FINANCIALS
BUY & HOLD
1009 O Street offers a unique opportunity to live in one fabulous unit while renting the other three units and the parking spaces/garage spaces out. The current total rent income is $8,400 per month for the residential units, plus $200 each for the outdoor parking spaces and $250 for the garage spaces. There are also four extra storage spaces in the garage. Since the property is not bound by rent control, you may adjust the rents to market values if desired, according to the following (conservative) pro-forma amounts:
INCOME:
Unit 1 (1100 sq ft): $3500/month
Unit 2: $1900/month
Unit 3: $2000/month
Unit 4: $2100/month
Parking 1: $200/month
Parking 2: $200/month
Garage: $250/month
Storage Total: $100/month
Total: $10,250/month
$123,000/year
EXPENSES:
Tax: $13,453/year
Water (est): $1200/year
Insurance (est): $2500/year
CAP RATE: 4.419%
LIVE 1, RENT 3
Given the rental income potential, 1009 O Street also offers a unique opportunity to enjoy one unit while renting the others out. You'll enjoy a subsidy of your own living expenses, all while tenants help you fund your investment property to provide a solid asset as part of your overall investment and/or retirement goals.
If you are comfortable in Unit 4 (currently unoccupied), you'll still have $8,150 per month that can help cover the majority of your mortgage on the property, depending on your rate and downpayment amount.
Once Unit 1 becomes available, you could enjoy a truly indulgent apartment unit in a fabulous location, and you would still have income totaling $6750 per month based on the pro-forma shown on this page.
LIVE 1, AIRBNB 3
Even though DC law has changed regarding AirBnB units, you'll still be allowed to rent 3 of the 4 units on AirBnB or other short-term rental sites as long as you live in one of the units yourself.
Current AirBnB returns for a one-bedroom in this area (very popular because of proximity to Convention Center) is over $4,500 per month per 1-bedroom unit. That means you could earn $13,500 in AirBnB income even while you live in one of the units! That is like a 6% cap rate PLUS free rent for yourself!
EXPAND AND RENT/SELL
As a property with a Certificate of Occupancy for four units, 41' of street frontage, 3180 square feet of lot size and RF-1 zoning, you will enjoy the right to expand the four units without the need to subdivide the lot, but RF-1 zoning restrictions will still apply other than the unit count. Still, you can almost double the size of each unit, and even create outdoor spaces private to each unit. You may also even be allowed to create a fourth parking space. The seller and Bediz Group do not guarantee the accuracy of any of these statements, so please ensure your plans will be approved before relying on them completely.