We’ve purchased a 1,188 square foot townhome in the Glover Park neighborhood of Washington, DC for approximately $868,000. This project is part of our broader strategy of renovating older homes with good bones in high-demand urban neighborhoods.
Business plan
We plan to renovate the four-bedroom, two-bathroom home, then bring it to market at an elevated price point. We anticipate spending roughly $236,000 to complete a full renovation. Based on sales of comparable homes in the area, we intend to sell the property for approximately $1,320,000, yielding a projected profit of roughly $216,000.
Why we invested
- Great location: Glover Park is a quiet, family-friendly neighborhood of row homes in northwest DC, located about two miles northwest of downtown. The neighborhood is a favorite of southern transplants to DC, and is also known as the home of the Russian Embassy and the Vice President’s residence at the Naval Observatory.
- High market demand: Over the five-year period ending June 2018, the Zillow home value index in the 20007 ZIP code has increased over 25% from $784,000 to $991,000, a trend that we believe will continue as homebuyers demand homes in established urban communities.
- Strong, stable local economy: With over 30% of residents employed by the government, the DC market is uniquely insulated from national economic downturns. In addition to federal workers who generally earn comfortable middle-class salaries, there are thousands of highly-paid private sector employees such as consultants, lobbyists, and lawyers. For more information, please see our DC market analysis.
