Financials

1740 R St NW offers immense opportunity for the single-family homeowner, buy-and-hold landlord or developer. These rough financials show the possibilities afforded by 1740 R Street on a financial basis. All numbers are estimates and not to be considered a guarantee.

Documented value

Comparable properties have sold recently that clearly establish the value of 1740 R St. 

1738 R Street NW sold for $2.35M in 2017, with similar total square footage and lot size. It is not divided into multiple units and upon its last sale, it was in good, but not excellent, condition. It has been almost completely gutted and renovated inside, and the exterior will be completed soon, possibly for sale (and most likely for $3.5M+)

1736 R Street NW sold once in 2012 for $2.695M and in 2010 for $2.5M, in very good condition. 

1734 R Street NW sold for $1.755M as a shell in 2015, and was then converted into condos totaling $4.085M in outsales. The lot size is almost the same.

For information about all these sales, including the four condominium units sold at 1734 R Street, click here.

Development Opportunities

1740 R Street is in the heart of Dupont Circle, and most properties in the neighborhood are zoned to allow only two units. This property, by contrast, is zoned RA-8, which allows great changes and additional square footage to allow the creation of multiple condos. The details:

  • 50 foot building height (currently 39 feet)
     

  • No limit to unit count
     

  • 1.8 Floor Area Ratio, allowing maximum above-ground interior square feet 1.8 times the lot size (current square footage is 3,308 and current lot size is 2,182 square feet, so allowed interior square feet above ground is 3,972. Add to that the below ground square feet, and you get a potential total of 5,022 square feet
     

  • Comparable sales of a nearby property at 1524 18th St NW (Le Dupont) and 1753 Willard Street NW have sold for $930-1000 per square foot, allowing potential out-sales of over $5M
     

  • PARKING. 1753 Willard only had one parking space for 5 units, and 1524 18th Street had NO parking and NO common outdoor space for its seven units. 1740 R Street has two parking spaces.

Buy and Hold, or Live in one, rent the others!

The numbers work great for the property whether you intend to buy and hold the property as a landlord, or to live in one unit and rent the other two for income.

AirBnB may no longer be allowed in DC, unless you live in one unit contained in the same building as your AirBnB units. So if you live in the top unit, you can rely on services like AirBnB (3% fee to landlord), Guesty (3% fee for communication with guests) and GuestPrep ($75-100 per cleaning, automatically booked using data pushed from AirBnB) to make the process as seamless as possible. The current tenants are renting with minimal involvement by onsite managers or the owner.

In addition, our occupancy rate is well above the market average, at over 90%. This means you will have maximum occupancy for the most return if you choose to go this path. The furniture and furnishings can be made part of the purchase, in which case the operation would be truly turn-key.

Alternatively, we partner with a local corporate rental company, which generally does not have as high an occupancy rate and does have a higher fee, but does not fall under the rules that will affect AirBnB in October, so renting short-term through them could be a way to earn a higher cap rate if you choose not to live in one unit.

RENTAL DETAILS AND NOTES:

 

Unit B (lower unit):

AirBnBs were set up beginning of February

Upcoming booking SmartPricing rate: $135-177/night or roughly $4,500/month
Utilities, furnishings, cleanings, internet and cable paid by owner

 

Unit 2 (middle unit):
AirBnBs were set up beginning of February

Upcoming booking SmartPricing rate: $220-330/night or roughly $6500/month

Utilities, furnishings, cleanings, internet and cable paid by owner

 

Unit 1:

Monthly rent since 2016: $4,400 per month plus utilities, Tenant is vacating May 1, 2019 and has already assigned TOPA rights to owner

Estimated AirBnB value: $8,500 per month

 

Utilities and Other Expenses:

Unit 1 (gas + electric): around $150/month total 

Unit 2 (gas + electric): around $125 average, varies between gas and electric depending on season 

Basement Unit (electric only): $90/month average 

Water (whole building): ~$160/month average 

Taxes: $13,134 per year

$19,434 total per year

Call us now to schedule a viewing: 202 642 1616

© 2019 Bediz Group LLC

of Keller Williams Capital Properties, 202 243 7700 main

  • YouTube Social  Icon
  • Facebook Social Icon
  • Yelp Social Icon
  • Tumblr Social Icon
  • Instagram Social Icon
Follow us