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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Another agent perspective here.  I live in DC and own several rentals, one condo, two townhouses.  First things first:

1) Do buy somewhere close to where you live if you are going to manage it, especially if it's a house.  Way harder to go see what the issues are if you have a regular job and need to act fast (which you should when there are issues).

2) Buy where you think you will see the most appreciation, not necessarily the 'nicest' neighborhood.  A huge reason for owning real estate is the appreciation in value, not just the income stream.

3) Condos are way easier than houses to manage, even small townhouses.  Yes, you have a condo fee, but the DO pay for something.  The fees are deductible against your rental income.  With a house, you have to save for bigger repairs (roof, pointing brick, etc.).  With a condo you don't.  It will all eventually catch up with you.  The trick with condos these days is to find a building with no rental restrictions.  You don't want to be left holding an asset you can do nothing with.  If there are any murmurs at all about putting restrictions on, run.  And this can change with every change of board members - what they push for.  It's always a risk.  On the other hand, there is no yard, exterior maintenance, roof issues etc.  And tenants rarely take care of things like yards, even when it's in the lease.  Determine which you will do better with.

4) Look for areas that will be easy to rent.  Near a university?  Great!  Military bases too could be good, but you're also guaranteed turnover.  You might have less problems with that set though.

5) DC does have strong tenant laws.  MD too.  VA is pretty pro-landlord.  I have found that as long as I do a good job checking my people, there aren't issues, but you have to do this up front and not just say, "hey, he seems like a great guy with a good job, great!".  CHECK THEM.  I think people who know you're going to do this who are sketchy dont' really bother to apply.

6) I would not necessarily buy in an area where there's lots of competition coming onto the market

7) Might seem counter-intuitive, but don't buy new build or flip properties.  Likely too many problems with them your tenant will have to deal with.  At least be careful here - if it's a reputable builder, maybe.

8) I know you're not there yet, but meeting with an agent who has experience with rentals and investors will be your biggest help.  Bigger than this board.  Easier to talk about specifics of your situation and what makes sense for you and direct you the right way.[/quote]

OP here.  Catching up on the thread and appreciate your guidance and counsel.  What neighborhoods did you choose for your 3 investment properties?[/quote]

Not PP, but a low-cost (under 250k real estate "investor" bought a row house in Columbia Heights in 2002, a rowhouse in Petworh in 2003, a gigantic rowhouse in Bloomingdale in 2004, a bottom of market home in Brookland in early 2009, a rowhouse in eckington in 2010, and now I'm looking at multi-units in metro-accessible Ward 8 and 7 after wishing I had bought those in all these locations previously.  My properties, after paying mortgage, generate about 8k in income a month now, before taxes.

I'd also echo previous commenters on diversifying income.  Be a partner in a restaurant or a jiffy lube?  Buy frack-able land in PA or timberlands in Georgia?

We are working now to diversify outside of traditional real estate to build long tern wealth and equity.[/quote]

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