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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP - do you have a tenant in the rental now? [/quote]

This is OP - my tenant just moved out.

And the $30k is for things like new paint. Tenant did some terrible paint jobs and yes, we are taking it out of security deposit, but it’s not enough to cover a full repainting. Obviously we fix things as they come up while we have tenants.[/quote]

If you are fixing things as they come up, you should never have a 30k outlay between tenants. Repainting, replacing carpet or treating hardwoods, replacing any worn-out appliances with renter-grade appliances, and maybe a few other odds and ends really should not be costing you more than maybe 10k and that's only with recent inflationary pricing and assuming a reasonably big row house.

We rent out a 2 bedroom, 1 bathroom row house (just 700 sq ft) and to do the above between tenants only costs around 2.5k, tops, and that's only if we don't do any of it ourselves and assuming a tenant who has been there a while (we don't do the floors or replace appliances unless we need to, we always repaint and get our handyman in there to fix any other issues). We also spend about $600/yr on regular maintenance now -- landscaping for the tiny front yard during warm months and annual maintenance of HVAC, washer/dryer, gutter and roof. Every few years we will also spend a bit more to make repairs to the back patio (replacing bricks, fixing any loose boards in the fence, etc.) and front walkway.

But this is all built into our budget. We bought this place for 300k back when you could do that in DC, we have a 30 yr mortgage that is really small. We rent out for $2200/mo and have been very fortunate with our tenants. We are clearing about 15k/yr right now plus the house has doubled in value since we bought it.

You need to do this math for yourself and figure out if it makes sense. If you are not local, you absolutely need a management company who can respond to urgent maintenance requests and look in on the property periodically. But just pencil it out and it should be fairly obvious whether it make sense to keep it or not.

Oh and also if you decide to keep it but are worried about getting a longterm tenant in there in case you want to sell it next year or the year after, I recommend seeing if you can get people people stationed in DC temporarily. Some realtors and management companies are known to work with foreign service and embassy workers, especially if the home is somewhere that is appealing to that population (mostly close in or nicer parts of NW or maybe Cap Hill/Navy Yard for some) so listing with one of them could help you get renters who are unlikely to stay more than a year or two. Bonus, these tend to be great renters who don't abuse the home and are receiving a housing stipend so you never have to worry about them missing rent or paying late, and they always use professional packers and movers who are easier to deal with.[/quote]

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