Where are the D.C. Duplexes?

Question

So what does a guy have to do to find a duplex around Washington D.C.  these days?   I'm looking for our first home, which I'm also intending to be our first investment property.  While my first preference would be a duplex (so I can learn how to landlord), I hardly find 5 duplexes on the MLS in the entire DC, Maryland, Virginia area (excluding SE D.C.).

Are duplexes not usually listed on the MLS?  Are there better ways to find them?   Once in a while I see a SFH with an accessory basement apartment, but I understand that I'm not supposed to rent both units if I'm no longer an occupant.   Is that rule enforced?

Interested in your thoughts.

Account Closed · Answer

Matt, DC is HIGHLY competitive. I would suggest going to some REI meetings or start networking with local brokers/realtors that have been working the scene for some time. Also, I would start looking at multifamily that has 5 or more units. Duplexes are just that, Duplexes.

To give you an idea of how competitive this market is, I was offered a 6 unit MFH yesterday morning at 830am-ish that needed a complete rehab in NE DC. The listing Agent told my agent that it was contracted by 11am that morning. I was planning on trying to view it by 12am that same morning, oh well. It's contracted for $845k and was listed in CoStar. $845K is not expensive in our market.

Matt Vaughn · Answer

Great insights, @Robert Williams , @Roger Lin , and @Steve H.!  This helps me understand the market better.  My market is pretty broad right now: Calvert County, Annapolis, Laurel, and Frederick are the areas of interest for me.

Roger, you recommended getting to know many agents.  I'm under contract with my agent until early summer (Remax 100).  It was my understanding that I couldn't work with multiple agents at a time.  Is that wrong?

Rob, thanks for the suggestions about accessory apartments.  In the two counties I've checked (Calvert County and Montgomery County), they claim that I can't rent both units once I've left.  Does anyone else have experience with this (including if this rule is or needs to be followed).

Robert Williams · Answer

Hi Matt,

Yes, there are not a ton of true duplexes that come on the market in Washington DC.  First, it's not a very prevalent building style in the city and second, many homes that were built as true duplexes have separate owners for the two units.

What is a lot more common, as you pointed out, is the SFH with an accessory apartment.  These are very common in DC and would be your best bet in my opinion.  There is no "rule" that prevents you from buying such a property as an owner-occupant for one of the units and then, after living in the home for a period of time, moving out and renting both units.

The more common challenge that you will encounter with accessory apartments is that many of them are not legal rental units so make sure you do your due dilligence with that upfront.  To legally rent a basement apartment, it will need a certificate of occupancy from DC.  You should ask for this up front.

If an apartment does not have a C of O, the next question should be does it meet the criteria to get a C of O.

With all that said, the reality is that many basement rentals are not legal rental units.  Of course, that opens up the owners/landlords to a host of potential problems, but many folks do it nonetheless.

-Rob

Roger Lin · Answer

Steve's totally right!  They are not even listed on MRIS or CoStar more than half of the time.  If they are, they are gone in a couple of hours.  I would recommend you get to know a lot of agents and make sure you have your resources lined up.  That way you increase the likelihood of one of them finding out about one and letting you know and that you are ready to go when that property appears.