Georgetown DC 2 Unit Success Story

[Cassidy Burns]

Hi BP,

I wanted to highlight a success story for one of my clients who just settled on a Georgetown Washington DC Duplex.  I want to start by saying these numbers may be unrealistic to most of us, but is an awesome investment for them who have been renting for the last 11 years.  

The Details: 

-Prime Location 29th and M St. Georgetown DC Victorian Rowhome

-2 Bedrooms 2 Bathrooms Upstairs

-1 Bed/ 1 Bath Rental Unit in Basement

-Separately Metered

-Parking + Outdoor Space

Purchase Price: $1,430,000

Appraised Value at Purchase: $1,450,000

They put down 50% in order to take money out of their savings account and park it in an asset: $715,000 down 

-Contractor Bid for interior Renovation: $75,000

(Removing walls, new kitchen, new master bathroom, built in closet in Bedroom)

All In: $1,505,000 

ARV: $1,700,000 +

$200,000 forced equity

Mortgage: $3,600/month (PITI)

Basement Unit Projected Rent: $2,200 Long term

They will be doing AirBnB so they can have their in-laws visit periodically 

Total Monthly: $1,400/month while rented (potentially more with the AirBnB income) 

Now they own an asset in primetime DC Georgetown while House Hacking and finally putting their money to work.  Everyone has a different strategy, the key is to put your money to work in a strong DC market.