These four neighborhoods in the D.C. area have great property acquisition potential
Key Takeaways:
- Investors looking to invest in apartment communities see Washington, D.C., as a profitable opportunity
- Washington, D.C., is perpetually attractive to new residents who prefer renting
- Four promising areas are Trinidad, Adams Morgan, Woodridge, and Brookland
- Rent in Washington, D.C., is consistently higher than in many places in the country
Investing in properties is typically a secure way to generate a new source of income and save money for retirement. Renters are always looking for their dream home in Washington, D.C., and the market is hot for anyone looking to invest in an apartment community. It doesn’t matter if you’re a seasoned investor or someone new to the game; this article tells you everything you need to know about the current D.C. market and the best areas to consider investing.
What Is an Apartment Community?
An apartment community is a multifamily building with many apartment homes in it. These properties can be a great opportunity for investment because they can bring in many rental payments each month from tenants. It’s also worth noting that because the Washington, D.C., area is popular with renters, apartment communities are a fairly reliable investment for those looking to buy and manage property.
Why D.C. is Desirable
Washington, D.C., reliably makes numerous best places to live lists every year. Some of the reasons include its impressive performing arts scene, nationally ranked public schools, and plentiful world-class attractions.
Home values vary widely across the city, averaging anywhere from $250,000 to over $1 million. The price to buy an apartment community can be higher, but there’s often a good chance of a high return on your investment as you collect regular rent payments in these sought-after buildings. There are also tons of high-paying tech jobs in the area, which is one reason D.C. has one of the country’s highest average rents. This can be a great thing for investors because you’re likely to quickly find tenants and start turning a profit as soon as you are collecting rent.
Four Top Apartment Communities in D.C.
There are numerous factors to consider when looking for a place to invest in. You want to know that it’s a popular area, full of life, and still growing. These and other factors that make neighborhoods desirable to potential residents are cues that an area could be a good location to acquire property in. Washington, D.C., is just such a place almost anywhere in the region you look, but here are four parts of town that are ripe for investors looking to acquire an apartment community.
1. Trinidad
This Ward 5 area of Trinidad is primarily residential. It is on an upward trajectory, but home prices remain affordable, making now a good time to consider investing in an apartment community. Young adults have taken an interest in Trinidad in recent years, causing an increase in diverse, working-class residents, many of whom are looking to rent rather than buy.
Trinidad is just a few blocks from the excitement but is not known for its bustling nightlife, which is just how the residents like it. That combination could be a recipe for success for property managers looking for a reliable neighborhood to buy in.
It’s also worth noting that renters reign in Trinidad. There are far more of them, approximately 56%, than homeowners. The average rent for a one-bedroom is around $2,500, according to Zumper, meaning you’ll likely have no issue finding quality tenants. Most homes here are Victorian-style row houses, condos, and bungalows, making this area highly desirable.
2. Adams Morgan
Adams Morgan’s claim to fame is its unusual state of being a quiet neighborhood with a vivid nightlife. The neighborhood is a stunning area of Washington, D.C., consisting mainly of historic apartment communities and row houses. It’s an easily walkable neighborhood, too, putting it in high demand, which can make investing in property here a smart choice.
More than half of residents in Adams Morgan are renters. The typical rent here is about $2,500, which puts it at the top of the list for many investors looking to secure decent rental payments each month.
3. Woodridge
Woodridge is located in the northeast corner of D.C., and the neighborhood emanates a cozy suburban feel. Residents love its quiet atmosphere butted up to Brookland, the territory’s most vibrant art scene, so they never have far to go to get in on the action. There is plenty to do right in Woodridge, too, as many bars, restaurants, parks, and amenities fill the central shopping areas.
Most homes in this neighborhood were constructed during the 20th century, so you’ll find many bungalows and craftsman homes populating the streets. Rent prices average around $1,700, according to Zumper data. With these more modest rent prices than some neighborhoods, the neighborhood is in high demand, so property owners are likely to have their pick of great tenants.
4. Brookland
Brookland, nicknamed “Little Rome,” is known for its fabulous churches and monasteries, so its influx of renters might be seen as a bit surprising. The popularity of the neighborhood, however, could be due to its plethora of funky gift shops and eclectic art galleries.
Another selling point of this Ward 5 neighborhood is its many recreational green spaces, so investing in an apartment community in this area could bring you outdoorsy and affluent tenants.
Every investor wants the best value for their money, and in Washington, D.C., apartment communities are a no-brainer. The four neighborhoods mentioned here are highly sought-after by renters and investors alike. Consider these areas for your next property acquisition if you’re looking to start or expand your real estate portfolio.
Start Your Search for the Perfect D.C. Rental Acquisition
Hunting down ideal rental properties in D.C. is no easy task. Managing property can be even more challenging, especially if you lack professional experience, but we’re here to help. Nomadic Real Estate offers property management services in the Greater Washington, D.C., area. Our team will maintain relationships with tenants, screen applicants, handle maintenance requests, and ensure you comply with local laws. Contact Nomadic Real Estate for more information about your Greater D.C. property management needs.
