Good Deal or Not? “Huge detached Victorian” edition

This home is located at 4327 8th St, NW:

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The flier says:

“Huge detached Victorian on corner lot. Rare find in Petworth. So much potential! Fireplace, french doors, foyer. Great location between Sherman and Grant Circles. Quick stroll to metro and the development on Georgia Ave. Needs some work. Seller will not make any repairs. Owner occupied. Tenants in basement have been given notice.”

You can find more info here and photos here.

This 5 bed/3.5 bath is going for $399,000. How much do you think it’ll cost to renovate?

14 Comment

  • This is my first time commenting, but I had to sign in just to say this:
    NOT a good deal. I live down the block and walk past this house often. We have a great neighborhood, and I love it, but this house is visibly falling apart. Walking past, you can see the rotting boards on the porch and eaves, the structural issues under the porch, and the huge investment that this property will require. It will take a lot to bring the outside up to the level of some other houses in the neighborhood and I can’t imagine what the inside will take.

  • I think all of the profit to flip this place has been taken out. Going to take at least $125,000 I would guess, and then it has to be sold for like $650,000 to make a good profit. I would say if you can get this place for more like $370,000, I think it would be a good deal.

  • And it’s a short sale

  • I don’t know how much the renovation will cost, but the location is as good as any in Petworth. It you can fix it up for $100,000, and you throw in the rental unit, it’s a good deal.

  • Maybe not a bad deal. Not for a “flip” But for an investment – perhaps. If it goes for list and it costs $200,000 to renovate & you get a 30 year mortgage at 5% for $500,000, monthly payment including tax is around $3000.00. Good location for a group house – 5 people paying $700.00/month is $3,500.00.

    A nice basement apt. could attract a couple paying $1,200.00, plus 3-4 sharing upstairs, you’ve got $3,300 – 4000.00 coming in.

  • How do you buy a house in Petworth in 2000 and wind up underwater and un-renovated in 2011? The owner must have sucked a ton of cash out of that house.

    Anyway, I’ll bet you’re looking at a $200K reno. Is the house a good deal at 600K after it’s renovated? It’s got to be in the ballpark. It’s a big house on a nice sized corner lot. Assuming that $200K is enough, obviously, and that you can carry the mortgage without a tenant while you fix it up.

  • I think it’s a pretty good deal, but not for a flip. It’s a better option for someone looking to buy in a great location, but does not have $100,000 or $200,000 to do all the work immediately. Get critical systems working, slap some paint on in a few rooms, and then do projects as you have the money. Heck, it already has tenants who are paying rent.

    This was the type of places I was looking for (and eventually bought) because it is liveable and has great potential. I’m inclined to agree though that you may be able to knock it down to $375,000.

    In a few years, you’ll have a great house on a great street (so close to both circles—awesome!). I say get it while you can.

    • Totally agree, think that may be the best use for this place.

      Perhaps a newly married couple who can move in, contract some of the work out, and do a lot of it themselves, would put themselves in a very good spot in a 3-4 years, with a big house, on a big lot.

    • +1

      Wish I had the cash on hand, this would be a fabulous investment. Get some tenants in there, knock your mortgage down significantly, and use the spare cash to renovate.

  • Why is it so hard to clean a place before taking real estate pics for it?

    • Because they are not the owners, it is a short sale, and nobody gives a crap about it. This house will probably be difficult to show given that fact as well. Moreover, you have to get the tenants out, no easy task, and with an owner making nothing off the deal I doubt they would bother much to help. You need to factor that headache into the price. Also, with a shortsale, figure it might take 90 days to even have an answer from the bank about whether or not they will approve.

  • I would say the renovation, given how much structural work is needed (I have seen the house in person), will run about 250-275. It’s perfect for a 201k if the buyer can get the sellers down to 300-325.

  • This place is huge and has a nice view of the field at EL Haynes. Hard to find a detached house in the neighborhood and unrenovated ones with fewer bedrooms nearby have been selling for about the same price. Needs new kitchen, probably has no insulation and will need electrical upgrades. Agree it would be great project and investment for a DIY live-in couple. But if you have small kids or a lot of other hobbies, forget it.

  • I walk by the place with my dog quite a bit…it is a beautiful house, but needs some work.

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