“Washington, DC, is my retirement plan”

India Hall backed into her first investment by turning her own home into a rental. Since then, she and her husband have made a business out of Washington, DC’s weak point: Many homes here haven’t been renovated in years.

Average home price: $581,881 (down 2.8% YoY according to Zillow)
Homes that sell over list price: 24.4%
Homes that sell under list price: 53.9%
Average rent: $2,497/month

How she got started: “I converted my primary residence into a rental and realized I could benefit from both monthly cash flow and property appreciation,” says Hall, an agent with The Ultimate Team at HomeSmart. “When I left my corporate job and no longer had access to a 401(k), I began investing more intentionally. Real estate became my retirement plan.”

Her market’s pros: “It’s a great time to purchase because inventory is increasing, homes are sitting on the market longer, and sellers are willing to negotiate,” Hall explains. Plus, “many DC homeowners haven’t renovated in years, which can create opportunities to buy below market value.”

Hall recently bought a row house in the Del Ray neighborhood of Alexandria, VA, for $485,000. “It started as a two-bedroom, one-bath home, and we spent $275,000 building a 20-foot rear addition and a five-foot front bump-out, converting it to a four-bedroom, 3.5-bath home that appraised for $1.25 million. Today, it’s a furnished corporate and short-term rental generating $6,000 to $8,000 per month.”

The cons: “Because properties are taking longer to sell, investors should plan to hold onto the properties long term,” she says. “Don’t assume every home is a quick flip.”

Her advice: “Buyers are price sensitive, so focus on areas that are affordable today but may not stay that way as revitalization happens around them,” Hall says. Some areas she’s watching: the former Six Flags site in Upper Marlboro, MD, and Oxon Hill, MD, where an MGM casino opened, and a proposed 6,000-seat mini-Sphere could bring more Vegas-style glitz, jobs, and residents to the area.

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