When it comes to house flipping, the market waxes and wanes, just like everything else in the real estate world. At the beginning of 2019, the market was still fairly risky, but there are some places where house flipping can still be a lucrative endeavor.
When 2018 began, real estate investors were looking forward to a prosperous year. And, in the beginning, they weren’t wrong: overall, the outlook was good, and several cities, such as Washington, DC, showed promise for significant growth. But as the market began to lose steam, they wondered what that would mean for 2019. What sort of trends should they be monitoring, and what can they expect? With 2019 upon us, let’s take a look at what investors should expect, and what they should be on the lookout for.
Southwest DC, an area once perceived as an uninteresting and inferior part of town, has become a thriving neighborhood and a revered destination for visitors. As a recent BisNow article notes, people are flocking to this section of our nation’s capital for its entertainment, its rising food scene and lodging, not to mention a remarkable waterfront experience and the allure of one of Major League Soccer’s hottest teams. And now that Southwest DC has a legitimate “it” factor, the commercial real estate market there has seen significant changes. When years ago there was nothing of importance in the area, it is now seeing a demand for — and the development of — high-end hotels and high-rent apartments. So what’s the cause of the turnaround? What has turned this forgotten location into a commercial real estate investor’s dream?
Though condo sales have fallen somewhat in Washington, DC during the past year, they haven’t shown signs of a significant decline. In fact, the latest report from commercial real estate research company, Delta Associates. is showing that the market is still strong overall. And, most interestingly for real estate investors, certain DC neighborhoods are showing promise and profitability, especially in the Capitol East submarket. So let’s take a look at the facts and figures in order to properly understand what can be expected in the DC condo market in the near future.
Danny DeKinder is a veteran and a realtor who knows the realities of transitioning from a military career into civilian life all too well. He founded Real Estate Careers for Heroes after he became a full-time realtor and developed a passion for guiding other veterans who were interested in real estate careers as well. It’s Armed Forces Week, the culmination of which is Armed Forces Day on May 19, so we spoke with Danny about his experiences and why veterans make excellent real estate professionals.
Real estate investing is a common practice within Washington, DC, where almost 1 in 5 homes was an all-cash purchase in 2017. One of the most common ways to invest in DC real estate is to purchase homes that are in need of rehabilitation. Whether it is through extensive repairs or a simple bathroom remodel or two, all investors know that they must calculate the anticipated After Repair Value (ARV) before they embark on a house flipping journey.
According to the New York Times, “This spring’s home sales season is shaping up to be the most interesting one in years.” By mid to late spring the housing market will heat up, and stay that way through the summer, meaning competition and prices will be hotter too.
Hyattsville, Maryland is a dynamic suburb of Washington DC that has seen immense growth recently and is turning the heads of real estate investors and developers alike. While the DC area’s housing market has been steady overall, few areas have been able to match the dramatic growth of Hyattsville. In 2017, condo prices more than doubled over the previous year, and we believe real estate investment and development in the area will only continue.
There’s something strange going on in many Washington DC area neighborhoods. Triangular plots of land, the result of odd street intersections that often look like mini public parks, are being developed for homes in a tough real estate market that’s forcing some serious creativity in order to get in on the action.