Looking to buy an investment property in the DC area? If you’re looking for a place with high rents, DC may be the market for you. But high home prices mean that if you’re looking to be a winner in rental property investment, you need to be prepared the long game.
The high cost of living in DC makes it a great place for investors with deep pockets, but prepare yourself. Working single professionals tend to share houses with several roommates, and short-term contract work means that your renters are not as likely to stay.
Despite the high prices, there are some great returns for smart and savvy investors. Check out the following DC area cities to get the best returns on your investment.
The nation’s capital is buzzing with high-priced real estate and renters are willing to pay big bucks to live in the heart of the city. Some are so devoted to city life that they don’t even own a car.
Where to look? The Curbed DC crew reports the highest rental returns are found in the Southeast neighborhoods of Shipley Terrace, Anacostia, and Barry Farms. Though Northwest tends to have the most new construction, these areas will net you the most.
Fifteen years ago Loudoun County was considered country. As urban sprawl pushed residents and businesses further out, the Route 7 corridor became one of the fastest growing real estate markets in the country.
Tech companies and government offices set up shop in Reston and Herndon, a stone’s throw away from the pastoral beauty of Leesburg.
Situated a little over an hour outside of the city, Leesburg is popular for its rolling pastures. Equestrian enthusiasts flock every year to horse shows and races in and around this historic city.
In 2016, SmartAsset named Loudoun County the best investment in Virginia for the second straight year.
Mt. Rainer, MD
If you’re looking for property close to the city, Mt. Rainier is a haven for artists who like the trendy vibe of DC’s Shaw and Petworth neighborhoods with a lower price tag.
Developers recently invested in revitalizing the area, which was mostly single family housing built in the 1800s. The combination of new projects and historic housing makes it a great alternative to buying in the city.
Being just on the other side of DCs Brookline neighborhood, renters will enjoy the conveniences of the city without the high rent.
If you’re looking for investment property in the DC area, start with the three cities listed above. With careful planning and a long-term strategy, you’ll enjoy great returns that your children—and maybe even your grandchildren—can enjoy.