Hey everyone,

Looking for some advice from people who have been investing in multifamily properties longer than I have.

I bought a fourplex in Washington, DC, in April 2026 for approximately $1.47M. Each apartment is a 3BR/1BA, around 790 square feet. I’m currently living in one unit and trying to rent the other three.

When I purchased the building, the existing Section 8 rents were around $3,500/month. I knew those rents were higher than market, but I don’t think I fully appreciated how much that would impact the economics once the tenants moved out.

Now I’m finding that realistic market rents are probably closer to $2,000–$2,200/month, honestly probably closer to $2,000.

To complicate things further, DC is changing how it calculates voucher rents, so my understanding is that even if I find new Section 8 tenants, the rents I’d receive would be substantially lower than what the previous tenants were paying. Basically, I don’t think I can realistically reproduce the original rental income.

My PITI is approximately $10,000/month, and the three vacant apartments have been on the market for around 100 days.

I’m a physician with a high W-2 income, so I can afford to carry the building. But being able to afford something doesn’t mean it’s a good investment.

Here’s the potential upside:

There’s an unfinished basement that’s currently generating no income. I’m considering converting it into two additional 1BR/1BA apartments, assuming zoning and permitting allow it.

Preliminary numbers:

• Construction: $150K–$250K

• Potential additional rent: $2,800–$3,600/month combined

• Financing: Potentially around 6%

• Total units afterward: 6

I’d also consider renovating the existing apartments as tenants turn over, potentially adding second bathrooms and upgrading kitchens and finishes to increase rents.

But that means investing even more money into a property that already isn’t performing the way I originally anticipated.

My biggest concern is cash flow and scalability.

I understand appreciation and mortgage paydown can create substantial long-term wealth. But if I’m subsidizing this building by several thousand dollars every month, that’s money I can’t use to acquire additional properties.

And if the original rents are no longer achievable, I’m also wondering how much less the building might be worth today than what I paid.

So I’m debating whether to stabilize and hold for 15–20 years, develop the basement and try to improve the economics, or sell and redeploy the capital into a better-performing investment.

I’m not particularly emotionally attached to the property. I want to build a real estate portfolio, and I’m trying to figure out whether this building is a good foundation for that or whether I’m just throwing good money after bad.

For those of you who have been in a similar situation, what would you do? Would you accept the negative cash flow for the long-term equity upside, invest more to add units, or cut your losses and move on?

Especially interested in perspectives from people familiar with DC multifamily, Section 8 rent changes, and value-add projects.

Thanks in advance.