Buy and Hold Townhome - Baltimore MD

[Tiara Jackson]

Investment Info:

Townhouse buy & hold investment in Baltimore.

Purchase price: $113,500
Cash invested: $43,000

Our second investment property is a single-family townhome, 3bd 1.5ba with partially finished basement. The property is located in an up and coming neighborhood with close proximity to colleges, hospitals, and shopping.

What made you interested in investing in this type of deal?

This property has multiple exit options due to the proximity to hospitals, colleges, and shopping.

How did you find this deal and how did you negotiate it?

We worked with an amazing realtor (Sam Kahl of the Joe Norman team) and the property was found on the MLS. We offered 7k over asking but we're able to get a great deal due to a low appraisal.

How did you finance this deal?

We used conventional financing with15% down. The capital came from primarily savings and a small portion was funded through a HELOC from our primary residence.

How did you add value to the deal?

We did small renovations on this property, to include updating the main for flooring with LVP flooring, and refinishing the upstairs wood floors. In addition we gave the interior a fresh coat of paint along with updating some of the plumbing and electrical for compliance.

What was the outcome?

During the renovation period a few houses in close proximity that were fully renovated sold for around 80k more than what we paid so that helped with making the listing more attractive, also rental rates increased enabling us to advertise at a higher price point than originally anticipated.

Lessons learned? Challenges?

We learned that Baltimore has quite a few rules regarding the rental process, it's not as cut and dry as some other cities so it was a bit of a process navigating that system. Baltimore City requires a lead certificate, rental license, among other reoccurring inspections.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We worked with Sam Kahl of the Joe Norman team and he was AMAZING!! Very informative as he's from the Baltimore area and he was able to connect us with lots of contractors and resources along the journey!