All Forum Posts by: Leo Watts

Welcome!

@Vladimir Kirichenko

The purposes of the RA-1, RA-2, RA-3, RA-4, and RA-5 zones are to:

(a) Permit flexibility of design by permitting all types of urban residential development if they conform to the height, density, and area requirements established for these districts; and

(b) Permit the construction of those institutional and semi-public buildings that would be compatible with adjoining residential uses and that are excluded from the more restrictive residential zones.

300.2 The RA-1 zone provides for areas predominantly developed with low- to moderate-density development, including detached dwellings, rowhouses, and low-rise apartments.

300.3 The RA-2 zone provides for areas developed with predominantly moderate- density residential.

300.4 The RA-3 zone provides for areas developed with predominantly medium-density residential.

300.5 The RA-4 zone provides for areas developed with predominantly medium- to high-density residential.

300.6 The RA-5 zone provides for areas developed with predominantly high-density residential.

SOURCE: Final Rulemaking published at 63 DCR 2447 (March 4, 2016 – Part 2).

DC zoning guidelines are a lot more permissive for two family rentals depending on if you want to convert into a 2 unit or go the ADU route. None of the surrounding counties have as much flexibility.

Seconding what @Joaquin Camarasa said. Lots of bidding wars in NoVa right now. 

Also seconding what @Russell Brazil said about legality of ADUs. I read that Fairfax county is looking into reworking their ADU laws, but right now arlington county or DC is your best bet if you want a fully separate 2 unit. Otherwise you're just skirting a grey area.

I would guesstimate you’d get about $800 a room with no living room. The worse the living situation the cheaper rooms will go for.

@Russell Brazil

Interesting. All of the recent sold comps of various sizes and conditions I see have been selling in the 400s, 500s, and 600s, so the final sold price doesn’t look ridiculous. There’s a couple of similar square foot fully renovated comps in the high 6’s and low 7’s so maybe if an investor bought it, they will still be able to flip it for a profit. Seems ridiculous the listing agent listing it so low, unless they were planning on a bidding war, which they got.

Jeez. Can you share the address?

As Russell said, the distinctions vary and can be quite restrictive, which most ADUs only being allowed to owner occupants, meaning you can live in the ADU and rent on the house or vice versa, but technically it's not allowed once you've moved out, though I'm not sure how this is actually enforced.

There's also quite a bit of confusion in DC on the distinction between ADUs and creating a separate legal rental through a 2 unit or more flat conversion, even at DCRA, which looks similar to creating an ADU but is a distinct process that yields multiple separately metered and legal rental units, with no owner occupancy requirements.

> Adding a separate meter can add $5k to $15k depending on the existing conditions.

This is approx what was quoted. I believe the other costs are having separate hvac systems and fire separation, along with separate gas meters of both units have gas.

> In regards to a cellar and basement, the reason for the difference is that DC counts a basement as a story but not a cellar. If it is in the RF-1 zone a house can only be 3 stories so if the basement counts as a story the owner cannot add another floor. If it is a cellar a 3rd floor can be added. It is considered a cellar if the 1st-floor level is less than 5'-0" from the existing grade at the front door.

This is a great distinction.

From the code:

> Except as specified elsewhere in this section, the maximum permitted height of buildings or structures and any additions thereto not including the penthouse, in an RF-1 zone shall not exceed thirty-five feet (35 ft.) and three (3) stories.

@Jessica Long

So rental rates are fairly stable over time in the face of the 2008 recession. Covid hit rental properties nationally pretty hard, but well positioned properties and savvy landlords overall have done fine. If you have a nice property and are a good landlord you’ve mostly done fine (myself included) during Covid.

Take a look at this data. It’s analyzing median rental rates over time in PG county. You will notice that the median rental has stayed fairly steady over the last 15 years with incremental appreciation of rent and only a small drop due to the 08 recession. Vacancy rates did jump from 6 - 10 % but then dropped back down to 6% a year.

https://www.deptofnumbers.com/rent/maryland/prince-george's-county/

I think PG is probably one of the better places for a rental property near DC, depending on many factors. If your numbers work now, analyzed conservatively, I wouldn’t worry about a huge sudden lack of demand for a rental. Covid was probably the biggest disrupter of all time, and that hit mainly studios and one bedrooms and individual rooms for rent, less homes for families.