Buy, renovate & hold 2 units in DC's Eckington neighborhood.

[Marian Huish]

Investment Info:

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

Purchase price: $360,000
Cash invested: $72,000
Sale price: $1,100,000

Purchased this turn of the Century corner rowhouse which, at the time was a boarding house in one of DC's transitional neighborhoods! As the new (Eckington) metro was planned, we saw the opportunity so purchased & converted the property to 2 legal units with Certificate of Occupancy. Rented the property long-term at market rate with positive cash-flow Cashed out after 15 years & avoided capital gains tax by rolling the proceeds into 3 units which also generated positive cash flow.

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

Saw the potential in an up and coming neighborhood!

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

Accidentally came across it when looking at other properties... FSBO sign in the yard.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

Renovated & converted to 2 legal units.

What was the outcome?

Long-term positive cash flow and appreciation.

Lessons learned? Challenges?

Had a few tenant issues but well worth it!

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

Myself.