Greetings BPs, Should I consider another rental purchase in Alexandria? I currently own a SFH rental in old town Alexandria and even though it is an expensive market I like the quality of renters It attracts and have been happy with it for the last 6 years. Thoughts? Better areas to consider?
Alexandria is great, as is Arlington, Fairfax County, much of DC, much of Montgomery County. I like the quality of tenants you can get in the nicer areas of the DC metro area. I much prefer owning in the A/B areas in a high demand area like ours than owning in some C/D area where my property value will never go up.
I live here and love it. I'm looking at buying rentals in Alexandria in 2018 as well. We have a lot of commercial and residential development still underway. I was recently at a neighborhood information meeting with a developer is who putting up buildings 2 and 3 (of 3) in 2018-2019 and they were very eager and excited to begin breaking ground this year. And that is just what's on my street.
I rehab in the city of Alexandria and while the prices are, as you are aware, much higher than some surrounding areas the quality of buyers is that much better IMO. It's also a higher demand area.
It can be discouraging sometimes running the numbers on potential rentals in premium areas like old town, but in my (limited experience view) I see it as paying a premium to buy into a great potential tenant market with solid appreciation opportunity.
I think of rental properties in Alexandria city as more of long game investments. We'll likely see good, steady increase in our property values year after year. You don't get as much cash flow with them as other areas. I do vacation rentals in other areas and get great cash flow from them but my Alexandria rentals can't even compare with the cash flow my vacation rentals provide.
@Mary Denby that’s interesting. I also consider Alexandria a long term buy and hold area. Wondering what you think: In my view the high cost and poor cash flow relative to other areas is a premium I pay to have access to a higher caliber of professional tenents, that need proximity to Washington or the pentegon. The schools are not fantastic, but I (so far) have been blessed with busy and low maintenance tenants, especially in old town.
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