Just bought a rowhouse on H Street

[Anonymous]

Anonymous wrote:I bought on the Hill 2.5 years ago and still have buyers remorse, the house is old and everything we thought we could improve over time is ridiculously expensive. I can only hope to make it another 2.5 years there before we sell. While the neighborhood is awesome and we are zoned to a decent school, these old rowhouses are money pits. GL, I am sure it will work out for you since there is a strong rental market.

Are you me?? Same exact situation. The house is a money pit, and we'll never have enough to make even basic cosmetic repairs or even get a new couch! All the money has to go to keeping the major systems going. On the other hand, it's awesome to have a good elementary school in bounds, and I'm pretty sure the house is a good investment and will appreciate well as long as we can keep it standing. But, if we wanted to give up on things, no way would I rent the house out. It's just too finicky and I would not want to be responsible for the emergency call when the heat goes out during the next Polar vortex (which happened to us both this winter and last). I'd just cash out and let someone who can afford to gut rehab buy it from us. Luckily we bought at a low enough price point, and are zoned for a good enough school, that I think there will be multiple interested buyers for whom that would be attractive.

[Anonymous]

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Anonymous wrote:You made the wrong decision OP. Sell at a loss to someone who appreciates the neighborhood.

Maybe a former 8 and H street gang member would be interested.

Are they also eager to shop at Whole Foods?

The H Street Connection strip mall is getting a redo as well.

http://districtsource.com/2014/11/rappaport-expects-h-street-connection-redevelopment-2016/

Oh wow, cool! Any guesses on what retail would be there? I would love a grocery store, but that seems unlikely with Giant and WF already down the street.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You made the wrong decision OP. Sell at a loss to someone who appreciates the neighborhood.

Maybe a former 8 and H street gang member would be interested.

Are they also eager to shop at Whole Foods?

The H Street Connection strip mall is getting a redo as well.

http://districtsource.com/2014/11/rappaport-expects-h-street-connection-redevelo

Oh wow, cool! Any guesses on what retail would be there? I would love a grocery store, but that seems unlikely with Giant and WF already down the street.

Would love a Trader Joe's. Dreaming of a Nandos. When will we get a Politics and Prose or a Busboys and Poets?

[Anonymous]

A friend bought in Navy Yard in 2009. Back then it was one of a free homes near the metro and a bunch of surrounding Emory lots used for parking at the stadium. Now they're surrounded by brand new homes and some nice restaurants, shopping, mixed use buildings, etc. They will make some nice change when they decide to sell.

[Anonymous]

Anonymous wrote:A friend bought in Navy Yard in 2009. Back then it was one of a few homes near the metro and a bunch of surrounding empty lots used for parking at the stadium. Now they're surrounded by brand new homes and some nice restaurants, shopping, mixed use buildings, etc. They will make some nice change when they decide to sell.

Pp here. Didn't proofread before submitting, oops!

[Anonymous]

http://www.popville.com/2015/08/more-signs-of-the-streetcar-starting-soon/

Resurrecting this.

Not the OP but live off of H in Carver. Should the streetcar ever open, will we see appreciation? Or are our homes already inflated due to streetcar dreams?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You made the wrong decision OP. Sell at a loss to someone who appreciates the neighborhood.

Maybe a former 8 and H street gang member would be interested.

Are they also eager to shop at Whole Foods?

The H Street Connection strip mall is getting a redo as well.

http://districtsource.com/2014/11/rappaport-expects-h-street-connection-redevelo

Oh wow, cool! Any guesses on what retail would be there? I would love a grocery store, but that seems unlikely with Giant and WF already down the street.

Would love a Trader Joe's. Dreaming of a Nandos. When will we get a Politics and Prose or a Busboys and Poets?

I heard there might be a Trader Joe's coming to the new Hine development.

[Anonymous]

Anonymous wrote:http://www.popville.com/2015/08/more-signs-of-the-streetcar-starting-soon/

Resurrecting this.

Not the OP but live off of H in Carver. Should the streetcar ever open, will we see appreciation? Or are our homes already inflated due to streetcar dreams?

Ugh, Carver Langston??? There's only so much upside when you're surrounded by THOUSANDS of low income units. Seriously, C-L is the worst of the worst this side of the Anacostia.
And yes, that streetcar swindle was priced in by realtors 5 years ago.

[Anonymous]

Anonymous wrote:Buying in Miner was kind of dumb if you have a kid! If you did not have a huge downpayment, you probably are not going to be able yo get a rent that equals your mortgage. Your best bet is to plan to do Miner for pre-k, or hope and pray for a good charter. You may have to plan on a long commute and just accept that you will be driving. Or see if there is any way you can afford private. You could also aim for Ludlow Taylor OOB, and apple tree.

In any event, you can probably count on a decent local option until K, at which point you may need to sell or go private.

I think if you manage to hold on to the house for at least 3 years you will be able to at least break even.

LT OOB will be a bit difficult. Didn't they have IB waitlists this year?

[Anonymous]

Michelle O was at Maketto!!!

[Anonymous]

Anonymous wrote:...and I am having massive buyer's remorse. I bought south of H, but not as close to Union station as I would have liked. I believed in the neighborhood, partly because of the streetcar, but the streetcar is now in jeopardy. In addition, there are over 1400 condos/apartment units coming to the area. I am convinced I overpaid. I bought with the idea that I would live in the rowhouse for two years than rent it out. Someone please tell me I made the right decision!

So are you renting it out? If so how much?

[Anonymous]

Anonymous wrote:Michelle O was at Maketto!!!

Yeah she was their supporting a DC native on his book release about growing up in DC. The author was also present at her teen summit for college kids a couple of weeks ago.

[Anonymous]

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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.

There is some serious sky is falling doom on this site. Back in 2005 when the market crashed, there were serious signs something was wrong: Friends were buying houses with zero down and fudging their mortgage applications - it was all standard stuff. The washington post wrote articles in every Sunday paper back then that there were major concerns about the long term stability of the market.

This seems very different. I have no idea what you are talking about when you say jobs are shrinking. Job numbers are going up very well - better than economists expected. Wage growth has stalled, except for "professionals" who have done well on wages even during the recession (i.e. the population buying in DC).

And the reality is that despite the massive housing crash in 2008, DC weathered it quite nicely with the best close-in neighborhoods seeing gains during that period. We sold a home in Columbia Heights bought at the peak and sold 7 years later for 35% appreciation. Nothing spectacular, but we walked away with a six-figure gain.

As others have said, these close-in neighborhoods that are designated as the next "it" location see prices only go up after thousands of condos are built (opposite of basic economic principles) because filling in empty lots with condos makes the neighborhood more valuable, even if the housing stock is watered down. Row houses are always a good bet in DC because of their limited stock. Streetcar was always a dumb idea and you won't be making any money off that either way at this point, but the neighborhood's appreciation is based on a lot more than that.

Buying a house has always had a risky element so OP may not end up making money. But history and caution suggests she will be fine, and will be financially better off than if she had spent $40k a year on rent for the next 3 years for a similar house.

The sputtering DC economy was discussed at length last month. http://fcnp.com/2014/12/17/federal-government-downsizing-sends-d-c-region-tailspining-fuller-reports/

Improving economics in rest of counteu actually hurt dc since the only real attraction is plentiful jobs; the high COL drives folks away of opportunities are elsewhere.

I am guessing the history you are referencing is te last 15 years in DC, which was a result of the wartime booms and flight to safety during financial crisis. The future will likely be different. And more condos don't always improve value, that is ludicrous. Huge swatches of FL would suggest otherwise. OP may be better off then renting assuming no near term crash, but she will be cash flow negative on just mortgage payment (not even considering taxes, maintenance, and vacancy) on an old house in DC (very landlord unfriendly); she would have been better off buying a home she planned to live in for the long term instead of taking a novice whack at Real Estate speculation.

[Anonymous]

OP here. Surprised to see the thread alive again
Well, I moved in and am enjoying the house. I have been fixing the roof and the AC, taken up gardening, repainted interior.
So far so good.

I still plan on renting it out in 2-3 years. Rental market in the area is crazy!

[Anonymous]

Anonymous wrote:OP here. Surprised to see the thread alive again
Well, I moved in and am enjoying the house. I have been fixing the roof and the AC, taken up gardening, repainted interior.
So far so good.

I still plan on renting it out in 2-3 years. Rental market in the area is crazy!

did you do a full redo of your hvac? if so, how much? we bought a flipped house south of H as well and it turns out they put in the wrong size ac compressor fan thing. it's for basically a one bedroom apt and obviously won't cool down two floors. we may need to buy a whole new more powerful compressor and internal blower unit.