Best ways to figure out which neighborhood will appreciate
We are a foreign service couple who is looking to return to DC for a few years, probably from 2018-2020. We are looking to purchase a home, live there, and then rent it out. DC and Northern Virginia are really expensive, and we would need a place with at least 3-4 bedrooms for our huge family. Luckily, my wife is successful and we probably can afford a place that is 800k-1.3m, for which we can put down what downpayment makes sense (and hopefully leaves us a mortgage that the rent would cover). Here are my questions:
a. Is there any objective neutral party I can hire to help my identify neighborhoods that are the best invest with appreciation potential in DC and Northern Virginia? I don’t trust realtors for objective advice, although I love them.
b. What should I do to help figure out what neighborhoods hold potential? I just find advice like “research on the internet” but can’t find anything more specific.
c. Are there reports or analyses I can buy?
Thank you so much!
Sat Aug 13, 2016 6:06 pm
oldguy Senior Member
Cash: $ 715.00
Joined: 21 May 2006
quote: DC and Northern Virginia are really expensive, and we would need a place with at least 3-4 bedrooms for our huge family. Luckily, my wife is successful and we probably can afford a place that is 800k-1.3m,
I was a SFH landlord for 40 years, 3 houses. Personally, I would take the other side of that deal, ie, I would be a renter for your time in/near DC. If I wanted to place $1m into real estate, I would prefer 5 - $200k houses to a single million dollar rental house. There are way more customers in the $200k range, particularly customers that need mobility/flexibility. And small houses form the basis for the real estate market - they appreciates faster. When the market has a downturn, people are forced out of the bigger homes and move toward smaller homes (that is what props up the low-end market).