Why Now Is a Fantastic Time to Invest in Rental Property

Right now is a great time to be an investor. You have a chance to build some long-term wealth in this inflationary market.
 

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Today I’m in front of a great listing that just sold in Ledroit Park. It’s a two-unit property with three bedrooms and 2.5 bathrooms on the upper level and two bedrooms and two bathrooms on the lower level. This type of unit is fantastic for an investor or someone who wanted to live in one unit and rent out the other. 

I’ve got a three-unit property that will hit the market in U Street Corridor that would be perfect for an investor as well. 

Right now there’s a great opportunity to get rental income.

Right now there’s a great opportunity to get rental income. We’re in an inflationary market and rent prices tend to correspond with that inflation. Picking up something in that two- to four-unit range for a great 30-year fixed rate will create a really nice long-term wealth building opportunity.

If you would like to talk more about opportunities in the marketplace or you would like some information on our three-unit listing that will hit the market soon, feel free to give me a call or shoot me an email. I look forward to hearing from you! 

How to Beat Out Your Competition in the D.C. Market

The Washington D.C. area is firmly in a seller’s market, and here’s how homebuyers can get ahead by making their offers on a home more attractive.
 

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We’re definitely in a seller’s market in the Washington D.C. area right now, making writing a competitive offer more important than ever when buying a home.

Price is obviously very important in an offer, but you can only go so high and still have the price make sense. There are a few other ways to make your offer compelling outside of price alone.

1. Settlement date: Make sure the settlement date corresponds with what works best for the seller. If the house is vacant, a 30-day deadline is very important. If the home seller is looking for a home, you should consider giving them 60 days plus post-settlement occupancy. You need to be open to the needs of the seller in those situations.
2. Contingencies: The standard contingencies are an appraisal contingency, a financing contingency, and a home inspection contingency. I’m currently seeing offers with no contingencies at all, but as a homebuyer, it’s important to write an offer you’re comfortable with. It’s also important to have a conversation with your real estate agent to understand the implication of this. Once you do, it’s important to write an offer that will be a winning offer, whether that means waiving your home inspection contingency but doing a pre-inspection before the offer deadline so you know of any adverse conditions with the property and you’re comfortable moving forward without that inspection in place. You can also speak with your lender before making an offer to make sure you’re fully approved.
3. Creative things to make your offer stand out: This could include paying the seller’s transfer taxes or things like that to give them a higher net without impacting the price of the home.


You can only go so high on offer price and have it make sense.

These are all successful techniques that I’m currently implementing to help buyers get into the home they want. If you have any questions or you’re looking to sell a home in the Washington D.C. market, give me a call or send me an email. I’d be happy to help.

How to Avoid the Problems Many Washington DC Buyers Run Into

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In today’s tech-savvy world, many buyers are willing to jump into a home search without sitting down with a real estate professional to have a buyer consultation. Today, I want to stress the importance of buyer consultations for both the buyer and the agent.

It doesn’t matter whether you’re a first-time buyer or a highly experienced one: circumstances are always changing, and a buyer consultation will help you navigate the market at any given time. The idea is to save you time, save you money, and save you any added anxiety throughout the purchase process. 
 
The first thing we do in a buyer consultation is look at your finances in order to identify the type of loan that will suit your needs. In order to do this, and to make the buying process a whole lot smoother, it’s crucial to get pre-approved before you start looking for a home.

After we do that, we will go over all of your needs. What are you looking for in a home? Do you like to go out? Do you want to live in a great school district? How important is it to live close to work? These are just a few of the many questions we’ll ask to get to know you and your lifestyle so that we can find you the perfect home.

Next, we’ll start to plan the entire process. We will try to eliminate as many unnecessary surprises from the process as possible. This includes covering the many unexpected expenses that may pop up, as well as various things things that could speed up or slow down the process. Knowing about these things ahead of time is a huge part of easing the process and making it a whole lot more enjoyable.

The Cost of Renting vs Buying in DC

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A lot of people think that owning a home is more expensive than renting, but this isn’t the exact truth. There are a lot of benefits to buying a home, and sometimes it can be less expensive than renting.

In the spreadsheet, I have chosen a home with a monthly payment of $3,500 dollars. This is a similar payment you would make on a nice two bedroom condo in the area. Over the course of five years you would pay $232,076 if you were renting, and you would pay $223,406 if you were buying. However, when you buy, that invested money goes back into your pocket.

When you pay rent, you’re basically just throwing money away. You’re paying someone else’s mortgage off, so why not pay off your own? At the end of the 30-year loan on this home, you would have a $750,000 property in your portfolio. If you rented, you would have nothing to show for spending all of that money. 

I often help buyers decide whether they should rent or buy. I think it’s always better to buy unless you’re going to be moving quickly. Rental prices are only getting higher, and interest rates are supremely low right now.

Please don’t hesitate to contact me if you have any questions or feedback. I look forward to hearing from you!