Client Success Story: DC Primary Purchase Now a Great Rental

[Cassidy Burns]

Hey BP,

Wanted to share a client success story for individuals that think its hard / impossible to purchase rentals in the expensive coastal markets.  

Client purchased a 2 bed/ 2 bath condo in Washington DC (Brookland Subdivision ) early 2019 for $535,000 w/ all closing costs covered.   She wanted to bring 10% down ($53,500) to keep her monthly payment where she wanted while she was living there.  She lived in it for 8 months and then was offered her dream job in Miami FL (her hometown) .  She took the job, moved to Miami, let her friends live in the condo for a while at cost , and now today we just signed a 12 month lease for a long term tenant.

Mortgage: $2,650/month (PITI + Condo Fee)

Rent: $2,750/month + $50 pet fee = $2,800 total

She is "cash flowing" $150/month and has a friend taking care of any maintenance.  

Because she knew the rents going in, even though life took a turn for her, she was able to keep the asset, break even and make a little cash flow (yes I know this isn't factoring maintenance/ expenses) and continue to enjoy the appreciation and equity pay down of the DC market.

Because this is a BRAND NEW construction condo, her maintenance and expenses are expected to be extremely low.

Is this a homerun? NO

But since she new the rents going into the purchase, it is a manageable asset that she will hold for the long term.

Cheers,