Buying DC condo as investment

[Anonymous]

We have a small rowhouse in NW and it has been a dream to rent. 8 years--2 tenants. They actually improved the property. We rent thru craiglist. We handle everything ourselves.

It will be paid off by the time my kids reach HS. We are only 2 miles away so if there is an emergency we can handle it or a really great contractor will get over there for us. We haven't had anything pressing yet.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think a duplex in DC is a better investment. Of course if you know you are likely to live there in the future and that your kids can live there it could be smart as a retirement plan (particularly if you have the cash flow to operate at a small loss or low profit margin in the short term). If you are local I would advise against using property management (DIY with a good handyman instead) so that you have more control over tenant selection and because it seriously eats into your profit. I have been a DC landlord for 6 yrs btw. If you pick good tenants (employed, semi decent cleaning ethic), rent at a decent price, and don't make the mistake of sinking too much money into your rental, you can make money.

"don't make the mistake of sinking too much money into your rental"
what do you mean by this?
putting too much down?
or renovating toomuch?

Putting in a fancy kitchen, fancy floors, etc that aren't worth the return on investment. Say for example you spend $15K renovating a U st 1 bed property that now pulls $2500/mo. Prior to renovation, you got $1900/mo. You will need to rent the apartment for 25 mo before you get any return on your renovation. There is something to be said for keeping it simple and functional.

[Anonymous]

Many of the units in SW are coops which have restrictions on investors. But I think there might be investment potential in some of those little townhouses off S. Capitol, on the SW side, near the ballpark. They're more in the mid 300s but I think you can rent them to groups of students and such and I think that area will apprecriate even if it is a bit sketchier than the parts of SW over by the waterfront metro station and the nicer condo/coop complexes.

[Anonymous]

Anonymous wrote:If you are only slightly interested I wouldn't do it. Being a landlord in DC is a job that carries some serious risk. You will need a basic business license, rent control exemption documentation and schedule and be present for a housing code inspection. Even with everything on the up and up, you can still get a bad tenant that decides not to pay and it will take you 6 months in landlord tenant court to get him or her evicted. Not to mention all of your legal fees. DC is very tenant friendly whether they are paying or not.

Not really. We have had a rental property for the past 6 years with a great tenant. We do not have a business license or any of the things you speak of and had absolutely not problem.

[Anonymous]

VA is by far better for landlords than DC or MD

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you are only slightly interested I wouldn't do it. Being a landlord in DC is a job that carries some serious risk. You will need a basic business license, rent control exemption documentation and schedule and be present for a housing code inspection. Even with everything on the up and up, you can still get a bad tenant that decides not to pay and it will take you 6 months in landlord tenant court to get him or her evicted. Not to mention all of your legal fees. DC is very tenant friendly whether they are paying or not.

Not really. We have had a rental property for the past 6 years with a great tenant. We do not have a business license or any of the things you speak of and had absolutely not problem.

For what it's worth, you are legally required to get a basic business license and the other documents mentioned and to file an annual D-30 tax form with the DC government. Whether you comply or not, of course, is up to you.

[Anonymous]

I am thinking of buying a condo in dc. I would live there but might rent it out down the road.

I have enough to pay cash. Is there any reason why this is a bad idea? D you pay more in taxes on the rental income if it is paid off, for ex?

[Anonymous]

It's only a bad idea because you're tying up a lot of money in an illiquid asset, and the long-term gains of the money you could keep in the market could potentially exceed the appreciation of the property. Taxes don't really come into play since you don't get the mortgage deduction for an investment property.

[Anonymous]

Anonymous wrote:We have two and use property managers and 'rent jiffy" for licenses etc. Have not had any issues so far....one property is short-term rentals and the other is long term.

+1 re rent jiffy and property managers....