4740 Connecticut Ave NW #1007

Washington, DC 20008

$435,000F

3 bd · 2.0 ba · 1,689 sqft · Built 1956 · Condo · Coming Soon · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,629/mo
• Mortgage (P&I): −$2,281
• Tax + insurance: −$725
• HOA: −$1,929
• Vac / Maint / Mgmt: −$762
• Net cashflow: $-2,068/mo
• Annual: $-24,816/yr
• Cap rate: 0.59%
• Cash-on-cash: -20.37%
• DSCR: 0.09
• 1% rule: 0.83%
• Cash to close: $121,800

Investor read

• This is a 3-bed/2.0-bath condo listed at $435k.
• At list price, monthly cash flow is $-2k ($-25k/yr) — negative.
• To cash-flow at today's rent, offer at most $415k (4.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $363k (16.6% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $363k (16.6% below list) — sets the bar for 1% rule.
• In year one you build about $2k of equity ($3k loan paydown + $-1k appreciation (-0.3% local appreciation)).
• 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: Murch Es (651 students, 0% FRL); Deal Ms (1,391 students, 0% FRL); Jackson-Reed Hs (2,153 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: HOA is 53% of rent; built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-2.5%/yr); 184 active listings in the ZIP; 37 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 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.
• By year 10, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 0.6% vs local median 2.5% in Washington — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 35% of the median local income ($125k/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?
• Built in 1956 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.