3 Multi-Unit Buildings / NE DC DEAL ANALYSIS?

[Joseph Stapleton]

Hello, I'm currently in the process of reviewing an off market deal that consists of 3 Multi-unit buildings in NE Washington, DC. These properties can be bought in a package or separately. Ideally, I would like to buy all three and plan to hold these properties for 3-5yrs and then sell. While this will personally be my first deal, I have three years experience buying investment properties. I'm looking for some advice as far as buying all three, two or just one. Also, if anyone has experience leasing and selling (comps) in this area of DC.

Unit Mix: 2 - 3BR/1B

NOI - $32,880

Income Value - $365,281

Loan (75% LTV) - $273,961

Unit Mix: 3 Units

Sale Price - $360k

NOI - $31,464

Cap Rate Value - 9%

Downside - One vacant unit

Upside - Rents can be increased from $1,032 to $1,184.

Unit Mix: 4-1BD/1B

NOI - $34,284

Income Value - $360,909

Loan (75% LTV) - $262,500

[Vasa G.]

yes, @Russell Brazil is right, once you get over 4 units you are under rent control. If you buy with llc , you already in rent control it doesnt matter what number of units you own, But current rents on those buildings are actually ok for DC, Issues are the buildings where rents are in $500-$600 range..