Thinking about buying a nice rental in DC (Columbia, Chevy Chase: real estate, HOA fees)

[AAVC]

We are relatively new to the area and bought our own house about a year ago in MD, a few blocks outside the city line. Thinking of buying some investment property in DC, in a good, walkable area, close to shops and restaurants. We would rent it, however, I would like to have the option of living there ourselves down the line, as property taxes seem to be lower in DC vs. MD, so easier to manage on a fixed (or almost fixed) income. Single family home would be preferred (again, trying to stay away from increasing monthly expenses, such as HOA fees), with a bedroom downstairs, if not all of them.

Does anyone have any experience with something like this? Any suggestions in this regard? What target population? Which area? What kind of place would be in high demand? Where does real estate best appreciate over time?

Thank you for any pointers you may be able to offer.

[pcity]

Budget?

[AAVC]

Originally Posted by pcity

Budget?

between 800K to 1.2? It can be flexible though, but I am not sure I should go higher for a rental. Thoughts?

[Jalux]

I love when people/realtors ask for budget without first providing an overview of the area of interest. The buyer doesn't know what he can get, and for how much. Just because he can go up to a certain amount doesn't mean he'd be absolutely in love with what he can get at that price point. Conversely, the buyer might be much more satisfied with what he can get at a lower price point.

[goldenage1]

Originally Posted by AAVC

................
Does anyone have any experience with something like this? Any suggestions in this regard? What target population? Which area? What kind of place would be in high demand? Where does real estate best appreciate over time?

My experience is based on our residence in Glover Park as renters. You might repeat your question in the District of Columbia Forum for better answers.

I suggest looking near the university areas for higher demand: North Georgetown, Glover Park and American University Park. You might prefer to target professors over groups of students. Another high-demand area would be Capitol Hill.

I rather doubt there would be anything with a master bedroom on the main floor, except some custom ranch homes in the north 16th Street corridor.

[goldenage1]

Originally Posted by goldenage1

I rather doubt there would be anything with a master bedroom on the main floor, except some custom ranch homes in the north 16th Street corridor.

There is a ranch on the 5100 block of Linnean Terrace that might work. Additionally, I would look for space in a 2-story house that could be converted to a bedroom: a sunporch, garage or walk-out basement.

You would also like Chevy Chase DC. If you expect to rent to families with children, I would stick to the upper Northwest, as school quality is a concern in DC.

[goldenage1]

Originally Posted by goldenage1

There is a ranch on the 5100 block of Linnean Terrace that might work.

If you want to guarantee appreciation in your purchase, I would avoid a house that has been flipped recently such as this Linnean Terrace house. According to Zillow, it was purchased at the end of 2018, and put back on the market 3 months later at $150,000 more. I assume there were improvements made.

I think you should concentrate on finding a house with the walkability you want, as others will also find it desirable. Then find a house that needs improvements and is among the lower prices for the neighborhood. Rent it in as-if condition for however many years. Then make the improvements you want.

Many of the houses will have been built in the 30's thru 50's and will need central air-conditioning and kitchen improvements.

[karen_in_nh_2012]

Originally Posted by AAVC

between 800K to 1.2? It can be flexible though, but I am not sure I should go higher for a rental. Thoughts?

I am curious how much rent you would have to charge in order to cover the mortgage (and other expenses!!) on a house that costs at least $800,000?

[Flamingo13]

Post in the DC forum since this is Maryland.

[AAVC]

Originally Posted by goldenage1

There is a ranch on the 5100 block of Linnean Terrace that might work. Additionally, I would look for space in a 2-story house that could be converted to a bedroom: a sunporch, garage or walk-out basement.

You would also like Chevy Chase DC. If you expect to rent to families with children, I would stick to the upper Northwest, as school quality is a concern in DC.

It would be nice to have the flexibility to rent to families with children as well, as it broadens the pool to finding good tenants. Is Chevy Chase DC a desirable area for families with school age children do you know?