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.
 

Want to sell your home? Get a FREE home value report.

Want to buy a home? Search all homes for sale.

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! 

What Are the Tax Benefits of Owning a Home?

Owning a home comes with some major advantages when it comes to your taxes.
 

Want to sell your home? Get a FREE home value report.

Want to buy a home? Search all homes for sale.

Owning a home comes with many benefits, especially when it comes to your taxes. It’s especially true for anyone thinking about buying their first home. 

Let me start by saying that I’m not a tax professional, but I’ve sold my fair share of homes, and I’m pretty proficient in this area.

The biggest tax advantage of homeownership is tax and interest deductions.

For starters, when you sell your principal residence, you can claim up to $250,000 tax-free as a single person. Married couples can claim up to $500,000 tax-free. This is a huge bonus that allows you to take advantage of appreciation over time. 

However, the biggest advantage is mortgage interest and real estate tax deductions. Say you owned a $600,000 property that you put down 20% on with a 4.25% interest rate. You’d pay $20,244 in interest the first year, which you can write off against your income. If you’re in the 33% tax bracket, the actual savings amounts to $6,680, or $556 a month. That’s an advantage you don’t get as a renter.

If you’re an investor interested in taking advantage of the 1031 exchange before it’s gone, I’d love to sit down and speak with you about the potential tax benefits you could utilize. 

If you have any other questions about the tax benefits of owning a home or you’re thinking about buying your first home here in the D.C. area, give me call or send me an email. I’m here to help.

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.
 

Want to sell your home? Get a FREE home value report.

Want to buy a home? Search all homes for sale.

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.