DC Buyer: The Downtown Working Couple Expecting Their First Child

• January 27th 2010

by Martin Smith

DC Buyer is a series on UrbanTurf where we look at buyers from various demographics and provide available housing options for them in the current DC market. After presenting some choices, we will ask readers to help them make their choice.

This week, we look at Bill, 37, and Michelle, 35, a couple who just found out they are expecting their first child. Bill is an attorney in Farragut North who earns about $95,000 per year. His FICO score isn’t great (695), and his monthly debt comes to about $1,500 a month.

Michelle is a budget analyst at the Navy Yard, earning $72,000. She is no longer saddled with student loan debt, but has about $1,000 in monthly credit card and car debt. She’s been much better in managing her finances than Bill, which is illustrated by her 764 FICO score.

From savings of $35,000 and the $115,000 that they will make off the sale of their condo, Bill and Michelle can contribute about $150,000 toward a down payment, although they may instead choose to put some of that money toward renovations before they move in. Since they are planning to have a second child, Bill and Michelle want a three-bedroom property with at least two bathrooms. They aren’t opposed to doing some renovations to get the right space, as long as the price reflects what needs to be done. They are also hopeful to get at least one off-street parking space. The properties that they are going to be looking at are in the $525,000 to $575,000 range, with the upper price point being a stretch for them.

The first property that we found that fits Bill and Michelle’s criteria is a four-bedroom, two-and-a-half bath townhouse at 43 Seaton Place NW in Eckington. While it isn’t in their first-choice neighborhood, at $550,000 the price is almost perfect, and the home hits a number of items on their checklist. The interior has been renovated, it has parking in the back, and there is an extra bedroom even after their second child is born. An added bonus: no condo fees. The only downside from their standpoint is that the washer/dryer is in the kitchen.

The second possible property is a two-level, three-bedroom condo in Columbia Heights at 3219 11th Street NW for $579,000. It is a little more than what they want to spend, but it is a beautiful, new rehab project in a good area. There is only one other unit in the building, and the condo features a roof deck with views of the city. The downside is that it does not come with parking. Given the proximity to the Metro, however, they could sell one of their cars.

The final property they are considering is 525 U Street NW in LeDroit Park. This three-bedroom, two-and-a-half bath property was built eight years ago, and is now on the market for $549,000. The property offers large rooms and off-street parking, but the kitchen is not the upscale look Michelle was hoping for, so she would likely use some of her savings to upgrade the appliances. In addition, this home offers easy Metro access and a backyard, which Bill would like so the children will have a safe place to play.

Given these three choices, where should they put in their offer?

This article originally published at https://dc.urbanturf.com/articles/blog/dc_buyer_the_downtown_working_couple_expecting_their_first_child/1719.