Interest rates are making real estate investing harder than it has been since I started in 2017. In 2021, I purchased a duplex and secured a 2.25% interest rate on long-term financing. I was then able to use that property as my 'bank' by opening a HELOC because its value continued to rise. All of this sounds amazing, but it's harder to execute in the current market conditions. However, the one metric that continues to make investing in small multifamily properties in Washington DC worthwhile is location. These assets may not cash flow now, but if you can purchase at the right price and have the foresight to hold onto them until interest rates potentially come down, you will succeed. Rents will slowly appreciate, the market will slowly appreciate, and eventually, you too can turn these assets into your very large bank that never tells you no. Now, that's freedom.
• List Price: $1,200,000
• Quadplex
3 - 1 Bed / 1 Bath Units
1 - Studio Unit
• This building is subject to rent control in its current state.
2023 Rent Roll = $72,223 and 2024 projections = $78,024.
• List Price: $899,000
• Duplex
1 - 2 Bed / 1 Bath
1 - 1 Bed / 1 Bath
• This is perfect for a house hacking situation. Live upstairs and rent out the lower level as a long-term rental or on Airbnb. Slight renovations to the upper-level kitchen and new flooring and kitchen in the lower-level unit will add tremendous value to this building.
1423 Girard St. NW
• List Price: $1,600,000
• Quadplex
3 - 1 Bed / 1 Bath
1 - 2 Beds / 2 Baths
• Property is fully leased. Total Rent roll = $8,856/month. Growing location, and with some slight renovations as tenants move out, could drive significantly more income.
So, which would Cassidy buy? It depends on your investment strategy. My prediction for location growth is 1423 Girard St. NW. This building is also RA-2 Zoned, which gives you another option for condo conversion down the road.
Happy investing! Reach out to BPG Holdings if you'd like to learn more about how to execute these investment strategies.
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