33 Franklin St NE

Washington, DC 20002

$190,000F

3 bd · 1.0 ba · 1,765 sqft · Built 1919 · Townhouse · Active · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,252/mo
• Mortgage (P&I): −$4,211
• Tax + insurance: −$1,338
• HOA: −$0
• Vac / Maint / Mgmt: −$893
• Net cashflow: $-2,191/mo
• Annual: $-26,286/yr
• Cap rate: 3.02%
• Cash-on-cash: -11.69%
• DSCR: 0.48
• 1% rule: 0.53%
• Cash to close: $224,861

Investor read

• This is a 3-bed/1.0-bath townhouse listed at $190k. Condition is rated poor.
• At list price, monthly cash flow is $-2k ($-26k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $190k).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#1 in DC) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• District Of Columbia Public Schools (urban): math 33% / reading 40% proficiency, ranked #8 of 32 in DC (top 25%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Capitol Hill Montessori School At Logan (424 students, 0% FRL); Mckinley Ms (222 students, 0% FRL); Dunbar Hs (868 students, 0% FRL) — zoned schools average 0% FRL vs 65% district-wide (65 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: property tax is 6.3% of price; built in 1919 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents falling (-3.0%/yr); 558 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 1,737 units permitted in District of Columbia in 2024 (1,506 in 5+ unit buildings).
• District of Columbia County population projected at +50% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.0% vs local median 2.5% in Washington — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• This rent runs 42% of the median local income ($120k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1919 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.

Repairs flagged (vision-AI assessment)

• Major: Exterior siding — The siding is visibly weathered and peeling, indicating significant damage and the need for replacement.
• Major: Roof — The roof appears to be in fair condition but may require inspection for leaks or damage, which could be a major issue.
• Major: Landscaping — The landscaping is overgrown and unkempt, with debris and debris on the ground, indicating a need for significant maintenance and landscaping improvements.
• Major: Flooring — The flooring is in poor condition, with visible damage and wear, indicating a need for replacement or repair.
• Major: Interior walls and ceilings — The walls and ceilings show signs of water damage and peeling paint, indicating a need for significant repairs and repainting.