There are properties in the 300K range that fit what you're looking for in both NE and NW. Of course, the closer you get to Dupont Circle and other areas closer to the metro, they are harder to find.
You have some things that work to your advantage. The fact that you don't have to move in right away is excellent so if your home isn't exactly livable you could do some renovations while you're living off site. Also, with some properties like short sales etc which are taking a long time to close might be possible.
With regards to financing, it's best to speak to a lender directly about your options. I'd look into the 203k program through the FHA which will loan more money than the sale price of the home as some will be designated for repairs etc.
Feel free to contact me with any questions.
If would be illegal to steer you to or away from a particular area but a good home buying plan will help you make decisions based on the facts and not what a reporter writes in the paper. I have a number of suggestions on whether you should use HUD or FHA but the answers depend on how you answer detailed questions.
i strongly urge you to work with a realtor with experience with investors and fixxer uppers. I also urge you to work with a realtor like me who has a first time home buyers program to teach you how to shop for a home, and how to ask the right questions from the start.
Arthur Hardy, Realtor
W.C. & A.N. Miller Realtors
4910 Massachusetts Ave NW
Washington DC 20016
(202) 362-1300 office
(202) 362-3164 fax
(202) 895-2860 direct
Know of anyone thinking of buying or selling a home? Referrals are greatly appreciated.
Right now is a challenging time for first time homebuyers to buy fixer-uppers. There are financing obstacles not to mention a lot of competition from investors. Columbia Heights, U Street, and Shaw are super-hot right now and well-priced properties are selling quickly and we're seeing a lot of multiple offer situations. I had two clients who had offers being considered today. In one case we were competing with 12 other buyers (Columbia Heights) and the other offer was competing with about 5 offers (Logan).
Your best bet for finding something under $300,000 would be in the Petworth or Brookland areas if you're looking for a home. You're likely to find homes that require mostly cosmetic updates (refinish floors, paint, update bathrooms/kitchen) and maybe some minor structural repairs (replace wood wrought/termite damage, leaking roof, etc.). I think you'll find that homes in Columbia Heights, Shaw, Ledroit Park, U Street under $300k will be shells and require extensive rehab (requires all new framing, plumbing, mechanical, and electrical systems). If you're a first time homebuyer with a lot of cash, you might be able to swing this.
There are construction loans out there but they can take up to 60+ days to close and most sellers don't want to wait that long or deal with all the hurdles that construction loans can present. If you're using FHA financing, you'll have to locate a home that is in relatively good condition (can be occupied and is safe for occupancy). Many first time homebuyers are using FHA since it only requires 3.5% down payment but this will limit you to purchasing properties that are only in relatively good condition.
The reason I suggest Petworth or Brookland is because I'm seeing homes price between $250,000 and $300,000 where with some minor cosmetic updates could be selling closer to $350,000-$400,000. Also, I believe these neighborhoods are undervalued. In both neighborhoods you can buy homes that are habitable, close to metro and have their own little commercial areas that are likely to blossom in the near future. Keep an eye on these neighborhoods... A great example is the Yes! Organic market that just opened on Georgia Avenue. Take a look at the 800-1000 block of Upshur St NW - this is a great commercial strip that is likely to see some great new tenants move in. Several of the buildings are for sale and there are a couple up for lease. I think its important to be aware of these factors being present that will help the neighborhood change. Staying within 5 blocks of metro will help!
I'm not aware of any foreclosed homes that are not listed in our MLS. You have to follow the lisitngs closely. Some banks wait 7+ days before responding to offers and some will respond the same day they go on the market. So keeping on top of new listings is crucial, especially if you're looking to get a great deal.
Hope this helps.
Urban Brokers, LLC
You could go through HUD or FHA, but you will most likely end up happiest using a licensed real estate buyer's agent, because they can help you navigate the world of legalities, paperwork and, most importantly, coordinate with all of the OTHER people who have to be involved in a real estate transaction (inspector, lender, title company, settlement attorney, listing agent or bank, if a bank-owned property) for you. A good and experienced agent will also have contacts, if not contractors, who can help with the renovations you want to make.
The BEST part for you, which you may not know about as a first-time home buyer, is that all of this experience comes to you for FREE. The home seller pays all the buyer's agent's fees out of their profit of the home sale.
My advice to you is to sit down with two or three agents for an interview and find one you'd like to work with. I am licensed in all three areas of Metro DC - MD, VA, DC - and would love to have the opportunity to sit down with you for coffee or a drink and see if we would make a good fit.
I am familiar with the areas you are interested in and I know of some properties you might be interested in, as well as other areas you might want to consider. Feel free to contact me anytime on my cell at 703-961-8663 or email at email@example.com
Kangal Real Estate http://www.kangalrealestate.com
We'd be happy to help you find the right property to fix up! Sounds like an FHA 203K loan might be the right way to go for you.
Shoot me an email at firstname.lastname@example.org and we can chat more.
I look forward to hearing from you!
Courtney Poulos, Realtor, GREEN - DC, MD & VA
EcoBroker® Certified (DC, VA), Ecosociate (MD)
The Reishman Group
Coldwell Banker Residential Brokerage http://www.greenlivinganddesign.com
FREE MLS SEARCH @ http://www.ReishmanGroup.com!
I am looking for a "townhouse" that has an upstairs and downstairs. If it has a basement apartment that would be great as well. I am looking to put a considerable amount of money into the place over time... and do not want something that is in the 450k range that I will eventually want to change :)