Buying a townhome in brambleton to rent out

[HB2HSV]

Originally Posted by 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?

We bought a brand new townhome and lived in for 6 months before renting it out because of job relocation. This is in SoCal so our situation is likely very different but just want to share experience. In general, our monthly rental incomes offset mortgage payments, but you will need to figure in the HOA, property tax, maintenance & gaps inbetween tenants. In general, I'd say it will be a negative cash flow for the first few years. The ROI will be the appreciation in property values over time plus rent increases because of the market.

I agree with others that if you are looking to buy rental properties you should really consider a higher demand neighborhood and not "the 'burb". Also, consider if you do not plan on living there initially then your mortgage interest rate will likely be higher due to "non-owner occupy" investment property. Finally make sure you have money set aside for that couple of months inbetween tenants & maintenace expenses.

Also, I am not sure buying brand new TH as rentals is a good idea. The rental market does not care if it's brand new or a 20 yr old unit, it demands the basically the same rent. At risk of offending some on this board, renters ruin your property. You'll basically need to replace carpet & repaint the unit when each renter moves out after 2-3 years.

Finally, unless you're semi-retired and have the time& energy to baby-sit your property, get a good property management firm to handle your property. They are worth their fees in saving you aggravations in petty maintenance calls.

[blindside]

I'll give you one nice thing about brambleton, it's near an international airport and is a hub for United.

I've known many a pilots and flight attendants in this area and the younger ones are still renting.

There's lots of turnover in the area (both in rentals and home purchases) so property managers and real estate agents make some great money. However there are other places which have better price appreciation, so I wouldnt consider it as an investment that appreciates. Theres no scarcity in land (unlike inside the beltway) or housing to drive up the price of existing units. A lot of people prefer to buy new here.

[MedvedActual]

Originally Posted by HB2HSV

We bought a brand new townhome and lived in for 6 months before renting it out because of job relocation. This is in SoCal so our situation is likely very different but just want to share experience. In general, our monthly rental incomes offset mortgage payments, but you will need to figure in the HOA, property tax, maintenance & gaps inbetween tenants. In general, I'd say it will be a negative cash flow for the first few years. The ROI will be the appreciation in property values over time plus rent increases because of the market.

I agree with others that if you are looking to buy rental properties you should really consider a higher demand neighborhood and not "the 'burb". Also, consider if you do not plan on living there initially then your mortgage interest rate will likely be higher due to "non-owner occupy" investment property. Finally make sure you have money set aside for that couple of months inbetween tenants & maintenace expenses.

Also, I am not sure buying brand new TH as rentals is a good idea. The rental market does not care if it's brand new or a 20 yr old unit, it demands the basically the same rent. At risk of offending some on this board, renters ruin your property. You'll basically need to replace carpet & repaint the unit when each renter moves out after 2-3 years.

Finally, unless you're semi-retired and have the time& energy to baby-sit your property, get a good property management firm to handle your property. They are worth their fees in saving you aggravations in petty maintenance calls.

I would also take a look at home warranty policies, e.g., American Home Shield. Have it for a rental property and it paid for itself several times, both when I lived there as well as after that with the tenants.

[cdmurphy]

I have lived in Brambleton for over 12 years. The renters I have known have been: pilots/flight attendants, young singles just out of college employed in IT, short-term renters waiting for their "real" house to be finished, and people who were living with their spouse and/or kids in a home they owned but then got divorced and needed to stay in the area (sad but true). A hotter rental area seems to be Loudoun Station, over by the future terminal Silver Line station, even though service is at least 4 years away.