All Forum Posts by: Lewis Finney

@Lewis Finney if you need reno money, i believe the loans all have something. Conventional is just called renovation. VA should also have an option.

Not sure what sort of lender you are working with, but honestly in my experience the brokers that are marketed to you through the military aren't very helpful.

You still need to qualify for the reno --- basically qualify for the larger loan.  All the work has to be done through one licensed contractor.  You need to find a contractor who can do a bit of paperwork since to get the loan, he will need to submit detailed estimates.  That's the most stressful part since you need that to qualify for the loan.  Contrary to popular belief, there is no "certification" to be a 203/reno contractor....

Good luck.

Hi Lewis, welcome to the DMV! It's a great place as an appreciation market, and there are a few strategies that you just might make work if you get creative here. I can't really speak to DC itself, but here are a few tips on the VA/MD sides:

BLUF: At your price point, breaking even will be tough. But with some creativity--and perhaps a willingness to commute--you may be able to make it happen. Here are a few ideas that perhaps might work at your budget in this area, and happy to chat offline anytime!

1. If you've got the capital and you know some of the homes you like require renovations, perhaps it's worth checking out an FHA 203k loan program (the renovation funds are built into the loan, and you don't pay them out of pocket!) A lender will be able to speak to specifics, but it might help with achieving any needed upgrades. Otherwise, picking an option that requires minimal renovation would be great for the VA loan.

2. On the Virginia side: LTR-There are a few pockets of townhomes that may work at your price point, and from what I've seen, you may be able to break even if you play around with the numbers and are willing to drive. MTR: you should be able to cashflow or break even if you employ the midterm strategy here. (Many options with this, and I'm happy to chat offline!) 

3. Maryland: there's a HUGE opportunity for affordable housing, and the MD counties are amazing at publishing the rates by zipcode, often up to 6 (Anne Arundel county) and 7 bedrooms (in PG & Montgomery Counties). You'll likely find cashflow with this investing strategy, even at your price point, because the counties are willing to pay DC rent for Maryland purchase prices. Just will need to convert dining rooms/basements into the last couple bedrooms to hit your target rent, but you can do that at the end of your time living in the home!

4. Condos will probably be the toughest to achieve cashflow and have the most restrictions. But...never say never though! A friend of mine has a DC condo that performs incredibly well with excellent cashflow! Just about the right unit and strategy to make it work.

Best of luck with your home search!

Going for a single family instead of HOA/condo is good.

For cash flow vs appreciation, that is a personal decision.  Costs for the home are more than the mortgage, you have property taxes, insurance and for rentals vacancies.  How long do you plan on keeping the home? 

Buying a place that needs a bit of work, can be a good move. If you are living in the home, you can do then renos over time.