4000 Cathedral Ave NW Unit 203B

Washington, DC 20016

$219,000F

1 bd · 1.0 ba · 925 sqft · Built 1931 · Condo · Active · 164 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,429/mo
• Mortgage (P&I): −$1,148
• Tax + insurance: −$365
• HOA: −$1,338
• Vac / Maint / Mgmt: −$510
• Net cashflow: $-933/mo
• Annual: $-11,193/yr
• Cap rate: 1.18%
• Cash-on-cash: -18.25%
• DSCR: 0.19
• 1% rule: 1.11%
• Cash to close: $61,320

Investor read

• This is a 1-bed/1.0-bath condo listed at $219k. Condition is rated good.
• At list price, monthly cash flow is $-933 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $84k (61.6% below list).
• Meets the 1% rule at list price ($2k rent vs $219k).
• It's been on market 164 days — a 12% lower offer ($193k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $84k (61.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k 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: Stoddert Es (444 students, 0% FRL); Hardy Ms (571 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 55% of rent; built in 1931 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-2.8%/yr); 379 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 43d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 55% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• Cap rate 1.2% 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 is only 16% of the median local income ($179k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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?
• It's been on market 164 days. Have you received any prior offers? Is the seller open to a 62% concession, seller financing, or rate buy-down credit?
• Built in 1931 — 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?
• 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?

Repairs flagged (vision-AI assessment)

• Moderate: kitchen cabinets — dated design
• Minor: bathroom fixtures — standard, could be updated