What a million now gets you near American University

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is under contract already

It was marketed for a quick sale, so this is unsurprising. Wonder if they’ll keep the house. I can imagine starting from scratch is cheaper.

Why not keep house? As run down as it is a crew or team of folks could have it move in ready in under 90 days. A tear down and rebuild at best one year and wild card in property taxes and permit fees.

Do you know for a fact the house doesn't have serious issues that might not be fixable or would cost substantial sums to fix? I know a bit about the backstory here and I'd be very hesitant about making guesses without a very, very close look.

What is the backstory? A lot of primary homeowners cant afford to rent for 1-2 years waiting on a house to be torn down and permits and unexpected costs while paying for two places and the total uncertainty of the property taxes. I for one have people who do work discreetly and could easily do all the work first that either does not require permits or permits that wont raise taxes like windows and door then do inside, not changing stuff, just new kitchens and new bathrooms and sanding and painting. I am sure if a primary home owner caring for house it will be appreciated and not reported.

Now you have the purchase price as your cost basis, when you sell in 15-25 years you will be selling at that point a historical low tax beautiful home as opposed to a big tacky box built in 2021 that is dated and everything is going all at once.

Dont see how it makes sense for a long term homeowners to tear down a house like that. Yes a flipper yes. Yes a short timer yes, but long term. The original classic house in 2041 will be worth a lot more

pp, I’d love to know who you recommend for this type of work.

if no permits sub it out, can knock if off quick. I have a guy who does kitchens and baths, guy who paints a floor guy. I just found on my own, if you live nearby, paying cash, just a matter of being good at design and picking out tile and appliances.

f you hire a contractor with permits and let him buy everything at profits and subcontract out at profits you go broke. Also there are "rip out" places contrctors use hire one and let them dem0 and remove .

[Anonymous]

yikes. I would call that 300k to renovate well. 150 to do a very cheap crap job. That house needs a lot of work. Though it does look like a good location.

[Anonymous]

Needed to resurrect this thread as it is now on the market for 1.9

[Anonymous]

Here is the new link:
https://www.redfin.com/DC/Washington/4515-Van-Ness-St-NW-20016/home/9948304#property-history

[Anonymous]

I'm guessing it's no longer 1,888 sf because if so that's over $1k / sq ft for a house in AU Park.

[Anonymous]

Beautiful renovation though tiny

[Anonymous]

I guess this thread should now be called what 2 million gets you in AU park

[Anonymous]

I think they updated the house -- this link is to a very nice house

[Anonymous]

Anonymous wrote:I'm guessing it's no longer 1,888 sf because if so that's over $1k / sq ft for a house in AU Park.

The agent’s own site has that number. I’m pretty sure it’s not that much above 1,888 sqft and much below $1k/sqft. I’m a big critic of AU Park prices (yeah, THAT poster) and as a protégé of AU Park’s historical top math guy, I can assure the new folks have done their best to drive out anyone who understands the exponential function.

[Anonymous]

Wow!! Looks like finished attic and renovated not much else. One million price increase over 12 months ago.

How does it work in DC with property taxes that new sales price is double assessed value?

[Anonymous]

“Before” pics here:
https://www.compass.com/listing/4515-van-ness-street-northwest-washington-dc-20016/697685988668613145/

[Anonymous]

When that house sold in 2021 at around one million mortgage rates were around 3 percent. With 20 percent (200k) down mortgage was $2,400 on a 800k mortgage.

Today at around prices at 2 million 20 percent down is 400k and mortgages will be 5 percent by closing which is $8,000 a month on 1.6 million!!

If a buyer bought in 2021 to live there and just took 100k equity loan after closing to make it bare minimum livable and did projects over a few years would have been a cash cow.

Guy today who buys has two issues beyond price. First when he sells in 20 years all dated and old. Plus the property taxes will be rising much quicker over time.

It is a great house. But it was built 1937 and took 84 years to reach one million in value yet somehow in 12 months it doubled to two million. 84 years of appreciation on one year.

I know a ton of renovations. But still still the same original house on same size plot. Amazing.

[Anonymous]

Ah! It’s been renovated since the OP. I opened the link expecting to see an “animal house” but it’s quite nice, and I was thinking that DCUM is for the rich only.

[Anonymous]

Anonymous wrote:When that house sold in 2021 at around one million mortgage rates were around 3 percent. With 20 percent (200k) down mortgage was $2,400 on a 800k mortgage.

Today at around prices at 2 million 20 percent down is 400k and mortgages will be 5 percent by closing which is $8,000 a month on 1.6 million!!

If a buyer bought in 2021 to live there and just took 100k equity loan after closing to make it bare minimum livable and did projects over a few years would have been a cash cow.

Guy today who buys has two issues beyond price. First when he sells in 20 years all dated and old. Plus the property taxes will be rising much quicker over time.

It is a great house. But it was built 1937 and took 84 years to reach one million in value yet somehow in 12 months it doubled to two million. 84 years of appreciation on one year.

I know a ton of renovations. But still still the same original house on same size plot. Amazing.

Shhh…don’t be a buzzkill, especially not for AU Park!

[Anonymous]

And it's pending!

If it goes at its list price, that's $1,925,000 for 2,600 sqft (over 700 sqft larger than at last sale). To get to the point, it's selling for ~ $740 per sqft.

Brave new world!