Washington DC Rental Property Continues Growing
Washington D.C. is experiencing a booming rental market due to several factors, one of them being Business Insider declaring the city the best economy in the nation in 2019. With the second highest median household income in the country and one of the most populated cities, Washington D.C. rental property has become a hot commodity. According to Mashvisor in 2020 over 61% of the metro area resides in rental properties, causing the average rental income from a single rental property to be over $2,700 a month!
Based on the numbers in late 2019, one of the best neighborhoods in the city for rental property is Swampoodle. Boasting an average cap rate of 10.7% with a median property price of about $260,000, this neighborhood’s prices have a reasonable barrier to entry compared to other metro areas with the opportunity of generating upwards of nearly $4,000 per month. Another viable option is Fort Dupont, with a lower cap rate of 4.3% but a much lower barrier to entry average sale price of $203,000.
The D.C. metro area is a competitive and lucrative rental property market, so you need a reliable lender that understands the area and can help you secure deals quickly. Asset Based Lending are experts in the field, offering fast closing times and flexible underwriting that let our lenders grow their rental portfolio quickly. If you’re ready to be approved for the most reliable Washington DC rental loans around, contact us today.
Utilizing The BRRRR Method In Washington DC
If you’re looking to grow your rental portfolio quickly and invest in a long-term financial future, then you’ve probably heard of the BRRRR method. It’s a simple acronym that stands for buy, rehab, rent, refinance, repeat. Some investors just want to own one or two rental properties to generate a small amount of monthly income, but those that want to make their living off the monthly income need to put in extra time and energy that comes with extra financial rewards. By buying the property and renovating it, you increase its property value and therefore raise the potential rent you can bring in from the place. Then, by refinancing the property, you can use the newly available funds to purchase your next rental property and repeat the process there, growing your rental portfolio faster and forcing a quicker turnaround to become cashflow positive.
Asset Based Lending are ready to help serious investors use the BRRRR strategy to grow their rental portfolio and reach their financial goals. Whether you need a rental loan with the maximum LTV, lowest possible rates, no doc loan, or something else, our flexible underwriting can tailor a loan to meet your specific project. If you’re wondering how to get a loan for rental property, Asset Based Lending is ready to talk. Contact us today to experience the most reliable Washington DC rental loans available.