1826 Chester Way

Bel Air North, MD 21015

$325,000D+

3 bd · 2.5 ba · 1,860 sqft · Built 1991 · Townhouse · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,808/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$368
• HOA: −$125
• Vac / Maint / Mgmt: −$590
• Net cashflow: $21/mo
• Annual: $251/yr
• Cap rate: 6.37%
• Cash-on-cash: 0.28%
• DSCR: 1.01
• 1% rule: 0.86%
• Cash to close: $91,000

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $325k.
• At list price, monthly cash flow is $21 ($251/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $281k (13.6% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $281k (13.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#35 in MD, #1,269 nationally) — a professional / high-income tenant draw. Strengths: employment A+, housing A+, health & safety A+; Watch: crime C-, amenities C-, cost of living F.
• Harford County Public Schools (suburban): math 22% / reading 39% proficiency, ranked #9 of 24 in MD (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hickory Elementary (math 25% / reading 31%, grade F, #220 of 860 statewide, top 26%, 657 students, 22% FRL); Southampton Middle (math 20% / reading 51%, grade F, #43 of 225 statewide, top 20%, 1,175 students, 21% FRL); C. Milton Wright High (math 65% / reading 63%, grade B-, #59 of 222 statewide, top 27%, 1,266 students, 23% FRL) — zoned schools at 22% FRL track the district average.
• Zoned-school proficiency averages 42% at this address vs 30% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Harford County Public Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising fast (+4.2%/yr); 165 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 803 units permitted in Harford County in 2024 (26 in 5+ unit buildings).
• 2 sale attempts since 25y ago; this cycle's ask is 121% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $148k; list at $325k implies a 120% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wind risk, 24% 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.
• Cap rate 6.4% vs local median 4.2% in Bel Air North — 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.

Questions for listing agent

• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.
• 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.
• 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.