Investing in A+ areas in DMV

[Natalie Hahn]

Does anyone have any recommendations for how to invest in A+/A- neighborhoods in the DMV area? What specific neighborhoods and cities are good for this and what types of real estate (condos, single family, etc.)? This includes anywhere from DC to Virginia up to Baltimore, but focusing on only A+/A- locations. I know it's generally harder to get a good cash flow in A neighborhoods areas compared to B or C, but I'm still willing to sacrifice that for stellar locations.

From the little bit of research I've done, it seems like Baltimore is a better option than the DC area for these types of locations, but just wanted to get your guys' thoughts. Thanks!

[Timothy M.]

You won't get cash flow at all - zero, none - if you are looking at A/A- areas in the DMV (read: anywhere in North Arlington, the tony neighborhoods in DC, Bethesda, Rockville, etc.).  If a house in Arlington costs 800k-1MM to buy and rents for 3-5k... there's no way you're going to make cash on that as a rental.

Will it be easy to rent out? Definitely. Will it appreciate? Probably. Will it cash flow when financed at 20%? Absolutely not.

I would encourage you to refine your investing strategy in the DMV; are you really interested only in cash flow?