Longterm Hold of 2 unit property in DC's Shaw neighborhood

[Marian Huish]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $355,000
Cash invested: $71,000
Sale price: $1,090,000

Purchased this 2 unit row home in DC's Shaw neighborhood back in 2002 when the area was considered a sketchy, transitional neighborhood. Located just steps to the U St. metro, we rented the property at market rates for 17 years before converting to short-term rentals until the District started restricting STR's for non-owner-occupied properties. After holding this cash cow for 20 years, we sold using a 1031 exchange to purchase 2 properties in Reno, Nevada. Reno in 'tax-free' Nevada is one of the hottest locations to invest due to increased housing demand as a result of tax incentives being offered to businesses bringing jobs to Northern Nevada. Companies such as Google, Amazon, Tesla and other high-tech companies are occupying over 100K acres in what is known as "Tahoe-Reno Industrial Center" or TRIC. For more information, check out https://tahoereno.com/ or https://www.2news.com/news/more-storms-tuesday-avalanche-danger-high-i-80-i-580-mt-rose-hwy-ski-resorts/article_eeb4504c-b77d-11ed-b98e-53596ff1858d.html#tncms-source=article-nav-prev. As a licensed NV Realtor, I'm also happy to help you find an investment property.

What made you interested in investing in this type of deal?

Passive Income and appreciation in one of DC's hottest neighborhoods.

How did you find this deal and how did you negotiate it?

As a local Realtor, found the property and purchased direct from seller.

How did you finance this deal?

Conventional Financing.

How did you add value to the deal?

Modest upgrades over the years.

What was the outcome?

Good cash flow and appreciation.

Lessons learned? Challenges?

Buy in transitional neighborhoods and sell once neighborhood is thriving.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself.