Washington, DC has a reputation as an expensive place to live, and it can be. But Washington, DC also has some very affordable and liveable neighborhoods that don't get much attention. I have gotten to know many of these neighborhoods by working with real estate investors who are looking for good buys - either to flip or to keep as rental properties.
Today, I did my usual search for Washington DC properties that would be good investments for my investor clients and after just a few minutes, I found a good one.
The property is located in an up and coming part of town. It is priced under $125,000 and with 2 units, the property could easily make $1,000 - $1,500 per month in positive cashflow. This is an excellent deal and certainly one I will recommend to my clients.
I have specific criteria for properties I recommend to my investor clients looking for rental property, and this property met them all:
1) The property must be well-priced
2) The property must have the ability to generate positive cash flow each month
3) The property must have market appreciation potential in the near future.
Properties that would work for my clients as "flips," have different criteria
1) The property must be priced low-enough that it can be renovated and sold at a reasonable price
for the neighborhood
2) The market price for the property, once renovated, must be high enough to generate a good profit
for the investor; checking neighborhood comps is essential
3) The property must be on an attractive street
4) The property must not have structural defects
All of the criteria must be met in order for me to recommend moving forward. But properties with investment potential are currently plentiful due to the number of foreclosed or distressed properties on the market. This is a great time to get your feet wet as an investor. As an investor myself I can tell you that buying in a down market it the way to go. So find yourself a good realtor, do your research and go for it!
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