Reply to Where in VA to buy a starter townhouse to rent out in the future?

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[quote=Anonymous][quote=Anonymous]OP, I'm your future. Bought a 3 bedroom TH for $600k (now worth $800k) in walking distance of Vienna Metro in 2020 at 2.6% interest rate; we put down an extra large down payment and now monthly payments are super low so we could probably make much more renting it than the mortgage payments cost. Would love to move to a SFH and rent the TH out. But here's the thing: (1) we have small kids and moving would be super disruptive, (2) without selling the TH we probably cannot afford the down payment on a home that would be an upgrade. It's a tough situation.[/quote]

As you said, even in ideal situations (lots of appreciation and a 2.6% interest rate), it can be tough to make a rental profitable.   But, I just don't see anyone making a big profit renting out a place bought at 2025 prices and a 6-7% interest rate.  In my TH near the metro neighborhood, the PITI on new purchases is $1-2k higher than current rental rates on almost identical THs. Maybe someone could refinance if interest rates eventually go down and maybe rental rates increase enough that the math works out better, but it seems unlikely that these conditions occur in the next couple of years.[/quote]

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