How to tell a city is gentrifying and if it is good to invest?

[Francys Crevier]

Hello fabulous investors!

I live in DC (or Arlington, VA, 5 min away) and my rent is about $1700 a month. I really don't want to keep paying that longterm, but of course properties in Arlington go for about $1-$1.5mil. I work by capitol hill and they are gentrifying the eastern market area which is very close to the hill. Word on the street is they are starting to gentrify places in Maryland to accommodate for more DC folk who can't afford the hefty pricetag.

So I have started looking in Maryland, in the hopefully less sketchy areas, for a good place to live in for a few years until prices go up, and cash out. I looked at a few places yesterday that were under $250k, and apparently were renovated by the same investor (the properties were about 10-15 min away from each other). Is that a good sign that investors are renovating properties in that area? I also heard that a developer just bought Iverson mall (a very hood mall) so maybe that is also a good sign?

I am a single woman trying to be smart about investing here. Can anyone guide me to tell me what are some good/bad signs in terms of investing in this kind of situation? This would be my first house. Also, the agent said he couldn't tell me what amenities the HOA had until I submitted an offer (that is crap right?). Any and all guidance is helpful! If someone could walk me through this.

Francys

[Bill Gulley]

Do some foot work, drive by places that interest you, speak to neighbors, someone is going to be outside, so pull up, introduce yourself and approach it as if you want to move into the area, not as an investor. Then ask questions, most people love to talk. :)