Sell DC Rowhouse Now or Continue Holding?

10 Replies

Hi all,

My husband and I own a rowhouse in NoMa (between H Street NE and Union Market). It's appreciated quite a bit since we bought it in 2017. 

We currently have renters in the property, and we end up cashflowing only a very small amount after all of our expenses are paid.

Our renters' lease is up at the end of March, and we're trying to decide whether to continue to rent the property out or sell it now and redeploy the capital in properties elsewhere that cash flow better.

We now live in CA, so we don't have a great grasp of the current DC market.  

We'd greatly appreciate any insight into where you think the DC market currently is at and whether it makes sense to continue to hold the property in hopes of further appreciation.

Thank you!

Sheri

Thanks, Mike.  Good to know.

We renovated the house.  We renovated it to the level of more of a B+ class rental (with 5 bedrooms and 2 bathrooms) as opposed to a complete gut job.

Seems like you have a winner. Many people would love to own in that part of town. Things will keep appreciating and rents will go up. I can't think of a reason to sell unless you are losing. Also, how much money do you have tied up in it? If I were to sell I'd at least want to get back everything I put into it, then more! 

Thanks, Mark and Russell.  It does fall in the area you mentioned, Russell.  

We have well into the six figures tied up in the property, which is part of the reason we've debated whether to sell now given our cash on cash return is very low.  It sounds like the submarket has room to run, though.  
 

What is the zoning?  My group is doing a 14 unit condo conversion in Trinidad.  It would depend on whether you would prefer to cash out now.  There is virtually no supply in the market and it would sell fast.  That area is going crazy.