Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-05
AS AN INCOME GARNER
"A Phase of Interest About
Washington Realty.
ADAPTED TO ALL POCKETS
The Scope Includes Residences and
Business Property.
MARKED ELEMENT OF STABILITY
Some of the Reasons Why Real Estate
Appeals to the Investor, Both
Large and Small.
MARKED ELEMENT OF STABILITY

large operator to a Star representative
Il have always considered Washington
real estate to be as safe and secure in
vestment as United States government
bonds, as eeasily convertible into cash as
these gilt-edged securities and decidedly
more remunerative interest-producing
commodity. And my remarks apply to the
small investor, even though his initial capt.
tai may amount to but few hundred dol
lars as we'll as to the heavy operator from
this othe. communities who has hun
dreds OF thousands at his disposal
Il was in Baltimore few days ago and
one of the real estate brokers In the Monu-
mental city complained to me that many
OF his clients were going over to the capital
and investing their surplus funds In Dis
trict real estate, he taking the view that
these shrewd merchants ought to confine
their operations to opportunities occurring
In their own city.
Three Fundamental Reasons.
I'VE handle great deal of this Baltimore
money very quietly. and considerable from
Philadelphia, and there are three funda-
mental reasons which appeal to these out
side investors to select Washington real es-
tate as base for operations, and they are
these:
First, the tax rate is lower.
Second. the insurance rate on certain
classes on nearly all of our property in
Third, the returns the capital invest
ed are better.
The combination of these reasons though
there are many others. forms a splendid
base for speculative and investment activi-
ties for those who place their money IN
realty The population of this city Is
largely made up of those who have steady
employment the year around, and CONNER
cial commissions and trade depressions.
which frequently obtain in other large
centers of population. are conspicuous by
their absence in Washington
Seat of Government
The fact that the seat of government Is
situated here is another reason why we
consider our property as good as the bonds
the government issues; Washington cannot
retrograde, and, as was very properly stated
in an article in The Star recently that came
under my observation, the capital is an I'M
derbuilt and not overbuilt city.
1T is these with other contributing
causes which, to my mind, assist in the
gratifying stability of prices with up
ward tendency which is now one of the
marked features of the market. A few
days ago a client of mine bought piece
of property on 10th street between G and
H streets northwest for $4,000 and was
offered within short time after the pur-
chase 10000 for 1t. an advance of $1,000,
because the property was susceptible of i'm
provement which would yield an immediate
return at satisfactory interest upon the
laSt-named sum.
Chances for Moderate Investors.
These instances might, of course, be
multiplied by hundreds of others, but the
one named and the sale of piece of prop
erty in another neighborhood entirely on
14th street near S street northwest for
$3.50 In the spring, and resold few weeks
ago for 5000. are two excellent examples
of opportunities for the moderate buyer:
while recent instances pf hp eala at
large advance of downtown business
property only serve to sustain the point
that the field is here for those who wish to
till II, and that these bargains are open to
the small investor. as well as to the mil
Honaire who buys our business blocks.
While the big operators are handy to
have around to buy our highergrade prop
erty, IL is after all the moderate investors,
" no number in the thousands who contrib
ute SO much to the city's prosperity and
her population. To these there is no better
opportunity in the world for investment
than in the moderate-priced house Of say,
from two to three stories. costing from
Si.2Jo to $1,000. and this property will pay
either for the purposes of sale or for rental.
year in and year out, per cent net, and In
some cases more.
While there are many collective in
stances OF property which pays net from
Z to 10 per cent, 1T is best In the interest of
fairness to strike a general moderate aver
age. though 1t is not easy to do. But with
millions OF dollars piling up in the banks
and trust companies where the annual
rate of interest ranges from but 2 to per
cent. the latter being the exception in most
cities. though 1t obtains quite generally in
this city. investments which, on the aver
age. yielded net 5 per cent and over are
most assuredly gilt-edged to the general
buyer.
Specific Favorable Glasses.
"Of the many classes of property which
are open to the moderate investor in this
city-as the heavy operator can take his
choice in the feld-there are four which
stand out to me to be especially good:
First. the moderate priced home, to
which have referred This class of prop
erty sells readily, and liz always rentable,
and these houses can be put up to profit In
all quarters Of the city. from the south
west 10 the newer sections of the north
west.
Second. apartment houses of from three
TO four stories. especially upon corner lots
rented at moderate price. In fact, there
are many single and two story double
apartment houses. particularly in the
northeast and the southwest of compare
lively low cost of construction. which are
rented at once upon completion.
In this instance | do not refer to huge
and costly apartment houses, which also
form an excellent opportunity for the
heavy investor. but the class / have named
is easily maintained and at comparatively
low cost because of the absence Of ele-
yators- Tenants take readily to these
apartments by reason OF the favorable
rents. and will occupy the upper story be-
cause OF the s. to IS a month less asked
while in apartments with elevators one
story is as favorable another
Desirable Remodeled Property.
Third. the remodeled business house
whether formerly a dwelling situated in the
trend of business advancement or the older
type of store reconstructed. This remod-
eled store property is at present one of
the most favored and desirable classes of
property for investment in the city and
will often pay from to 10 per cent net
One of the best instances Of this class
of remodeled property may be seen at the
southwest corner OF New York avenue and
18th street northwest.
This corner until quite recently a
fair type of the old-style single store. with
two stories above OF Indifferent renting
qualities. Today with its concentrated
facade. reconstructed and enlarged interior
on all floors. il looks like entirely new
building, and gives space on the ground
floor for two good-sized stores. Its six
plate-glass show windows, extending COM
pletely down to the sidewalk are something
entirely new in this city in show window
effects, while the renting capacity of the
structure has in all probability been more