Turnkey Properties – CR of Maryland Webinar

Are you looking to invest in turnkey properties but missed our 2023 End of Year Webinar?

Have no fear, you can watch it now and hear Mike and Xander talk about CR of Maryland, Why you should invest in Baltimore, and our current Turnkey Properties.

Mike: Hello, everyone. We are CR of Maryland, and today we’ll cover various topics such as year-to-date statistics, market trends, housing vouchers, our in-house property management, and how to invest with us. We’ll also highlight four properties and open the floor to questions. Year to date, we’ve sold 79 properties, and we have 49 new investors. We’ve spent over $8 million renovating homes in Baltimore, with an average rent of $17,143. Our map shows where we purchase properties—509 properties in the Baltimore region, 10 currently available, and 31 under construction.

Xander: Regarding the map, it specifically shows turnkey rental properties, not properties we’ve bought and held or sold as traditional fix-and-flip. About our team: We’ve been in business since 2004, renovated and sold over 3,000 homes in multiple states, and our property management team oversees 500 turnkey properties for nearly 200 investors. We plan to do 120 properties in 2024. Our focus is full gut rehabs, averaging $100,000 per property. We’re known as one of the highest real estate developers on the East Coast.

Mike: Our mission is to improve lives in the community through real estate. We focus on renovating single-family homes and have provided housing to thousands of people, renovating over 1,000 vacant properties.

Xander: Our core values are integrity, community, passion, and accountability. We expect these values to reflect in our renovations, relations with residents, owners, and the broader community. Mike: Typical properties range from $190,000 to $230,000, with rents from $1,675 to $2,000. Average size is a three-bedroom with 1.5 or 2.5 bathrooms, ranging from 1,000 to 2,200 square feet. Cash-on-cash returns typically fall between 8% and 13%.

Xander: Baltimore offers diverse job opportunities, including Under Armour, Johns Hopkins, T. Rowe Price, and McCormick. The Amtrak train system provides easy commuting between cities. The city is also undergoing significant development, with renovations to M&T Bank Stadium, Penn Station, CFG Arena, and Harbor Place. Mike: The market benefits from its proximity to major cities, diverse employers, and transportation options like I-95. Baltimore’s development projects, such as stadium renovations, contribute to its growth.

Xander: We work with housing vouchers, with over 60% of our 500+ properties under management being voucher-based. Vouchers cover 50% to 100% of rent, and residents go through the same application and screening process. The annual inspection ensures property quality, and the application process is the same. Mike: Housing vouchers contribute to better collection numbers, fewer evictions, and improved margins for our investors. The impact extends to providing quality housing, neighborhood improvement, and diverse employment opportunities. Our full gut renovations include a brand-new roof with a 20-year warranty, all-new HVAC with a 10-year warranty, and stainless steel appliances. Everything visible in these pictures is new, from the carpet to the trim, drywall, paint, and lighting. It all contributes to our extensive renovation budget.

Xander: Visiting in person makes a huge difference. Mike can walk you through a finished house and one we just started, so you can see the depth of the work. We use higher-quality roofing material, TPO, which lasts close to 30 years, compared to the 10-year torch-down roofs most investors use. Mike: We have a 5.875% rate with no points for investors. Typical purchase price is $200-230k, with a total cash invested around $68,000, and a monthly cash flow of $515. Equity and cash flow increase over the years, providing a win-win scenario.

Xander: If you’re not familiar with Aaron Chapman at SNMC, he’s a preferred lender with a great rate. He provides valuable content and information for your investment strategy.

Mike: We have a full-time team for property management, leasing, and maintenance, along with an accounting team. Quick response time to residents and owners is a priority. Xander: We’ve invested time and money to improve communication. Our team uses dedicated technology to ensure prompt responses and prevent issues from falling through the cracks.

Mike: Our property management fee summary: no tenant placement fee for the first year, 8% monthly management fee (below the industry standard of 10%), and an in-house maintenance team. Pets are allowed at the owner’s discretion. Our key metrics include a 1.5% vacancy rate, 98% monthly rent collection, and an average tenant stay of 2-3 years with an 88% renewal rate. For property turnover, we average about two weeks, and our monthly rent collection is at 98%. Our team has made significant technological improvements, resulting in a streamlined process for owners with only one portal and login.

Xander: We look forward to helping you make informed investment decisions. Thank you all for attending, and we hope to speak with you soon. Have a great New Year!