New Maryland Investor Looking For Feedback

[Eric Masi]

Hi everyone, I'm finally getting off the sidelines and I'm ready to start investing here in Maryland. I'm trying to understand the market and how to analyse a deal so that I can start making offers! 

I live in Baltimore and I'm currently looking for 2-4 unit properties in Baltimore City, Baltimore County, the eastern part of Howard County and the northern part of A.A. County (perhaps as far south as Crofton). That's probably too big an area for someone just starting out so I hope to narrow it down a bit as I go along. I plan to stat by using my personal money along with some private money to BRRRR. I'd like to buy and hold getting a minimum $250 cash flow per door with a 12% IRR.

For starters I'm looking at REOs on the MLS and I have a hypothetical deal that I'd like to get input on from people who know the area. I'm making A LOT of assumptions here so any insight would be helpful. Here are the details:

3511 Powhatan Ave, BALTIMORE, MD 21216 (Forest Park neighborhood)

4 units: 3x 2br, 1x 1br all separately metered

Rent = 3x $950 + $795

ARV: $185,000

Refinance 70% LTV = $129,500; 30 year fixed 5.5% = 735.29 / mo

Cash flow $1,071.71

Assuming a sale at the start of year 5

Total PV - Rehab Cost = Purchase Price

144,036 - 60,000 = $84,036

Again there are a bunch of huge assumptions here but I'd be happy to elaborate on why I chose certain numbers. I also don't know if there is ground rent or not.

Thanks in advance for any feedback on the numbers, where I'm looking, strategy, etc.