All Forum Posts by: Nick Pisano

Yeah, unfortunately my experience is that most section 8 folks tended to beat the crap out of these units and were among the most difficult to coordinate repairs with. Not to say there’s not good section 8 tenants out there, but they tend to grab a good place and stay there - see Joe Asamoah’s BP stuff, etc. And stay away from DC rapid rehousing at all costs, IMO. 

Managed about a dozen section 8 rentals in small multis in SE/NE until last year for a cheapskate landlord. No washer/dryers in the unit or building, and had no issues filling them at the max rental rate. YMMV depending on the area and quality of unit, and I’m not involved in section 8 anymore so I can’t speak to current demand. 

@Andre Gillett These are good points, but I think disagree about the necessary value of a DC zip code. Sure it matters to some, but plenty of others would rather look over the Eastern Ave border into west of the river Maryland (Mount Rainier, Hyattsville, Riverdale), which doesn’t have the stigma and issues (real and perceived) of EOTR *AND* first-time homebuyers with higher incomes and lower savings l can take advantage of the lower price/higher tax dynamic in MD for down payment issues. Purely anecdotally, I know several people who’ve been presented with that choice and bought in Maryland instead.

I managed residential buildings in historic Anacostia, Greenway, Deanwood, and elsewhere across the river, and my feeling is a lot of those neighborhoods still have a ways to go in terms of sustained improvements, even if sales are hot.

Hey everybody! I've been looking for a SFH to owner occupy (to take advantage of a low down payment mortgage) before eventually turning into a rental. My real estate experience is limited pretty much to DC proper, and I'm admittedly pretty ignorant about Maryland. But for mostly price-related reasons I'm looking into the area between Eastern Ave and the Beltway. Curious to get everyone's thoughts on what parts of that area you would recommend focusing on. Ideally, looking for 2/3BRs up to mid 400s in B- to B+ neighborhoods (No HOA).

Also, I'm aware that the taxes are much more in Maryland, but not sure of much beyond that. Any particular areas that I should know about on that front?

Just to play devil's advocate here, please keep COVID in mind with this model. I manage a handful of large (6/7/8 bedroom) rowhomes in the Columbia Heights/Petworth/Shaw areas that often functionally operate as a room-by-room rental (i.e. there's a master lease, but people are free to find their own replacements and move out, etc.) While we/our tenants have had zero trouble filling these rooms in the past few seasons, this spring/summer was a bit rough, with many people explicitly referencing COVID as their reason for leaving these homes or not moving in. What's more, one of our partners is a large, national room-by-room/co-living rental service and they've had so much difficulty renting by the room that they're breaking/trying to unilaterally renegotiate their leases with us. Not fun. 

Yes, this might be over in a few months but I do think there will be a knock-on effect in some cases for communal living like this. And while I'm not personally a fan of most of Capitol Heights, yes, I'm sure you can find people to fill it at the right price. The question is whether it's worth it to deal with the headaches that come with the kind of tenants who may be willing to live with strangers in the middle of a pandemic at a budget rate. 

If you're determined to go this route, please keep the layout in mind. IMO, shouldn't be any more than two bedrooms using each full bathroom. 

Again - depends very strongly on the nature of the area, the block, and the building. "The Anacostia area" can mean a lot of things to different people, and can change on in just a block or two. It's DC - you can almost ALWAYS find someone interested in your unit if it's priced right. The question is whether the neighborhood and amenities you have will attract the quality of tenants you'd be comfortable approving. My experience is that lower priced rentals east of the river without a lot of amenities attract people with a lot of problems - low credit scores, collections, evictions/L&T court cases, serious criminal issues. And right now, I'd be pretty nervous approving someone like that for one of my units, considering if things go sideways, we have an eviction freeze with no end in sight.

Have you considered the Section 8/HCVP program? We've had generally good results filling units like the ones we're discussing (no laundry, no central AC/heat, no amenities) through these programs, because sadly enough, even the most bare bones unit is usually better than living in the shelters. Plenty of pitfalls there as well, so feel free to PM me if you want to go down this route.

I think it depends a lot on the quality of the unit and the area. Are there laundromats nearby? Do you expect your tenants to have cars to drive to one if not? What price range are you trying to rent in?

My personal experience managing a handful of lower to moderate priced units EOTR is that not having a washer/dryer at least available in the building will turn off a decent number of people - especially the kind of quality tenants you'd likely be looking for. If it's allowed, I'd strongly suggest installing one. It's a small expense relative to potential vacancy if people don't want to rent it, or the headaches you deal with from low quality tenants.

Hi Solomon! Also a DC resident/investor who's done some research on rentals in Jacksonville and spent a fair bit of time there. I can second 32205 and 32210 as probably your best bet. I would generally avoid most places north of I-10, as they can be pretty rough and you may also have a difficult time finding a legit property manager who'll manage there. You'll also want to be careful around 103rd St/Timuquana Rd, as there can be some sketchy areas there also. If you have any room to stretch your budget, I also like the Oakleaf Plantation area.

In terms of other stuff, I would STRONGLY recommend looking for concrete block construction. I've had two deals fall apart there based on some serious termite and other WDO issues discovered during inspections. Also, this may be obvious to others, but I was initially pretty surprised at how much insurance costs down there, relative to my experience in DC and elsewhere. 

I can only speak to DC, but 90 days is optimistic, especially these days. If you have service issues (common enough, from the time I’ve spend in L&T Court), it can take 4-5 months. Also consider now that filing for evictions has been suspended until recently here in DC, meaning you’ve now got an additional backlog to contend with. 

Realistically, investors and PMs just need to deal with this issue up front with tight application screening. Can’t avoid them all, but you can avoid most if you’ve got a decent quality product priced in a way that you can be selective. 

Your place may be in worse shape, but I've had success in the past mitigating heavy cigarette/marijuana smoke in rentals I manage with an ozone machine. You can rent them for a day or two for only a hundred bucks or so.