Bought a Baltimore townhouse for $1?

Question

Is the Baltimore townhouse for $1 program still happening? Do you know anyone who bought a townhouse for $1? Any leads greatly appreciated! Thanks!

Amit Patel · Answer

Hey Brooke,

Yes, Baltimore still has a version of the $1 house program running through the city’s Fixed Pricing Program under the Department of Housing and Community Development. Individuals can purchase certain vacant city owned properties for $1 if they commit to living there as their primary residence for five years and can show they have at least $90,000 available for renovations. Developers pay more (around $3,000) and nonprofits have their own pricing tier.

The catch is that these are typically heavily distressed vacant properties. Most people who look into it find that the real cost lands closer to $150,000 to $200,000 once you factor in the full rehab. Applications are accepted on a rolling basis, but the qualification rate has been low so far because of the financial proof and other vetting requirements.

If your goal is pure investment without living there, the $1 price usually will not apply. If you are open to living in the property for the required period, it can be a path into a renovated asset, but you need solid capital and a clear plan for the work.

Jules Aton · Answer

If you are willing to compromise a bit on location to get a lower price I’d consider buying on the fringe of a solid neighborhood-Federal Hill, Locust Point, Fells Point, Canton rather than the areas that $1 houses are in especially if planning to owner occupy. Make sure you know the area. Inner city Balto has some hardcore neighborhoods.

G. Brian Davis · Answer

@Amit Patels numbers are right, the $90K renovation reserve requirement is the real gate, not the $1 price. I'd think of this less as a bargain and more as a construction project with a housing requirement attached. If you don't have $90K in cash, a 203k renovation loan or a local hard money lender who understands distressed rehab can bridge that, but get a contractor to walk the property and give you a real scope and bid before you commit to city timelines, vacant Baltimore rowhomes often have roof, plumbing, and structural surprises that eat that reserve fast.

Bought a Baltimore townhouse for $1?

Most Popular Reply