As part of our broader strategy to invest in cities with limited housing supply and growing demand, we’ve purchased this two-bedroom, one-and-one-half bathroom home in Arlington, Virginia for roughly $811,000. This is the latest acquisition in our Washington, DC home portfolio, which is now comprised of 25 homes and actively pursuing new acquisitions.
The already well-positioned portfolio is poised to benefit even further from Amazon’s announcement that it plans to bring a minimum of 25,000 jobs to the DC metro area — with an average salary of $150,000 per year — while the Virginia state government released a report estimating that an additional 22,000 positions would be indirectly created by the influx of new residents and capital.
Business plan
Following the completion of minor renovations, we intend to rent the property for seven to ten years before putting it on the market. The goal is to earn consistent cash flow from rent payments while realizing the potential appreciation of home values in an already-healthy local market that stands to be further bolstered by the arrival of Amazon HQ2.
Why we invested
- Excellent location near Amazon HQ2: The home is located less than a mile from the future Amazon HQ2 site and the Crystal City metro station, and only a five-minute walk from a bus route that makes stops at both of those destinations.
- Attractive cost basis: Including minor repairs, we expect our all-in investment to be approximately $820,000, which equates to roughly $390 per square foot. This is about 15% below the median list price per square foot of $462 reported by Zillow for the 22202 ZIP code in February 2019.
- Potential to expand: Situated on an 8,100 square foot (0.18 acre) lot, there is potential to expand the home to a larger footprint in the future.
