Any takes on the Capital? DC?VA/MD area?

Question

Fellow investors. Just want some age old wisdom from all the heavy hitting investors. I have networking with investors in the Washington DC metro area and the general consensus is this:
The average income around here is around 90K.
Plenty of jobs. (the government is not going anywhere).
Housing prices DID take a hit. But govt jobs are stable, so it wasnt so bad.
Also, over the last 20 years,overall, it is one of the areas that has experienced steady appreciation
Negatives are that houses in this area are expensive(and thus getting cashflow is a problem). Around 300K average.

My question is this, given the average income, the job stability, and the appreciation, is this a good city to start an investing career? 
Hoping some of the heavy hitters, Rich Weese, Natiowide, and others will shed some light.
Thanks for the wisdom
Vince

Account Closed · Answer

Really? The average income in DC is $90K? Well I guess if you average the income of 2,000 multi-millionaires (all the politicians and ambassadors) with the 80% of the population that's living on welfare, you might come up with a decent average.

Real workers in DC (not the politicians, but the clerks and beaurocrats) live in MD or VA and commute in.

Seriously, Vince, have you been to DC? I wouldn't walk on the streets there, except on the Mall and in Georgetown. And I wouldn't walk either of those places after dark.

Peter Giardini · Answer

Vince... DC is a very good market.  There are many investors working DC... both rehabbers and landlords.
          
          The key of course is finding the right deal.
          
          Rehab deals are readily available though the purchase prices are not low in comparison to Baltimore.  Though the dollar value of the profits (when purchased and renovated correctly) is much higher.
          
          Regarding rentals... this is a numbers game pure and simple.  Much of the investor inventory in DC is very expensive with owners and sellers having an unrealistic view of the true worth of their properties.
          
          With that being said, if you dig hard enough and are conservative with your numbers, there are deals in DC.
          
          On the other hand there a many, many iinvestors (rehabbers and landlords) who live in and around DC (Northern VA, Montgomery County) who have chosen Baltimore as their investing area.
          
          The reason...
          
          Simple... if you want to hunt ducks... you have to go where the ducks are.
          
          In essence Baltimore offers greater profit and cashflow opportunities and the costs of entry are much less then DC.
          
          I hope this is helpful... and you still have the last action to set an appointment to meet with me in person.
          
          Best of luck!