This Kalorama Heights 4-unit multi-family offers a strong rent range of $15.2K to $21.2K/month, based on $3,800–$5,300 per 3BR unit. Two units are currently rented below market at $2,350 and $2,625, while two are vacant—leaving clear upside. With a price of $2M, annualized gross rents could reach $182K–$254K. The estimated payback period sits between 7.9 and 13.2 years, which is compelling for DC. The market is rebounding, with rents rising and strong renter demand[1][2][3][5]. Classic features—fireplaces, balconies, parking—boost appeal, but below-market leases and 1909 construction may require modernization to realize full potential.

For maximum rental yield, prioritize upgrading the two vacant units to match or exceed the neighborhood’s high-end finish expectations—think modern kitchens, in-unit laundry, and refreshed baths. Once repositioned, re-lease existing units at market rates as leases turn. For sellers, highlight the property’s rare scale, parking, and value-add upside. If considering a sale, timing is favorable: DC demand is robust, and supply is tight, giving leverage to sellers who can demonstrate upside.