All Forum Posts by: Masud Khan

I’m evaluating my first deal and staying local (Washington DC) means high prices and low rents.  I would tie up most most of my initial investment cash in a property that barely generates cash flow from what I see here.  I feel like this violates all advice (invest local in neighborhoods that you know), but am starting to look out of state.  I’ve heard Alabama and Ohio (Cleveland, Toledo) are good markets for positive cash flow.  Also, lower prices means I could scale up multiple properties faster.  A few questions from the forum:

1) Did anyone go out of state for their first deal? Any recommendations, given challenges of doing the deal remotely? Who did you work with in local markets, on the ground and what commissions did you pay them? How did you find properties? SFH or Multifamily?

2) Anyone with experience in Ohio or Alabama? Which cities/markets have strong positive cash flow opportunity? Any resources (agents, wholesales, other tools) you recommend to help find/evaluate properties in those markets?

Appreciate your help!

I‘ve been searching for a condo as a first time investment property in NoVa, Reston/Sterling/Ashburn areas. Prices are so high that there is little to no room for positive cash flow.  The numbers just don’t make sense out here, unless you want to buy and hold, and bank on appreciation. Which will be limited in condos vs. SFHs.  At this point I’m looking out of state and/or Vacation rentals as options.

Hi All,

I unfortunately couldn’t make this meetup, but let me know about the next. I’m in Vienna very close to Tysons. How did this one go?  Best,

-Masud

Thanks for the tip @Blaine Alger. That was the ballpark/sanity check I’m looking for. I have a friend who is looking for returns outside of the stock market.  ROIC of 10% could be enticing enough.  Splitting the profit seems like it may not be worth the deal for me.  Would need to run the numbers for sure. Also, thanks for the link— will check out the post!

@Leo Watts- that's right I was just going to use HML for acquisition with the thought of bringing a faster/competitive offer to the seller. Do you work with investors in the NoVA or PG county areas for these types of deals?

@Jeremy Wirths- thanks for the info. Those rates are doable for a short period. The real work will be finding an undervalued property that is worth the HML high interest period. My assumptions is that HML will let me close on the property faster. If I end up going with a turnkey buy and hold (not enough deals out there), then I'm thinking I go with a conventional lender.

Hey All- I'm new(ish) to BP and starting my foray in income producing property. I'm in Fairfax County. Would be great to build a local network, talk about what areas and types of deals are standing out for you! Right now I'm bouncing around 3 ideas: 1) Local BRRRR for a single family home 2) Vacation STR within 2-3 hours drive or 3) out of state multi-unit since prices are so inflated in the DMV.

First time deal seeker here, looking for BRRRR options in the Washington DC area. For my first deal I'm looking for a single family home needing cosmetic rehab. Because home prices are high this area I won't be able to pay all cash right away. My goal is a purchase for $250k-$350k range (Including rehab costs) in up and coming neighborhoods in the eastern suburbs. My main question is around financing the purchase. I'd like to avoid conventional lending, put 25% down and go with either 1) private/family money or 2) Hard money. Seems like the faster way to close and to stay competitive on good deals.

Since I’m a rookie, would love to hear how you would structure a deal for a private/family member potentially putting up $260k in cash for my deal (75%).  How do you structure a deal to make it enticing for them? Do I approach them like a lender and agree to an interest rate to pay back, based on an amortization schedule?  Or do offer a cash % based on profit after refinancing?  

Alternatively, there is the hard money lender in the event my private money friends don't. Any recommendations you have on working with HML on a first deal would be great. For example how much of the purchase/construction price do they typically finance and what do typical repayment terms look like.

Thanks!

@Michael Elefante great post! Interested in the financing. Did you put down 20% and keep that much in the property? Looking for a first time positive cash flow property and thinking about STR over a condo on my area, which is hyper inflated.

@Joe Splitrock appreciate the insight! In our market, home values have been steadily rising given all the stable income from the Us government/agencies and being a technology hub. I’ll just have to be very conscious of free cash flow to put towards a 15 year.