Numbers help for Duplex in DC

[Daniel Friedman]

Hey everyone, 

I'm a longtime reader first time poster but I have been looking at my first duplex and wanted to some help with the numbers. I currently have a condo that I used to live in and rent now but this duplex would be my first jump into a purely investment property.

2 Unit rowhome in Washington DC (Top bottom). Unit 1 is 4 bed, 3 bath, and access to rear parking area. Unit 2 is 3 bed 2 bath. Unit 1 is currently vacant and Unit 2 has a tenant that is month-to-month. 

I am touring the place soon but from pictures it looks like there is good flooring and cosmetics but the kitchen and bathrooms are old and could be updated with new appliances. 

From talking with one of my mentors and doing some research on apartments.com and other listing sites, the belief is that I could get $4,300-$4,600 for Unit 1 and $3,300-$3,600 for Unit 2 which would give me a total rental income of $7,600-$8,200.

The list price is $1.3m. If I make some of the improvements I talked about in the kitchen and/or bathrooms, I may be able to raise rents more.

What do people think? Am I way off base with this?

[Russell Brazil]

If it is the property I think it is, those rents are in the realisitic range if rehabbed. Not in its current dated condition.  Maybe $500 lower on each of your low end estimates in its current condition.

The important thing to consider with a duplex in DC is TOPA. Make sure you are using agent and title company well versed in TOPA.  There are very specific title companies to consider using with TOPA and very specific ones to consider avoiding in this instance.