3 bd · 1.5 ba ·
1,695 sqft ·
Built 1978
· Townhouse
· Active
· 101 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$3,246/mo
Mortgage (P&I)
−$1,935
Tax + insurance
−$316
HOA
−$271
Vac / Maint / Mgmt
−$682
Net cashflow
$42/mo
Annual
$504/yr
Cap rate
6.43%
Cash-on-cash
0.49%
DSCR
1.02
1% rule
0.88%
Cash to close
$103,320
Investor read
This is a 3-bed/1.5-bath townhouse listed at $369k.
At list price, monthly cash flow is $42 ($504/yr) — positive.
The deal already cash-flows at list — no discount required.
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $325k (12.0% below list).
It's been on market 101 days — a 9% lower offer ($336k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $325k (12.0% below list) — sets the bar for 1% rule.
Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k 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: Langdon Es (353 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.
Market conditions: Rents flat; 118 active listings in the ZIP; 32 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 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.
Current owner paid $45k; list at $369k implies a 720% gain — meaningful room to come down on a strong offer.
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 6.4% vs local median 2.5% in Washington — 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.
This rent runs 43% of the median local income ($91k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.
Questions for listing agent
It's been on market 101 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
Built in 1978 — 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?
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.
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.
CashFlowRE · CFR-QHVZTYFSQ539BH
· Data 1 week agocashflowre.app · 2026-05-29