10/02/2025
If I were in the market for an investment property, ✨ 205 Westowne Road ✨ would be the one I would buy. Let’s break down why. 👇🏻
This adorable row home in 21229 is broken into 2 units. Unit 1 is 2 levels and has 2 beds, 1.5 baths, up to 2 car off street parking and a large deck off the kitchen. Unit 2 is on the upper level and has 2 beds and 1 bath. Each unit has its own laundry.
That being said, you can estimate to receive $1,500/month in rent for unit 1 and $1,100/month in rent for unit 2, for a total gross rent of $2,600/month or $31,200/year. 💰
Your operating expenses before your mortgage come out to an estimated $7,600. This includes real estate taxes ($2,351), insurance ($1,200), rental license ($60), license inspection ($50), lead paint registration ($60), budgeted maintenance ($2,500), and water if you choose to have it included in the rent ($1,440).
Based on these two figures, this gives you a cap rate (aka capitalization rate - a property’s income generating potential relative to it’s market value) of 10%, which is ideal. 🙌🏻
Now let’s factor in a mortgage. Since it’s a 2 unit, you’d likely need to put 25% down with an interest rate of 6.99%. At the $235,000 list price, this leaves you with a monthly P&I payment of $1,171/month or $14,052/year. 💰
So factoring in your estimated rent, expenses, and mortgage payment, this property is estimated to cash flow $790/month or $9,400/year. With a $73,000 up front investment, that’s a 22% cash on cash return! 🤑
It pains me to not purchase this one myself! But if you’d like to check it out, 👉🏻 I’ll be holding it open this evening (Thurs, 10/2) from 5-6:30 pm. 👈🏻
*Please note that these figures are all estimates!
Ashton Drummond
Realtor - Cummings & Co. Realtors
(443) 604-1546
(410) 823-0033 (office)
[email protected]