The lovely blue colored two unit rowhouse is available for sale 1.1 million dollars. "Investor alert!! 2 two lvl homes (sep apartments) in a grandvictorian on a quiet st near u st metro. 2 units generate $5200 in monthly rent. Condo conversion in process. 2 parking spaces in rear." It is 3,400 sq, feet. 2 parking spaces in the back. It has been on the market for 119 days. MLS # DC5422736. 925 Westminster St NW is located in a partially gentrified area near the eastern part of the U street corridor.
The property was purchased on 2/2/2004 for 715K.
Will the two units sell as a package for 1.1 million?
The U Street Corridor is a hot neighborhood. There are a many other properties available for sale in the area . What do the readers think?
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The U st area was a hot area, for speculators, at least. And we all know what is going to happen to big speculator areas, right? OK, maybe we all don't know, but I know.
ReplyDeleteHot speculator areas are going to turn into big sell areas as speculators bail, and the big speculator areas will be the ones that drop the most in value over the next few years...
Readers think the seller should put down his crack pipe and go read the thread at Ben Jones' site about interest rates and evaluating investments.
ReplyDeleteAs there is no description of the "units" contained within this property, it is difficult to evaluate the seller's claim of $5,200 per month in rent, but I am suspicious. $2,600 per month can provide palace-like accomodations for those willing to rent.
And the 900 block of Westminster Street, NW, is hardly palace-like.
If you have kids and live there at that price, your crazy.
ReplyDeleteIf your single, and pay 2600 just for rent, your crazy.
So what are sane reasons for buying this and/or living in it at those prices?
U St has not gone up 50% in the past two years, so I think it's a bubbilicious price unless there were some fabu renovations. That said, if the seller could actually complete the condo conversion, he could probably get 550k for each of the two 1700 sqft units+1pkg, with a nice interior redo.
ReplyDeleteAnon - if the condo conversion is completed, and each unit would go for 550k, why the hell would anyone buy the building for $1.1 mil? If I was a shrewed "investor," and had the dough, I could just leave it in a non-interest bearing checking account, and get the same result, without any headaches.
ReplyDeleteAnd if I buy the thing, the rents fall well short of my mortgage, tax, insurance and maintenance costs. The return I would get just buying T-bills would actually be positive and I would have no headache whatsoever.
Are all these "investors" really so stupid?
$5200 on $1.1 million is less than a 5% return... and that is before you pay taxes, insurance, and maintenance, and if your renters are paying for all utilities. So the real return is lower.
ReplyDeleteIf I had 1.1 million, I'd stick it in a CD before I bought this.
U Street is better than it was 20 years ago. OTOH, that is easy- 20 years ago it was a violent, burnt-out ghetto. If you pay 1.1 million for property there now, I think you would need U Street to become Georgetown before you made money.
Correction to my post above: it is a little more than a 5% return, but only before you pay expenses.
ReplyDeleteTo dc_too - I agree - the fact that they could sell 2 condos for a total of 1.1 certainly in no way implies anyone should buy it now (unconverted) for 1.1. As I said above, that's a bubbilicious price, as U St prices in no way have gone up 50% in the past 24 months.
ReplyDeleteThat's a lot of clams for a row house. It's close to the Metro but a long walk (no direct Metro link) from Dupont Circle or Adams Morgan. I can't imagine paying more than $600K for the whole thing but clearly a lot of people are more imaginative than I am.
ReplyDeleteThere actually is a similar redo a block or so away on 11th st. In Aug., two very nice two-bedrooms were selling for 650K or so. They sat and sat and price dropped and dropped, but eventually sold.
ReplyDelete$550K for each unit does not sound all that unreasonable. Westminister is a very quiet and nice street with a wonderful park.
www.dcbubble.blogspot.com
1.1 Million and two parking spaces!!!
ReplyDeleteMan, where I live all you would get would be a 3+ car garage!
If the Appartments are nice 2+ bedroons, the 2,600/mo is quite reasonable - The rental market here is tightening up - a friend of mine had a bidding war on her appartment in Dupont circle - nicer area but a smaller place - $3.5K/mo
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