Just bought a rowhouse on H Street

[Anonymous]

Good I hate typing in the phone. That is all.

[Anonymous]

Anonymous wrote:

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?

Pp do you get on every post here and talk about how DC is in a bubble and financial ruin is on the horizon? I feel like you're the only one seeing that...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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?

Pp do you get on every post here and talk about how DC is in a bubble and financial ruin is on the horizon? I feel like you're the only one seeing that...

Ha, not me. I just got convinced by how many people started chiming in that they are renting out a place. Just soIndia like the 'everyone is investor' problem. I hope no bubble, we just paid a ton for a house we plan to live in for a decade.

[Anonymous]

Anonymous wrote:Never buy a home as an investment.

Tell it to the Chinese investors.

[Anonymous]

Anonymous wrote:
Ha, not me. I just got convinced by how many people started chiming in that they are renting out a place. Just soIndia like the 'everyone is investor' problem. I hope no bubble, we just paid a ton for a house we plan to live in for a decade.

given that there are a lot of young people eager to rent group homes in transitional neighborhoods - because on the one hand couples looking to raise kids do not want to buy them, because schools, and OTOH because despite the building boom there are not enough units in well located multifamily for the young millenials - there have to be a lot of rental properties. Somehow the market has to incent people who can to act as landlords.

Of course if the regional economy crashes and burns, that shortage of units in multfamily will disappear, apt rents will decline, and the kids in the group homes will either move to the apts, or bargain for lower rents.

[Anonymous]

But H street is still a shitty neighborhood with shitty schools. I don't mind getting a drink there, but I wouldn't want to live there. My friend there regrets buying because it is still so sketchy.

[Anonymous]

But H street is still a shitty neighborhood with shitty schools. I don't mind getting a drink there, but I wouldn't want to live there. My friend there regrets buying because it is still so sketchy. I'm going to that add that OP could have almost bought a townhouse in friendship heights MD for that price! Schools would not be an issue at all & she'd get better tenants.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Ha, not me. I just got convinced by how many people started chiming in that they are renting out a place. Just soIndia like the 'everyone is investor' problem. I hope no bubble, we just paid a ton for a house we plan to live in for a decade.

given that there are a lot of young people eager to rent group homes in transitional neighborhoods - because on the one hand couples looking to raise kids do not want to buy them, because schools, and OTOH because despite the building boom there are not enough units in well located multifamily for the young millenials - there have to be a lot of rental properties. Somehow the market has to incent people who can to act as landlords.

Of course if the regional economy crashes and burns, that shortage of units in multfamily will disappear, apt rents will decline, and the kids in the group homes will either move to the apts, or bargain for lower rents.

Jobs are shrinking here now, so those millennials will not be coming in droves. Doesn't have to crash just stall, and marginal neighborhoods will tumble with it.

Renting out to group home, ugh talk about destroying your property.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Never buy a home as an investment.

Tell it to the Chinese investors.

Well, we are just boring old Americans in their 30s but it fits in really nicely with our investment portfolio. But we of course did 100% due diligence and would never, ever buy something if numbers didn't line up well. With investing you can think of it as "making money when you buy, not when you sell" in most areas (with the appreciation in DC over the last 15 years its probably an outlier market where you can bank on some of that easily too, but for most people you better have your cash flow #s line up and not just bank on appreciation)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never buy a home as an investment.

Tell it to the Chinese investors.

Well, we are just boring old Americans in their 30s but it fits in really nicely with our investment portfolio. But we of course did 100% due diligence and would never, ever buy something if numbers didn't line up well. With investing you can think of it as "making money when you buy, not when you sell" in most areas (with the appreciation in DC over the last 15 years its probably an outlier market where you can bank on some of that easily too, but for most people you better have your cash flow #s line up and not just bank on appreciation)

+1

Exactly. At current prices and rents, dc is terrible investment. Nice place to live, at least some parts, but no cash flow.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Never buy a home as an investment.

Tell it to the Chinese investors.

If you notice their government is actively trying to pop their housing bubble. And the capital flows to the states will slow as they grow a true middle class.

[Anonymous]

Op here. A lot of food for thought here. Piti will be around $3k a month. Rentable for $3300 in my opinion when I move out in 2 years. Once I put work in and make the basement legally rentable, I expect to be cash flow positive.

[Anonymous]

Anonymous wrote:

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?

I don't hold 22 properties. I've bought, rented, flipped 22 over the years, including a multi unit property that I count as 1. I hold 3 right now and am always actively looking to buy.

Filthy rich? No, but I've made 7 figures profit over the years On a low 6 figure middle management salary. I purchased a property South Florida in cash when that crashed and is pure positive cash flow. I will move into that at retirement and will dump my primary home for cash, probably bringing in another 7 figures.

Don't worry about me. I'm doing fine. I've been doing spectacularly since 1998 when I started playing this game at 25. Are you implying that the stock market is somehow safer? That's a good one! However I did snap up some good investments back in 2008 that has served me well. However I just play in that. Too risky for me. I do max out 401k though, which will be nice pocket change

[Anonymous]

I don't live there, but I drive past H and Rhode Island numerous times a week, and I have to admit, it's just a shit show down there - I'd rather be on rhode island where people actually look like they're heading some place. Morning, noon and night there's a drunk slow-walk/rambling across H street during a green light. (Thus, the idiocy if the damn street car, but I digress.)

That stated, I'd still buy a house there as an investment if i could afford it. It's not going to become less desirable any time soon OP, so no worries. When houses in TRINIDAD are going for $500-$600 and higher, those folks aren't going to have anywhere left to stumble back to in a decade. You're set.

[Anonymous]

Anonymous wrote:Op here. A lot of food for thought here. Piti will be around $3k a month. Rentable for $3300 in my opinion when I move out in 2 years. Once I put work in and make the basement legally rentable, I expect to be cash flow positive.

Hope you did your sure diligence on requirements for basement rentals and you're taking repair costs into account for your cash flow calculations. Don't forget that taxes and insurance will go up once the property isn't owned occupied.