The Washington D.C. metro area is one of the most expensive, highly sought-after areas in the country when it comes to real estate investing – both for residential and commercial property – with property values among some of the highest in the country. With that said, it can sometimes be difficult for developers and investors to determine whether a property they’re looking at is actually a good deal or not. After all, with property values that tend to always be on the high side, sometimes the only “deals” are the ones where the property needs so much work that in the end it’s a wash. At least for an inexperienced developer. The developers that Walnut Street Finance works with, however, are consummate professionals and know well before they put in an offer on a property whether the amount of work versus the potential return makes the deal a worthwhile project in the end.
This is great news for those who are interested in becoming passive real estate investors - that is, they don't want to deal with the hands-on work that goes into investing in real estate and would instead prefer to invest their funds on the back-end. It means that their funds will always be put to good use, financing projects in an area where property values are consistently high and returns will be strong - even when the "deals" themselves might be a bit more difficult to come by.
With that said, even in the Metro D.C. area there are often great deals to be had. Here are a couple of our picks for areas where various types of real estate investments will undoubtedly do well.
Real Estate Investing In All of Metro D.C.
Okay, maybe this isn’t quite specific, but it’s entirely true. By the end of 2017 there will be 1.1 million square feet of new office space opening up in Washington, D.C., which means that 2018 has the potential to be a huge year for corporate growth in the area. Areas in and around The District will see an influx of new companies moving in, and existing companies expanding – both of which mean employees moving to the area or making a move based on their new circumstances. For the newcomers that will be moving in from out of the area will be looking for neighborhoods where they can put down roots and feel established, while those already living in the area may be looking for an upgrade, or to move somewhere closer to their new office or more ideal public transportation.
Real Estate Investing In Fairfax County, Virginia
For some more specific areas, look no further. With some of the best schools in the entire country, Fairfax County is one of the most desirable areas for families with school-aged children who are looking to be relatively close to Washington, D.C. For those buyers looking for a “deal” in this area, there might be a bit of sticker shock, especially if they’re moving into town from areas outside of the region. However, for investors looking to take on projects in this area there are some great opportunities, whether they’re looking for a fix and flip project, or a land parcel for residential development.
Real Estate Investing In Deanwood, Washington, D.C.
This neighborhood of Washington, D.C. has been deemed one of the hottest in the nation by Redfin, and for good reason. With quick commutes to downtown D.C. and Capital Hill, as well as plenty of public transportation and a large number of single-family homes, Deanwood is a great place for working professionals to raise a family within the city limits while getting a distinctly suburban feel. This area is also one where homes are fairly affordable when compared to nearby areas, although list prices are quickly rising and 31.4% of homes have sold over their list price. Since this neighborhood currently has a reputation as more of a “starter home” area, that means that there’s usually a fair amount of properties available for sale as families move up and out. There are a number of properties here that are prime for fix and flip potential, but also many properties that are move-in ready.
Interested in learning more about investing with Walnut Street Finance? Get in touch!