Dallas, TX · Member since 2018 · 64 posts · 10 votes
Hi all,
Anyone have thoughts on the Capitol Heights, MD neighborhood? I'm headed there to view a rowhouse this weekend. What type of neighborhood would you consider it? B or C?
Developer · . · Member since 2014 · 520 posts · 162 votes
7y
It all depends on your strategy. I'm with @Mark Cruse, if the numbers work they work. Everybody needs a place to live and the rent from a C/D neighborhood spends just as well as from an A/B neighborhood (let's hide the bias). I have rentals in A/B neighborhoods as well as C/D, the money looks the same and tenants are a pain. Where you live may not be where you rent. Is our goal to rent something we would live in? If so why? Is it a perception thing, where we only own A/B homes? These are questions not directed to the poster but asked rhetorically. Put your investor hat on. A rental is a rental.
Washington, DC · Member since 2012 · 3 posts · 0 votes
7y
hi，mark,
you are confused with several different questions.
1. price growth vs. price level:
is DC house much more expensive than PG, and capitol heights in particular? absolutely.
but this is Not what we are discussing here. the issue is appreciation or price growth, not the price level.
2. Washington Metro vs. DC hot spots vs. capitol heights.
you picked several hot spots (eg. deanwood or petworth) in DC proper to compare to capitol heights. it is not fair, and not what we discussed here. we should compare the whole Washington Metro area vs. capitol heights.
3. zillow estimate vs. your assertion: "appreciation is very low"
zillow may be not accurate in Estimate, but it is pretty accurate in record the past performance. is 16.2% growth in Last 12 months an estimate? no. it is a fact. it is pretty accurate. is 16.2% "appreciation very low" in Washington metro area? no. it is among the highest.
you are confused with several different questions.
1. price growth vs. price level:
is DC house much more expensive than PG, and capitol heights in particular? absolutely.
but this is Not what we are discussing here. the issue is appreciation or price growth, not the price level.
2. Washington Metro vs. DC hot spots vs. capitol heights.
you picked several hot spots (eg. deanwood or petworth) in DC proper to compare to capitol heights. it is not fair, and not what we discussed here. we should compare the whole Washington Metro area vs. capitol heights.
3. zillow estimate vs. your assertion: "appreciation is very low"
zillow may be not accurate in Estimate, but it is pretty accurate in record the past performance. is 16.2% growth in Last 12 months an estimate? no. it is a fact. it is pretty accurate. is 16.2% "appreciation very low" in Washington metro area? no. it is among the highest.
Hey man, just do what works. I haven't heard anyone up until now factor Capitol Heights in their exit strategies or appreciation models. I'm just giving perspectives from my personal experience while drawing from other professionals I know. I've lived in Prince George's on and off all my life and flip and rent all over PG and DC. The only place I may come close to considering ripe appreciation hubs in Prince George's would be Mt Ranier, College Park, parts of Hyattsville and the development around the Branch Ave station. Fort Washington may be a come up as well. Either way, it's all about research and what the individual person can draw from. If you believe it's strong for appreciation I say jump in.
Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
7y
Not sure why Deanwood and Capitol Height's shouldn't be compared. My Deanwood flip will go into the mid 300s and that appreciation has rose over 10 percent in the small amount of time I've had it due to comps. I can walk from that unit to Capitol Height's in under 5 minutes. The homes across the border within walking distances will not go for even mid 200s in most cases. It's the exact same unit and square footage. The stance was Capitol Height's is a great appreciation hub and I guess that's relative. My Congress Heights Project has appreciated close to 30 percent just in the holding period. Some of my associates have achieved over 100k of appreciation in DC in under a year so many volley for that as opposed to 8 percent.
Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
7y
I guess what I'm saying is the differences in price level is clearly the drastic differences in appreciation price growth of DC and Prince George's County, over sustained periods of time. With the buy and hold of my partner, utilizing the 8 percent appreciation model 15 years ago, had they never acquired in DC they would have shorted themselves hundreds of thousands of dollars. It has to be looked at on a macro level which is why it's a slim to none degree of people who will argue Capitol Height's as being a mass appreciation play...….
Dallas, TX · Member since 2018 · 64 posts · 10 votes
7y
Capitol Heights likely won't be an appreciation play for quite some time. In order for the area to develop, EOTR DC needs to gentrify first. Thoughts?
I took a look at a property yesterday between the Capitol Heights and Addison Road metro stations. Pretty good cash flow and move-in ready. Currently evaluating whether to invest.
Capitol Heights likely won't be an appreciation play for quite some time. In order for the area to develop, EOTR DC needs to gentrify first. Thoughts?
I took a look at a property yesterday between the Capitol Heights and Addison Road metro stations. Pretty good cash flow and move-in ready. Currently evaluating whether to invest.
EOTR DC is starting to gentrify but will take time. Capitol Heights is for cashflow and maybe, possibly a long term play for some appreciation years down the line (but who knows what will happen). No one I know believes it's an appreciation hub currently.,
Developer · . · Member since 2014 · 520 posts · 162 votes
7y
I don't know if the Capitol Heights appreciation depends on the East of the River gentrification. Apples and oranges. Different jurisdictions. Prince Georges county is big and the focus is not on Capitol Heights.
From your perspective, once folks are priced out of Deanwood, where are they going to move?
That is starting to occur now but not sure how long it will take. Traditionally most who get priced out of the city go to Prince George's for the most part. If that happened all the sudden in Deanwood masses would go straight over the line to Capitol Height's or Seat Pleasent. Some trickle into Woodbridge,Waldorf and in some cases St Mary's County. When I was living in Congress Heights, the major come up everyone around me talked about was going over to the Marlboro Pike area.
I don't know if the Capitol Heights appreciation depends on the East of the River gentrification. Apples and oranges. Different jurisdictions. Prince Georges county is big and the focus is not on Capitol Heights.
I don't see that either. Many believe the mass migration of SE to Capitol Heights is what dropped the value many moons ago. Capitol Heights is not marked for gentrification as of now. People have made very wide spreads off fix and flips, and if the numbers work buy and holds can be good there.
Dallas, TX · Member since 2018 · 64 posts · 10 votes
7y
My point is that eventually Anacostia might grow up and push more folks into PG county. Eventually, the same gentrification we are starting to see in Anacostia will move to the border of DC / PG county, similar to what we are seeing in Hyattsville today.
That said, this is likely at least a 10 year timeline.
Irvine, CA · Member since 2016 · 545 posts · 614 votes
7y
@Mark Cruse@Alex Hymanson@Shadonna N. a little over 15 months ago I looked at all of these areas, I decided to go with the Brentwood neighborhood because of the redevelopment plans already approved. While the redevelopment is running behind schedule, they have been tearing down large areas of the neighborhood housing in the area to build the new construction. This is the project link to gentrify the Rhode Island corridor - Link - Almost 1,800 housing units
I purchased an REO from Bank of America for $199K, rehabbed the property for $23k to Buy-and-Hold for the long-term, it has appreciated to $310k in 15 months. I looked at Deanwood and H Street as well but chose to get the overflow from NW into the NE neighborhoods.
@Mark Cruse hello Mark, wanted to ask you if you have any properties in Oxon Hill (specifically Potomac Vista), I'm wondering how much has the area changed (if at all) in recent years (I didn’t find any recent info on BP), and do you have any input on renting out a single family home (potential tenants, price point, demand...)
Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
5y
@Sara Romic I do not have property in that area. In general the area has not changed aside from slight trickles of gentrifyers moving in, but not many. The area has appreciated along with all areas in the DMV at relatively the same pace. DC has pockets that went higher and faster. To my knowledge the Harbor or any of the development has not led to any significant increases at this point. It would not be hard at all to get tenants for a single family buy and hold but with everything, the investment depends on the numbers. You have to acquire the property at the appropriate price in order for it to be a positive, cash flowing rental. The rents really depend on the size and condition of the property (and a few other things). I´ḿ not sure if the homes inside the Harbor are within in scope you are inquiring about but the cost of those are high and obviously they would rent for much more. Outside of the Harbor i have seen rents anywhere from $1,800 on up to 3k and again that depends on various dynamics. There are many sites out there which can show you a range of rents fo any area.