All Forum Posts by: Chris K.

It's right off 14th Street NW, near the intersection of 15th and T.

It's a 2 BR, 1 bath, 1 den Rowhouse from the 1850s. I paid $735k for it in 2007, and put about 50k in renovations into it over my eight years in DC, so my cost basis is about 785k. It is financed with a 30-year fixed rate mortgage at 3.75%, and I owe 530k on it, and PITI is $3100/month. I have great tenants who pay 3550/month, and -- because I am no longer local and I do not have a reliable handyman -- I cough up the $50/month for American Home Shield's home warranty (I'm ashamed, I know). So, with 3550 - 3100 - 50, I cash flow about $400 per month. During my first year of being a landlord, I feel like everything broke, and I either fixed it or replaced it knew, including a $5,500 hit for a new HVAC, so I'm finally starting to build a decent reserve and haven't received a phone call in months (fingers crossed). For every month that the tenants live there, they pay down the mortgage about $1,000. The house is now worth about 850k, ish, give or take..

Thank you for your thoughtful reply.  You clearly know the area as well, and it's good to know that is the reality with the DC area.  Yes, the house is brick, with a small yard, and very easy maintenance.  My only thought on appreciation was -- prices are already so high -- could they really go much higher?  But, as you seem to suggest, that's just one thing to consider in the entire package with cashflow and paying down the mortgage.

@Aaron Howell:  I really hope you are right.  That's where I have been looking, but I haven't seen anything appealing yet.  There was one 3-4 unit multi-family near UVA earlier this year for near 800, but I didn't want my first attempt in the Charlottesville scene to be quite so big.

Yes, my mortgage is with Wells Fargo, and they said they would give me an ELOC (not a HELOC, since I don't live in it) where the rates would be about 1% higher than traditional HELOC since I don't live in the property anymore. That was another option I was kicking around . . .

Simon, thank you for the advice.  I had seen the 2% rule, and if I ever came across anything close to that I'd hop on that fast.  I'll grind it out to see what I can find . . .

Thank you for responding.  The cross-streets are 15th and T, and 16th and T, NW.

Thanks Simon.   If I sell it, do you have any suggestions on what type of return I should be looking for?  Sometimes, I see people discussing properties that rent for $1000/month that can be bought for 60 or 70k.  If I had those opportunities, I would've sold it months ago, but but those properties just don't exist in the Charlottesville market. 

I need some help on this one.

In September 2014, I moved from Washington, D.C. to Charlottesville, Virginia. In DC, I lived in a smallish 2 BR, 1 bath, 1 den Rowhouse from the 1850s, right in the heart of the city. Consistent with DC prices, I paid $735k for it in 2007, and put about 50k in renovations into it over my eight years in DC, so my cost basis is about 785k. It is financed with a 30-year fixed rate mortgage at 3.75%, and I owe 530k on it, and PITI is $3100/month.

When I moved to Charlottesville, I found some wonderful tenants for my house in DC, and I became a landlord.  The tenants have been, and continue to be wonderful.  They just told me that they would like to renew for another one-year leas, but I expect that, after the next year, they will likely move from DC, so I will have to make a decision on whether to sell or to find new tenants.  The house is in a very desirable location, walking distance to bars, restaurants, public transit, etc -- so I do not expect vacancies or finding great, reliable tenants to be an issue.  The issue is whether the numbers justify keeping this as a rental. 

And with that, Here are the numbers.

The property currently rents for 3550/month, and -- because I am not local and I do not have a reliable handyman -- I cough up the $50/month for American Home Shield's home warranty (I'm ashamed, I know).  So, with 3550 - 3100 - 50, I cash flow about $400 per month.  During my first year of being a landlord, I feel like everything broke, and I either fixed it or replaced it knew, including a $5,500 hit for a new HVAC, so I'm finally starting to build a decent reserve and haven't received a phone call in months (fingers crossed).  For every month that the tenants live there, they pay down the mortgage about $1,000. The house is now worth about 850k.

So, my bottom line question is -- when these tenants leave, should I dump this property and find others to reinvest?  I have a lot of equity tied up in this, and I don't really know if my return is all that great.  On hand, after the next year's lease is up, I'd like to sell it and use that money to buy a few properties here in Charlottesville, which is closer to home.  On the other hand, this is my only rental property, and I must confess I'm not entirely skilled at finding new deals (which is why I'm trying to learn) and I'm not really seeing any in Charlottesville that I'm dying to jump on at the moment.

Any thoughts? Advice?  What would you do in my shoes?  Dump it?  Keep it?

Hello everyone:

I'm Chris, and I moved from DC to Charlottesville about a year ago, for greener pastures and a little bit slower pace of living.  When I left DC, I rented my townhouse, which is in the center of the city, and have been renting it for the past 15 months now.  This is my first rental property, and I have already had a lot of hard learned lessons!  I'm now coming to a crossroads, trying to decide whether to unload the DC property and whether to invest in the real estate a little closer to my current home.

I'm really interested in learning people's thoughts on whether my current rental property is returning a decent enough return where I should continue to hold onto it.  I'm also interested in how to identify good investment properties here in Charlottesville, which I have already had challenges with.  After that, probably like most of you, just trying to learn a little bit more before making the next move!

I look forward to chatting with all of you.

Chris