42 Unit SFR Portfolio - Fastest Growing City in Maryland

Highlights:

• 42 homes located within 2 zip codes providing efficient management
• Assets include SFD, Duplexes, a Triplex, a Quad and a 7-unit Apartment
• Mix of 1 bed, 2 bed, 3 bed and 4 bedroom homes
• 100% occupied by fully vetted Tenants
• History of 100% occupancy
• $148,810 average asking price is over $100,000 below Salisbury median priced homes
• Average rental rate of $1,273 per home is 13% below the average market rate of $1,456

Description:

This exclusive portfolio presents a well-balanced mix of 42 residential doors in Salisbury, MD, featuring a combination of single-family detached This portfolio represents a rare opportunity to acquire a fully stabilized, cash-flowing asset in a high-demand rental market with limited new residential construction due to barriers to entry, and home to Salisbury University, Perdue Farms, and TidalHealth a regional health system. Located in the fastest-growing city in Maryland, this portfolio represents a good opportunity to capitalize on future rent growth while being in a high-demand market with a high barrier to entry for new residential construction. Also with most units being located near Salisbury University and downtown (central) Salisbury there is a buit-in tenant pool.

PORTFOLIO HIGHLIGHTS:
• Property Composition: 42 doors spread across various residential asset types, ensuring diversification and risk mitigation.
• Average Home Size: 1,236 square feet, catering to a broad tenant base seeking comfortable living spaces.
• Current Rent Roll: An average monthly rent of $1,273 per unit, generating reliable, in-place income.
• Market Rent Potential: The average market rent is $1,456, presenting an attractive opportunity to increase rental income over time. According to Zillow, market rents for Salisbury are $1,619, a 10.2% increase over the past 12 months.
• Current Occupancy: 0% current and historical vacancy rate, demonstrating the strong demand for these well-maintained units.
• Property Condition: The majority of the homes have been renovated with all homes being well-maintained, minimizing near-term capital expenditure needs and enhancing tenant retention. Improvements include new roofs, HVAC, electrical, plumbing, windows, floors, appliances, bath and kitchen renos.
• Vintage & Construction: Built between 1900 and 2000, with an average vintage of 1924, offering a mix of historical charm and modern updates.
• Management: The portfolio is currently self-managed, providing operational control and cost efficiency.

FINANCIAL PERFORMANCE:
• Average Asking Price per Unit: $148,810, providing an attractive price point relative to market comparables. The median home price in Salisbury is $252,126 per Zillow and represents an annual increase of 4.4%
• Cap Rate: 6.95% in-place cap rate, offering a solid return on investment with potential for further growth relative to the average market rent.
• Gross Yield: 10.27% in-place gross yield, highlighting the portfolio’s strong cash flow potential.
• Projected Growth: At a 7% interest rate and held for 5 years, the cap rate is expected to grow to 8.95%, the gross yield to 13.61%, with an IRR of 23.12%. homes, duplexes, a tri-plex, a four-plex, and a seven-unit apartment building.

The portfolio provides a unique opportunity to acquire a below-market rents and a strong occupancy track record porfolio, there is potential for rental growth and enhanced returns over time. The self-managed nature of the portfolio ensures operational efficiencies while the diversified property mix provides stability in varying market conditions. Stabilized, well-taken care of, fully occupied collection of properties with strong cash flow and upside rental potential. For investors seeking a scalable, high-performing residential portfolio with immediate income generation and future upside potential, this Salisbury, MD opportunity is a compelling addition to any real estate investment strategy.

Salisbury, Maryland, serves as the economic and cultural hub of the Eastern Shore, boasting a strategic location along the Delmarva Peninsula. As the largest city in Maryland’s Eastern Shore region, Salisbury has experienced steady population growth and economic expansion in recent years. According to the U.S. Census Bureau, Salisbury’s metropolitan area has grown due to its affordability, business-friendly environment, and increasing job opportunities. The city has a population of approximately 33,000 residents, with the greater Salisbury metropolitan area, including Wicomico County, exceeding 100,000 people. Economic development in Salisbury is driven by a diverse mix of industries, including healthcare, education, manufacturing, retail, and logistics. TidalHealth Peninsula Regional, the largest hospital on the Eastern Shore, is one of the city’s major employers, providing a strong foundation for the healthcare sector. Salisbury University, a key institution in the region, contributes not only to education but also to workforce development and innovation. The university’s presence has helped foster a skilled labor pool, attracting businesses seeking talent in fields such as business, healthcare, and information technology. Manufacturing and distribution also play a crucial role in Salisbury’s economy. The city is home to Perdue Farms, a leading agribusiness company that has significantly impacted job creation and economic stability in the region. Salisbury’s strategic location near major highways, rail networks, and the Port of Baltimore makes it an attractive site for logistics and distribution operations. The Salisbury-Ocean City Wicomico Regional Airport further enhances the city’s connectivity, supporting business and tourism growth. In recent years, the city has invested in revitalization efforts, including the redevelopment of Downtown Salisbury. Public and private investments have transformed the downtown area into a vibrant district featuring new residential developments, retail spaces, and cultural attractions. This revitalization has attracted young professionals and families seeking an urban lifestyle with a lower cost of living compared to larger metropolitan areas. Population growth in Salisbury has been steady, with the region drawing new residents due to its economic opportunities and quality of life. The city has also become a hub for small businesses and startups, supported by economic development initiatives from the Salisbury Area Chamber of Commerce and other local organizations. Overall, Salisbury, MD, continues to grow as a dynamic regional center with expanding economic opportunities, infrastructure investments, and a rising population, making it an attractive destination for businesses and residents alike.

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