It is a great time to buy property in Washington DC! I am in love with Washington DC real estate. I have been researching and studying Washington DC real estate since 2003 and have successfully purchased three cash flow positive investment properties in Washington DC. There are several strict rules that you need to stick by, but if you follow these rules I think you will be safe.
Fist of all you need to think long term. Ok, I know you are saying to yourself wtf I know this already, but please keep reading. What I am talking about is building passive income from real estate investments. I am in this for 15-25 years. I want to purchase a property and earn $500-2000 per month off each property. There is a way to do this now!
Second is location. Ok, again I know your are saying wtf, but please hear me out. You have to purchase with in 6-7 blocks from an underground metro. Your better off if its 3-4 blocks, but 6-7 will work.
Third is size. A one bedroom condo will work, but you will be in much better shape if you have a 3-4 bedroom house with outdoor space. Each bedroom can rent for on average of $1000. So that means you will collect $3000-$4000 per property. If you buy right your mortgage will be around $2000-$3000 per month meaning you are earning $1000-$2000 in passive income.
Select the best candidates and perform background checks. If you buy in the right neighborhood you will have a huge pool of tenants to select from. When we posted our house for rent on craigslist we had 45-60 people respond to the add. I was overwhelmed, but was able to select the most qualified candidates. Use a company like Data Verification Services out of Everett, Washington to do a background check.
Next post I will explore Georgia Avenue and why I think its going to be the next Connecticut or Wisconsin Avenue
Tips for new landlords: Setting up direct deposit, maintenance, and more.