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.
Butchers Hill home buyers who are looking for a 10 year CHAP tax credit renovation have some great options. Many buyers will think that a total renovation is going to be way out of their budget. The truth is that Butchers Hill properties are just as diverse as it’s residences. Below I have 3 available CHAP tax credit homes that offer 3 different layouts at 3 different price points.
315 S Washington St – Butchers Hill – $325,000.00
Full CHAP pending, pre-construction appriasal is 115k
3 levels above ground
1 mastersuite on the 3rd level – complete with roof deck access, a full bath, and a sitting room
2 bedrooms share the 2nd level with a full bath inbetween
On the main level is a bright white kitchen, separate dinning room , large living room
This home has a 2 tier deck and an exterior storage shed in the rear.
411 S Washington St – Butchers Hill – $344,900.00
Full CHAP pending, pre-construction appriasal is 125K
3 finished levels, including a fully finished basement
2 bedrooms on the second level – a master w/ private bath and a 2nd bedroom with use of hallway bath
Main level has an open layout living area, separate dinning room and kitchen with breakfast bar
Basement is fully finished complete with a third bedroom, full bath and laundry area
This home also has a 2 tier deck starting from the 2nd level as well as a patio leading off the main level kitchen
2025 Bank St – Butchers Hill – $439,000.00
Full CHAP pending, pre-construction appriasal is 150K
Top 3 levels had an addition built on to the back
4 finished levels of living space
Top level has 2 bedrooms and a shared full bath
2nd level has master bedroom/full bath aside an additional bedroom with hallway full bath
Laundry is also on the 2nd level
Main level is set up for the entertainer- large living room, gourmet kitcken and separate dinning room with a walk out patio
Basement is fully finished with the 5th bedroom and full bath.
If you’d like to see any of these from Mason Properties of Baltimore, a favorite local builder, please contact Suzie Coronel. If you would like to better understand the CHAP credit, don’t hestitate to call!
Looking for a rental close to Baltimore’s Patterson Park, Canton and Fells Point? Since this house has 2 bedrooms and 2 full baths on the same level, this house is perfect for roommates. 250 S Bouldin offers 3 finished levels, easy parking, large kitchen with island and a finished basement. Contact Suzie Coronel for details and showings.
250 S Bouldin Street, Baltimore, MD 21224
2 full baths
Available Dec 1st or Jan 1st
$1800 a month + water quarterly.
Situated perfectly among Fells Point, Canton, and Patterson Park; Butcher’s Hill is one of Baltimore City’s most charming neighborhoods. The streets are filled with a good mix of Hopkins students and medical professionals, young families, and singles alike. Seems most homes have a green thumb since most have lovely flower boxes lining the facades through the seasons. A tight knit community association exists that organize street and alley clean ups, flea markets, and block parties. In my 12+ years of selling in this area, most buyers in Butcher’s Hill don’t sway from this area.
315 S Washington Street, Baltimore, MD 21231 is a prime example of the type of home this area has to offer. A local Baltimore investor, Mason Properties, purchased this dilapidated row home. This well-known investor will not only bring life to this home, he’ll provide a CHAP tax credit property for a future home buyer. This home will have all new electric, plumbing, roof, framing, baths, kitchen, etc.
This blog will take you thru the different renovation phases of 315 S Washington Street. The finished home will have all of the following:
315 S Washington Street
Master suite: complete with private bath w/ double vanity, deck access, and huge walk-in closet
2nd level: 2 additional bedrooms, a shared full bath, linen closet, and laundry room
1st level: Living room, gourmet kitchen with a separate dining room
Roof deck to complete the 2 tiered deck
****Updated October 2016
Framming and systems are going in.
**** Update November 2016
This house is shaping up! The builder used marble tile in both full baths and dark wood floors throughout the entire home. It’s beautifully done. The roof deck is getting built now. Soon the kitchen will be installed. Check out these new photos.
315 S Washington Street
3 bedrooms w/ master suite and sitting room
2 full baths
granite and stainless in the kitchen
I will be updating this blog as the renovation progresses. If’ you’d like to set up a tour, contact Suzie Coronel.
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.