Here’s an update on an FHA 203k renovation loan target home that we list in Brightwood. This one’s a 4 Bedroom Brightwood row home listed at $587,650 that is now reduced to $549,650. “We call 5627 Kansas Ave. NW an FHA 203k target because it has an extensive renovation already completed. The FHA 203k renovation loan money in this case is strictly used for new dual HVAC, kitchen updates and bathroom updates. It puts a perfect finishing touch on an already modernized home where owner preserved a lot of Old World charm and details,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company.
This is a 4 bedroom, 3 bathroom row home with a wide and deep floorplan and over 2,400 square feet of interior space. It’s located at 5627 Kansas Ave. NW in Brightwood near where Missouri and Kansas intersect. The property already has a multi-level rear addition that creates some of the great extra square footage and puts walls of windows on the rear of the home. “It creates a great feeling of old and new when you’re looking at this home. The front is very traditional, and the home retains its historic feel with original woodworking and detailing,” continued Gerard. “The basement even has a private bedroom and bath which makes a great au pair or in-law suite.”
There’s more to the story on this property than what you can see in the photos. The seller comes to us from an UrbanLand Company prior seller referral. “The right way for us to position our services with this property owner was to fund certain needed cosmetic renovations – we had all three levels painted, installed new carpeting in the lower level and took care of numerous other small details. There’s a lot of small things we do that make a big difference when we are fully engaged in our Seller Services program with a property,” said DiRuggiero. “It adds up to about $8,000 in cosmetics that go a long way toward putting a great face on a home that has even further potential due to its location.”
“The home’s reduced price creates a great opportunity for a savvy buyer to sweep in and put this home under the FHA 203k loan program. Their loan product gives you up to $35,000 for necessary repairs to roll into the mortgage. In this case, you’d put in new central AC and re-do 2 bathrooms and the kitchen to meet your standards. That puts the icing on the cake in a home in a neighborhood that will surge in value,” concluded Gerard. “We already have exhibits available on the exact renovations with a respected local contractor. The buyer is welcome to follow that contractors’ guidance, or can bring in their own resources. In this case, dual split system new air conditioning for all levels comes in at around $13,000 for both units, installation and everything else. For the kitchens and baths, you’re going to be getting a major update for about $24,000 if you follow the guidance. When you couple this with the recent price decrease from $587,650 to $549,650, you see why we get excited about the FHA 203k renovation potential. The numbers just line up.
5627 Kansas Avenue NW is right near the new Walmart, Safeway, Walgreens and a ton of other shopping and restaurant options. Parks are nearby along with major bus routes and the Georgia Ave. – Petworth METRO. “Brightwood is the natural overflow for Petworth. In fact, we refer to Brightwood a lot internally as the ‘new Petworth’,” said DiRuggiero. “The area represents a unique opportunity for buyers. A lot of potential Brightwood sellers are excited they can ‘finally sell their home’ and move on, and they don’t even realize that the neighborhood is in hot demand with buyers now spilling in while looking in Petworth. The lines between the neighborhood blur in the eyes of buyers as they see Petworth’s surge in housing prices and popularity and look naturally to the North.”
UrbanLand Company is a private real estate brokerage headquartered in the U Street Corridor. Contact 202.299.9223 for more info on our Seller Services program and how we can help you sell your property in DC/MD/VA!