It was the picture of the rooftop deck that first caught my eye. When I looked at the listing and found out that it was a private deck that came with the condo unit, I got really intrigued. And as I further explored the pictures and specifications, I said to myself, "This could be the one."
Yesterday, I closed on the unit, which is located in the Adams Morgan neighborhood of Washington DC. That's right: I own a piece of real estate in our nation's capital.
It is a very small piece. Clocking in at 340 square feet, I believe it is smaller in its entirety than single rooms in my house. But those tiny dimensions work in my favor. Let me explain.
Actually, let me take a step back. I've been scoping out real estate in DC for a little bit now. As with our condo on the Delaware River waterfront here in Philadelphia, I had a long buying period to work with. Actually, way longer.
In the case of our Philly condo, I started looking in 2018, hoping to have something locked down by 2029 when we would be wanting to downsize from our huge University City rowhouse, since two of our three kids would have left the nest and Asher would be in high school (by which time the locational advantage of being able to go to our great neighborhood K-8 school would no longer be needed).
Eleven years is a long window, affording me a huge negotiating advantage in waiting for the right buying opportunity. I lucked into a great unit at a great price barely a year later, in 2019, and while I've had some hiccups, I've been able to rent it out more often than not and hope to continue to do so for the next now eight years before we move there full-time.
In the case of DC, it is one of three or four cities around the country (I'll reveal the others later) that I could see Amy and me living there a month a year during the summer, and rent it out the rest of the year, as well as have the option to retire there full-time at some point. We adore puttering around the nation's capital - in fact, we'll be there later this year for a kids-free long weekend - so it is worth something to us to have a place to stay, and have it as a year-round retirement option.
Of course, it'll be many years until we can just pick up and live there for a month at a time. Sixteen years to be exact, which is how long it'll take for Asher to graduate from college and be out on his own. And so with my first condo purchase, I had an 11-year window to buy; with DC, it was even longer!
But back to the unit in question. It checked all the boxes, in terms of price, quality, and wow appeal. My Redfin alert was set for this general area, due to proximity to multiple Metro stops, a really great YMCA branch, and the National Zoo. I have much more to learn about Adams Morgan, but from what I've read and seen, it's appealing: an interesting history, relatively diverse for DC, and with a vibrant mix of retail corridors and park space.
Importantly, since we won't be using the unit ourselves for a very long time, and even then it'll only be a month a year, it had to be easily rentable. I ran the number every which way and pored over rental comps for weeks, finally convincing myself that DC is a great place for rentals and this unit will do well on the market. After all, there will always be an endless stream of college students, young professionals/couples, and corporations that need a tiny place in DC that's close to public transit, the White House, and K Street. My realtor in DC confirmed this by putting it this way: lots of folks just need a place to sleep, store their clothes, and eat take-out food.
But 340 square feet is awfully tight. Which is why the private rooftop deck is so clutch. Everybody needs some elbow room to take in some fresh air, spend a lazy weekend afternoon, and entertain guests over a grill. This unit allows that. I'm even throwing in a big fat gift card to the local grocery store (which is literally across the street from the unit, another major selling point for Amy and me) for each incoming tenant, to help people envision buying some steaks and wine for a little rooftop party.
I'm big on views, so besides the private space and fresh air, it had to check that box. So I was delighted to hear my realtor say that you can see the Washington Monument, and that that same viewshed will be amazing every time the city does fireworks shows. Nice.
Other than that, folks don't need more space, since they'll be spending the bulk of their waking hours at work/school or out and about in bars, libraries, or business events. Same with Amy and me, when we're staying there. Indeed, having a small space is a little bit of life hack for me, because it forces a more minimalist approach to possessions, which I'm looking forward to since our current situation involves worrying about a big house and three kids at different stages of life.
The small size works in my favor in another way, which is financial. The purchase price was comfortably in the range of what I'd budgeted for my DC pursuit. It also lowers the monthly condo fee and annual property tax bill, making the numbers work in just about every scenario I tested.
After looking at the photos a zillion times and attending two Zoom tours through my realtor (first to see the unit and then to tag along for the home inspection), it was nice to actually go there for the day-before walk-through. The building is 100 years old but everything was renovated about five years ago, so it's nice to own something where all the systems and appliances are in great shape and will be relatively easy to take care of. (I'll also hire a property management company to handle tenant issues, keep tabs on maintenance, and deal with anything else on-site.)
I'm bringing the whole family out over the upcoming holiday so they can see the unit too, although I suspect the bulk of the time they'll be up on the rooftop taking in the views. I don't blame them, since that's what first drew me to the place. Stoked to be a property owner in our nation's capital. Bring on the tenants!
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