Sell in Shaw to reinvest elsewhere??

Question

Hi everyone. I have a townhouse in Shaw worth close to 700k which I bought for 200k after the recession. On the one hand, I love the idea of selling it to use the profit to reinvest perhaps in cheaper markets elsewhere in the country. On the other, I wonder if my place's proximity to the yellow line - a 10 minute walk - and hence to the new Amazon H2Q will cause the value to explode in coming years. I have no tenants at the moment, and with Airbnb more restricted, it's a tempting time to sell considering my overhead with keeping the house. I would love your sage advice.

Russell Brazil · Answer

What cross streets are you at? What type of rowhouse?

Funny enough I was just talking with another client about whether to keep or sell their Shaw property. He was pretty intent in selling, but I said Id personally keep the property. I think we are going to end up selling it. I was also recently trying to talk my wife to moving back down that way to 9th and U, but I couldnt get her to agree.

Shadonna N. · Answer

@Joe Leahy that is a good location.  I say pull some cash off and get in a cheaper location and rent.  Consider using a service that will guarantee tenants and maintenance like Bungalow or Zeus.  You can also do a traveling nurse where you sign a lease longer than airBnB and shorter than a year.  That could be part of your retirement.  Amazon is going to have a huge impact to the area, all industries.  There is also another big project on the horizon.

Russell Brazil · Answer

2 BRs and not 2 full baths is always going to be a harder sell due to a smaller pool of buyers. Same thing goes for the rent. If it was 3 BR and 2 ba, Id say absolutely keep. But a 2/1.5, Id considered selling if there were better opportunities.

Joe Leahy · Answer

Thank you, Ron, for your feedback. I'm considering that option as well.

Hey Russell, The house is between 4th and R and 4th and Q - technically Truxton Circle but just on the Shaw border. It's a 2 bed/1.5 bath, 904 sq ft center-ish rowhouse, renovated in 2009 but I'm doing some cosmetic improvements right now. Happy to show it to you if you're in the area. What's your take on the potential Amazon effect to Shaw? or Shaw's direction in general?

Ron Gallagher · Answer

I would keep it and do a cash out refi now that rates are super low and tap into the equity that way. Take the proceeds from your cash out refi to invest in other deals. Shaw will continue to appreciate since it is so close to downtown DC and rents in Shaw are strong.  I saw one report about a year ago that listed rents in Shaw at the highest for any neighborhood in DC, even above Georgetown.

Sell in Shaw to reinvest elsewhere??

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