
According to records at the Recorder of Deeds, 1408 Morse Street NE sold last week for $210k. Neighbors note that it’s been vacant for over 5 years, with nearly all the windows knocked out after a fire in 2007. You can even see the roof of the front porch sagging, and it looks like it needs a lot of work.
According to DC government records, the property accumulated a significant tax burden since 2012, when DCRA added the property to its list of blighted properties. With a tax rate of $10 per $100 of assessed value (10%), it’s a measure the government uses to encourage owners of blighted property to either repair or sell the property.
We obtained a copy of the property’s most recent tax bill through DC’s Office of Tax and Revenue. As you can see, the property owes about $250 for the first half of 2012, before the blighted designation. For the second half, the property owes more than $10,000 in property tax. That’s quite a difference, and quite an incentive to either dispose of the property or repair it:

In addition, the property accumulated some violation from uncut grass/weeds, but those fines pale in comparison to the $10k tax bill:

So, it appears that the home has been sold to a developer, and we’ll likely see some construction in there soon (DCRA issued an interior demolition permit on the 14th). Most renovations are less than 6 months start to finish, and are now fetching more than $500,000.
So, what do you think- is this buy for $210k a bargain or hoodwink? Bonus photos of the home below:





ripoff!!
The house across the street, 1413 Morse St is in its final stages of being flipped with a coming soon sign. We had our relator call and it looks like it’ll be coming on the market in the high 400′s/low 500′s. Seems like someone is looking to make at least 100K, it not more, on this place given the current housing bubble of Trinidad.
I spoke with the contractors at 1413- they indicated would put it on the market for around $550k. Considering other recent sale prices, that’s probably not unrealistic. Here’s a photo of the inside of 1413 a couple weeks ago: https://twitter.com/ToTville/status/284775483382591490
1413 Morse St NE just came on the market today at $525K. I wish we could pull that off…
Well that is disappointing to hear, we’ve tried to buy two houses on that block and it looks like we are now officially priced out of the neighborhood altogether. Where in the world are first-time home buyers suppose to get a decent starter house in the District these days…
Pssstt….if you dare take the two steps over Eastern Avenue into Mount Rainier, you can buy a house for under $300K and still enjoy all the lovely amenities Ward 5 has to offer. You’ll have to give up your dreams of a prestigious address in The District and — gasp — make PG county your home, but hey, I haven’t been swallowed alive by my mortgage…
True, but the property taxes are much higher in PG, and county services/schools are lacking. Not saying that DC services and schools are not lacking, but at least with DC you get urban amenities like restaurants and bars. PG is the worst of both worlds. Poor amenities and schools of the city, with the poor nightlife and restaurants of the suburbs.
Fact: the higher property taxes in PG do not fully account for the enormous price differential for the houses across the street from me on the DC side. Just do the math.
Another fact: PG county actually has better schools than DC.
PG county is certainly far from perfect. And it’s true that the bars and nightlife leave much to be desired, but uh, you could say the same about Brookland too (which I’m a 10 minute bus or bike ride from). What I am trying to say is that it is kind of arbitrary to draw the line at the DC border when my neighborhood is basically the same as yours, and really not much farther from the heart of the city.
Oh I’m not saying Brookland is the heart of good restaurants and bars. Although there is a lot of stuff under construction at the metro. We will have to see what moves in, but with people like Abdo behind it, it will probably be good.
If you care about being close to entertainment, the subject of this post- Trinidad is a good spot. It’s still relatively cheap, and it’s close to H St.
Mount Rainier is a cute area. I looked at houses there when I bought in 2009, I found $100-$200k bungalows, with property tax bills of $8k. True it might still be cheaper than a $500k bungalow in Brookland with $3k tax bill, but I just can’t understand why a house like that in Rainer would have such ridiculously high taxes. I’d rather more of my mortgage payment go to building equity than to county coffers.
And I like living in the city, not the suburbs, even though Brookland is almost as suburban as Mt. Rainier. A neighborhood name/jurisdiction has value in real estate, and at this juncture Washington, DC has more name equity than PG County, MD. And that matters when it comes to resale value and overall property values.
I can’t reply to your comment for some reason, but the taxes in MR are high because you have to pay city and county taxes on top of everything else. It is frustrating, no doubt.
Last time I checked, you can still get decent starter houses over the river. It’s not trendy or close to anything, but when Trinidad was cheap, it wasn’t trendy or close to anything either.
If you want something affordable, you have to move into a neighborhood that still lacks everything. You have to be willing to put up with the issues that a transitional neighborhood has, you have to be willing to get out and organize the community and clean it up and lobby developers to come.
If you expect to move into a neighborhood that has all the amenities already, you have to expect to pay for it.
Bargain. A skilled developer can spend $100k to renovate and then flip it for $500k. $200k profit sounds good to me.