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What to Look For in a Potential Bethesda, MD Investment Property

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What to Look For in a Potential Bethesda, MD Investment Property

2019-08-22

When you've got extra capital to invest, you're always looking for new ways to help it grow. Sometimes, it seems like everyone you know is making extra money on eBay, OfferUp, flipping houses, or another side gig. What's more, they make it look easy, but your time is limited. Honestly, you can make lots of money with real estate investments. Renters Warehouse manages a unique inventory of single family home rentals in Bethesda, MD. Our off market properties have paying tenants in place. Each single family home is guaranteed to be in good condition and located in a desirable neighborhood. If purchasing rentals is new to you, this activity can produce more monetary returns than funneling cash into a Money Market savings account, which might only yield 2 percent per year in interest. We can explain how to grow your money by adding fully leased properties to your portfolio.  

STATE OF THE BETHESDA HOUSING MARKET

There are strong indicators that 2019 is a good year to invest in rental properties. A word of caution here: be careful when buying properties in cities where housing prices are skyrocketing. If the bubble bursts, you could lose a lot on properties that you just purchased because their values will suddenly drop. A July 2019 report from Trulia.com showed the median sales price of a single family home in Bethesda was $915,000. This price point means buying a home is beyond the reach of many potential homebuyers. The median rent in Bethesda is also currently high at $3,800 per month. As a potential investor, consider buying an upscale property and breaking it into smaller units for renters. This creates more economical rent for prospective tenants with moderate income. Check local zoning regulations for each rental home to see if creating separate units for renters is allowed.

WHY TRY THE BUY AND HOLD STRATEGY

As your Bethesda property management experts, we know you're hesitant to part with your money. You're curious to try the real estate market, but you don't like the high risk of flipping homes. This approach involves the investor acquiring a property with cash, renovating it in only a few months, and then unloading it for a higher price. A safer tactic is to buy and hold your rental property. In this approach, Renters Warehouse can help you find the right property, which is off market and fully leased, purchase it, and hold it. You will enjoy collecting the monthly rent. This rental asset will grow in value as the market strengthens and repay you over its lifetime. Holding an asset for several years means that you avoid the risks of property speculators, such as home flippers. 

WHAT TO LOOK FOR IN A RENTAL INVESTMENT

If you've ever toured a resale home, you can recall how much there is to digest all at once. Typically, you leave a home tour with many questions. Only one of the properties you inspect will make your final cut. When you consider investing in property rentals, use the same buyer's hat because you have the same concerns as potential renters. 

Here are some qualities to target in a single family rental home:  

  • Reasonable rent.
  • Spacious rooms and ample ventilation.
  • Safe floors and entries.
  • Updated kitchens, bathrooms, and appliances. 
  • Attractive cabinets, windows, and carpentry. 
  • Secure storage.
  • Pest-free and pet-friendly interiors.
  • Private entrance and secure backyard.
  • Covered parking area or garage.
  • Proximity to public transportation. 

TRY INVESTING TODAY!   

Contact us at Renters Warehouse for help with the rental home buying process. Our impressive inventory of fully leased single family homes is not included in any listing service, which means realtors cannot find them for their clients. Use real estate investing to grow your wealth and retire early!


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