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About

TSS_1852

From Fixer Uppers to Dream Homes

Acquiring old houses at a wholesale price, redeveloping them, and selling them at a retail price remains a great way to make nice profits for real estate investors. That’s if everything goes right.

My sales team and I are fortunate to work with the best re-developers that get it right all of the time. Once  these projects begin,  you can run into all sorts of surprises from extensive termite damage, sewer backup issues and structural issues that weren’t factored into your costs.

Throughout this blog you’ll see us reference the CHAP 10 Year Tax Credit often, as it is one of the driving forces of the latest re-development boom in the Baltimore Harbor neighborhoods.  This credit provides a plethora of benefits to the homeowner who purchases the home from the developer. Benefits include:

  • Much lower monthly mortgage payments then a home with fully assessed taxes.
  • Qualify and buy a home with a higher sales price ($40,000 to $80,000 more) with the same payment.
  • Use the money your saving monthly to pay towards your principal and pay off your loan years ahead of schedule.
  • Buy sooner because you need less cash to close (lower tax escrow).
  • With lower tax escrow to close you will have more cash on hand to put down and potentially switch to better financing.
  • Be the first to live in the new renovation.
  • The CHAP Tax credit is transferable, a big selling point when you go to sell.
  • You don’t lose the Credit if you decide to use the property as  a rental property.

Our goal is to video and catalog most of the steps one would encounter while re-developing a 100 year old row house.

Ron Howard & Associates of RE/MAX Preferred – 443-573-9222.

Email Ron at ron@livebaltimorecity.com

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