Flipping in Columbia Heighs and Perworth in DC

Member since 2022 · 3 posts · 2 votes

Hi guys,

We are new to Washington DC as investor. We been doing rehab projects in Honolulu over 10 years. We are very interested in the neighborhood like Columbia Height & Perworth. Or any other location recommend?

Basic on my research some investor bought a property for $500K (50%) and spent $250K (25%) for renovation and $250k gross (25%). Property usually can ell around $1M. Is this pattern will work on DC or there are a lot of hidden rules and regulations need to pay attention. I totally understand it generally is location by location and house by house.

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Russell BrazilBusiness Member

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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Id say the formula in Petworth is more like purchase for $600-650k, put $200k into it, sell for $950k. Columbia Heights acquisition cost is higher. 20011 was actually the zip code with the 2nd most flips in Q3 this year with 15 being sold. 20011 includes Petworth and Brightwood.

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
Id say the formula in Petworth is more like purchase for $600-650k, put $200k into it, sell for $950k. Columbia Heights acquisition cost is higher. 20011 was actually the zip code with the 2nd most flips in Q3 this year with 15 being sold. 20011 includes Petworth and Brightwood.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
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Jack Seiden
Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 656 votes
3y
Quote from @Tiffany Chu:

Hi guys,
We are new to Washington DC as investor. We been doing rehab projects in Honolulu over 10 years. We are very interested in the neighborhood like Columbia Height & Perworth. Or any other location recommend?
Basic on my research some investor bought a property for $500K (50%) and spent $250K (25%) for renovation and $250k gross (25%). Property usually can ell around $1M. Is this pattern will work on DC or there are a lot of hidden rules and regulations need to pay attention. I totally understand it generally is location by location and house by house.
The margins in D.C. are quite a bit lower than that generally closer to 300k gross margin, 200k rehab 100k in overhead costs. It’s extremely slim margins right now and I usually tell people not to bother the only reason I wouldn’t tell you that is you do have experience so maybe you could eke out a small profit. As far as dealing with local rules Dcra (the local permit office) can either the biggest pain if you are doing structural work (taking 6-9 months for permits) or if not structural, you can get permits often in a day and do what’s called 3rd party inspections and the process is extremely easy. Feel free to reach out with any other questions!
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
Im posting my graphics without my company logo to comply with forum rules against advertising/self promotion...so no one steal these without providing proper credit.
These are the hottest flipping locations in DC.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
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Tiffany Chu
OP
Member since 2022 · 3 posts · 2 votes
3y
Thank you very much Russell for the zip code analysis.
Totally agreed with you of the market right now. You are direct and honest to the point. I will spend more time and learn first.
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