Now this property is in a class C neighborhood with a calculated 11% cap rate estimated.

Calculate how much more in interest, lost profits, etc it will cost you to have this “blip” on your credit report.  

So your capital gain when you sell this property will be calculate against your tax basis and not against your mortgage as many investors expect.

The withholding can also be stopped altogether, and only actual taxes owed will be collected by filing form MW506NRS at least 21 days prior to settlement and filing it with the Comptroller of Marylands office to get the exact actual tax owed calculated. 

Educate yourself with resources like The House Hacking Strategy and practice analyzing deals using tools like BiggerPockets calculators.

A Title Company can distribute the proceeds based on the agreement, and consulting a CPA will help calculate tax liabilities and explore strategies like a 1031 exchange to minimize taxes.

Not all lenders are well-versed in these calculations.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

Or explore what BP has for calculators under the 'Tools' section.  

We are frequent users of the Rental Property Calculator and have found a few promising leads thus far but also know that is just the beginning of the process.