All Forum Posts by: Michael Needle

Thanks for the advice! Ultimately we didn't get the house because they preferred a conventional loan, which the other bid had, but thank you.

My wife and I are looking at a property that needs some work, probably around 30k on a roughly 750k house. 

I qualify for a VA loan, but also understand that 203k loans provides some potential way to get funding for the work (as opposed to a lower down payment).

Any thoughts on which would be a better option? Thanks!

One thought, and it's just my opinion, I don't see Falls Church as the best play off Amazon. Most of the Falls Church is not very metro accessible, which would be the best way to play the market (Amazon HQ also is not on the orange line).   There is one condo development across from the West Falls Church Metro station that I can think of, not sure what current prices are. I don't know the area very well so take this with a grain of salt, but perhaps something in Alexandria on the yellow line would be relatively close to your price point and be a decent way off the Amazon news (again I don't follow the Alexandria market).

100% keep the house. Between the location and your interest rate, plus the CF, you're set.  

What you don't say is what type of home it is in, and what exactly you are looking to buy. Is it worth rethinking what your needs versus your wants are for the next home? You're talking about a desire for financial independence at the same time that you mention almost doubling your primary residence monthly costs. I'm not trying to be harsh but those don't sound like compatible statements.

I have to respectfully disagree regarding a primary residence. By your photo you appear relatively young (myself being 38). Having purchased a primary residence first which then became a rental, I'd suggest only buying a primary if you can house hack to live for free, otherwise keep your personal expenses as low as possible to save up for a rental. There are quite a few 4plexes in Carytown that you could purchase on a primary residence loan, though I'm not a Richmond resident and am not current on pricing. Hope that helps.

Here's a question, how much would the house rent for? If you're single, or at least without kids, it might be worth it to live in the studio and rent out the house. When I was single I went from a 900sf 1br and moved to a 370sf studio (I owned both), it made me strongly regret ever buying the 1br, you need way less room than you think.

I agree regarding the hold, one thought is to get a solid estimate for the basement conversion, then do that conversion to a basic rental standard so that you get some CF, then hold off on any work or other plans on the upstairs until you see how the market is going. 

Also, I have a 900sf 1BR in Foggy Bottom 3 blocks from a metro and Whole Foods with parking. It rents for 2200. Obviously you're talking a 2BR, but 1800 still seems a little high. I could be off of course, but id just triple check your rent estimates. I've never gotten above the low end on rentometer.

Much appreciate all the input from everyone, I'm certainly not trying to do anything fraudulent or immoral, just trying to make sure I leverage myself as best as possible with what assets I have. I'll plan on doing a 1031 instead to ensure I stay on the correct side of things and maximize the benefits. Thanks!

@Chris Seveney because I wouldn't requalify for my current mortgage as it's owner occupied financing. Keeping the current financing in place but selling the unit with some sort of owner financing lets me (I think) enjoy the benefit of a cash out refi at a great rate while reducing/eliminating my exposure to the taxes and condo fee on the current property, freeing me to deploy that capital against a more CF producing property.

@Steve Vaughan thank you, I'll do some digging on wraps. 500K ish for the unit is a relatively fair price in DC as it is close to 900 SF and in a prime location. I purchased it as a primary residence, looking back I wish I had taken the same funds and bought several studios for the CF. What about the deal would have you sell outright?