The other day, GM asked whether you’d be willing to live in a murder scene to save a few hundred thousand dollars. Inspired by another Georgetown listing, GM is back today to ask a different question: is Prospect Street really that bad?
The house at 3344 Prospect St. just went on sale. It’s a beautiful 4 bedroom/3 bathroom house with updated finishes throughout. And it seems well under-priced at just $1.399 million. Yes that sounds crazy to say something almost a million and a half is under-priced, but homes of its quality in other parts of Georgetown would likely sell much closer to $2 million.
And in fact the listing itself demonstrates how much it’s under-priced. The description states: “Entry level can be rented out, currently receives $2,300/month and main house receives $8,500/month.” In other words, this house produces $10,800 a month in income.
A mortgage on a $1.399 million house (assuming 20% down) is only about $5,300 at today’s rates. Hell, if you got a bank to loan you the entire amount, you’d still have thousands of dollars a month profit.
So why is this house priced so low? GM can only speculate that it has to do with the old real estate maxim: location, location, location. Prospect St. can be a tough street to live on. It is a highway for late night revelry, and is the location of at least a couple particularly notorious student group houses. (The house at the northwest corner of Prospect and 33rd always seems to be occupied by a bunch of hard partiers).
Does a Prospect St. address drag down the price of houses?
Oh and if you’ve got a spare hundred thousand dollars, GM thinks you could do a lot worse than to buy this house and rent it out.