Just bought a rowhouse on H Street

[Anonymous]

Anonymous wrote:I've rented my north of H Street (6 blocks to NoMa Metro) 3BR/2BA row house out now since 2007 (bought in 2005) and have always been able to find tenants and the rent has steadily increased over the years. I bought there before folks were seriously discussing the street car and I think all of the other development in the area is what keeps it a strong rental market (not the street car.) Generally my tenants have been in their late 20s and this is their second house post college - and often they move out to move in with significant others. When I was looking to buy I wanted a condo and my realtor insisted I buy a house and I'm so glad he did - his theory, which I now agree with completely, is that they aren't really building new houses in DC any more and so houses will always be in demand - they are however, going to be building new condos and less demand for those. This holds true for both renting and buying. I find that my renters specifically want to live in a house - has some outdoor space and is generally bigger than a condo would be, and there aren't many 3BR condos on the market. I think you'll be fine.

But you surely don't get 4000 month in rent?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I've rented my north of H Street (6 blocks to NoMa Metro) 3BR/2BA row house out now since 2007 (bought in 2005) and have always been able to find tenants and the rent has steadily increased over the years. I bought there before folks were seriously discussing the street car and I think all of the other development in the area is what keeps it a strong rental market (not the street car.) Generally my tenants have been in their late 20s and this is their second house post college - and often they move out to move in with significant others. When I was looking to buy I wanted a condo and my realtor insisted I buy a house and I'm so glad he did - his theory, which I now agree with completely, is that they aren't really building new houses in DC any more and so houses will always be in demand - they are however, going to be building new condos and less demand for those. This holds true for both renting and buying. I find that my renters specifically want to live in a house - has some outdoor space and is generally bigger than a condo would be, and there aren't many 3BR condos on the market. I think you'll be fine.

But you surely don't get 4000 month in rent?

Not pp but our neighbors just south of H and a mile from Union station rent out their row house because they had to move for jobs and they get $3700 for it. That's more than enough to cover most people's mortgages in this neighborhood.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've rented my north of H Street (6 blocks to NoMa Metro) 3BR/2BA row house out now since 2007 (bought in 2005) and have always been able to find tenants and the rent has steadily increased over the years. I bought there before folks were seriously discussing the street car and I think all of the other development in the area is what keeps it a strong rental market (not the street car.) Generally my tenants have been in their late 20s and this is their second house post college - and often they move out to move in with significant others. When I was looking to buy I wanted a condo and my realtor insisted I buy a house and I'm so glad he did - his theory, which I now agree with completely, is that they aren't really building new houses in DC any more and so houses will always be in demand - they are however, going to be building new condos and less demand for those. This holds true for both renting and buying. I find that my renters specifically want to live in a house - has some outdoor space and is generally bigger than a condo would be, and there aren't many 3BR condos on the market. I think you'll be fine.

But you surely don't get 4000 month in rent?

Not pp but our neighbors just south of H and a mile from Union station rent out their row house because they had to move for jobs and they get $3700 for it. That's more than enough to cover most people's mortgages in this neighborhood.

3700 probably does not cover a 700k mortgage, and you have to add in maintainance and other costs of being a landlord too. Plus the rental income would be taxable, probably totally offsetting the mortgage interest deduction.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've rented my north of H Street (6 blocks to NoMa Metro) 3BR/2BA row house out now since 2007 (bought in 2005) and have always been able to find tenants and the rent has steadily increased over the years. I bought there before folks were seriously discussing the street car and I think all of the other development in the area is what keeps it a strong rental market (not the street car.) Generally my tenants have been in their late 20s and this is their second house post college - and often they move out to move in with significant others. When I was looking to buy I wanted a condo and my realtor insisted I buy a house and I'm so glad he did - his theory, which I now agree with completely, is that they aren't really building new houses in DC any more and so houses will always be in demand - they are however, going to be building new condos and less demand for those. This holds true for both renting and buying. I find that my renters specifically want to live in a house - has some outdoor space and is generally bigger than a condo would be, and there aren't many 3BR condos on the market. I think you'll be fine.

But you surely don't get 4000 month in rent?

Not pp but our neighbors just south of H and a mile from Union station rent out their row house because they had to move for jobs and they get $3700 for it. That's more than enough to cover most people's mortgages in this neighborhood.

3700 probably does not cover a 700k mortgage, and you have to add in maintainance and other costs of being a landlord too. Plus the rental income would be taxable, probably totally offsetting the mortgage interest deduction.

EXACTLY. Op can always find tenants, the question i if she can command enough rent to be cash flow positive.

[Anonymous]

I've long felt that H Street was in a bubble. I think people either desire to live there or they don't, but those who desire to live there place a premium on it.

OP, how long were you looking for a house and was H Street your only area? Why/how did you get to this point, did you not think it through? Or do you think it's just buyer's remorse and you'll be fine in a few weeks?

[Anonymous]

I am panicking because of the uncertainty of the streetcar. I think I can cover mortgage with rent in 2 years because I put down $150k and got a 4% 30 year fixed loan with an average credit score. But I was counting on more potential appreciation with the streetcar and now I think I may have been able to get a better deal elsewhere.

I just really like the area and love Victorian homes. Actually writing all this down makes me think I will be okay in the end so thanks to all the helpful responses.

[Anonymous]

Anonymous wrote:I am panicking because of the uncertainty of the streetcar. I think I can cover mortgage with rent in 2 years because I put down $150k and got a 4% 30 year fixed loan with an average credit score. But I was counting on more potential appreciation with the streetcar and now I think I may have been able to get a better deal elsewhere.

I just really like the area and love Victorian homes. Actually writing all this down makes me think I will be okay in the end so thanks to all the helpful responses.

So 20% down? Probably won't cover your mortgage with rent. Not sure why you love Victorian homes but plan to live elsewhere. Suspect You will love them less when you have to make repairs for tenant.

But read link on sunk cost; you bought the house so home you can enjoy it. As for investment, maybe make sure you save cash elsewhere to cover the risk of loss on this real estate speculation. Next time maybe invest in REIT. Hope H street bubble doesn't burst before u sell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am panicking because of the uncertainty of the streetcar. I think I can cover mortgage with rent in 2 years because I put down $150k and got a 4% 30 year fixed loan with an average credit score. But I was counting on more potential appreciation with the streetcar and now I think I may have been able to get a better deal elsewhere.

I just really like the area and love Victorian homes. Actually writing all this down makes me think I will be okay in the end so thanks to all the helpful responses.

So 20% down? Probably won't cover your mortgage with rent. Not sure why you love Victorian homes but plan to live elsewhere. Suspect You will love them less when you have to make repairs for tenant.

But read link on sunk cost; you bought the house so home you can enjoy it. As for investment, maybe make sure you save cash elsewhere to cover the risk of loss on this real estate speculation. Next time maybe invest in REIT. Hope H street bubble doesn't burst before u sell.

You said it. Buying real estate in DC as an investment makes very little sense for the average person, if you're not planning to live there yourself. OP should resign herself to breaking even or selling at a loss when it presumably comes time to move to a better school zone, or springing for private, or driving the kid across town to a charter every day. Renting out a 100+ year old home to just break even (and more likely at a loss) makes very little sense, given all the risks involved in renting. Your 150k would do much better invested elsewhere.

[Anonymous]

The streetcar appreciation happened as soon as the tracks were laid. Your mistake was thinking there would be any more once the thing was running. But you'll be fine, regardless. Might not be a windfall, but you'll get by.

[Anonymous]

PP with house north of H Street - I charge $3200/month - I bought in 2005 though so my mortgage is low. But, when I first started renting it out (2007) I charged $1950 and now it is up to $3200 - I could probably charge a bit more but would am prioritizing keeping my current tenants.

[Anonymous]

Whatever.

If I just racked in a 200k profit on an ASHBURN house in 5 years, where rent exceeds my mortgage by $600/mo certainly much more can be accomplished in DC.

[Anonymous]

You'll be ok, OP. H Street is going to be the new Logan. Without without streetcars. Enjoy the house, and try not to overthink. Whatever is done, is done.

[Anonymous]

Anonymous wrote:Whatever.

If I just racked in a 200k profit on an ASHBURN house in 5 years, where rent exceeds my mortgage by $600/mo certainly much more can be accomplished in DC.

You are just supporting the idea that the bubble has been reinflated. I don't know but OP should buy a housE she wants to live in not speculate on. Unless it is money she can afford to lose.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Whatever.

If I just racked in a 200k profit on an ASHBURN house in 5 years, where rent exceeds my mortgage by $600/mo certainly much more can be accomplished in DC.

You are just supporting the idea that the bubble has been reinflated. I don't know but OP should buy a housE she wants to live in not speculate on. Unless it is money she can afford to lose.

I've been investing in rentals and flipping real estate since 1998 in the DC area. Two things things I have learned:

1. You can make cart loads of money doing this. I make way more doing this than my 9-5 day job.
2. Real estate always going up in the long run.

I cannot point to one single piece of property that I've held onto 5 years that has not made me money. I can count on 3 fingers the houses I had to wait more than 2 years to turn a profit. I've done this now with 22 houses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Whatever.

If I just racked in a 200k profit on an ASHBURN house in 5 years, where rent exceeds my mortgage by $600/mo certainly much more can be accomplished in DC.

You are just supporting the idea that the bubble has been reinflated. I don't know but OP should buy a housE she wants to live in not speculate on. Unless it is money she can afford to lose.

I've been investing in rentals and flipping real estate since 1998 in the DC area. Two things things I have learned:

1. You can make cart loads of money doing this. I make way more doing this than my 9-5 day job.
2. Real estate always going up in the long run.

I cannot point to one single piece of property that I've held onto 5 years that has not made me money. I can count on 3 fingers the houses I had to wait more than 2 years to turn a profit. I've done this now with 22 houses.[/quote

Seriously? 98-now is your sample. Do you expect more wars to fuel another boom? DC economy is on the decline, talk to investors who in Chicago in the early 2000s. A real city with a strong financial and next generation manufacturing sectors, and housing still hasn't recovered.

DC is a great company town, but as soon as people start thinking they can't lose money and everyone is angling to be an investor like the OP is, the smart money leaves. 22 properties? I really hope you are filthy risk and more diversified, right?