I want to buy a propetry as a primay residenc & rent it out in Northern VA area (Fairfax & vicinity). What are my best chances?

Asked by Ram Kc, 22030 Sun Sep 30, 2012

I am renting in Northern VA area & have never bought a property before. I will be attenting an out-of-state college in 6 months for another 2-3 years. I know that this area has strong housing market & seems to be good when investing. My only goal is to get at least even sale price when selling the property in future (may be in less than 5 years) so that it covers my rental while being in college. Does this make any sense? If so, what are my best options now? A condo, a town house and what location & price range would be better for me? Afterall, is this a good gamble because I want to rent out the property as soon as I buy it as a primary residence? Please advise. Thanks in advance.

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7
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Mon Oct 1, 2012
Sorry Ram but what you're trying to do is mortgage fraud.

You can not buy a home as your primary residence with the intention of renting it out and you will sign an occupancy affidavit at closing stating that you will occupy the home as your primary residence for at least 1 year.

The only way this works is if you put 20%+ down and do a non-owner occupied mortgage or if you occupy the home and rent out your spare bedrooms.
0 votes
Laura Ibanez, Agent, Fairfax, VA
Mon Oct 1, 2012
NOVA is a good area for investments and all of my investor clients are bullish about this region. I can create a free account for you at my website: http://www.livinginfairfaxcounty.com, so you can view all the available homes. It is a good time to buy as interest rates are very low and prices are very good.

If you are buying it as an investment to rent out after you bought it, you should take out a conventional loan. The lender will analyze your current debt to income ratio, to determine the maximum loan amount that you are qualified for.
0 votes
Melissa Bark…, Agent, Washington, DC
Mon Oct 1, 2012
Hi

The northern VA market is fairly strong and rentals, if in the right area go pretty quickly. If you are going to rent out the entire home, this would not be your primary residence and financing will be a little different than if it were to be your primary residence.

A townhouse would be a better option, depending on your budget and locations that you are considering. With a townhouse you will most likely have to pay a monthly or quarterly HOA fee which will most likely be less than a monthly condo fee.

Please let me know if I can be of any more assistance.

Thanks

Melissa
mbarkalow@comcast.net
0 votes
Janet M Lange, Agent, Centreville, VA
Sun Sep 30, 2012
Dear Ram Kc,

I congratulate you for your insight! You would be doing yourself a favor buying a primary residence property when the mortgage rates are down to just 3.4%! However, to be a primary residence, you would need to LIVE in it!

if you are going to rent it out, it is not a primary residence but an investment/business property. You cannot have both at the same time. You need to contact an income tax advisor or investment advisor to find out the IRS implication. If you will be living in the property and renting out the extra bedrooms, that is a different story. I think that would still qualify as a primary residence.

If you are interested in Fairfax, please keep in mind that a purchase will be pricey and you will definitely need some cash (unless you are eligible for a VA loan) to qualify.

Please let me know if I can answer any further questions or concerns you may have.

Most sincerely,

Janet Lange
Avery-Hess, REALTORS
571-722-4348
0 votes
John Ginty, Agent, Reston, VA
Sun Sep 30, 2012
You're best option is a townhouse for resale purposes. Give me a call at 703-307-3449 and we can start this process. The first thing I would want to do is sit down with you to discuss in detail what your objectives are. Then, I would like for us to sit down with the fantastic lender I have on my team. I look forward to hearing from you.

Sincerely,
John Ginty
Realtor
Keller Williams Capital Properties Fairfax
10300 Eaton Place, Suite 120
Fairfax, VA 22030
Cell: 703-307-3449
johnginty@kw.com
http://www.johngintyrealestate.com
http://www.facebook.com/johngintyrealestate
0 votes
Sonal Goda, Agent, Chantilly, VA
Sun Sep 30, 2012
Hi Ram - I have worked with a lot of investors and can analyze different options for you as far as whether the rent will cover your expenses. I will put all the data into a spreadsheet for you for each of the places you are considering. What areas and whether it is break even will depend on the amount of your downpayment. Condos generally have less maintenance, but there is a condo fee that the owner has to pay. Townhouses have more maintenance, but easier to break even. We can meet and go over some scenarious. Let me know if you want to interview me for the position of your buyer's agent.

Thanks,
Sonal
0 votes
Erik Weissko…, Agent, fairfax, VA
Sun Sep 30, 2012
Townhome is best...because condos have competition from apartments. The best locations will be determined by your budget.

If you wish to employ my 25 years of experience in both sales of and investing in these types of properties..message me directly and we can get the ball rolling.

I have a terrific team behind me allowing you superior financing and a seamless transaction. In addition, we offer leasing services and a foolproof lease.

Kind Regards,

Erik J. Weisskopf, ABR,CDPE,CRS,GRI
Re/Max Distinctive Real Estate
Erik@AskMeAboutHomes.com
703.216.1222
0 votes
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