Buying Real Estate in D.C. is Dangerous.

on today's meek heavenly report we're coming to you from southeast of DC with Graham Stefan Matt and Jeff there's something funny about real estate it's easy to set up appointments but it's difficult to understand how to look for value and understand your areas though we all signed waivers before we're entering this property as you can tell from the outside give some great open air flow from the missing window that who knows how long that's been missing for so guys I'm excited to check it out just do it why did we have to sign a waiver I haven't done that I think we're about to find out is that normal you do that a couple times in our first time in DC we have to do it huh Wow yeah surprise surprise when you want to look at the cheapest possible listing there's usually a reason it's the cheapest possible listing this is just a walking liability if any wasn't kidding what's interesting is it's been in this exact condition for over two years so an investor bought it in this condition for $500,000 if you could imagine that and I think what they're doing is they're just waiting for the right development opportunity because it's zoned to add a second maybe even a third level onto this gosh but now it's for sale now it's for sale for $100,000 at an auction robberies on this street they sell for anywhere from 6:30 to 6 to maybe even 700 700 I mean for a nice three-bedroom or even a really nice renovated two-bedroom definitely in the 700s it's listed as a 1-bedroom 1-bath the goal would be for someone to buy it and just add on to it significantly but I mean look at this I mean in California I'd be vomiting if I saw this because to me this is like massive structural damage yeah Wow it's gonna be an issue I mean this is beyond even just plating and strapping it right right we might be talking to a full teardown but how does that work because then your next-door yeah that some investor is gonna have their hands full with this project that's for sure now to me real estate is location location location so let's ask Matt we're not in a bad area this isn't something where you know we need to lock our cars twice and look behind us every you know a couple seconds we drove by a boutique condos that have been converted for a million dollars now we're going to Morris which is across the bridge tell me about that area where we're going after this yeah across the bridge yeah east of the river is that enough said like okay River is enough huh I can definitely speak more about that but let's just say I'm comfortable here I can walk to a Harris theatre here so we have our bags with us and we left our car unlocked that's okay here okay all right this is why one of the first things you learn in the real estate investing course is how to find the perfect professional to help you in your area by the way use coupon code 10 X 20 24 22 percent off ending September 10th 2019 again for the real estate investing course agent course both with livestreams four times per week and the 10x Vegas in-person crash course this would have been what the kitchen area here we just walked through the entire first level not a huge property we're at around 1,100 square feet you not really see tell there's nothing left of value inside so how does this compare to some of your investment properties in California yeah I mean this is not what I would touch you know usually because usually I'm just looking for basics like you know the pain the carpet in this structural stuff would I feel like I don't have to have a lot more experienced in just working with this kind of stuff to touch that I would have to come here with a foundation or structural person that I was confident in that looked at this and said I can solve this problem for 40 thousand bucks here's my bid not a penny more like that's whatever the price would be that's what I would need to feel comfortable or something or to tear down now to me there are two types of wedge deals in real estate tear downs or development opportunities and just basic cosmetic remodels I like the basic stuff it's a lot less risky look at this tiny little yard Wow wide way either this is this is a driveway or backyard so you'd probably probably set it up half driveway half backyard oh wow just what's that like because right there is that that million dollar building or like the million-dollar units are talking about so tell me about those are those like two bedrooms whoo yes so they start in the sixes and then once we get to the penthouse level its 1.1 million Wow two bedroom and den I mean this is brand-new construction you know it's a very convenient location Capitol Hill is sought-after so if you live on the hill if you work on the hill you want to be three blocks away from the metro you know this is somewhat desirable location so this is definitely gentrifying and then there are those times you wish you had a homeowner's association so you could see the neighbor here too I mean what's involved in doing this unit you have to tear them both down no kidding yeah I mean they are that is the same wall yeah and they both look like they're tilting in their own way right but then but then you have another wall over here so if you tear this down you're screwing this building up which on your screw in this building up I mean somebody almost has to come by the block and it's interesting how they paint their units I know this is what happens when you don't have the homeowners association everybody everybody gets the same color right the other separate ways is that barred like that for a window AC so people don't steal the window AC I thought it was a cage for a child yeah you can have your child come outside and save says somebody who doesn't have children you could tell me then why I don't have children people walking above you and you hear the floor Brennan Hank it's scary this must have been the bathroom because it's got the linoleum and in a sky life okay so this is a double wall though so the other side also has its brick wall then cuz that's probably the neighbors I mean I could probably push this through and we can share a beer yeah jokes aside this place needed a little bit too much love so would this have been the bedroom this would have been the better back here here's your wardrobe this is big for Capitol Hill Wow I mean the way some of this is rotten it's almost like it just it's at here leaking for a while this is not for a new investor what are you folks what are you folks like flipping or what are you selling to investors like a new were investors I was in what south east the other day I walked into a condo with a contract for forty thousand dollars for a one-bedroom condo and it's a condo so it's in an association and oh so you're just dealing with the enzymes dealing with the inside and what was the ARB on something like that that one I think it was it was a two-bedroom condo right it was about a hundred thousand so it wasn't like million dollars but it's still a pretty good deal that's where buying a small condo for 35 or 40 thousand dollars putting a little bit of work into it and then having to be worth a hundred thousand dollars sounds a whole lot more desirable than this place which I mean there is no plumbing or electrical left or anything I mean somebody temporarily draped one cable but everything else is cut you've got nothing another dual pane unit now how do I mean I guess it doesn't matter if people break into here because there's nothing to take you know you could have a squatter but we don't see that as often in DC compared to other place now what are your eviction rules like if you did have a squatter squatters have as many Rice's as tenants that's just the crawlspace down here Wow okay so next place is Morris Morris east of the river $200,000 that one had no pictures online Oh looked like a disaster from the outside waiver for that waiver for that one so you signed your life away before you walk it into that voice a lot of waivers in southeast waivers around here do people speculate on like okay this area is gonna be next and that's what my money isn't that risky though because if your block gentrified and somebody else's doesn't yeah you're you know it's a waiting game so if you guess wrong you're gonna be waiting longer and it can be a street-by-street case where a block or two over you're gonna see significant price differences compared to you know a block that we're on just because of whatever reason and that's something we're really having that local expert is gonna tell you look this block good this block not so good huh that's exactly right so we're gonna be going through Martin Luther King Boulevard it's gonna look like a quaint little town but like I said earlier depending on the streets and man depending on the time of day there's certain places you don't want to go down what do you mean don't want to go down so if there's a big drug problem in DC and lots of violence so usually it's obviously violence between gang members to rewards things of that nature homicides in the District of Columbia are up about fifteen percent year over year around twenty eight it's getting worse it's getting worse I think the count is around 150 for the year who still lives why is it getting worse i I don't I don't have an exact answer we're heading into we're gonna be in Ward 7 and Ward 8 these are the most dangerous warts especially an area called berry farms it's a notorious public housing community of about 500 homes that's just about to get torn down and they're gonna do the mixed this is the gentrification special mixed used townhomes apartments with retail space on the bottom now this is not like Knott's Berry Farms no so we cross the bridge we're in the seventh Ward and now we're going into a property that's listed for about two hundred thousand dollars that'll probably sell for hopefully close to that or not it's been sitting vacant for a while so this is not the area that is currently gentrifying this is the area people hope will gentrify in the future this is speculating apparently right and I think what you have a school [Music] oh look at the foot it had a false ceiling was this like a mixed-use why because a residence wouldn't have had this Wow PVC stack on the floor I mean this is just people going through ripping it all out and huh whoa oh this people are looking for the product to steal basically so they're taking these panels off and go hunting because I mean these are easy to pop off jeez ooh grandma I could cook you some eggs and some avocado toast ha hey we got an end to it that circulates to nowhere these are actually newer cabinets they're just really gross I wonder if this had like a stainless section right here and they just stole that wow what mouth mouthed toys and this whole side of the kitchen is disappearing it's fun what is this is the backyard then all right let's do it Oh narrow staircase to but hey look Graham but the stair rails are to code like children wouldn't get their heads through there yeah that's one less thing we have to renovate on this place oh my gosh everything leans left whoa look this door is just getting ready to slam shut oh my whoa I think to balance this out we need three people on that side for every one person over here [Music] we got a three-bedroom house it's $200,000 three bed one bath three bed one bath and how much is this it's at $1.99 nine this whole room feels like it is moving to the right like it's gonna fall off the building the whole oh I'm bummed that feels weird that bad is funky the whole space I went into that bathroom and this whole side of the house just felt like his mob and okay so what's the play on a house like this like how is somebody gonna come in here make money on this deal we'll give you an idea the one next door in the duplex sold for 375 last year okay and what's interesting is it sold twice in 2018 so the person that bought it for 320 bought it from an investor zone that flipped it and then they bought it brand-new for 320 okay and they only lived in it for eight months or so and maybe a job change or maybe they notice all the development and they decide to sell it and they got more than this price at 375 Wow so we're at 200 right now there's a lot to be done here so in terms of what type of play there is I don't know but it's gonna be a big one you know it's that structural stuff that gets expensive so fast you don't even know where to start sometimes you just have to get the right experts in to even start dealing with this I mean it seems desirable that you got the next-door neighbor's place selling for 375 and this is listed for 199 but still the risk level I mean I do like that you're closer to the Main Street you got some newer construction around but Mike's how do you like this property so far it's not something I'm used to this is where the entire I mean the entire house is falling apart here so this one doesn't have offers on it yet no offers I know I know what about like school ratings in these areas not great okay like when you go in sell low grade houses not gonna be great no okay all right is it the more of these multi families you see the larger ones usually the lower the values are usually economy so if you could find singles and duplexes that's probably more where you want to be yeah that's Wow they actually call it chocolate and gentrification now with 30% less chocolate and they used the Hershey logo for Washington this is this is a made with chocolate and gentrification this is the row house neighborhood you know sidewalks on both sides tree-lined streets the sidewalks not gonna fall apart as we're walking on it like maybe the last one so a little bit more owner-occupied residences so more care you're not going to see as many overgrown lawns you're not gonna see as many people hanging out outside in this specific area this one in particular was a flip it was bought for around 250 260 it is now on the market for 499 classic duplex I think it was a little tacky that they didn't go with like a basic two inch faux wood blind here because they could have done blinds in the whole bottom floor here for like 800 bucks and instead they went with the you know $25 10 pack of paper right and that's your first impression that's your first impression it's on the front door and this is a nice door this have you locked it but this is a this door with this kind of window here this is not the cheapest front door you could have gotten but it ruins it with this right and they even did crown molding but nobody knows is this people looking at the paper and I wouldn't have gone with this blue lighting LED it's to cleaning know that if they won't look a warmer color tone it would have been better new mistake see what else we got okay so this has forced air I mean this is the first place we've actually seen with air like what like heating or with electricity like well with you there's power - I've totally fear on it oh and they are these IKEA cabinets it's got that vibe huh I don't know is it they usually tell them no they're like Lowe's or something like that it's actually not bad I mean this is nice and that's interesting kind of like the 10 inch cabinet over there yeah and they didn't go with any crazy like lazy susans in the corner to save money which is good but it still feels like they went all the way except that some noob over here drilled the handle in the wrong spot measure twice drill once and here's a way to kind of rather than having to come back and fix your drywall when your hole was too big put a wood plank right there this is five hundred thousand dollars and what would this have sold for as is not as bad as the other ones but just like 70s original let's say oh there you go okay and so it's probably worth what for a quarter 450 right this is the first basement we've seen so that's something people do is they dig them out they'll dig out the base because a lot of these basements are like five foot ten if that so people will just dig them out and so but now you're doubling your rental costs yeah I mean some it depends if you have to mess with the foundation but sometimes you get away with it for cheaper sometimes like eighty thousand dollars this is almost like its own unit here I mean what could you rent it if you could rent this out separately close that door upstairs by the kitchen somebody put a little microwave in here or whatever what could you get for this yeah it's a good question the unit itself probably around three so just for a one-bedroom I'm thinking maybe at least a thousand a little bit more than three grand for this whole thing that's really good that's great especially if you can buy it for 450 away [Music] oh wow this is nice look you actually have a parking spot oh and then they have air conditioning - Wow yeah put a couple cars here off street parking is clutch indicia wow it's not bad this seems like a definitely more of the area that you would want to renovate in because it's guaranteed like you buy this for 250 you know you're at least that for 25 that 450 over there you buy it for - you've put money in you have no idea what its gonna be worth over there this is expensive they could easily cheap doubt on this stuff you know they didn't go cheap I mean this is loose I mean some of the stuff just needs a little bit of touching up that's gonna hurt it sell so gram what you think we saw some crazy fixers and then we saw something a little bit more you know moderate but then fixed up what do you think about DC yeah what would you think would you invest in one of those gentrifying areas or a gentrifying area like this or would you go speculate in an area that I definitely wouldn't speculate yeah not in those areas absolutely not I couldn't agree with you more I think something like this is a little bit of a safer bet where everything is the same we're looking at comps - it's like oh I've seen this floorplan five times before exactly yeah it makes me feel a lot more comfortable what do you guys think and thanks for showing us around yeah happy to do so guys I hope you enjoyed the tour of these three properties we were on the fringe of some areas where guys DC is an excellent place to live you're walking distance to a lot of places can't thank you enough for having me here if you haven't already be sure to smash the thumbs up button yeah yes I can be found on Instagram at V Matt Leighton on YouTube at the Matt Leighton all right thank you guys my Instagram is Jeff R Layton YouTube just Jeff Leighton and all things real estate investing in Arlington Virginia real estate [Music]

Channel: Meet Kevin

Views: 59,012

Rating: 4.8485332 out of 5

Keywords: real estate, real estate investing, how to invest in real estate, washington dc, real estate flipping, renovating real estate, real estate for sale

Id: jEV0DjlhWrU

Length: 19min 42sec (1182 seconds)

Published: Mon Sep 09 2019