Are you looking for a good investment for your hard-earned money? Purchasing real estate can be a hefty one, yet, the profits from this endeavor are tenfold – more so when investing in homes or apartments to rent out in Bethesda. This type of property is most likely to be sought after by people working in the Capital but are either still preparing to buy their own home or more inclined to live in a more relaxed environment like this popular D.C. suburb can provide.
If you’re planning to cater to this market and invest in real estate in Bethesda for use as rentals, take note of these valuable tips.
Be ready for the financial requirements
If you’re going to use a mortgage to finance the purchase of your Bethesda rental, know that the process for getting one is the same as the one for a standard home. However, since there are higher risks of loan defaults for this particular property, lenders would usually assign higher interest rates. Even requirements for qualification are more stringent, including a higher credit score, debt-to-income ratio, and down payment. Moreover, loan applicants should have cash reserves to last three to six months’ worth of mortgage payments and other real estate-related financial requirements.
Pick a strategic location
A good location is crucial to selecting the property you’ll want to rent out. Potential tenants will want to live in a place that’s near good schools, their place of work, and amenities that would cater to their living requirements. Given that Bethesda, MD is an area near Washington D.C., your apartment should have no problem getting tenants, especially if it’s located near the highways or the Metro stations.
Keep an eye out for high-end properties
Here’s a pro tip that you can try if you have enough financial resources at your disposal: Buy into Bethesda luxury real estate. Since these properties are usually found in the choicest spots of this urban center and are usually larger than the standard home, you have the opportunity to convert this property into multi-family real estate and then have it rented out to several tenants. Your tenants will enjoy the perks of living near everything they’ll ever need to maintain their lifestyle in a property with high-end fixtures – at a lesser cost.
Research on Bethesda’s rental guidelines and policies
Knowledge of the investment you plan to put your money in will matter greatly to its success – or its opposite. Thus, you’ll need to hit the books (or the internet) to learn about Maryland’s tenant and landlord laws. Check with the local government of Maryland for the state’s requirements in opening and managing rental businesses.
Opt for spacious units with good lighting, ventilation, and storage
Space is a luxury in every residence, whether a single-family home or a rented apartment. And if you can give that to your would-be tenants, that will work in your favor in the long run. Invest in space in your Bethesda apartment to give tenants more wiggle room.
To add to the livability of your rental, consider enough storage for tenants to keep their possessions organized and large windows to let in both natural light and fresh air.
Interested in learning more about investing in real estate in Bethesda MD? Then get the knowledge you need from the team of Heller Coley Reed, the certified real estate experts in the Washington D.C. and Bethesda areas. Call them at 240.800.5155 or email them here.