Buying a townhome in brambleton to rent out (Woodbridge, Springfield: real estate, rental market)

[Gasti1239]

Looking to invest in a rental property. Wanted to know if its a good idea to buy a new townhome to rent out. We dont plan to live there as its not convenient for work. Is that area good? Or are we better off buying somewhere in reston/herndon or any other location?

[boyd888]

No, it's essentially in the middle of nowhere. What's in Brambleton that would drive the rental market? I mean obviously there must be rental property there, but what's the driving factor? Hardly anyone commuting into DC or military would live that far out - you've eliminated one of the largest source of stable tenants in the region.

Personally I would go for something as close to a metro, major bus line, or town center as possible (in that order). You want to tap into government workers/military that are likely to stay for a couple years, but don't want to buy a place.

[SmartMoney]

Loudoun County is expensive real estate for an investor. It's a desirable area, to own, but not at the top for renters. I would be more inclined to recommend Prince William County, eastern side, closer to Ft. Belvoir and Quantico, with an eye of attracting a military family as tenants. We had an investment property in Woodbridge, bought it with tenants in the home, same military family when we sold it 7 years later.we really were lucky - minimal issues with repairs, but found the extra headache just not worth it to us - purely personal preference. Not everyone is cut out to be landlords.

[Gasti1239]

Thank you boyd888 and smartmoney
Both of you make great points. Even i had the same issue that brambleton is in the middle of nowhere. And also that people usually buy to own there not to rent. To this my realtor mentioned that brambleton has raytheon so can get defense contractors to rent there. And he mentioned buying a new property is better because of less repairs/maintenance. What do you guys think about that?
Do older properties demand a lot of high ticket maintenance items?

[ChristineVA]

Originally Posted by Gasti1239

Thank you boyd888 and smartmoney
Both of you make great points. Even i had the same issue that brambleton is in the middle of nowhere. And also that people usually buy to own there not to rent. To this my realtor mentioned that brambleton has raytheon so can get defense contractors to rent there. And he mentioned buying a new property is better because of less repairs/maintenance. What do you guys think about that?
Do older properties demand a lot of high ticket maintenance items?

I think I would not be relying on a realtor, anxious to make a sale, for rental/investment property advice.

I do agree that buying a new property is better than an old one for the initial lack-of-maintenance issues, but that doesn't last forever.

Additionally, a new property is often several thousand more than an older property. Will your mortgage be low enough for you to break even with what the monthly rent would be.

I would not be investing in a rental in Brambleton. Raytheon isn't enough.

You want to look at communities that focus on public transportation, a large workcenter, etc. You've gotten good advice, so far, on locations.

[kww]

Agree with SmartMoney. Look at Eastern PWC or the Eastern parts of FFX County like Lorton, Springfield. Or Fairfax near GMU.

New construction should have less upkeep than an older resale property, but whether it makes sense or not financially, you and your agent will have to determine after reviewing rental comp amounts and DOM to rent out etc.

Whatever you do, try and have your property near a military base, use militarybyowner.com to advertise on, and try your best to have your tenant lease start/stop in the Spring/Summer. No one likes to move mid school year/during the holidays (although with military, they often have no choice).

[ACWhite]

Merry Christmas, all! OP, around here, at this time, typically it is much cheaper to rent than to buy the same property. Have you run the numbers to determine break even and return on your investment versus other investments?

[johnsonkk]

Although I'm not familiar with Loudon county, bought a rental in PWC near Belvoir for similar reasons listed earlier. Got a deal on the SFH but had to pour an initial amount into it to get to rental standards. Quick to rent with nearby military market but rent wasn't as high as anticipated. Rent covers mortgage and most of the insurance and taxes. Clearly this rental is geared on increased appreciation over the next few years.

[SmartMoney]

New will keep the repair bills down, however, when buying new, you really need to study how long builders will be close by. Reason, if it's a large project, say 4,000 homes over 5-7 years, be prepared to be stuck owning that home for at least that period. Why? You would be competing with new homes. Just ask anyone that has attempted to sell with new construction in the neighborhood and you'll hear tales of woe. And everyone that buys new construction seems to think as the builders start raising their prices, resales should also rise. Disappointingly, that is rarely the case.

[boyd888]

Originally Posted by SmartMoney

Why? You would be competing with new homes. Just ask anyone that has attempted to sell with new construction in the neighborhood and you'll hear tales of woe.

Great point and I think this is a major issue in parts of Prince William (especially Bristow/Gainesville). You have a ton of McMansion type homes built 2004-2006ish and they just sit on the market. People paid top dollar when they were built and many are likely upside down. I think the whole area is massive overpriced given all the added congestion to 66 in the past years, but that's just me. People can go 10 miles (or less) west and get brand new construction (really a no brainer if you aren't commuting east). Not to mention a 10-15 year old home will be much more likely to need repairs.