Good Deal or Not? “Previous owner started demolition and quit” edition

23 Q Street Northeast

This house is located at 23 Q Street, Northeast:

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The listing says:

“Victorian row, vacant, partially gutted, scheduled for auction at Alex Cooper Auctioneers on Thursday 7/11/13 @ 11AM @ 5301 Wisconsin Ave NW #750, Wash DC. Previous owner started demolition and quit. $40,000 deposit required. Lender starting bidding at $405,000.”

You can see more photos here.

This 3 bed/1 bath is starting at $405,000. What do you think it’ll end up going for?

23 Comment

  • Hrmm. I wonder the previous owner found that caused them to abandon their project?

  • That house needs at least $200k to make it new. I’d have to see comps from the neighborhood, but without a 203k loan I wouldn’t touch it, the 203k loan takes at least 90 days to close so you’re by default out of bidding if you go that route… Only a cash investor would buy this, but it’s hard to think that someone would pay much over $600k for that property once it’s done. It’s an overpriced shell. Would have to be around $250k to make it worthwhile.

    Wouldn’t touch it.

  • There’s a recent reno on R that’s listed at 765K and it’s sat on the market for 122 days. At 405K + 250K for renovation, you’re getting to about what this could resonably sell for. I wouldn’t want to be left trying to market something for much more than 725K, especially given the recent spike in interest rates.

    • Yeah, as a casual (obsessive) housing market observer, my guess is this doesn’t sell for the opening bid. Just eyeballing redfin, it looks like housing market activity looks like it has slowed dramatically in the last 3 weeks given the recent interest rate volatility, and my guess is that purchase demand will have retreated to within the well-established city-core for for homes in the price-range they’re going to need to charge for that renovation. Just a guess, though — projecting housing market conditions is a fool’s game, but from an investor’s perspective, things have probably gotten riskier-looking in the last few weeks.

  • I rarely comment on these and freely admit that I am no expert on real estate values in this area. But, Jeez, $400k for a gut in Truxton Circle? To my untrained eye, that looks insane.

  • Bad deal. Agree with Jack5 – this thing needs to be $250K to make it worthwhile, based on comps for renovated houses in this ‘hood. I guess it could be split into two small condos if you add a pop-up, but that’s going to push your renovation costs to $300K easily. If it goes for $405K, you’ll be doing a lot of work and taking a very big risk for very little payoff. And it’s going to take a year to renovate this, so who knows what the market (and interest rates) will be like at that time.

  • I looked at something literally a few houses down from this not long ago – it was in slightly better shape (though still not livable). Ended up selling for ~$540k.

    With a total rehab this could go for low 700s. So $405k doesn’t seem totally unreasonable, but I’d be surprised to see it go for much more in a cash sale.

  • The issue is not an individual owner wanting it for a single family. I suspect a developer will bid it up, pop the structure up 1-2 floors and sell it as 2-3 condos. Its the only way to make money. It also makes it very hard for individuals to compete.

  • my guess is that this will be turned into two condos.
    if they sold for 450,00 each, that would be profitable for an investor, no?

    at any rate, i think people are right to suggest that the boom is this area is coming to an end.
    maybe, if we’re lucky, commercial rates will start to drop and there might actually be a chance of retail coming to north capitol.

  • Move in. At your own risk…

    • why?
      i live a block from here and think it’s a great area.
      this block is especially nice and pretty chill.

  • Note too that there is a large building going up behind this house across the alley at 50 Florida Avenue. So it’s rear view is going to be of a large multi-story apartment building.

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