Hidden Listing on H: 923 6th St NE

First, let's be real: if you are a Realtor and you can't take the time to show us inside photos, shame on you. I've seen too many lazy Realtors out there who just slap something together and call it a listing. Usually when all you see is the outside pics it means that the inside is fugly as all get-out. But I like those since that is about the best deal you can get anymore.

And this one is probably no different. The listing for 923 6th St. seems like an interesting property, but I can't tell without pics or an open house.. I do NOT feel like putting my time to visit a property unless the realtor has the sense to make me kinda, sorta want to see it.

That being said, this thing just dropped enough to get my attention. If you are a young couple (see my earlier post on the best way to do it in DC) and want to get into a house but not pay $1 mil, maybe an ugly rehab is for you. While some investors will do 600k in an all cash bid, generally you don't see it that much so you have a shot- and face it, most couples just can't see potential unless some flipper has put some gaudy backsplash in there and other lipstick.

This bad boy has 1,484 sq feet in the top 2 floors, and a decent space in the the basement of about 742 sq feet (although that's a guess since most basements have about what is on the floor above). The office of tax and revenue shows it doesn't have a CofO, so you might have to dig down to make that basement legal.

So, for a $404 sq ft price point plus a rental in the basement, it might make the cut. [SIDEBAR: Word to the wise: realtors are supposed to list sq foot as finished sq feet. Some do, some don't. So, if you make the basement a rental, it is still counted as unfinished for tax purposes no matter if it is technically finished.. so, if you DID finish this off, then for apples to apples you could say it was $269 per sq foot.. much better sounding, eh? Compare that to what is on the market, but be careful to make an apples to apples comparison. In a later post I will show you how shady realtors try to deceive people with a little sq foot trick.]

Let's run some quick numbers. Let's say I got it for $600,000 and put in $100,000 total for a rehab and got a 4.5% interest loan.These numbers are ballpark:

Down payment ~ $21k
Total mortgage ~ $579,000
$100,000 in Capital improvements brings the price per sq foot to about $539
Real Estate tax ~$320/mo
Monthly maintenance: $50
Insurance ~ $150/mo

Total expenses per month = $3,454 plus an additional mortgage insurance of at least $600... let's say total expenses are about 4k a month, give or take.

But, you get that basement rental up and running and turn it into a 1 bedroom and you get about $1,750. So, your nut is $2,250 and you can write off your property tax and interest every year. Plus, read my earlier post about refi'ing it once you get 80% /ltv

That is to say, if this place isn't a total gut and you can get that basement up to code and a redo of some of the living space so you can live there for the 100k. The Property Information Verification System (PIVS) site says it has forced air, so maybe you won't have to put that in, saving some moola.

Or the listing agent (get better pics, people!) knows he has a gut and is putting it out there for the investor class only... but then why bother to even write his description?

"Here s your chance to live near the vibrant H ST Corridor. 3 bdrm. .2 bth with a studio rental in the basement. Income producing property. Off street Parking for 2 cars. Walking distance to restaurants , grocery , metro, theaters, Union Station and so much more."