Hello, I’m moving to DC and would like to buy my first investment property to live in. Can anyone give any specific ideas on how to find foreclosures in DC? Better yet pre-forclosures?
I also hear there is a lot of pre-construction deals to be had. Any thoughts would help. Thank you.
You have definitely chosen the right place because unlike other areas, depreciating prices are NOT affecting us here.
First suggestion: talk to an attorney. DC eviction laws HEAVILY favor the person living in the property, and it can take a year to remove a former owner.
I do foreclosures in Northern VA and wouldn’t touch DC with a 10’ pole.
In terms of pre-construction prices, you can look at condo’s in the downtown DC area. There has been a boom of new buildings recently. Although, I would still hardly consider these “deals” compared to what a condo would have cost just 5 years ago.
It is virtually impossible to find a SFH in the District for under 500k unless you want to live in Anacostia…which you don’t. It’s no fun being priced out. I would agree that tenant rights in DC are strict and do favor the occupant, though I was told in recent years these laws have become more lax.
This leads me a question of my own, where are the affordable areas in NOVA? Are there any neighborhoods or pockets anyone can recommend?
Define “affordable”. And “NOVA”.
I guess by affordable (homes within a 10 mile radius of DC), I mean a SFH (3,4 bedroom) with a price cap of 350K. I know, I know…it’s difficult. I’m sure it’s possible to find a townhome in this range, rent it at 1700-2000 a month and cashflow it by around 200 a month…I also realize the difficulty in obtaining such a property.
I’m also interested in neighborhoods or areas facing high rates of foreclosure. When i said behind Union Station, even that it is out of reach. There will be little if any foreclosure deals in the center of DC, what outlying suburbs may be hit? It seems PG county may be affected. That area may not be a bad place to buy and rent. I still plan on waiting for the downturn to continue to snowball. 5 years from now, the market should hopefully look completely different. Prices have peaked.
I am a real estate investor and just bought a 3 BR condo (totally new) in Anacostia for under 270K. There is a new government building 2 blocks away that is under construction that will have 5500 employees. There’s another new $77 million building going up a block away; a new multimillion $ library and fitness center being built. So…don’t let others scare you away from Anacostia. If you are a true investor, this is where the deals are.
Hi,
I didn’t mean to disparage Anacostia. I like the Hillcrest neighborhood a lot. I’ve watched development in SW explode. I do feel that investing there may be wise. There have been several projects tied to Hope IV grants that create attractive communities in the area.
I just know that when people look to moving to DC (both to rent or buy) historically Anacostia hasn’t been a primary choice. I hope that in the upcoming years, the area sees the same attention that U, H, streets etc are getting etc…
Danbury station looks nice and I thought about investing. The only detracting factor remains crime. I grew up in SE, so I know about crime. A lady was stabbed yesterday a block from my house on 1st street.
Issues to consider: can crime rates continue to decline? Will DC’s eventual repeal of the gun ban negatively affect Anacostia? Will wealthier residents make a move into the area to increase property values? Will resources continue to make their way there as well? Thanks
I just thought about this.
3 bedroom, brand new for 270k?
That does seem like a good deal. Is it near a metro? Was it a mixed income development?
I am not very knowledgeable about rental comps in the area, but can imagine you could def. cash flow judging by SW craigslist rentals…
Best of luck to you.
Yes, brand new. It’s in a 3 unit, 4 story home approximately 1300 square feet. It’s about a mile from the Anacostia metro. We (my business partner and I) actually live in it (this was an investment decision) and will move out after 2 years. We are hoping that being roughly 7-10 minutes from the new National Harbor project in Fort Washington, Maryland and the waterfront development with the new stadium that we will see some appreciation in the Anacostia area (along with the other development I mentioned earlier). There are definitely more diamonds in the rough in Anacostia. Happy investing!!
Well, first, I would humbly suggest you re-run your numbers. I have a townhouse financed for $300k (appraised for $430k the day after I bought it) and PITI plus HOA = almost $2300/month. Rent is $1800.
That being said… a 3 or 4 bedroom SFH inside the beltway (which is what you’re talking if you want within 10 miles) for $350k? I don’t think so. MAYBE an older house in some neighborhoods just outside of the Beltway. But with those houses you’ll find most do not have a full master bath, which makes it very difficult to rent or resale.