A lot of folks would like to invest in real estate in Annapolis and Anne Arundel County, and get stuck when they can’t figure out how to make the properties cash flow. The median sales price in the county year to date is $299,999, a reduction from the $325,950 that it was last year. That nearly 10% reduction sounds pretty good. But when a house typically rents for $1400-1600, it doesn’t make much difference that the prices have come down 10%, does it?
A local real estate wholesaler called me the other day. He has a couple townhomes in Brooklyn (just north of Annapolis, between Annapolis and Baltimore) available for $75,000 and $82,000. He said the need less than $20,000 in work each, and would rent for around $1150. Those numbers are a little nicer. With 20% down, he forecasts a cash-on-cash return of 31%.
Do you know someone who invests in Brooklyn Park or Brooklyn? How do they like it? I’d love to know. And if you’d like to acquire some property like this, let me know, as these kinds of deals are being made all the time right now.
P.S. Call me today for all your Annapolis real estate needs.