8229 Fort Smallwood Rd

Riviera Beach, MD 21226

$399,999F

4 bd · 1.0 ba · 650 sqft · Built 1960 · SingleFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,513/mo
• Mortgage (P&I): −$2,098
• Tax + insurance: −$478
• HOA: −$0
• Vac / Maint / Mgmt: −$318
• Net cashflow: $-1,381/mo
• Annual: $-16,574/yr
• Cap rate: 2.15%
• Cash-on-cash: -14.80%
• DSCR: 0.34
• 1% rule: 0.38%
• Cash to close: $112,000

Investor read

• This is a 4-bed/1.0-bath single-family listed at $400k.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $156k (61.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $151k (62.2% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $151k (62.2% below list) — sets the bar for 1% rule.
• In year one you build about $34k of equity ($3k loan paydown + $31k appreciation (7.8% local appreciation)).
• Location reads 64/100 on livability (#280 in MD) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: crime D, cost of living D, schools D-.
• 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: 45 active listings in the ZIP; 1,303 units permitted in Anne Arundel County in 2024 (299 in 5+ unit buildings).
• Anne Arundel County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts 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.
• By year 2, paydown + projected appreciation supports a ~$54k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 2.1% vs local median 5.6% in Riviera Beach — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D 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?
• 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.