7404 Columbia Ave

College Park, MD 20740

$1,725,000B-

42 bd · 42.0 ba · 5,200 sqft · Built 1959 · MultiFamily · Active · 199 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $21,870/mo
• Mortgage (P&I): −$9,046
• Tax + insurance: −$1,852
• HOA: −$0
• Vac / Maint / Mgmt: −$4,593
• Net cashflow: $6,379/mo
• Annual: $76,550/yr
• Cap rate: 10.73%
• Cash-on-cash: 15.85%
• DSCR: 1.71
• 1% rule: 1.27%
• Cash to close: $483,000

Investor read

• This is a 7 × 6-bed/?-bath units multifamily listed at $1.73M.
• At list price, monthly cash flow is $6k ($77k/yr) — positive. Per door: $911/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($22k rent vs $1.73M).
• It's been on market 199 days — a 12% lower offer ($1.52M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.52M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $52k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#44 in MD, #1,640 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Prince George'S County Public Schools (suburban): math 8% / reading 24% proficiency, ranked #21 of 24 in MD (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Paint Branch Elementary (math 8% / reading 17%, grade F, #538 of 860 statewide, top 64%, 357 students, 80% FRL); Hyattsville Middle (math 5% / reading 23%, grade F, #196 of 225 statewide, top 88%, 705 students, 83% FRL); Northwestern High (math 15% / reading 32%, grade F, #169 of 222 statewide, top 76%, 2,346 students, 80% FRL) — zoned schools average 81% FRL vs 53% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.5%/yr); 81 active listings in the ZIP; solid renter incomes; 1,481 units permitted in Prince George's County in 2024 (0 in 5+ unit buildings).
• Prince George's County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 13y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $662k; list at $1.73M implies a 160% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 5.5% rent growth), your $483k cash investment doubles in ~7 years — after that, you're playing with house money.
• 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 10.7% vs local median 4.4% in College Park — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• It's been on market 199 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1959 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?