Rents depend on a lot of factors including proximity to the medical school or law center, number of bedrooms (number of students who might be also to live in the unit, and how updated the building and unit look.
There are some buildings that are perceived as a lot further away by the students on campus. There are some buildings that are much more attractive even though they are older.
Foggy Bottom also has a great location for tenants who may be working at the World Bank or State Department. Different buildings cater to an older audience.
Feel free to call me for specific advice that addresses your specific price range.
Many investors have needed to make all cash deals.
For greater leverage, if you need financing, you may need to concentrate on newer communities or single family homes.
DC right now is very much an owners market when it comes to rentals, there is not enough on the market for the demand, esp in NW DC and near a metro. It depends on what type of renter are you looking for? Deciding on which buildings to focus in on, how close to the metro are you considering, how close to GW? Or going north towards Dupont are you willing to look? It also depends on how you are financing the purchase, what is your goal on profit from the rent.
The spring market typically has the most inventory, but there are places on the market year-round.
NW DC is enticing because of the prestige of the area and potential rental rates, but depending on how much cash you have to invest, time, management, etc. there are much better areas to buy into, because your ROI and immediate cash flow there are just not going to be very good. My husband and I just started buying investment properties and I can point you in the direction of properties that are giving ROIs of 15-20% and immediate cash flow of $300/month.
I just personally checked out several properties and the company that is offering them is becoming one of the best known in the business, and they manage the properties for you too at only a 9% rate.
Buyer's and Seller's REALTORÂ®
Keller Williams McLean
is great -but actually I would be looking at other things very carefully as well.
1) monthly condo or coop fees and what they cover (special assessments as well, blanket mortgage etc.)
2) marketibility of condo (views - positive or obstructed, what floor is unit on, good floorplan, distance from
metro, square footage, quality of construction of building, investor/owner occupant ratio
some properties may be marketable as rental properties but not resale - I would make sure
whatever you buy would do well both ways
3) Note: In Georgetown and Foggy Bottom there are 2 bedroom townhouses as well. You might
be surprised that by the time you add in the condo fee on two bedrooms, you may favor a condominium
but you may surprise yourself by finding a small townhouse that may work as well.
4) You will tend to get a better price on a vacant property all other things being equal.
5) When you do your research - look at what sold and/ or rented out for but do a separate
search for what did not sell and look carefully at days on market for those properties
that did sell. Addressing the thoughts outlined here (and other factors happy to share)
is the best way to make sure you accomplish your goals.
There are many other factors. Call me at 202-494-5902 and I will be happy to share them
with you. Sincerely, Steven Figman Weichert Realtors 202-494-5902 or 202-494-5902
Just throwing rough numbers out, a one bedroom condo may be found in the low $300,000 range. Two bedrooms are more scarce and jump up very quickly in price making for a less attractive investment. My advice is to look in areas that are overlooked and offer good value and a decent shot at appreciation. Dupont and Logan went down in value in the past year according to my companies market research. I'd have to check on Foggy Bottom.
As for yield on a one bedroom you would be looking at a monthly rental of about $2,000, then subtract for the condo fee, vacancy and repairs along with whatever utilities you are responsible for. Let's assume a $1,500 net times 12. $18,000 a year on a $300,000 investment works out to a six percent return not counting your tax benefit and potential for appreciation.
I have thirty years of real estate experience and am a fourth generation Washingtonian. I can be reached at 202-615-1421 or Johndcre1@gmail.com