As a real estate professional, we are required to take continuing education courses every two years. This year I decided to take property management as an elective. My website is named kissyourlandlordgoodbye.net. However, investing in real estate as a long term investment is never a bad idea. According to the National Association of Realtors (NAR) rental rates are up 14% since 2013. The average rent nationwide is $1,290. However, we know that in the Washington Metropolitan area, that number is much higher. According to The Washington Post, the median price for a one bedroom apartment is $2,000.
Washington D.C. ranked fourth in the most expensive cities to rent in the United States, behind San Francisco, New York, and Boston. So that lets us know that this area is a great place to rent. If you're ever considering becoming a landlord, this would be a great place to start. The website rentometer estimates rent rates based current comps in the area of your choice. This way any potential investor can see what they are getting into before writing that contract to purchase.
The desirability of properties in this area for investors is at an all time high. Many first time home buyers are now competing with investors for properties left and right. This is the very reason I named my website kissyourlandlordgoodbye.net. If rent is $2,000 for a one bedroom condo, some poor tenant is lining the pockets of their landlord with nothing to show for it.
Arlington, Bethesda, Silver Spring, Alexandria, Chevy Chase, Glenmont, North Bethesda, Rockville, Gaithersburg, and Herndon all ranked in the Top 100 rental cities nationwide that are the most expensive. After renting my townhouse in college, I refused to rent another property that didn't have my name on it.
If you have to rent in order to stack your house chips, by all means. If you travel often and can't commit to purchasing a home, bon voyage. But if you're renting as a career renter, you need to call me to set up a consultation. Purchasing is better than renting any day. But if you're looking to expand your wealth portfolio, do your research and invest in the DC, MD and VA market areas.