I am new to BP but I am an inspiring REI and love the amount of information and community involvement.
For all of my Washingtonians - is the current market in DC inflated? I am seeing homes right now that have a 30-40% inflation YoY. I would love to get your opinion here.
I'm down I-95 in Richmond, with modest knowledge of DC at best. That said, I would expect most of the price inflation in DC to be mostly sustainable. Lending standards are better today than they were before the 2008 crash, and the DC/NOVA area is doing well with jobs. Unless there's a major change with the job economy up there I think it's here to stay.
@Taylor L. Thanks for the insight! I am actually thinking of some rental property investment in Richmond but the numbers for cash flow seem low. Is Richmond better to BRRR
There is zero place with 30-40% yoy price increases in DC.
@Taylor L. appreciate the mention. @Joseph Phillip Like Taylor mentioned, I have a few BRRRRs going on right now in Richmond, VA and also own a management company that focuses on SFH and multifamily less than 20 units. It's difficult to find good cash flowing deals on the MLS right now, but they do pop up now and then. However, if you have the right relationships and are willing to put in the time to find deals off-market, there's overwhelming opportunity in Richmond. I know people who are buying many houses repetitively because they've built the right foundation. At the same time, many other are saying, "Market is too hot, no deals in Richmond, going to wait." etc.
Like Taylor mentioned, I think DC prices are there to stay. I lived in Ashburn for a while. Beautiful area and some great people, but glad to be back in Richmond. Let me know if you plan to come to Richmond or need any connections here to get started. Glad to be a resource.
@Joseph Phillip where did you get 30% YOY? That would be $30,000 increase each year for a $100,000 home. Maybe you meant 3 percent? That’s a typical rate. Some areas have a lot of demand and little inventory of single family homes that are affordable that are driving up the price
@Nick Despotidis if you look at 5 year trends - properties that were valued at the 400 mark are selling right now on the market for 550+.
@Stephen Glover thanks so much for that information. I would love to connect to get a further understanding of the market down your way.