38 Heritage Ct #78 · Annapolis, MD 21401

$125,000

2 bd · 1.5 ba · 960 sqft · Townhouse · 1 Days on market

Built 1973 $296/mo HOA · 13% of rent

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Livability +3.9/5.0
• Schools +2.9/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

You can get 5.75% FIXED no matter what the media says! Compute the payments on this and see the benefits of owning! Conveniently located and affordably priced this 2 BR, 1.5 Bath TH features renovated kitchen & baths, newer stack W/ D & heat pump. Community features pool & lawn care in monthly fee. Close to Rt. 50 and downtown. OPEN HOUSE, SUNDAY 10/15 12-4 PM. Owner/agent.

Key facts

• $296 HOA
• Community pool
• Built 1973

Property features AI

Finance

• Other: Part of Hilltop Village Condo
• HOA & community: Monthly HOA fee; HOA amenities include an outdoor pool; HOA covers common area maintenance, front and rear lawn care, management, insurance, pool(s), reserves, and trash

Exterior

• Parking: On-street parking
• Utilities: Public water; Public sewer; Cable TV available
• Home design: Condominium interior townhouse/rowhouse; Level main entry with entry slope less than 1 foot; Brick front
• Construction: Built/majorly remodeled in 2005; Slab foundation; Asphalt roof
• Exterior features: Sidewalks; Community pool

Interior

• Kitchen: Dishwasher; Disposal; Refrigerator; Stove
• Bedrooms: Two bedrooms on the first upper level; Rooms include master bedroom and second bedroom
• Bathrooms: One full bathroom on the upper level; One half bathroom on the main level
• Heating & cooling: Heat pump heating; Central air conditioning; Electric heating and cooling; Electric hot water
• Interior features: Kitchen with country-style layout and table space; Window treatments; Traditional floor plan; Drywall walls and ceilings; Sliding glass and storm doors
• Laundry & utility: Stacked washer and dryer; Laundry room

What this means for you Summary

Snapshot

• This is a 2-bed/1.5-bath townhouse listed at $125k.

Deal economics

• At list price, monthly cash flow is $670 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $125k).
• Cap rate 12.7% vs local median 1.9% in Annapolis — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 78/100 on livability (#71 in MD, #2,563 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, health & safety A+; Watch: crime F, cost of living F.
• Anne Arundel County Public Schools (suburban): math 20% / reading 37% proficiency, ranked #10 of 24 in MD (top 42%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: Rents flat; 221 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 1,303 units permitted in Anne Arundel County in 2024 (299 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Anne Arundel County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 0.1% rent growth), your $35k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• 4 sale attempts since 27y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 66% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $125,000

Questions for the listing agent

1. Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
5. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
6. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
7. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 1.85% ✓
• Cap rate: 12.72%
• Cash-on-cash: 22.95%
• DSCR: 2.02
• GRM: 4.5

CMA / ARV

• ARV (on-the-fly): $255,360
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
133 Merryman Ct #17	0.06mi	2/1.5	960 (0%)	1mo	$255,000	$266	96
34 Heritage Ct	0.01mi	2/1.5	960 (0%)	8mo	$260,000	$271	93
128 Merryman Ct	0.06mi	2/1.5	992 (+3%)	6mo	$255,000	$257	87
115 Merryman Ct	0.08mi	2/1.5	992 (+3%)	8mo	$245,000	$247	84
44 Belle Ct	0.46mi	3/1.5 (+1)	1,008 (+5%)	0mo	$320,000	$317	65
290-M Hilltop Ln	0.63mi	2/1.5	1,024 (+7%)	7mo	$237,500	$232	54
300 Hilltop Ln Unit H	0.68mi	2/2.0	1,082 (+13%)	1mo	$270,000	$250	44
304-G Hilltop Ln	0.72mi	2/2.0	1,072 (+12%)	4mo	$285,000	$266	41
1233 Gemini Dr Unit C	0.72mi	1/1.0 (-1)	864 (-10%)	2mo	$230,000	$266	41
300 Hilltop Ln Unit 300K	0.68mi	2/2.0	1,085 (+13%)	8mo	$273,400	$252	38
1231 Gemini Dr Unit B	0.71mi	1/1.0 (-1)	862 (-10%)	9mo	$242,000	$281	35
1233-G Gemini Dr Unit G	0.72mi	1/1.0 (-1)	863 (-10%)	9mo	$239,900	$278	34

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 0.14% rent growth · sell at horizon

5-year hold

• IRR: 12.1%
• Equity multiple: 1.46×
• Total profit: $16,124
• Equity at exit: $18,638

10-year hold

• IRR: 18.2%
• Equity multiple: 2.28×
• Total profit: $44,723
• Equity at exit: $10,808

Cash invested: $35,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 27 Tenant-Leaning
• State Maryland: 27 Tenant-Leaning · D+14
• County: — inherits STATE
• City: — inherits STATE

Failure-to-pay is dismissed if cured before judgment; Baltimore has just-cause; strict deposit rules.

Methodology + full state rankings →

ZIP-level market 21401

• Rents YoY: 0.1%
• Active inventory: 221
• Price-to-rent: 4.5×

Monthly cashflow live

• Estimated rent: $2,316 high
• Mortgage (P&I): −$656
• Tax est. 1.5%: −$156 /mo · $1,875/yr
• Insurance: −$52
• HOA: −$296
• Vacancy / Maint / Mgmt: −$486
• Net cashflow: $670

Break-even live

Break-even rent $1,468

Max offer price $125,000

Occupancy floor 66%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $31,250
• Closing costs: $3,750
• Reserves months: —
• Total cash needed: —

Rent comps 22 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
67 Heritage Ct Annapolis, MD	2.0	1.5	1000	$2,150	$2.15	14d	1	0.01mi
7 Heritage Ct #120 Annapolis, MD	2.0	1.5	960	$1,895	$1.97	43d	1	0.09mi
1029 Spa Rd Annapolis, MD	1.0–2.0	1.0–2.0	835	$2,415	$2.89	2d	12	0.13mi
988 Spa Rd Annapolis, MD	1.0–2.0	1.0–2.0	679	$2,800	$4.12	1d	12	0.22mi
230 Hilltop Ln Annapolis, MD	1.0–2.0	1.0	692	$2,316	$3.35	3d	6	0.38mi
721 S Cherry Grove Ave Annapolis, MD	1.0–3.0	1.0–2.0	1055	$2,750	$2.61	1d	27	0.49mi
8 Johnson Pl Annapolis, MD	2.0	1.5	900	$2,295	$2.55	43d	1	0.55mi
1225 Gemini Dr Unit B Annapolis, MD	1.0	1.0	865	$1,950	$2.25	24d	1	0.66mi
302 Hilltop Ln Annapolis, MD	2.0	2.0	1205	$2,422	$2.01	5d	2	0.68mi
5 Park Pl #710 Annapolis, MD	1.0	1.0	991	$3,200	$3.23	24d	1	0.85mi
1115 Primrose Ct #101 Annapolis, MD	2.0	2.0	1014	$2,400	$2.37	43d	1	0.86mi
1012 Primrose Rd Annapolis, MD	1.0–2.0	1.0–2.0	921	$2,152	$2.34	1d	8	0.89mi
11 Spa Creek Lndg Annapolis, MD	1.0	2.0	1000	$3,195	$3.19	24d	1	0.97mi
714 Rosedale St Unit A Annapolis, MD	1.0	1.0	600	$2,400	$4.00	43d	1	0.99mi
701 Glenwood St Annapolis, MD	2.0	1.0	623	$1,703	$2.73	43d	1	1.04mi
1 Murray Ave Unit 2 Annapolis, MD	1.0	1.0	800	$1,750	$2.19	43d	1	1.10mi
1900 Center St Annapolis, MD	3.0	1.0–2.5	1051	$4,813	$4.58	16d	1	1.17mi
63 Town Pines Ct Annapolis, MD	3.0	1.5	1037	$2,500	$2.41	43d	1	1.18mi
81 Conduit St Annapolis, MD	2.0	1.5	1040	$3,150	$3.03	43d	1	1.30mi
1303 Bay Ridge Ave Annapolis, MD	2.0	1.0	768	$2,700	$3.52	16d	1	1.44mi
23 Francis St Annapolis, MD	3.0	1.0	750	$2,265	$3.02	24d	1	1.49mi
1293 Thom Ct Annapolis, MD	1.0–2.0	1.0	757	$1,995	$2.63	1d	26	1.50mi

HOA detail

• Monthly dues: $296 · $3,552/yr
• Likely covers: landscapingpool

Listing history 4 events

1. 2026-06-10
   status $125,000 Pending 1 DOM
2. 2026-06-09
   remarks 312-char remark
3. 2026-06-08
   remarks 234-char remark
4. 2026-06-08
   listed $125,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 8/10 Severe 7 d/yr ≥104°F today · 15 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 66% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $27,788
• − Mortgage interest: −$7,002
• − Property taxes: −$1,875
• − Insurance: −$625
• − Repairs & maintenance: −$2,223
• − Management: −$2,223
• − HOA: −$3,552
• − Depreciation: −$3,636
• Taxable income: $6,651
• Est. tax owed @ 24.0%: −$1,596
• After-tax cash flow: $6,438/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Anne Arundel County Public Schools
• NCES district ID: 2400060
• Math proficiency: 20% ▼ -21.00%
• Reading proficiency: 37% ▼ -13.00%
• Median HH income: $87,880
• Composite: 28.52/100
• National rank: #6733
• State rank: #10 of 24 in MD

Livability — Annapolis

• Score: 78/100
• State rank: #71
• US rank: #2563

Category grades

Amenities A Commute A+ Cost of living F Crime F Employment A+ Housing A Health & safety A+ User ratings B

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Annapolis, MD
• County: Anne Arundel County · 535,653 people
• City population: 91,599
• Metro: Baltimore-Columbia-Towson, MD
• Population (ZIP): 38,629
• Household income: $123,381
• Rent vs Own: 34.6% rent · 65.4% own
• Severe rent burden: 1158.0

Population outlook (Anne Arundel County) Hauer SSP2

• Today (2025): 617,384 people
• By 2030: 642,094 · +4.0%
• By 2040: 686,621 · +11.2%
• By 2050: 723,031 · +17.1%
• By 2075: 809,346 · +31.1%
• By 2100: 837,658 · +35.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (69%)
• Race & ethnicity: White 69% Black 15% Hispanic / Latino 9% Two or more races 6% Asian 4%
• Hispanic origin (detail): Mexican 2%
• Common ancestry: Romanian 3% Slovak 3% Italian 2%
• Foreign-born: 9% · Canada, Jamaica
• Languages at home: 87% English-only · Spanish 5% Tagalog/Filipino 2% Other Indo-European 1%

Political lean MEDSL · Anne Arundel

• 2024 margin: D (+13.9) · D 55.7% · R 41.7% · Other 2.6%
• 2008→2024 swing: +15.7pp toward D · 2008: -1.8pp · 2024: 13.9pp
• All cycles: 2024: D+13.9 2020: D+14.5 2016: D+0.7 2012: R+0.9 2008: R+1.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -498.22%
• Current HPI: 297.4285
• Rent YoY: ▲ 0.14%
• Metro: Baltimore-Columbia-Towson, MD
• State GDP YoY: ▲ 2.97%
• F500 in state: 12

Industry mix (Fortune 500 HQ in MD)

Industry	F500 HQs	Revenue
▸Aerospace / Defense	1	$71B
▸Utilities	1	$25B
▸Hotels	1	$24B
▸Consumer Goods	1	$7B
▸Real Estate	1	$6B
▸Chemicals	1	$2B

Price history

+66.9% since first listed

10 events — show timeline

• 2026-06-08 Listed $125,000 BRIGHT MLS
• 2006-11-30 Sold (MLS) $225,000 MRIS
• 2006-10-21 Delisted — MRIS
• 2006-10-02 Listed $225,000 MRIS
• 2005-11-10 Sold (MLS) $199,000 MRIS
• 2005-09-27 Delisted — MRIS
• 2005-09-20 Listed $197,000 MRIS
• 1999-08-23 Sold (MLS) $74,900 MRIS
• 1999-05-25 Delisted — MRIS
• 1999-05-04 Listed $74,900 MRIS