Another 3b/2ba Turnkey in Baltimore, MD

[Tim Stuart]

Investment Info:

Single-family residence buy & hold investment in Baltimore.

Purchase price: $148,000
Cash invested: $30,000

Just closed on a Turnkey Rowhouse in Baltimore, MD through @Norada. My advisor @Oliver Fu pointed me toward the Maryland market for their CoC returns and low property management costs. This property is a fully rehabbed 3 bedroom, 2 bath with a walkout basement and is currently in the process of a Section 8 voucher inspection, tenant to be placed once the COVID-19 ban allows inspectors back to work. Because the Turnkey provider guarantees rent for the first 12 months, we are cash flowing!

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

Easy, no hassle turnkey property that is professionally managed.

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

Through Norada with the help of Oliver Fu, my trusted advisor.

How did you finance this deal?

Conventional

How did you add value to the deal?

Unfortunately, the appraisal came in lower than purchase price. However, due to our great relationship with our Turnkey provider in MD, he agreed to drop the purchase price to the appraised value in order to keep the deal flowing. This inadvertently increased our CoC returns.

What was the outcome?

Cash flowing property with a tenant in place (in progress - special thanks to COVID-19).

Lessons learned? Challenges?

Maryland has a 2% transfer tax on all properties. Half paid by seller/buyer.

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

I was introduced to the MD Turnkey provider through Oliver Fu, my trusted advisor at Norada.