Investing in a Condo in Northern Virginia 101

With excellent property values, proximity to Washington, DC, and easy access to major transportation hubs, Northern Virginia offers outstanding real estate investment opportunities. Whether you’re moving to the DC area or if you’re hoping to invest in rental property in one of the nation’s top markets, Northern Virginia condos are worth considering.

What sets condos apart?

On the surface, condos seem a lot like apartments. They’re multi-family dwellings, after all. Unlike apartments and single family homes, condos offer quite a few advantages:

• They’re individually owned, no need to purchase an entire apartment building to invest in rental property.
• Condos typically offer community amenities, which are covered by monthly condo fees that take care of maintenance and upkeep.
• Condo owners aren’t normally responsible for the exterior of the building, just for the space inside the unit.
• As property investments go (particularly in Northern Virginia and other trending areas), condos are typically more affordable than single family homes or townhouses with similar features. This means that you’ll need less cash to get started, and you probably won’t need to make major changes to the unit before moving in or prepping for tenants.

You can live in a condo, or you can offer it as a rental as demand is high from millennials who are unable to afford to buy. Many Northern Virginia condos are ideal for use as short-term rentals (think Airbnb) or long-term rentals.

Both markets are excellent, with travelers and long-term tenants seeking desirable condos positioned close to the Metro, dining, shopping, and other amenities.

Need financing? Get pre-approved.

It’s a cardinal rule when buying investment property in Northern Virginia or anywhere else for that matter: If you need financing, secure it ahead of time. Have funding ready to go so that you’re ready to pounce. Virginia is a seller’s market right now, with homes rarely remaining on the market for long. With cash at the ready, you’ll be positioned to make an offer before that unit can be sold to another investor.

Avoid auctions unless you’re a seasoned real estate investor.

Real estate auctions are tempting, and with so many homes brought back to life on Fixer Upper, Flip or Flop, and other real estate investing shows, it can be tempting to place a bid and work toward getting a huge return on your investment. Unfortunately, real estate flipping shows are staged and rehearsed, and there are tons of horror stories about house and condo flipping gone bad. Undervalued properties are few and far between in the Northern Virginia market, so think long and hard before making decisions that might bring emotions into the equation.

Look for red flags.

There is lots to love about the properties you’ll encounter in Northern Virginia, but keep an eye out for issues such as dampness, mold, asbestos, weird smells like leftover pet or cigarette odors, or anything else that looks like it’ll cost a bundle to fix. This isn’t a huge problem but issues can and do pop up from time to time. If possible, take a virtual tour of the property before you take time out of your schedule to visit the site in person. You’ll be able to narrow your choices down faster and get into a great property that ticks all the right boxes.

Decide on size.

There are lots of 1 bedroom 1 bath condos for sale, plus plenty of larger ones, often with the advantage of offering 2 bathrooms and multiple bedrooms. The one-bedroom units typically appeal to singles and couples, often young professionals. The multi-bedroom units are likely to attract families and individuals who prefer to share costs with a roommate. Both options can be lucrative, but multi-bedroom, multi-bathroom units require a larger investment on your part.

Ask questions.

If you’re new to the area – or investing in Northern Virginia condos from a distance – tell your realtor what you’re looking for and rely on their local knowledge when deciding which communities offer the best investment opportunities. Herndon is home to a great example: Located a quick 25 minutes from downtown Washington DC, Bryson at Woodland Park condos are part of a gated community with excellent amenities and attractive pricing.

As you’re looking for an investment condo, ask your agent about the surrounding area. If shopping, dining, and transportation are nearby, there’s a good likelihood that you’ll attract tenants quickly and have fewer void periods than you would with a less desirable property.

Start small

Condos are perfect for first-time real estate investors, partly because there are so few unknowns and partly because they’re not likely to entice you to bite off more than you can chew. Investing in a condo can be relatively stress-free, and in hot markets like Northern Virginia, can be incredibly profitable.

If you’re brand new to real estate investing, move slowly until you’ve learned the ropes. Your real estate agent will be one of your greatest allies, so choose carefully. Buy one property at a time, take care of any fixes or upgrades that you’d like to put in place before renting to tenants, and start looking for your next investment when you’re ready. Real estate can be very exciting but as a beginning investor, it’s easy to be overwhelmed.

Final thoughts

Finding the right Northern Virginia condo takes a little time, a bit of patience, and an experienced real estate team that respects your needs while working within your budget. There’s no time quite like the present to invest, and with a careful approach, you’ll find that it’s easy to make a well-informed decision that ultimately leads to a profitable outcome.