6 Tips for Buying Your First Investment Property in D.C.
by Bryan Zupan
on Wednesday, March 27th, 2019 at 3:23pm.
Looking to buy real estate in DC, Maryland, or Northern Virginia?
Before you make a decision on your first DC home, consider turning it into an investment property. While many wait until their 2nd or 3rd home purchase to start investing, you can reap the benefits of real estate investment much sooner.
The real estate investment process can be both exhilarating and very rewarding. To help you get started on the right foot, the SIG team has compiled a list of tips for buying your first investment property in DC.
Find Your 'Why'
In most areas of life, it’s helpful to have a long-term goal or vision to work towards. As a budding real estate investor, it’s important to always keep in mind the driving factor behind your decision to invest.
Whether you’re seeking financial freedom, early retirement, or saving money for your family - keeping your motivator in mind will guide you towards making informed investment decisions.
Research the Market
It’s no secret that DC is a wonderful place to live, regardless of age demographic or family type. From the political influence to the vibrant cultural events, there are numerous reasons why residents love living in the greater DC area.
Even still, a bit of research can be incredibly helpful when it comes to your DC investment decisions.
Be aware of the DC real estate market and the pros and cons of living in particular neighborhoods. Pay close attention to population growth, the sustainability of the job sector, vacancy rates, and housing demands when choosing a DC community.
Once your online research is completed, it’s a good idea to get some real life feedback before committing to a DC neighborhood.
Don’t be afraid to knock on doors and explain that you’re interested in buying property in the area. Ask for the neighbors’ point of view on what it’s like to live there, or if they’ve had any difficulties with tenants or owners.
If you have the time, drive around the neighborhood at different times of day to get a sense of what the community is like - particularly during evenings, weekends, and rush hour. Being aware of potential issues is the best way to avoid them!
Consider Single-Family Homes First
Many real estate experts argue that single-family homes are the easiest entry point when buying your first investment property in DC. Single-family homes should require less upkeep and constant care than multifamily or commercial properties.
With a single tenant, your investment isn’t nearly as risky and you can expect less potential damage to the property.
Account For All Costs
As you can imagine, there are plenty of moving parts to consider when buying your first investment property in DC.
While real estate investing is undoubtedly rewarding, it also comes with its fair share of responsibility. Property taxes, insurance, maintenance costs, and property management costs can quickly add up. Make sure you’re prepared for all possible situations and the associated costs of investing, as they can easily add $500+ to your monthly expenses.
Speak With A Professional
If you’re considering buying your first investment property in DC, Maryland, or Northern Virginia, connect with the SIG team today! Our agents have a superior understanding of the greater Washington DC area, and would be glad to help you find your dream investment property in a DC community.