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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I think it's hard to make a good profit on rentals in DC. Real estate is expensive and I do think people lose money more often than they're willing to admit, or at least they don't make the return you'd expect given the aggravation.[/quote]

I inherited some rental real estate in an expensive real estate market with high taxes.  After doing the math on maintenance, depreciation, etc, I decided I was much better off investing the money elsewhere.  And that's not even considering the hassles of dealing with it and what my time is worth. As others have noted, it can be a good deal if you buy in a market that is appreciating rapidly and leverage your equity and have someone else pay off your mortgage. This is what my relative did, and it was an awesome strategy for them.  But I think as a place to park your equity, it's often not a great deal.  [/quote]

This is what we did. We bought a two-family house in a gentrifying neighborhood at the bottom of the last housing bust. We rent out the top floor for $1485 and live in the other two floors. Our P&I is $1500; with taxes and insurance it totals @ $1900. So our tenant is paying our mortgage. But this only worked because we bought when prices were way down and nobody wanted to buy.[/quote]

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