I have some capital to do a brrrr but need information bout the lending part of the deal and want to know about the point system when it comes down to loans. Want to know if Baltimore is still a feasible place to do a brrrr with a row home. I am looking to hold and refi when the home is complete then move on to the next home. Anybody in the area and or that can provide some information about a brrrr in Baltimore will be great.
Real Estate Agent · Orlando, FL · Member since 2025 · 60 posts · 17 votes
3mo
Don, I have a long time friend who has a mortgage company who concentrates in Prince George and surrounding areas. Maybe him being local will have some insights of what the people above are discussing with you.
Lender · Lake City, MI · Member since 2019 · 118 posts · 42 votes
3mo
Hey Don
Yes brrr is still feasible. Points on a loan mean the lender with charge you a percentage (1% = 1 point) as a fee to fund the loan for you.
Baltimore specifically has lenders more hesitant to lend due to the declining market that is happening there. It is still possible, but harder. Why did you pick Baltimore?
@Bryce Fairburn thank you, I'm looking into Baltimore because of proximity to where I live. I am currently looking at other markets also but Baltimore looks like a cash cow to an extent.
@Bryce Fairburn thank you, I'm looking into Baltimore because of proximity to where I live. I am currently looking at other markets also but Baltimore looks like a cash cow to an extent.
Sounds good, I have some lenders I work with who lend in Baltimore, let me know if you want and I can connect you
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
3mo
Can you go to any meetups and network there? See what others are doing. BRRR overall is tougher but can be done. Some areas you have to decide between cashflow or pulling more money out.
Investor · Collierville, TN 38017 · Member since 2017 · 593 posts · 445 votes
3mo
Quick breakdown on the lending side Don:
Most BRRRR investors use hard money or a private lender for the acquisition and rehab, then refi into a DSCR loan or conventional loan once it's stabilized and rented.
On points, a point is 1% of the loan amount paid upfront. Hard money typically runs 2-4 points plus 9-12% interest right now. DSCR refis are usually 1-2 points with rates in the 7-8% range depending on your credit, LTV, and DSCR ratio. Always compare the total cost (points + rate + fees), not just the rate.
On Baltimore row homes, it can still work but the deal has to be right. Watch out for:
Older homes with knob-and-tube, lead paint, and outdated plumbing that blow up rehab budgets
Tax delinquency and ground rents (Baltimore-specific issue)
Pockets where ARVs don't support the all-in cost, you'll get stuck with capital trapped in the deal
Vacancy and tenant quality in weaker blocks
The biggest BRRRR killer is overpaying or underestimating rehab. Hit your 70-75% ARV minus rehab rule and you'll be fine. Miss it and you'll leave money in the deal.
Talk to a few local DSCR lenders before you buy so you know exactly what the refi will look like. That way you're not guessing on the exit.
I have some capital to do a brrrr but need information bout the lending part of the deal and want to know about the point system when it comes down to loans. Want to know if Baltimore is still a feasible place to do a brrrr with a row home. I am looking to hold and refi when the home is complete then move on to the next home. Anybody in the area and or that can provide some information about a brrrr in Baltimore will be great.
BRRRR can still work, but the lending side is just as important as finding the deal. Before buying anything, I'd talk to a few hard money, private money, and DSCR lenders so you understand their point structure, rehab draws, seasoning requirements, and refinance guidelines. A lot of first-time BRRRR investors focus on the purchase and rehab, but don't fully understand the exit strategy. As for Baltimore, I'd be hyper-focused on neighborhood selection and ARV accuracy. If you're open to out-of-state investing as well, some Midwest markets continue to offer strong BRRRR opportunities with lower acquisition costs and solid rental demand. The key isn't finding a market, it's finding a repeatable process where the refinance returns enough capital to do the next deal.
@Arman Ahmed thank you, I've been looking at Ohio and Indiana also. Baltimore sticks because of proximity but I'm believing a BRRRR can work in Ohio & Indiana also.
Closer to home is always my preference. Baltimore has decent areas to BRRR but unless able to spend a decent amount on the fringe of the strong city neighborhoods it often makes sense to move out a little farther. Everything is expensive everywhere now but consider Parkville, outskirts of Columbia-watch HOA rules, Dundalk, Glen Burnie type areas. The product generally isn't as old and neighborhoods should be better than inner city again unless you can afford Fed Hill, Canton etc which are slim to no pickings now.
Real Estate Agent · 11440 N Kendall DR, Suite 405 · Member since 2026 · 10 posts · 1 vote
3mo
Great questions on the lending side. A few things worth knowing on the point system — lenders typically charge 1-3 points on hard money and bridge loans, where 1 point equals 1% of the loan amount. On a $150K Baltimore row home that's $1,500-$4,500 in origination fees on top of your rate. The points essentially buy down your rate or are just the lender's profit margin depending on the product.
For BRRRR specifically in Baltimore the lending sequence matters as much as the points. You want a hard money or private lender for the acquisition and rehab phase — expect 10-13% interest plus 2-3 points, short term 6-12 months. Then your exit is a conventional cash-out refi once the property is stabilized and seasoned — most conventional lenders want 6-12 months of seasoning before they'll refi at the new appraised value.
The feasibility question on Baltimore row homes — the numbers can work but the rehab scope is everything. Row homes in Baltimore often carry lead paint, knob-and-tube wiring, and aging cast iron plumbing that can blow your budget fast if you don't scope it correctly before closing. Coming from a GC background I'd say get a detailed scope of work before you commit to any purchase price — the ARV math only works if your rehab number is accurate.
What's your target ARV and current purchase price you're looking at?
Real Estate Agent · Orlando, FL · Member since 2025 · 60 posts · 17 votes
3mo
Don, I have a long time friend who has a mortgage company who concentrates in Prince George and surrounding areas. Maybe him being local will have some insights of what the people above are discussing with you.
Specialist · NJ · Member since 2022 · 1k+ posts · 649 votes
3mo
Baltimore went through a giant appraisal scam that made most lenders pull out of that market. There are some lenders who will look at a baltimore deal but the pricing will reflect the risk.
Traditionally, 2 points origination is standard. If you can find 1 point, you're ahead of the game, if you pay 3 points then you may be over paying.
I'd concentrate on 2 - 4 unit houses in the rust belt. From Pitt to Indianapolis. The multis hit a DSCR near 2.0 which is what you really want. I have a duplex for sale in my pipeline right now in Pitt. Each side will rent for 1400, so 2800 for the building. The mortgage payment will be less than one of the rents. Just needs to be updated.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
3mo
@Don White Yes BRRRR still can work in Baltimore. However Baltimore is a tricky market. Values for investor properties have dropped significantly. While this can helpful on the buy end, it can hurt on the refinance end of the deal. It may be tough to get a high enough appraisal.
Also rents may look better than you can actually get, but the bigger problem is the cost of managing rental in Baltimore is high. Not all deals will work. It is important to know the real numbers on a deal. not all deals will work.
I see you mentioned going to local meetups. A small but very good one is the Landlord lunch at Spirits West. It is 12:00 every Friday 2601 Wilkens ave. It is free, no sign up, just show up.
Lender · Princeton, NJ · Member since 2026 · 24 posts · 7 votes
3mo
Baltimore can still work for BRRRR, especially with row homes, but the deal has to be underwritten pretty carefully. The biggest thing is making sure the numbers work on both sides of the strategy: the short-term acquisition/rehab loan and the long-term refinance loan after the property is stabilized.
For the lending side, I’d look at a few things upfront:
Purchase price
Rehab budget and scope of work
Expected ARV
Expected monthly rent after rehab
Taxes, insurance, and any HOA/ground rent
Your credit profile and experience
How much capital you have available for down payment, closing costs, reserves, and any rehab overages
On the “points” question, points are usually an upfront cost paid to the lender at closing. One point equals 1% of the loan amount. So if the loan is $150,000 and the lender charges 2 points, that would be $3,000 in points. Private/hard money loans may have points, interest, processing/underwriting fees, draw fees, extension fees, etc., so you want to compare the full cost of capital, not just the rate.
For a BRRRR, I'd also make sure your exit loan works before you buy. A lot of investors only focus on the acquisition and rehab loan, but the real question is whether the finished property will appraise high enough and rent high enough to qualify for the refinance. If the rent does not support the DSCR or the appraisal comes in lower than expected, you can get stuck with more cash in the deal than planned.
I work with investors on fix and flip/bridge loans and DSCR refinance options, so happy to help you run through the numbers or explain how the lending side usually works for a Baltimore BRRRR.
I have some capital to do a brrrr but need information bout the lending part of the deal and want to know about the point system when it comes down to loans. Want to know if Baltimore is still a feasible place to do a brrrr with a row home. I am looking to hold and refi when the home is complete then move on to the next home. Anybody in the area and or that can provide some information about a brrrr in Baltimore will be great.
I would start by speaking with an investor friendly lender before choosing the property @Don White. Ask for the full terms in writing, including the points, fees, draw process, refinance requirements, and any waiting period after the renovation. Then compare those terms with a conservative rehab budget, expected rent, and after-repair value. I’m Diana Khan, a Maryland real estate attorney, broker, and investor, and I’ve seen financing details affect a deal very quickly. General information only, not legal or financial advice.