This deal is for 2 tenant occupied properties, 1648 Heathfield Rd Baltimore, MD 21239 & 4809 Bowland Ave Baltimore, MD 21206 being sold as a package for the price of $424,999. Both properties have New HVAC system, New Hardwood Floors, and Freshly Painted. Listed the leased amounts and capitalization rate "cap rate" as well as descriptive explanation of how the cap rate was determined below. 1648 Heathfield RD Baltimore, MD 21239 is walking distance to Morgan State University but is rented to a family. 4beds 2.5 baths 1,840 sq ft. Tenant Occupied (Section 8) for $1,638 per month. The tenant would like to renew the lease when expired. The other property is 4809 Bowland Ave Baltimore, MD 21206 located 3.0 miles from Morgan State University but also rented to a family. 3 beds 1 bath 1,152 sq ft. Tenant Occupied (Section 8) for $1,358 per month. The long term tenant of 5 yrs would like to renew the lease when it expires. Calculating Income and the Capitalization Rate Cap Rate 1. The annual rent from 1648 Heathfield Rd Baltimore, MD 21239 & 4809 Bowland Ave Baltimore, MD 21206. $1,638 per month x 12= $19,656 $1,358 per month x 12= $16,296 Total: $35,952 2. Annual expenses of owning 1648 Heathfield Rd Baltimore, MD 21239 & 4809 Bowland Ave Baltimore, MD 21206. This will include the following: real estate taxes: $2,640.84 + $2,315.16=$4,956 utilities that you (not the tenant) will be paying, such as water or gas property and liability insurance*, such as a landlord's policy* Water and Sewer: $1,150.12+$1,230.12= $2,380.24 Homeowner's Insurance: $491.63+ $369.86 = $861.49 Total: 2,380.24+ $861.49 = $3,241.73 *The insurance policy price varies on the company that you use* 3. Calculate your annual net income (annual rent, minus annual expenses). $35,952 - $8,197.73= $27,754.27 Annual Net Income 4. Calculate the property's capitalization rate, or cap rate. (This is the annual return you can expect for your investment, arrived at by dividing the net income by the cost of the property.) $27,754.27/$424,999 = 6.50% cap rate! Lawrence Callis 757-405-7404 can reach me 8am-10pm (EST) 7 days a week Lawrencecallisjr@gmail.com
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