Did TOPA apply on this Petworth acquisition?

Tenant had declined TOPA rights after notice — counsel budget $4,500. Files with active TOPA exercise add 30–90 days; hard money term must include that calendar.

What was the hard money leverage?

88% LTC on $625,000 acquisition with 100% rehab in draws tied to DOB inspections — 12-month interest-only term.

Was the English basement legal at refi?

Certificate of occupancy issued after egress and ceiling-height cure — illegal basement rent cannot support DSCR; refi waited until CO in hand.

What exit did the sponsor execute?

Plan A flip at $925K ARV — thin after carry. Executed Plan B: legal two-unit at $4,800/mo gross, DSCR refi at 68% LTV when RLTO expenses modeled.

Petworth DC Funded Rowhome Hard Money Case Study (2026)

DC hub: investment property financing Washington DC · row home financing · TOPA & DOB compliance · DSCR Washington DC.

This funded Petworth rowhome file shows why DC hard money buys calendar for compliance cure — not to skip DOB, TOPA, or basement CO rules.

Property and acquisition

Stock: 1922 Petworth row — one legal unit plus English basement (unpermitted bedroom at acquisition)
Purchase: $625,000 · estate timeline 12 days
Hard money: 88% LTC · 11.25% IO · 14-month term
Close: Day 11 with TOPA notice period satisfied

Spoke: hard money loans Petworth · Blog: DC row home rehab timeline.

Compliance spend (before cosmetic ARV)

Item	Cost	Timeline
TOPA counsel + notice	$4,500	Weeks 1–4
Close DOB violations (prior owner)	$18,200	Months 2–4
Basement CO path (egress, ceiling)	$22,000	Months 3–6
HP exterior paint approval	$3,800 consultant	+6 weeks

Total compliance: ~$48,500 — not in original $115K cosmetic scope; change orders funded from sponsor liquidity and Draw 2 increase.

Rehab draws ($115K + compliance)

Milestone draws released on DOB inspection sign-offs — not cosmetic photos alone.

Stabilized configuration: Legal two-unit — main $2,850/mo · basement $1,950/mo after CO → $4,800/mo gross

Flip vs hold decision

Plan A — flip:

ARV $925,000 · 11-month carry · ~$9,000 net after 2%+ recordation — abandoned

Plan B — DC DSCR hold (executed):

Appraisal $895,000 stabilized two-unit
68% LTV refi → $608,600 @ 8.45%
RLTO-modeled expenses compress NOI — DSCR ~1.08 at 68%; sponsor held for appreciation + rent growth

Cross-river contrast: Same gross on Arlington townhome models ~1.16 without RLTO load — sponsor’s next acquisition targeted Bethesda MD hold.

Hard money lessons

Budget TOPA + DOB before granite — compliance killed flip timeline, saved hold.
Match term to HP + basement CO — 9-month bridge would have forced extension fees.
English basement — no rent in pro forma until CO issued.
Use DSCR calculator with RLTO expense line — city DSCR differs from DMV suburbs.

Fix and flip loans Washington DC
DC BRRRR strategy
DSCR Bethesda MD — cross-river exit comparison

Pre-Qualify for DC Hard Money · (833) 264-7776

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