Thoughts on spending $200k for a 1 bedroom condo in DC

[Jessica Bobo]

Hi All. This is my first time posting here, but I read often. I live in DC and own 2 properties. One is a SFH that I use as my primary residence (about $200k in equity) and a 2/1 condo that I rent out for about $600/mo income after mortgage and taxes etc. I used some of the equity from my SFH to make the down payment on the condo (the $600 includes me paying myself back).

I recently came across a 1/1 condo near capital hill. It's $195k which is really low for the neighborhood. I can expect to get between 2,200 and 2,500 per month in rent. I'll be using some equity for the down payment if I move forward. But my question is, is it unwise to spend so much on one unit? My first investment property was $130k. But numbers that low are very hard to find in DC. I don't invest in MD or VA and don't really have a desire to. I would consider out of state but have been apprehensive. Just want to hear from some seasoned investors.

Thanks!

[Russell Brazil]

@Jessica Bobo

That seems like an unusually good price for capital hill. So either its the deal of the century, or there is a big problem that isnt that apparent.

[Account Closed]

Originally posted by @Jessica Bobo:

Hi All. This is my first time posting here, but I read often. I live in DC and own 2 properties. One is a SFH that I use as my primary residence (about $200k in equity) and a 2/1 condo that I rent out for about $600/mo income after mortgage and taxes etc. I used some of the equity from my SFH to make the down payment on the condo (the $600 includes me paying myself back).

I recently came across a 1/1 condo near capital hill. It's $195k which is really low for the neighborhood. I can expect to get between 2,200 and 2,500 per month in rent. I'll be using some equity for the down payment if I move forward. But my question is, is it unwise to spend so much on one unit? My first investment property was $130k. But numbers that low are very hard to find in DC. I don't invest in MD or VA and don't really have a desire to. I would consider out of state but have been apprehensive. Just want to hear from some seasoned investors.

Thanks!

 Yea, great place to invest, do it.

[Jessica Bobo]

@Russell Brazil that’s what I’m afraid of! The unit got stale and hadn’t had any offers so there’s been no diligence done. A quick check of property tax records show that most of the owners have held the units for 15 or more years so I will have to see what’s in the condo docs to know for sure. In terms of the building/unit, all seems in working order. The $195k is where we landed after negotiations. The listing was stale so I decided to take a long shot and go in very low. Not as low as I wanted, but I like the price. Just didn’t know if it was too much on one door from a practical perspective.

Thanks for replying!

[Jessica Bobo]

@Jason Allen thanks for responding!!