to Richmond last Saturday to look at a few condos. Unfortunately, after checking the numbers, they would have been negative cash flowing $148/ea when factoring in the cost of HELOC payments. I liked the location, but the comparable rents were lower than expected. We are going to stack some cash up and take another look soon. We will reach out the next time we go back to RVA.

Again, nice work. 

Great info.