Four-bedroom townhouse as a rental: buy, pass, or re-bid.
The one-page sheet we ran in July 2026 before a Coregia client bought this Bowie 20721 townhouse for cash. It is the same sheet we run on our own deals.
Every line below is either a recorded figure or an assumption marked as one. Change an assumption and the verdict may change; that is the point of showing them.
Buy at $380,000 cash. Pass above $395,000.
The house is worth about $405,000 on the comps and rents for $3,600 to $3,800. At the $400,000 ask it is a fair retail purchase and a mediocre rental: 6.6% cap, and a 75% loan does not cover itself to our 1.20 standard. At $380,000 it becomes a 6.9% cap with equity on day one, so the recommendation was a firm cash offer at $380,000, held as a back-up if the seller took someone else first, and a walk-away at $395,000.
What it costs to own it on day one.
| Line | Amount | Basis |
|---|---|---|
| Purchase price | $380,000 | Cash offer; 5% under ask, 6% under comp median |
| Closing costs and prorations | $13,025 | Settlement statement: title, recordation, tax and HOA prorations |
| Make-ready allowance | $5,000 | Assumption. Paint, cleaning, minor repairs; baths renovated, roof 2020, deck 2025 |
| All-in | $398,025 |
Year one, underwritten at the low end of rent.
| Line | Annual | Basis |
|---|---|---|
| Gross rent at $3,600 / month | $43,200 | Property manager guidance $3,600 – 3,800 (Aug 2026); we use the low end |
| Vacancy and credit loss (5%) | ($2,160) | Assumption. About 18 days a year |
| Effective gross income | $41,040 | |
| Property tax | ($4,810) | 2025 bill. Flag: the county will reassess after the sale; budget for an increase |
| HOA | ($1,707) | $125 / month plus an annual master-association charge, per settlement statement |
| Landlord insurance | ($1,200) | Assumption. Quote pending at the time |
| Management (8% of income) | ($3,283) | 6% monthly fee plus leasing, per the management agreement |
| Maintenance and reserves (6%) | ($2,462) | Assumption. Heat pump and 1989 systems argue for a real reserve |
| Net operating income | $27,577 | Operating margin 67% |
Cash and financed, side by side.
| Purchase price | Cap rate (all-in) | DSCR at 75% LTV, 7.25%, 30 yr | Read |
|---|---|---|---|
| $380,000 | 6.9% | 1.18 | Buy. Cash, or 30% down |
| $390,000 | 6.8% | 1.15 | Acceptable for cash only |
| $395,000 | 6.7% | 1.14 | Walk-away. Below our 6.5% floor beyond here |
| $400,000 (ask) | 6.6% | 1.12 | Pass as a rental; fair as a home |
| $410,000 | 6.4% | 1.10 | Pass |
Contract at $380,000. Settled August 2026.
The seller took a different contract first. Ours went in as a back-up at $380,000 cash; the first contract fell through and the back-up became the deal. It settled in August 2026 at the underwritten price, with a two-week rent-back that paid the new owner $1,540 before the first tenant.
The sheet did not make the deal. It made it possible to say $380,000 and mean it, and to keep saying it while someone else was paying more.
The Deal Underwrite, for your property.
Purchase price, repair budget and after-repair value from comparable sales, market rent, debt coverage and year-one return, a walk-away price, and our honest read: buy, pass, or re-bid. Within two weeks; faster in a live bidding window. Complimentary for founding clients through October 31, 2026; regular price applies after and is credited back in full if Coregia represents you.
This sample is a broker price opinion and strategy advice prepared by Dennis Obigwe, a licensed real estate salesperson with RE/MAX Excellence Realty. It is not an appraisal and may not be used as one. Comparable sales from Bright MLS, deemed reliable but not guaranteed. The address and the client are withheld; figures are unchanged from the original except where a line is marked as an assumption. See the terms.