Reply to Looking to buy SFH in Fairfax. Is it a good investment

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Let's see now...
Rent for 2 years @ $3000/month = $72000
Rent for 5 years @ $3000/month = $180,000

I'm sorry but I would rather buy a house, build equity and then sell it.[/quote]

A 3k rental is not the same property as a 600k property

You can rent the property annually, or you can rent the money and sign up for 30 yrs

Interest and taxes alone for first year probably 25k and you are a vulnerable short term investor in this scenario.  Just gambling to try and save 180k (rent) - 120k (interest + property tax) = 60 k.  With the crappy homes 600k will buy you, 60k in repairs over 5 years would be easy to rack up.  Granted tax deduction helps, as long as not repealed and you avoid AMT. but if market here wobbles from sequester or rising rates, your limited time horizon leaves you exposed.

End of day, in DC real estate 180k is peanuts; you have to be committed to the long term to be safer. That said, if have the cash flow and resources, keeping as rental could be option. But I have any friends who ate cash flow negative on their properties so you better be able to bridge that if you go that route. [/quote]

I just left the DC area after 5 years. Spent $800,000+ on a house we bought at the top of the market. Easily put $60,000+ plus into it. Sold it for about $10,000 less than we paid. With the realtor's commission, we lost close to $100,000 overall. It would have been much better for us to rent. Of course, we had thought we were staying for longer than 5 years. But given your budget and time frame, I would rent.[/quote]
We did the same. $100K just to make it livable. The value did not go up that much. Maybe $30K. so out $70K plus cost of selling.[/quote]

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