If you had $300,000 to invest in the NOVA real estate market... (Reston: apartments, foreclosure)

[CAVA1990]

Originally Posted by VRE332

I'd pay off my mortgage.

That's the last thing I'd do. I can make a lot better return on my money than the @2.5% after tax interest rate I'm paying on my mortgage.

[mdcrim]

The market's definitely changed over the last 8-10 years. I know of a couple who bought two Ashburn townhouses back the the early 2000's for around $250,000 each (no mortgages). They net almost $20,000 per year in rent and the properties have almost paid for themselves. They're getting a nice of return, potential appreciation and a tax deduction.

I guess the price points have gotten so much higher now.

What about two older Reston condo's for $150k each, depending on the condo fees? Rent even on an older condo should be at least $1000 per month...

[CAVA1990]

Originally Posted by mdcrim

The market's definitely changed over the last 8-10 years. .

So where's it going from here?

[sullyguy]

Originally Posted by Carlingtonian

SFH in N. Arl, on cul-de-sac, listed at $240K; catch is that I-66 is in the backyard.

Here's a charming Cape with water damage in Falls Church, on a ginormous lot.

And here's a small, relatively unappealing frame house in S. Arlington, but you still would make money on this over the years.

I would pay for location and square footage of land.

All houses can be viewed on Street View in Google Maps.

[The last house has a house-wide yard with on-street parking only, apparently]

[Carlingtonian]

I have not contested that those examples are probably not great houses to live in by standards of most people. I assumed that, based on the price. But if 300K is all ya got, and you're planning to invest it in real estate (and will be living somewhere else), then your options are: 1. buy close-in land that may have a crappy house on it or no house on it; 2. buy a condo in a lower-demand area that you think will become a high-demand area; or 3. buy a big parcel out farther out, in the hopes that demand rises.

In my opinion, you can't buy a 700K condo in Clarendon or a $1.5 million palace near the Vienna metro and expect to make much money on it in less than 20 years, because there's not really much room for the value to increase.

[CAVA1990]

Some of the neighborhoods around Route 1 would be a good possibility if you're looking to buy a reasonably priced rental property. There's a shortage of rental homes in this area that's only going to get worse with all the jobs relocating to Fort Belvoir.

[spencgr]

Originally Posted by mdcrim

The market's definitely changed over the last 8-10 years. I know of a couple who bought two Ashburn townhouses back the the early 2000's for around $250,000 each (no mortgages). They net almost $20,000 per year in rent and the properties have almost paid for themselves. They're getting a nice of return, potential appreciation and a tax deduction.

I guess the price points have gotten so much higher now.

What about two older Reston condo's for $150k each, depending on the condo fees? Rent even on an older condo should be at least $1000 per month...

Regardless of age, you can't get any condo in Reston for 150k.

[boyd888]

Originally Posted by spencgr

I agree, but he only has $300K. So if he bought these property, he has no money to renovate, fix-up, or even demo. Personally, I find it doubtful that he'll make a lot of money sitting on a blighted property. Even if the land is valuable....

In Arlington you have to compete with companies that are going to tear down and put up a mansion. They don't care if they pay 250K or 350K for the land if they know they can put a million dollar house on the lot to resell within months.

Go hardcore and buy a fourplex in southeast to scumlord out. If the rent check comes from the government all you have to do is keep the place liveable.

[Mr Beco]

Originally Posted by mdcrim

... What would you do with it and why? This has come up in conversation recently so I thought I'd throw it out there for discussion.

Totally hypothetical question. Where would you spend your $300k? Ashburn townhouse? McLean condo? Old Reston town home? Others?

Residential, I'd say, anything along the new Metro.

[Mr Beco]

Originally Posted by CAVA1990

So where's it going from here?

It's going UP! people who want to invest, do it now. Its possible that you have already missed the opportunity....