20002 (Trinidad) Washington DC

[Margaret R.]

I'm looking at single family and small multi family units in DC, primarily in 20002, particularly the Trinidad area. There's a lot of new construction in the area and newly renovated single family rowhomes, but they seem to be priced to anticipate the growth and development in the area so newer single family 2-3 BR are high $600s - mid-$700K. The older, not newly renovated seem to range from mid $500K-mid $600K. And then there are some places that are either in terrible shape or were abandoned and those can be found in the $300Ks. I'm wondering if I were to get a rental property, if I can even break even on the rent for these places. It seems like finding a place that is not newly renovated but that is livable fro a tenant right away may be the best option. If I can break even month to month, then hopefully I could fix it up a bit and make a profit on the sale in 3-5 years. Does this seem right to anyone? Is anyone familiar with the area or see other areas in DC as a better investment because it is too late to Trinidad? Looking to meet other investors in the area.

Thanks,

Maggie

[Russell Brazil]

Trinidad is a great location for flips, as well as buy and holds that you are holding for appreciation, particularly if you get something below the $600k price point. However it is not a great location for a cash flow property. You will be able to find something that the rent covers your mortgage payment, but there will be no excess money for repairs and the such. If you are a higher income person who has no issue paying for those things out of pocket, then a property in Trinidad might work for you. However if coming out of pocket for something like a new roof suddenly would be a burden, then this  might not be the neighborhood you should target for a buy and hold rental.