Curious to know if your new investment in Washington DC will be profitable? Well, some good news for you. According to a recent study by LendingTree, DC is one of the most competitive and priciest housing markets in the country. Knowing that DC territory is hot, more house flippers are considering this area for quick and profitable returns.
As we know, houses sell based on location and features. So, how can you tell if your Washington DC fix and flip will be lucrative? Here are a few ways to investigate.
Rapidly Rising Home Prices
The current situation in DC is a seller’s market. Inventory is low, and even though the number of homes being sold does increase year-over-year, it’s not enough to fix the inventory problem.
When there is low inventory, competition for available homes increases. Properties that are in good condition can be listed for top dollar. Buyers don’t have many choices, so it’s not unusual for multiple offers to go on one home. This creates a bidding war and further drives up the sale of the home. The median price of a 3-bedroom, 2-bathroom home in DC is $786,415.
Another way to spot if your DC fix and flip will be worthwhile is by assessing the buyer demand in the area. What creates buyer demand? Good schools, good job availability, low crime, and being close to shopping; Washington DC meets all of this criteria
Buyer demand is high in DC because of the following:
- Plenty of things to do. Washington DC has festivals, five-star restaurants, shopping, cultural activities, and more.
- Prime location. DC has prime real estate. Within a few hours, residents can drive to the beach or to the mountains.
- Diversity. Overall, the DC population is highly educated and includes a wide variety of ethnicities, backgrounds and religions. It’s an interesting place to live!
- Various neighborhoods. Buyers can find the perfect neighborhood in DC. There are condos, townhouses, single family homes, and even rural farmland.
Washington DC is one of the most expensive cities in the United States, with an average median salary of $61,835. The schools are rated a 6/10 according to GreatSchools.org, and over 80 private schools are available. Quality of life is also high, as DC is walkable and has good transit options.
Like other cities, housing in DC can be expensive. Some people choose to rent instead. If you purchase a fixer upper in the area, you can rent out the property for a steady income each month. The median two-bedroom apartment costs $2,111 a month, according to NerdWallet.
Washington DC is a great place to find fix and flip investments. First Equity Funding works with real estate investors who want to buy, fix and sell properties in DC. Our flexible funding options and knowledge of the DC market make us great partners to work with!