Looking to buy SFH in Fairfax. Is it a good investment

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wow, I pulled a listing in Pimmit Hills and all assigned schools in that particular area are rated 9/10. I did notice that the houses are small and older. But looks promsing since you said the area is getting new development and schools are great too.

LOLOLOLOLOL

Nice set up, PH booster. I'll give you that.

Pimmit Hills is still the armpit of NOVA though.

LOL must be a new booster

Because booster is gone or is a legit post

No idea what you are talking about.

[Anonymous]

Anonymous wrote:Let's see now...
Rent for 2 years @ $3000/month = $72000
Rent for 5 years @ $3000/month = $180,000

I'm sorry but I would rather buy a house, build equity and then sell it.

A 3k rental is not the same property as a 600k property

You can rent the property annually, or you can rent the money and sign up for 30 yrs

Interest and taxes alone for first year probably 25k and you are a vulnerable short term investor in this scenario. Just gambling to try and save 180k (rent) - 120k (interest + property tax) = 60 k. With the crappy homes 600k will buy you, 60k in repairs over 5 years would be easy to rack up. Granted tax deduction helps, as long as not repealed and you avoid AMT. but if market here wobbles from sequester or rising rates, your limited time horizon leaves you exposed.

End of day, in DC real estate 180k is peanuts; you have to be committed to the long term to be safer. That said, if have the cash flow and resources, keeping as rental could be option. But I have any friends who ate cash flow negative on their properties so you better be able to bridge that if you go that route.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Let's see now...
Rent for 2 years @ $3000/month = $72000
Rent for 5 years @ $3000/month = $180,000

I'm sorry but I would rather buy a house, build equity and then sell it.

A 3k rental is not the same property as a 600k property

You can rent the property annually, or you can rent the money and sign up for 30 yrs

Interest and taxes alone for first year probably 25k and you are a vulnerable short term investor in this scenario. Just gambling to try and save 180k (rent) - 120k (interest + property tax) = 60 k. With the crappy homes 600k will buy you, 60k in repairs over 5 years would be easy to rack up. Granted tax deduction helps, as long as not repealed and you avoid AMT. but if market here wobbles from sequester or rising rates, your limited time horizon leaves you exposed.

End of day, in DC real estate 180k is peanuts; you have to be committed to the long term to be safer. That said, if have the cash flow and resources, keeping as rental could be option. But I have any friends who ate cash flow negative on their properties so you better be able to bridge that if you go that route.

I just left the DC area after 5 years. Spent $800,000+ on a house we bought at the top of the market. Easily put $60,000+ plus into it. Sold it for about $10,000 less than we paid. With the realtor's commission, we lost close to $100,000 overall. It would have been much better for us to rent. Of course, we had thought we were staying for longer than 5 years. But given your budget and time frame, I would rent.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Let's see now...
Rent for 2 years @ $3000/month = $72000
Rent for 5 years @ $3000/month = $180,000

I'm sorry but I would rather buy a house, build equity and then sell it.

A 3k rental is not the same property as a 600k property

You can rent the property annually, or you can rent the money and sign up for 30 yrs

Interest and taxes alone for first year probably 25k and you are a vulnerable short term investor in this scenario. Just gambling to try and save 180k (rent) - 120k (interest + property tax) = 60 k. With the crappy homes 600k will buy you, 60k in repairs over 5 years would be easy to rack up. Granted tax deduction helps, as long as not repealed and you avoid AMT. but if market here wobbles from sequester or rising rates, your limited time horizon leaves you exposed.

End of day, in DC real estate 180k is peanuts; you have to be committed to the long term to be safer. That said, if have the cash flow and resources, keeping as rental could be option. But I have any friends who ate cash flow negative on their properties so you better be able to bridge that if you go that route.

I just left the DC area after 5 years. Spent $800,000+ on a house we bought at the top of the market. Easily put $60,000+ plus into it. Sold it for about $10,000 less than we paid. With the realtor's commission, we lost close to $100,000 overall. It would have been much better for us to rent. Of course, we had thought we were staying for longer than 5 years. But given your budget and time frame, I would rent.

We did the same. $100K just to make it livable. The value did not go up that much. Maybe $30K. so out $70K plus cost of selling.

[Anonymous]

If your window is 2-5 years do not treat a house as an investment, just rent close to work in a decent school district. If we are assuming the same 3,000 payment above, a 30 year loan with 20% down and fairfax property tax of 0.0185. A mortgage of 3000/month would be a 615,000 house, not a big budget in the nicer parts of Fairfax County and that is assuming you have the 123,000 for the 20% down payment. You live there 2 years, only build 17k in equity, it will cost you 37k in realtor fees to sell, assuming nothing breaks while you are in it and you don't have to update it or pay another rent/mortgage whole you relocate if the house is not selling quickly. At 5 years you build 47k in equity, but it is still 37k to sell it. The market has been hotter recently closer in, but no guarantee that there will be any huge gains in the next 2-5 that would outpace the equities market.

The chance of having to sell in two years would be too risky for me.

[Anonymous]

You want to live in the home for at least 2 years before selling so that you don't get raped by capital gains. Appreciation in the DC area is about 5-12% a year depending on where you live and real estate transaction fees are about 5-7% on a sale.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Let's see now...
Rent for 2 years @ $3000/month = $72000
Rent for 5 years @ $3000/month = $180,000

I'm sorry but I would rather buy a house, build equity and then sell it.

A 3k rental is not the same property as a 600k property

You can rent the property annually, or you can rent the money and sign up for 30 yrs

Interest and taxes alone for first year probably 25k and you are a vulnerable short term investor in this scenario. Just gambling to try and save 180k (rent) - 120k (interest + property tax) = 60 k. With the crappy homes 600k will buy you, 60k in repairs over 5 years would be easy to rack up. Granted tax deduction helps, as long as not repealed and you avoid AMT. but if market here wobbles from sequester or rising rates, your limited time horizon leaves you exposed.

End of day, in DC real estate 180k is peanuts; you have to be committed to the long term to be safer. That said, if have the cash flow and resources, keeping as rental could be option. But I have any friends who ate cash flow negative on their properties so you better be able to bridge that if you go that route.

I just left the DC area after 5 years. Spent $800,000+ on a house we bought at the top of the market. Easily put $60,000+ plus into it. Sold it for about $10,000 less than we paid. With the realtor's commission, we lost close to $100,000 overall. It would have been much better for us to rent. Of course, we had thought we were staying for longer than 5 years. But given your budget and time frame, I would rent.

FYI DC area may not be what you described (hint manasas is not dc area)