Unlocking The Secrets To Investing In DC Real Estate By 2024 - Must-Know Tips!

Investing in Real Estate in DC ~ 2024 | Things You REALLY Need to Know

I’ve had a lot of calls lately for people looking to invest in property in the DC Area. Word is out – the market here is strong and remains strong even through economic downturns. Even the interest rates nearing 8% haven’t stifled the market in DC. It’s been flush with buyers consistently throughout the past year – for me at least.

Investing in DC Area Property - What Should I Know?

What do you need to prepare for if you want to invest here? First thing is to not get too far ahead of yourself. I have had a lot of people contact me who want to invest here, but then they either disappear or decide not to pursue an investment – which is why I’m making this video. Let’s talk about some prep work you want to do prior to starting the process.

First, you need to research the area, get to know it well and zone in on the neighborhoods you want. The DC metro area, also called the DMV, includes the actual city, suburbs, and urban areas as well. I have a lot of information on my YouTube channel and I encourage you to check them out. When people come to me wanting to invest but have no idea where, I honestly can’t help them much. This is something you need to figure out, it’s not a decision I can make for you.

Second, develop an idea of the profile of renter you want. When I say “develop a profile” I mean who are you generally hoping to provide a home for. Are you looking for a single professional? That may mean you want to look at 1 bedroom condos that are close to retail and entertainment areas as well as public transportation. If you are thinking you would rather have a dual income couple or roommates, then perhaps a two bedroom with parking would be better.

Maybe you want a larger home because you think the investment is better so you’re thinking a family is more the profile of the tenant you would like to have. Or maybe you plan to move in one day with your own family. Understanding your own ideas of being a landlord and what that means for the type of tenant you prefer, coupled with any preference you have for one home type or another will serve you well on this journey.

If you want my opinion on this, let’s do an example. Say that you wanted to spend $800,000. You may be better off buying two places in two different areas for $400K each. If you buy a home for $800,000 and it’s two parents and kids living there, the amount of rent you get per square foot will be less than you would on a one bedroom. But again, there may be a reason you want to go with a house to include that you may live there one day or that the school district is excellent and you know you will always have a tenant.

One note - creating a tenant profile does not mean you can violate any Fair Housing Laws. There are many protected classes, both federally protected as well as state and jurisdiction-wide and you need to be familiar with those. You cannot make a blanket statement like, “I won’t rent to orange people with kids.” That’s not allowed.

Third, you want to connect with an investor-friendly lender as soon as possible. Lending standards changed quite a bit during Covid and that “second home” interest rate that used to be a half percentage point higher than the owner-occupied / primary residence investment rate is a thing of the past. No more can you call something a pied-a-terre or second home and get a better interest rate than investors. Now, no matter the use of the property, if it’s not your primary residence you are likely paying the investor interest rate. And this is much higher than the rates you see posted which assume owner-occupancy.

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I work with clients from all over the world who are relocating here. Email, call or text anytime, I'm happy to help!

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If you have any questions about this video, leave a comment! If you have questions about real estate in DC, Maryland or Virginia, my contact info is below.

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Melissa Terzis
📲 (202) 253-9105
📩 Melissa@MelissaTerzis.com
🌐 https://www.dcrealestatemama.com/
TTR | Sotheby's International Realty
1515 14th St NW
Washington, DC 20005
Office: (202) 234.3344

- Melissa Terzis | DC Real Estate Mama

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