GDoN Revisited by Hipchickindc

DSCN5316, originally uploaded by Prince of Petworth.

In real life, hipchickindc is licensed as a real estate broker in the District of Columbia and Virginia, and as a real estate salesperson in Maryland. Unless specifically noted, neither she nor the company that she is affiliated with represented any of the parties or were directly involved in the transaction reported below. Unless otherwise noted, the source of information is Metropolitan Regional Information Systems (MRIS), which is the local multiple listing system. Information is deemed reliable but not guaranteed.

Featured Property: 3516 10th St NW

Original List Price: $699,900.

List Price at Contract: $489,900.

List Date: 7/25/2008

Days on Market: 187

Settled Sales Price: $465,000.

Settlement Date: 03/31/2009

Seller Subsidy: $10,000.

Bank Owned?: YES

Type Of Financing: Conventional

Listing History: There was no old listing to be found and no info in the public record so this had probably been last purchased some time ago.

Original GDoN Post is:Here.

Recent Listing: Here.

The Prince’s original title for this Good Deal or Not (GDoN) was “Another Fixer Upper Edition?” There were just too many other good titles, though. I seriously considered “Brave Buyer Edition”, or maybe “Only in DC Edition”, or maybe even “Why Real Estate Agents Don’t Make Enough for What They Do in DC Edition”.

Ben Puchalski with Keller Williams Capital Properties, the listing agent for this property, was kind enough to relate the whole gory tale of the transaction. For those who have absolutely no idea what I am talking about, this property was both a foreclosure AND was occupied by SIX tenants. Transactions involving tenants in DC can be extremely challenging due to extremely tenant-friendly laws and require many more steps than an owner-occupied or unoccupied property.

I make the point that the buyers were very brave indeed in that apparently, they are planning to live in the property but went to settlement with the tenants still there. If the tenants decided to not cooperate, as anyone knows who has tried to remove a non-paying tenant in DC, it would be many months of paying the mortgage but still not being able to live there. Hopefully, all will work out.

Sorry, I got so wrapped up in the tenant issues, I forgot whether this was a GDoN. Actually, for the location and size of the property (this house is huge), even though it will need work, I think the buyers did pretty well for themselves.


15 Comment

  • Has anyone identified what they’re trying to grow in the basement? There’s grow lights on down there.

  • I really love these houses.

  • don’t non-paying tenants = squatters?

    only in dc …

  • From the original GDON, Anonymous @1:21 wins: “I say it sells at 450”

    good call.

  • Also, what are the chances those squatters tear the place apart copper wiring and all before they leave.

  • Somehow I doubt your average DC group house is going to tear apart the walls for copper piping.

  • MandarinJazz, I noticed that Anon’s accurate prediction as well. He/she should get a PoP t-shirt….

  • I’m not sure if we know that these tenants weren’t paying rent… I think maybe hipchick used the example of tenants who aren’t paying rent as an illustration of how it’s hard to evict people in DC. But on the other hand, if I were renting a house that was going into foreclosure, I probably wouldn’t continue to pay rent either… I mean, the landlord probably wasn’t paying the mortgage!

  • Thanks! We also think we did pretty well for ourselves.

  • @11:07: I know some folks who live in a group house that’s in foreclosure. For various reasons, they recently set up an escrow account and are paying rent into escrow; they’ll let the bank and the landlord fight over it themselves.

  • The owners’ issues paying the bank should have absolutely no bearing on the tenants’ obligation to pay rent. Really makes no sense to link one to the other. Do owners of Chryslers get to stop paying their car note when it goes under next week? If so, I’m going to go get myself a mini-van tomorrow, ‘cuz hey, free mini-van!

    In any case, it’s not clear here that tenants aren’t paying rent — good point by Anon @ 1107 — so it may just be an issue of terminating existing leases, presumably month-to-month, and hoping for the best. I hope there was just one lease, not 6 separate ones. But the possibilities discussed here are what petrify me about being a landlord. DC’s laws are ridiculously pro-tenant. Go watch landlord-tenant court for a day and watch how bad landlords/owners can get screwed in this town.

  • I probably should have added “so far…” to the above comment.

  • The thing they are “growing” downstairs is nothing. It’s just a basement with weird lights they use for band practice.

    The buyers definitely got a good deal for the house alone but did they realize it also came with 6 people living there? I think they are going to have a really hard time getting tenants to leave seeing as I’m pretty sure at least one of them just moved in a couple of months ago. Why should they leave if they don’t have to?

  • If the listing is right and the tenants are paying $3K/mo, it’s possible all or nearly all of the cost of the mortgage is being covered. hell, factor in some losses (which you know this house can generate) and the owners might have bought a house turning a profit. Now, if they intend to renovate and live in it ASAP, they might have to remain patient for a while, but if it means getting this house at $450K, it seems like a pretty sound investment. Managed risks and all that.

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