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720 Melville Ave – 105k in, 160k out

Hello there my friend!

A number of my investors called me on our recent McKewin Ave property after it sold, so today we’re sending out your second chance, should you have been in that group. Another excellent property just 1.3 miles from Johns Hopkins main campus in Waverly neighborhood.Here within the City’s Historic District we’ve got a 3/2 SFR for 105k that generates you $1600/mth in rent at rehab completion. Additionally we’re leaving 55k equity on the table with this one, giving you multiple exit strategies. Walking distance, great transit access, low crime and appreciation are all terms that can be applied to this opportunity. As always the budget is included in the sales price to bring her back to new again. Read more neighborhood details below as well, including an ironic relation to the impeachment of Richard Nixon.

Looking forward to answering your questions!
–Cris
919-675-CRIS

720 Melville Ave, Baltimore, MD

720 Melville Ave, Baltimore, MD 21218
3br/2ba

Cap Rate: 10.57% + 55k equity
Income Analysis
Listing Price: $105,000
Total monthly projected rental income: $1600/mo
Estimate Annual Taxes: $3,174
Estimated Annual Insurance: $840
Estimated Annual Maintenance Costs: $1,600
** This estimate is based on any potential repairs the property may need over the course of a year. In our experience, this number is typically lower, but we always estimate on the high side.
Annual Property Management: $1,920
**The fee is 10% of the monthly rent.
Annual Net Rental Income: $19,200
Annual Cumulative Hard Costs: $7,534
Adjusted Gross Annual Income: $11,666
5 Year Return: $58,330
10 Year Return: $116,660

Comps:
904 36th St E sold for $170,000
3715 Elkader Rd sold for $164,900
1327 35th St E sold for $159,900
3626 Kimble Rd sold for $140,000

Property and Area Photos

More About Waverly Community

Waverly ZIP codes: 21218

A historic village in the heart of Baltimore, Waverly is a safe, culturally diverse neighborhood with an active community life, innovative schools, affordably priced housing, and a strong sense of community. Conveniently located near I-83, York Road and major bus connections, Waverly provides easy access to downtown Baltimore, Towson, and the beltway. Solid working/middle class neighborhood, with a high percentage of home ownership. Very active community association(Waverly Improvement Association) with lower than average crime stats (according to Northern Police District). Ancient Waverly, when it came into being, was called “Huntingdon,” from St. John’s Episcopal Church, Huntingdon the community’s oldest church, dating from the 1840s. In 1840 the town of Waverly included six buildings all clustered near the 3100 block of York Road: a shoemaker’s shop, a corn husk depot, a blacksmith, and three small stone houses. The shoemaker, Jacob Aull, was an immigrant from Bavaria whose sons built the houses in Waverly’s first housing boom and whose daughter Louisa became a neighborhood historian. Surrounding this little village, away from York Road, there were still the estates, summer houses, arboretums and horse farms of the affluent. In 1866, a large parcel of land, much of it previously used for pasture and farming, was bought and divided into lots. New avenues were laid out. More houses were built, as were the first firehouse, the town hall, and finally the Post Office. Obtaining the Post Office led to the change of name to Waverly, after Sir Walter Scott’s first novel, Waverley, to avoid confusion with the myriad Huntingdons. With rural origins and a history as a suburban village, by 1974 Waverly was considered representative of an urban community, and was used as such by the Gallop Poll. Residents of the 900 block of Homestead Street were asked whether Nixon should resign. According to the story, the first residents alerted all the others to be home and answer the door, and soon the President was gone.

What’s a Pre-hab?

Pre-hab means we have not started work on the property yet. However the prices you see are our “turn-key price” that includes full rehab (granite counters, stainless appliances, hardwood floors) and we turn these around in 45 – 60 days. We also guarantee tenant placement within 30 days of completion or we cover the 1st month’s rent, should you utilize our Tenant Placement and Property Management services.

If you have your own pre-hab you’d like a construction quote on, we’d be glad to provide that for you as well.

What’s a Cap Rate?

The net income an asset produces in a given year divided by its purchase price. The capitalization rate is used to help determine the rate of return, or how fast an asset pays for itself and begins to make a profit. For example, if an asset cost $1,000,000 and it produces $100,000 in a given year, the capitalization rate is 10% and it will take 10 years to pay for the asset with the money it produces. However, it is important to note that the capitalization rate may change from year to year. For example, the same asset could produce $100,000 in year one but $250,000 in year two. It is informally known as the cap rate.