Keen Investing: Apartments in Bethesda MD

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Investing in real estate can be a great way to set up passive income streams or to move into a career where you can be your own boss. If you’re trying to get into investing, you might have your eye on Washington, D.C. But the capital can be expensive and somewhat unfriendly to landlords.

Investing in apartments in Bethesda MD can give you access to the rental market of D.C. without all the hassle. Read on to learn about this gorgeous suburb and why it’s a great choice for both you and your tenants.

Current Market Trends

Houses in Bethesda, Maryland, are on the higher end of the price range list, but they’re still selling for well over the asking price. Many homes are listing for around $1.1 million and selling for a whopping $200,000 more than that. Homes tend to sell for about $424 a square foot and have a median size of just under 2,600 square feet.

Right now, Bethesda is a seller’s market, although not overwhelmingly so. The market has been see-sawing a bit since March of last year, and as recently as February of this year, they were selling for less than the list price and listing under $900,000. But homes are closing in an average of thirty-eight days, so if you find a rental property you like, don’t hesitate to put in an offer.

Why Invest Here? 

With housing prices so high in Bethesda, you might wonder why you should invest in this city. The answer, you might be surprised to learn, is the same reason prices are so high. Because Bethesda is so close to Washington, D.C., it’s a very desirable place to live, especially for professionals working in the city. 

Bethesda gives you an opportunity to tap into the rental market of D.C. without the yet-higher prices in the district itself. You can expect a higher-end clientele here, so you won’t have as much trouble with bad renters. And few places experience steady growth to the degree our nation’s capital does.

Why Live Here?

As a landlord, in addition to knowing why you should invest in Bethesda, you’ll have to know why your tenants should live here. This will be a core part of your marketing strategy as you start advertising your apartment. And in many cases, renting someplace you can see the appeal in living will turn up more and better tenants anyhow.

Bethesda, Maryland, offers the best of all worlds when it comes to small-town charm and big-city convenience. The city has been described as “a world in one neighborhood” and is home to a staggering amount of ethnic restaurants and artistic haunts. There are summer concerts, art contests, farmers’ markets, and so much more in this thriving city. 

Getting to D.C.

One of the other major perks of living (and investing) in Bethesda is its proximity to D.C. If your tenants drive, they can drive to the D.C. city center in less than twenty-five minutes. Depending on how far into the city they work, they may even be able to ride their bike to work in a reasonable time.

Best of all, though, the Red Metro Line runs through Bethesda and has a stop that can take you right to the city center. From the Red Line, you can also connect to many of the other Metro lines that will carry you anywhere in D.C. And depending on what time of day you go, you could be in D.C. in under thirty minutes on the Metro line.

Price Trends

We mentioned that, right now, prices in Bethesda are hovering above the $1 million mark. This price has actually dropped a little bit since the housing market frenzy we saw sweep the country last summer. But we’re actually seeing prices go back up from a serious drop at the beginning of this year.

The Bethesda housing market hit a peak in July of last year when homes were selling for close to $1.3 million. From there, they declined steadily until February of this year, when they were selling for just $850,000. But as the housing market has heated back up, prices have skyrocketed again and will likely stay high through the remainder of the summer.

Apartment Costs

If you’re going to spend a million dollars getting a home or apartment to rent, you need to know that you’ll be able to get a good return on that investment plan. Rent can vary widely depending on what sort of property you’re looking at investing in. In general, rent costs start at around $1,200 but can soar to nearly $9,000.

As of this writing, the average rent in Bethesda is between $2,200 and $2,500 for a standard apartment. If you buy a separate house, you’ll be able to charge more, and the same goes for larger apartments. If you’re looking for more affordable first-time investment options, you may need to drop that price closer to $1,500 to $1,800.

Invest in Apartments in Bethesda MD 

Bethesda, MD, is a gorgeous D.C. suburb that offers a fantastic culture, easy access to the city, and gorgeous homes. As a landlord, you’ll get to work with tenants who are in the professional class of D.C. And your tenants will get to enjoy all the charm and conveniences this nearby suburb has to offer.

If you’d like to start investing in apartments in Bethesda MD, check out the rest of our site at Nomadic Real Estate. We provide leasing, management, sales, and most importantly, peace of mind. Check out our real estate sales services and discover our unique approach to property management.

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Enhanced Reporting

Your portal includes a selection of extremely useful reports. Reports are available in the “Reports” section, and are distinct from the financial statements. Unlike financial statements which are static records, Reports are dynamic real-time records that will update with current data every time you view them. 

Scroll down to learn more about Reports:

Navigate to the "Reports" module in your portal:

Owner Portal Reports
  • Keep in mind, these reports are dynamic records. They will refresh to display current information every time you view them. 

Enhanced Rent Roll Report:

Enhanced Rent Roll Report
  • The Enhanced Rent Roll Report will show the rent amount, last payment date, move-in date, lease expiration date, and security deposit amount for each of your tenants. 
  • It will also show a portfolio summary with occupancy percentage, vacancy loss, and more!

Unit Comparison Report:

Unit Comparison Report
  • If you own multiple units (or buildings) with Nomadic, you’ll get access to the Unit Comparison Report. 
  • This report enables you to quickly compare financial performance between your units at a glance without toggling between individual reports. 

Income Statement Month-Over-Month:

Income Statement by Month Report
  • The Income Statement Detail – Monthly Report serves as a month-over-month record of portfolio performance. You’ll see itemized income and expense categories and can track monthly. This report will update with fresh data every time you view it. 

Financial Statements

Financial statements will be published to your portal on a monthly basis. The statements are found in your Documents library, and provide a historical record of all financial performance. The statements serve as a snapshot of financial performance over a given period, and are static documents (unlike Reports, the statements do not update/change in real-time). 

Scroll down for more info about the Financial Statements in your Documents library:

The Documents area contains monthly financial statements:

Owner Portal Documents
  • The statements in the Documents are are static documents. They are posted to the portal once a month to serve as a historical record of financial performance. 

Download a statement to see month and YTD financials:

Owner Portal Property Statement

You'll also find a month-over-month operating statement:

Month over Month Statement

Portal Communication Tool

You can use your owner portal to communicate with our team. Any messages you send through the portal will go straight to your Account Manager. When we reply, you’ll get an email notification and you’ll also see the message in your portal next time you log in. 

Here’s an overview of using the communication platform:

Click "Communications" and navigate to "Conversations":

Commincation Dashboard Screenshot
  • The communications module will contain a record of all messages that you create through the portal. 

Click the "New Message" button and send your message:

Owner Portal New Message Screenshot

Responses will show up in the conversation ticket:

Portal Conversation Response Screenshot
  • You’ll get an email notification whenever you get a response, and you’ll also see the message in your portal next time you log in. 

You can reply in-line using the comment box:

Owner Portal Comment

Each conversation will be logged in its entirety:

Portal Conversation Snapshot

Understanding the Ledger

Your portal includes a ledger with all transactions. The ledger is populated with data in real-time as transactions flow through our accounting software. Much of this information is also available in the Reports area, as well as the Statements in your Documents library, but the ledger is the most comprehensive resource for diving into the details. 

Please scroll through the sections below to get a better understanding of how to interpret the ledger. 

By default, transactions are sorted chronologically:

Owner Ledger Dates
  • The date reflected in the lefthand column is the actual transaction date, not the “bill date”. This is the date the transaction was actually processed. 

If you have multiple properties with Nomadic, you'll see the address for each transaction in the "Location" column:

Ledger Property Column
  • You can filter the ledger to look at just one property, all properties, or specific sets of properties. 
  • If you only have one property with us, you’ll just see the ledger for that property. 

The Description column displays the transaction type:

Owner Ledger Description Column
  • BILL: this is an expense transaction, such as for repair costs or management fees.
  • CHARGE: this is a transaction  billed to the tenant, most typically a rent payment. 
  • NACHA EXPORT: this is a credit we processed to your distribution account. This type of transaction is how you get paid! 

The Amount column shows the dollar value of each transaction:

Owner Ledger Amount Column
  • Positive Amounts: if an amount is positive, it reflects a transaction that is payable to you. Typically, this will be a rent payment that we collected from your tenants. On occasion, a positive number could also signify a journal entry or credit adjustment. 
  • Negative Amounts:  if an amount is negative, this is a transaction that is either payable to Nomadic or is an amount that has already been paid to you. Typically this will be for repair costs or management/leasing fees. Owner draws (net distributions into your checking/savings account) also reflect as negative amounts, since they have already been paid to you. 

The Account Balance column shows a sum of positive/negative transactions at a given point in time:

Owner Ledger Account Balance Column
  • Account Balance should always equal zero after a net distribution has been processed. When the balance is zero, this means that all expenses have been paid and you’ve received the remainder as net operating income, leaving a balance of zero (meaning: no one is due any money, as all funds have been distributed appropriately). 

Navigating the Propertyware Owner Portal

Your portal includes some extremely useful features that help you understand your property’s financial performance at a new level, with real-time transparency into every transaction.

Scroll through the snapshots below for an overview of portal navigation! If you need more help or have specific questions about using the portal, you can reach out to your Account Manager any time for a screen share. 

You can filter all info by date range or property:

PW Portal Filters

View a snapshot of income and expenses on your dashboard:

PW Owner Dashboard View

See every transaction in real-time on your ledger:

Owner Portal Ledger View

Statements and forms will be posted to your documents library:

Owner Portal Document Library

View a suite of real-time financial reports:

Portal Reports View

See a running list of all bills, and drill down for more detail:

Owner Portal Bills View

Under Bill Details, you'll find dates/descriptions/amounts and more:

Portal Bill Details

You can also communicate with your Account Manager through the portal:

Owner Portal Communication Tools

How do net distributions work?

Net distributions keep your accounting clean and simple. Each month we’ll collect rent from the tenants, deduct any repair expenses for the previous month and any management/leasing fees for the current month, and credit the remaining net operating income to your account. 

Net Distribution

You’ll receive a statement via email each time a net distribution is processed, and can view all transaction details in your Propertyware owner portal.