Classic Baltimore Rowhome Ready for Full Transformation

1706 Appleton St, Baltimore, MD — Investment Analysis
Full Strategy Breakdown (ARV • Rehab • Offers • Rental)

1. After Repair Value (ARV) Analysis
Realistic Comp Profile (West Baltimore – 21217)

Based on comparable renovated rowhomes in similar condition and layout:

Comp Type Beds/Baths Condition Estimated Sale
Fully renovated rowhome 3BR / 2BA Modern finishes $180K – $220K
Solid mid-tier renovation 3BR / 1.5BA Standard finishes $160K – $185K
Basic investor-grade 2–3BR / 1BA Rental-grade $140K – $165K

ARV Range (Your Deal)
Low ARV: $160,000
Mid ARV: $185,000
High ARV: $210,000

Reality check:
If you don’t execute a clean, modern renovation, you will NOT hit the high end. This market punishes mediocre finishes.

2. Rehab Cost Breakdown

This is a full gut—don’t underestimate it.

Estimated Rehab Scope
Full demolition & framing adjustments
Electrical, plumbing, HVAC (complete replacement)
Roof + potential structural stabilization
Kitchen + baths (full install)
Flooring, drywall, paint
Windows, doors
Permits + inspections

Rehab Cost Ranges
Level Scope Cost
Basic Rental Grade (Minimal finishes) $60K – $75K
Mid-Level Flip Clean, modern $75K – $95K
Full High-End Max resale appeal $95K – $115K

My advice:
Do NOT go cheap here. In this area, cheap = longer days on market + price cuts.

3. Deal Math (Flip Scenario)
Assumptions:
ARV: $185K
Rehab: $85K
Holding + Closing: ~$20K
Maximum Allowable Offer (MAO Formula)

Standard investor rule:

MAO = (ARV × 70%) – Rehab

MAO = ($185K × 0.70) – $85K
MAO = $129.5K – $85K
MAO ≈ $44,500

4. Tiered Offer Strategy (Your Style)
🟢 Aggressive Offer (Investor Advantage)
$25,000 – $35,000
Use when:
Property is boarded / vacant / city pressure
Seller motivation is unclear but likely high
Strategy:
Anchor low, justify with full rehab + risk

🟡 Competitive Offer (Realistic Win Zone): $35,000 – $50,000
This is where most serious investors land
Strategy: Show contractor estimates
Move fast, clean terms (no drama)

🔴 Maximum Offer (Walk-Away Cap): $55,000 – $60,000
ONLY if: Structure is better than expected
You see clear comps supporting $200K+ ARV

Anything above this?
You’re squeezing your margin into risk territory.

5. Rental Strategy Analysis
Estimated Rent (Post-Renovation)
2–3 BR Rowhome: $1,200 – $1,500/month
Rental Scenario
Metric Estimate
Rent $1,350/mo
Annual Income ~$16,200
Taxes/Insurance ~$2,500
Maintenance/Vacancy ~$3,000
Net Operating ~$10,700

🧠 Rental Insight:
This works best as: Section 8 rental (strong play in this area)
Long-term hold with appreciation upside

If all-in cost:

Purchase ($40K) + Rehab ($85K) = $125K

That puts you in a solid yield position (~8–10% range)

6. Flip vs. Hold — Decision Framework
Flip if:
You can acquire under $45K
You have a reliable contractor
You want faster capital recycling

Hold if:
You want cash flow + long-term appreciation
You can stabilize tenant quickly (Section 8 preferred)
You’re building a portfolio, not chasing one payday

Final Strategic Take:

This is not a pretty deal—it’s a numbers deal.

If you:
Buy right (under $50K)
Renovate properly (not cheaply)
Exit strategically
You win!

If you:
Overpay
Under-renovate
Misjudge the market
This turns into a slow bleed.

🔥 My Straight Advice

Don’t fall in love with the deal—fall in love with the margin.

Contact Khari G by calling or texting (202) 487-3745 to receive a complete investment analysis on this property