Updated over 4 years ago on . Most recent reply
Best Area of DC for a $650,000 Budget
DC BP Community,
I'm looking to gain some knowledge of the market here. I am helping somebody else gather info to purchase their first SF home. House hacking is maybe on the table here. Everything I see from the outside looking in appears to be incredibly expensive. I'm not sure right now is the best time to be sinking 100's of thousands of dollars into non-incoming producing RE. The market appears to be at a peak. How cyclical is the DC market? Is it worth it to sit out and wait for better buying opportunities? Hope to get a lively discussion going and see what everyone is thinking.
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You can find row houses in solid areas for that price point and even some detached single families farther out from downtown. It’s almost too broad of a question because I think it matters more where the person wants to live, and then back tracking house hacking numbers (roommates + basement) to see if the numbers check out. I would target a row house that has 3 bedrooms upstairs (ideally 4 or the possibility to add a fourth) then a close to or already legal basement. Then there’s three rentable rooms upstairs with roommates (700 - 1000 each room) then a separate 1200 - 1500 from the basement. The numbers more than pencil out for a house hack then. Something like this property https://www.homesnap.com/DC/Wa..
In regards to the cyclical nature of real estate prices, there’s a notion of the dmv being recession proof, which has components of truth. Yet this chart shows a not insignificant dip in median housing price after 08.. then a fairy sharp and quick recovery. Persistent low inventory coupled with high demand for the area is driving continued rising prices. How that plays out in the face of an economic crisis is up for debate.
