Update on DINKs Real Estate

by Dual Income No Kids on March 11, 2010 · 12 comments

Hey Folks,

So, last week we mentioned that we were buying another investment apartment in DC. Well, after some going back and forth between the agents involved, ourselves and the seller, we eventually settled on a price of $182,000.

The deal isn’t closed yet. In fact there are several things that still need to be wrapped up. For example, we are still waiting for the bank – we are going with BB&T – to approve lending for that particular building. We also need to arrange an inspection and a few other last minute items.

The building doesn’t look like much from this shot, but the neighborhood is really very good and the apartment is close to transportation, food and nightlife.

Now, a key question you might be wondering is: does buying this place make sense? After taxes we should be making about as much as our stocks are paying us. It will also heavily weigh our portfolio towards investment real estate in Washington DC. as doing the deal will draw most of our stocks and available cash. These factors are hard to quantify, but my sense is the property would be neutral in terms of our cash flow and overall net worth growth.

So, if it won’t substantially juice the bottom line, why do it?

First, for my part, the decision is essentially emotional. When you get married and you choose to integrate your finances as much as we have, you find that sometimes your partner has de facto veto power. Its harder to move forward on complex projects if your partner isn’t interested or doesn’t “buy in” – they can just sabotage the processes via inaction. So I’ve been wanting to get more real estate for a while, and this is the first time my wife has been really committed to the idea.

Second, I love owning property and having people pay me a rent check. For some reason, this is tremendously gratifying to me. I also like the satisfaction from knowing that I am providing someone value. So, from my standpoint the reasons to get the place are emotionally driven: I find getting paid and running a business to be ego reaffirming.



Get Your FREE Ebook


DINKS (Dual Income No Kids) Finance focuses on personal finance for couples. While by no means financial experts, we strive to provide readers with new, innovative ways of thinking about finance. Sign up now to get our ebook, "Making Money Tips for Couples" FREE.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

{ 12 comments… read them below or add one }

1 ktoth04 March 11, 2010 at 10:48 am

What kind of building is it? One residence or multiple?

2 Dual Income No Kids March 11, 2010 at 12:51 pm

Hi Ktoth,

Its a multiple residential building. There are 7 units in the place.



3 ktoth04 March 11, 2010 at 1:09 pm

Awesome, when you are looking for tenants, will you be posting? I have a friend who is looking for a place in the DC area this summer. He rented a condo, but the owner wants to move back in.

4 Dual Income No Kids March 11, 2010 at 2:27 pm


Hard to say. The closing date is somewhat in flux.

5 CD Rates Finder March 11, 2010 at 4:41 pm

that's pretty cool – good luck on the apartment building :)

6 David Carlson March 11, 2010 at 10:30 pm

Hey James,

I hear you about finding satisfaction in getting that rent check. I think I will also find that satisfaction when I invest in my first real estate rental property. I think the reason for it is because we feel like we are "doing something" proactive about wealth building. We read books and articles and learn from those who have become financially independent, and we realize that almost always it comes with OWNERSHIP. Owning your rental property is, at least subconsciously, fulfilling that.

What do you think? Agree, disagree?


7 Dual Income No Kids March 11, 2010 at 10:50 pm


I agree 100%. Its very gratifying to have the security that comes along with ownership in addition to feeling like ones ego gets pumped up a bit.


8 David Carlson March 12, 2010 at 12:00 am

Cool just as I thought. Great minds think alike ;)

9 Anonymous March 12, 2010 at 5:13 am


I take your point. But I wonder… does this give you more satisfaction than collecting monthly dividends? If so, why? Is it because you can own a whole apartment whereas you own only the tiniest fraction of a dividend-paying company? Or is it because you can actually *see* the apartment, meet the tenants, etc.? You mention it's psychological.

10 mapgirl March 12, 2010 at 12:49 pm

Tell ktoth I'm looking for a renter now for my studio in Arlington. :-)

11 Dual Income No Kids March 12, 2010 at 11:49 pm


Don't get me wrong, I like owning stocks as well. But its like you said there is a tangible aspect to owning real estate (houses, land, etc) that I do appreciate.



12 youngandthrifty March 13, 2010 at 1:20 am

very very true re: inaction on one partner (I think that would be me)

My boyfriend and I are in disagreement right now about where to buy a place, how much each one of us pays etc etc.

Leave a Comment

Previous post:

Next post: