Where in VA to buy a starter townhouse to rent out in the future?

[Anonymous]

The THs north of Vienna Metro are nice and many are rentals. I used to own one, but when I upgraded to a SFH I did not see a good reason (or way) to keep it. First, I needed the sale money for my new down-payment, and that was after 10 years of appreciation rather than the mere 4 you're planning. Second, my competition for tenants would have been homes bought cheap in the 80s and long since paid off, meaning they could charge less. And third, being a landlord is a PITA.

[Anonymous]

Anonymous wrote:Moving from out of state as a family of four. One of us will be working in DC, the other near Tyson's.

We're looking to buy a townhouse that we can live in for 3-4 years and then rent out and move into a larger, forever home down the line.

Only requirement is that we are walking distance from the metro. We will be using public schools for our children.

Where would you live, if the investment aspect would be a priority?

What is the budget and how old are the children?
Where in DC is the office?

[Anonymous]

Honestly I would either buy in a McLean pyramid or a townhouse in north Arlington

[Anonymous]

I would focus on 1) areas that are walking distance to a metro, and 2) good schools.

We have a house in FCC that we rent out and that checks these two boxes and we have zero problems finding good tenants because of these things.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, your post will be triggering to many, so don’t expect much help. Many people who would love to own a townhome as their forever home are outbid by people who then rent them out. Because DC is coastal, development is limited to three cardinal directions, rather than four, making the local market even tighter. We could have become landlords, but we sold our townhome when we moved to avoid becoming part of the problem.

I’m confused by this statement.

I'm not.

[Anonymous]

Anonymous wrote:OP, your post will be triggering to many, so don’t expect much help. Many people who would love to own a townhome as their forever home are outbid by people who then rent them out. Because DC is coastal, development is limited to three cardinal directions, rather than four, making the local market even tighter. We could have become landlords, but we sold our townhome when we moved to avoid becoming part of the problem.

This isn’t why I responded so negatively to the question. I responded because I think it’s a stupid way to invest your money regardless. Being a landlord is a hassle, especially for what would essentially be a single-family home, and you’d be much better off of investing your money elsewhere.

[Anonymous]

I'd focus on orange and silver line metro stops, with a focus on neighborhoods (meaning skip the sprawl in Tysons). There are plenty of good options near Vienna and Dunn Loring, and some at WFC and EFC as well. Closer in on Orange is going to cost more. Silver line out towards Reston could work as well, but I'm less familiar with it.

[Anonymous]

3 questions:
-What is your budget?
-What location(s) will be you be commuting to for work or other activities?
-What school districts would best serve your kids long-term?

That's really what you need to figure out to be able to get good recs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, your post will be triggering to many, so don’t expect much help. Many people who would love to own a townhome as their forever home are outbid by people who then rent them out. Because DC is coastal, development is limited to three cardinal directions, rather than four, making the local market even tighter. We could have become landlords, but we sold our townhome when we moved to avoid becoming part of the problem.

This isn’t why I responded so negatively to the question. I responded because I think it’s a stupid way to invest your money regardless. Being a landlord is a hassle, especially for what would essentially be a single-family home, and you’d be much better off of investing your money elsewhere.

You also kinda have to be a gazillionaire to pull off this plan, especially given the fact op already has kids.

I think it works better if you buy a small TH as newlyweds, live in it for 10 or so years and have your kids there during the daycare/preschool years, then upgrade to a better school district and larger home. Not sure how op will afford two down payments and mortgages in a good school district in a short period of time.

[Anonymous]

This is area is not good to buy properties that will cash flow

Id look at areas with military bases like Norfolk VA where you’ll have a steady stream of transient but paying renters from the military

[Anonymous]

Kings Manor

[Anonymous]

Anonymous wrote:Kings Manor

Love this community but townhouses there were already selling for over $1M when we bought this winter. Then again we don’t know OPs budget so maybe it’s a fit? But at that price I’d go starter SFH in Arlington over TH in McLean

[Anonymous]

OP, I'm your future. Bought a 3 bedroom TH for $600k (now worth $800k) in walking distance of Vienna Metro in 2020 at 2.6% interest rate; we put down an extra large down payment and now monthly payments are super low so we could probably make much more renting it than the mortgage payments cost. Would love to move to a SFH and rent the TH out. But here's the thing: (1) we have small kids and moving would be super disruptive, (2) without selling the TH we probably cannot afford the down payment on a home that would be an upgrade. It's a tough situation.

[Anonymous]

Anonymous wrote:OP, I'm your future. Bought a 3 bedroom TH for $600k (now worth $800k) in walking distance of Vienna Metro in 2020 at 2.6% interest rate; we put down an extra large down payment and now monthly payments are super low so we could probably make much more renting it than the mortgage payments cost. Would love to move to a SFH and rent the TH out. But here's the thing: (1) we have small kids and moving would be super disruptive, (2) without selling the TH we probably cannot afford the down payment on a home that would be an upgrade. It's a tough situation.

As you said, even in ideal situations (lots of appreciation and a 2.6% interest rate), it can be tough to make a rental profitable. But, I just don't see anyone making a big profit renting out a place bought at 2025 prices and a 6-7% interest rate. In my TH near the metro neighborhood, the PITI on new purchases is $1-2k higher than current rental rates on almost identical THs. Maybe someone could refinance if interest rates eventually go down and maybe rental rates increase enough that the math works out better, but it seems unlikely that these conditions occur in the next couple of years.

[Anonymous]

Anonymous wrote:South Arlington is getting a bit crime-y now. Carjackings, armed robbery, armed shoplifters are more in the news now than I remember.

Hah hah, it's S. Arlington. Where have you been for the last 50yrs?