I have loved renting in DC. I could go on and on about how much I love my studio, neighborhood, and property manager (WC Smith.) I don’t love that my rent rivals a substantial mortgage payment. Buying a place is a big decision but building equity and making a good investment is one of the smartest things you can do, especially when young. Luckily there are great tools and programs out there to help make the decision. Check out New York Time’s rent vs. buy calculator. If you feel ready to make the jump, read up on DC’s Open Doors program. If you qualify, DC will help pay your down payment. Crazy, I know. The more I learn, the more I want to get a piece of DC real estate. As I shop for myself, I will pass on good deals to EBDC readers. Happy hunting.
What makes it great: This house has been on my mind. I have even gone and looked at it personally. It has that “beat the system potential.” Finding a place like this can cut your housing expenses way down, if you have the right imagination. Though advertised as a two bedroom, two bathroom, this place has potential for a third bedroom. A savvy buyer will recognize that the basement is the perfect third bedroom– fully equipped with a full bathroom, closet, and separate entrance. The only downside is that the washer and dryer is also in the basement. The house is only a 10 minute walk from the metro, has outdoor space in the front and back, and has been beautifully rehabbed from top to bottom.
Here is the math: With 10% down and a 4.25% interest rate over 30 years, your payment would be about $2100. After factoring in utilities, taxes, and insurance, you would still be below $3000 a month– before the tax benefits kick in.
If you have some money saved up, two friends, and want to pay less than $1000 a month in rent, this is the way to do it.
