CHAP tax credit renovation properties have been saving buyers a substantial amount in taxes for years. These types of Baltimore row homes hold more valuable because of the generous tax break. I did at recent blog titled 10 year CHAP tax credit renovations in Butchers Hill . That blog highlighted 3 CHAP tax credit renovations all in the popular Baltimore neighborhood Butchers Hill. Since that was published all 3 of those active Baltimore City homes for sale are now under contract and set to settle in March 2017.
When explaining the tax credit, most are vegue in the details. When I explain it to Baltimore City buyers, I try to give them round number within my example to keep things easy to calculate.
Here is the example that I tend to use:
CHAP appraisal before renovation is 100k
CHAP appraisal after renovation is 300k.
The “locked in” credit is 200k x 2.32 = $4640.00/year in taxes ($386.67/month)
So let’s say the state’s assessment after renovation is 290k.
Normal tax bill for the city portion is 290k x 2.32 = $6,728/year
CHAP credit is $4640/year
TOTAL AMOUNT OF CITY TAX $6728 – $4640 = $2088.00
When purchasing a CHAP tax credit house it is important to get the CHAP appraised amounts so that you can calculate the taxes that the buyer will be paying. The above example should help you calluclate but in the event you still have questions, please contact Suzie Coronel at suzie@CrabbyHomes.com or the cell number in the banner below.
The housing market can be a fickle thing, and while many people look to roll the dice and get lucky in the house flipping game few are able to turn a profit. When working with Baltimore investors, or new home buyers looking to cash in on resale down the road, I always say Baltimore’s Highlandtown neighborhood is the place to buy now. Highlandtown, zip code 21224, boarders the booming neighborhood of Canton. Canton has it all: nightlife, shopping, restaurants, water views, and the price tag shows it. Curious how far your dollar goes in the Canton area, click here.
Lately I’ve been working with some smart millennials, on a first time home buyers budget. Many have decided to look slightly south to Highlandtown area. Highlandtown has long been home to Baltimore staples like Di Pasquales, The Creative Alliance Theater, and the always charming Laughing Pint. Highlandtown Main Street has a strong community force aiding in the area’s popularity.
Additionally, in the last year we have seen the sale and demolition of the iconic Haussners building on Eastern Avenue which is to be rebuilt into luxury apartments, a Mount Pleasant church is set to become a seventy unit condominium building, and smart contractors are buying homes in need of rehab. Hip new restaurants like “Snake Hill Tavern” and “Gnocco” are popping up on Highlandtown corners.
The numbers don’t lie. New rehabs are listing in the low 200’s and closing at or slightly under ask. 3 bedroom 1 baths in need of renovations are moving much higher than they were only five years ago but a savvy Baltimore investors can buy in the 50-70K range and turn a heathy profit quickly. Curious what’s out there? Email me, Meighan Sweeney, for a list of the great Highlandtown investments.
Are you seeing a lot of developement along Eastern Ave in Highlandtown? We all are seeing it! I had the opportunity to meet with Amanda Smit-Peters a few weeks back. She’s a breath of fresh air for the commuity. Her excitement has proven to be contagious. I set up a meeting to discuss one of my commercial store fronts for sale at 3711 Eastern Ave, Baltimore MD 21224. The property sits in the middle of the high traffic Eastern Ave. I am getting a lot of calls from investors out of the DC area. Most aren’t familiar with the on-going development on Eastern Ave. Meeting with Amanda was much needed.
Since 3711 Eastern Ave is a store front with commercial space on the ground level and an apartment on the upper level, I wanted to be sure I had a good understanding of the popular facade grant program that Highlandtown Main Street assists in. Amanda was able to get me a very informative PDF of the Facade Grant Program. The process seems fairly straight forward and Highlandtown Main Street is eagar to help. But here is what I find most important:.
Key points of the Facade Grant Program :
1. It’s for the exterior facade.
2. It offers UP TO $3000 of matching money and free design help! (ex. If the total cost of the project is $5000, you will be reimbursed $2500)
3. Like any grant program: YOU MUST APPLY AND BE APPROVED BEFORE starting the project.
4. You will need 2 estimates for the work you are wanting done. (**see below for some suggested contractors I’ve found)
5. Once approved, you have 30 days to start the project.
6. Keep all documentation and receipts.
3711 Eastern Ave is for sale, listed at $149,000.00.
Join in the redevelopment of Highlandtown. Own a storefront on the road most traveled by. This Eastern Ave jem has one of the best showcase windows on the street. Come to the immediate area and witness the new development surrounding it.
The commercial space is updated with exposed brick, wood floors, tin ceiling, a full bathroom, and CAC. The property has 1br apartment upstairs featuring a full bath, 1 bedroom, a living area, full kitchen, and a stacked W/D. Building offers 2-3 car parking in back. Building is correctly zoned B 2-3.
Below are a few pictures of 3711 Eastern Ave.
Please contact me if you need more information or would like to schedule a showing.
**Below is some helpful info on contractors that are familiar with the process and construction:
-Fastsigns in Dundalk (ask for Jim or Angel)
–Signarama in Fells Point
For the other work needing to be done, it’s recommend that you contact your Main Street office for assistance.
Highlandtown Main Street will also help on a sign/awning design, just call their office!
The MOST IMPORTANT part of this process is APPLY & GET APPROVED with the Main Street office BEFORE BEGINNING ANY WORK! (or you may not be eligible for a 50% reimbursement)
If you have other questions, contact me at 410-336-2569 or suzie@CrabbyHomes.com
Let me show you what great things you can do with 3711 Eastern Ave!