All Forum Posts by: Mike Webber

Definitely do an inspection. I had a duplex under contract last month and had to back out after the inspection revealed big issues with the foundation and we couldn't come to terms on the credit they'd pay us to fix it. That was in Winchester, Virginia

How local are you looking? Is it in Maryland or DC, or are you looking at something in another state? If you can't go yourself, get a recommendation from somebody in the area that you trust for an inspector and maybe even have them go or do a video for you. Something. I would not buy an occupied duplex without an inspection. If the cashflow is great, there is a decent likelihood it isn't in the best condition if it is close to where you live. Maybe not the case in other markets, but the DMV has a real premium on prices compared to the average across the country.

Traditionally people consider house hacking: renting out a portion of your primary residence to help pay for the expenses. In this case it sounds like you would just be a normal investor (not living in the home) and your sister would be house hacking if she is 50/50 owner and renting out the room that you leave behind. 

Either way, I think it is a great idea and wouldn't get too caught up in what you want to call it. Just call it a good investment :D  (assuming it is a good investment haha)

I wasn't licensed when I wrote this two years ago. Thanks for the input.

@Alex Petsopoulos

Fee Simple is an ownership style that just means you actually own the land and structure that is on it. My point was that you wanna avoid condo associations at all costs haha. So owning a townhouse vs a "townhouse style" condo, will make your life way easier in this pursuit. 

I'd be happy to shoot you what the numbers look like (I'll send you a DM). You are right about a 3% down payment cash flowing. In one case I had a VA buyer with 0% down (actually walked away with money at closing) that still manages to look appealing. The City of Alexandria is the most forward thinking jurisdiction in NOVA when it comes to using your property to make money, another reason I love it.

That makes me happy to hear you are keeping the one in Huntington. I couldn't agree more, rents will rise. Property values will rise. I think that neighborhood is gonna crush it over the next couple decades. 

Keep it up bro, you're crushing it.

There's been a lot of good advice already, but to hammer home the "little of your own money" part, I would look into creative finance strategies like Sub 2 or owner finance. There are a lot of strategies where you can put no money down, but they usually require some level of creativity and you most likely have to go direct to seller (although not always, I've found opportunities on the MLS).

Good Luck! You're already on your way.

 I've had a couple friends really beat up OpenDoor properties on price recently. 6 figures under the original list price. I think a lot of those tech companies made bad buys when the market was white hot. 

@Yong Jin Lee As many others have said Northern VA (and most of DC) is a tough cashflow market, but it isn't impossible. If you haven't already, I would develop a strategy for where/what you want to invest in. I think house hacking is the best way to get started but it isn't for everyone. I live in NOVA and I purchased out of state (for cashflow) exclusively when I first got started. I was only thinking cashflow at the time, which is fine, but looking back, I may have been better off in the long run buying in my local market and taking the lower returns off the bat for more appreciation and rent increases over time.

Good Luck!!

Hey Alex,

I've actually helped several people (many from Bigger Pockets) house hack in Old Town Alexandria. Russell is correct, short term rentals are almost universally a no-go in the condos in the area. Some people still give it a shot, but I can say I've seen several get caught doing this and wouldn't recommend anything outside of the condo associations rules. I would definitely look for something Fee simple if you are set on a short term rental. Otherwise, you can still house hack and rent it out medium/long term (over 30 day leases). 

I love Old Town and think it is an excellent market. I'm also a fan of Huntington and think it is a good long term hold market. Just curious, do you plan on keeping the house in Huntington to rent it out (my choice lol).

I'm happy to answer any house hack or rental questions about the Alexandria area. I work with a lot of investors in that area so I have a decent finger on the pulse. 

IDK how you feel about this, but a great thing I've seen for people to do is to start the investment group in your area. If you build it, they will come. It will turn you into a lightning rod for investors and get a good circle of people to learn with/from. It isn't as easy as going to something established, but it's worth a thought. I work with the guy who started the group I go to and I've seen first hand how much value he's given to people and it has come back to him 10x.

Hey Bryce,

I think this mostly depends on where you live, but in most places I believe an AirBnB will bring in more money. Luckily your current spread doesn't make it necessary to turn it into a short term rental, so it's totally up to you. Try looking up your area on Air DNA to get an idea of what you might be able to bring in renting it short term, and compare that to the $2,000 it brings in currently. 

 Yes, I did go with KW. I also joined a team that was started by an investor and I primarily work with investors. It's been a really good fit. I've helped several people buy their first investment property. Many of which I met through Bigger Pockets. I love it, and I'm so happy to be where I am. If you have any other questions, I'd be more than happy to answer them. Feel free to send me a message.