
<br>

### What is Single Room Occupancy?

Single Room Occupancy or SRO is the renting of a house room by room. This is similar to a boarding house where there are very few communal common areas. Typically a fixed price for one person per room, and a slightly higher rate for two people in one room.

<br>

Single Room Occupancy can be a great rental property investment strategy given the ability to maximize a dwelling's rent revenue. For example, a 2,500 SF 4 BR single family residence that rents for $2,000/month can be converted into an 8 BR SRO that generates $500 per BR or $4,000 per month in rental income. 

<br>

While in the example above we were able to double the monthly rental income, it's important to make sure you don't double your property management headaches. Rental property investors who are successful with SRO rentals have a disciplined system for screening tenants and often partner with Section 8, social security and veterans programs.

Single Room Occupancy or SRO is the renting of a house room by room. Learn more about single room occupancy at OfferMarket.

Single Room Occupancy (SRO) - Real Estate Glossary

What is Single Room Occupancy ("SRO") in real estate?

<br>

<iframe src="https://www.google.com/maps/embed?pb=!1m18!1m12!1m3!1d49397.25389409795!2d-76.47633835784464!3d39.30347962867434!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x89c7fd84bfaa10e7%3A0x4311ab9de8a6c182!2sEssex%2C%20MD%2021221!5e0!3m2!1sen!2sus!4v1606856009037!5m2!1sen!2sus" width="600" height="450" frameborder="0" style="border:0;" allowfullscreen="" aria-hidden="false" tabindex="0"></iframe><br>

<br>

Essex is an unincorporated community and census-designated place in the suburbs of Baltimore. Essex was founded in 1909 by the Taylor Land Company and attracted Baltimore City residents looking for more living space and land. Incidentally, given the COVID-19 pandemic, the same reasons stand to drive home values higher in this part of Baltimore County.

<br>

- County: Baltimore County
- Population: 40,000​
- ZIP Code: 21221
- Property tax rate: 1.10% 
- Area code: 410, 443
- Nearest airport: BWI
- Median home value: $215,500
- Housing Units: 17,000
- Median household income: $53,885
- Per capita income: $25,841

<br>

## Property value growth rates:

<br>

- +7.5% year-over-year
- +8.5% 1-year forecast

<br>

## Walkability: Low​

<br>

## Nearby shopping:

<br>

- Food Lion
- Walmart Supercenter
- ALDI
- Millennium International Grocery
- King Liquors
- Geresbeck's Food Market
- Herman's Bakery & Catering


<br>

## Nearby attractions:

<br>

- Baltimore County Cox's Point Park
- Sue Creek Park
- Turkey Point Park
- Wildwood Beach
- Ballestone Manor
- Rocky Point Park and Beach
- Rocky Point Golf Course
- River Watch Restaurant & Marina

<br>

## How far is Essex, MD from:

<br>

- Dundalk, MD (15 min, 6.8 miles)
- Middle River, MD (9 min, 3.1 miles)
- White Marsh, MD (14 min, 9.1 miles)
- Parkville, MMD (15 min, 9.4 miles)
- Towson, MD (21 min, 13.3 miles)
- Downtown Baltimore, MD (23 min, 11.7 miles)
- Bel Air, MD (33 min, 24.0 miles)
- Columbia, MD (36 min, 27.7 miles)
- Washington, DC (60 min, 46.5 miles)


<br>

## School District:​

<br>

- Middleborough Elementary School (6/10)
- Deep Creek Middle School: (2/10)
- Chesapeake High School: (2/10)

<br>

## Major employers in Baltimore County:

<br>

- U.S. Social Security Administration (12,751)
- University System of Maryland (6,358)
- T. Rowe Price Group (4,200)
- GBMC HealthCare (3,900)
- MedStar Franklin Square Medical Center (3,600)
- Walmart / Sam's Club (3,400)
- Centers for Medicare & Medicaid Services (3,224)
- Erickson Living (3,070)
- Community College of Baltimore County CCBC (2,823)
- Giant Food (2,250)
- University of Maryland St. Joseph Medical Center (2,250)
- McCormick & Company (2,132)
- Home Depot (2,055)
- Sheppard Pratt Health System (1,913)
- LifeBridge Health (1,878)
- BD Diagnostics (1,810)
- CareFirst (1,800)
- Lockheed Martin (1,519)
- Textron Systems (1,500)
- Exelon (1,401)
- Target (1,245)
- Middle River Aircraft Systems (1,154)
- UPS (1,140)
- Stanley Black & Decker Global Tools & Storage Headquarters (1,128)

​<br>

## Sources: 

<br>

- U.S. Census Bureau
- Maryland Department of Commerce



Essex, MD is a waterside community in Baltimore County. Learn more about Essex, MD real estate. 

Essex, MD 21221 - Real Estate Market Overview - OfferMarket

Essex, MD

Stewart Beal talks about his “super-size house hacking,” BRRR, property management, and lessons for becoming a successful investor. Enjoy the show!

large_Offer_Market_Podcast_Youtube_Cover_How_To_Invest_In_Real_Estate_With_Stewart_Beal_2e69705626.jpeg

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468-Unit House Hack w/ Stewart Beal - OfferMarket Podcast

OfferMarket Podcast, Episode 1: 468 Unit SUPER SIZE House Hack with Stewart Beal

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket provides DSCR rental loans, bridge loans, hard money, fix and flip, slow flip, and ground up construction loans.

Private Lending | OfferMarket

Private Lending

What is Delayed Financing?

Pros and Cons of Delayed Financing

Delayed Financing vs Cash Out Refi

Summary: Delayed Financing

Grow your real estate business with OfferMarket

**Last updated:** June 26, 2025

![Delayed Financing](https://cms.offermarket.us/uploads/Delayed_Financing_26c03f32f0.jpg)

## **What is Delayed Financing?**

**Delayed Financing** or "delayed purchase financing" is when you purchase a home with cash and then quickly implement a mortgage to recoup most or all of the cash invested into the property. Many homebuyers use delayed financing in order to outcompete buyers in the market that are reliant or even contingent on financing. This strategy certainly comes in handy during times like these where housing inventory is limited and sellers want a fast, certain transaction.

Since most [DSCR lenders](https://www.offermarket.us/blog/best-dscr-lenders) only offer a maximum of 80% LTC (loan to cost where cost is equal to purchase price plus verified rehab) for delayed financing, it is not a commonly utilized or discussed option among even highly experienced rental property investors -- especially if you're looking to recoup all of your invested capital so you can re-use it in your next deal, a la [BRRR method](https://www.offermarket.us/blog/brrr-buy-rehab-rent-refinance).

What many rental property investors do not realize, is that delayed financing, also known as "delayed purchase financing", is an excellent tool and strategy to build your portfolio and recycle your capital.

Every day, rental property investors using the [BRRRR method](https://www.offermarket.us/blog/brrrr-method) request DSCR loans from OfferMarket that technically utilize delayed financing. These investors purchase 1-4 unit residential investment properties in cash, conduct efficient rehab, and then refinance with no seasoning -- often well within 90 days of their cash purchase. While we commonly refer to this as a [cash out refinance with no seasoning](https://www.offermarket.us/blog/cash-out-refi-no-seasoning), it is actually delayed financing, and arguably better in most scenarios.

## **Pros and Cons of Delayed Financing**

![Delayed Financing Pros and Cons](https://cms.offermarket.us/uploads/Delayed_Financing_Pros_and_Cons_f1362db329.png)

### **No seasoning**
You do not need to wait 6 months or even 90 days from the date you purchased the property in cash. You can implement a delayed financing DSCR loan with no seasoning whatsoever.

Types of transactions where delayed financing is used:

- **auction or sheriff sale:** auction services require or strongly prefer cash buyers with no financing contingencies
- **wholesaler assignment:** wholesalers require or strongly prefer cash buyers
- **off market / private sale:** instead of listing a property on the MLS with a brokerage -- time-sensitive sellers, estates, distressed sellers, tired landlords, will accept a cash offer below market value to avoid hassle

### **Purchase transaction LTV**
Your DSCR lender will order an As Is appraisal and lend up to 80% LTV -- that is loan to value, not loan to purchase price. So, if you purchased the property below market value, let's say because you offered cash in an off-market transaction, and/or you renovated the property with your own cash after your purchase, then the value of the property may well be significantly higher than what you paid for it. 

<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
  <tr>
    <th></th>
    <th>Delayed Purchase </th>
    <th>Cash Out Refinance</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>Max LTV</td>
    <td>80%</td>
    <td>75%</td>
  </tr>
</tbody>
</table>
</div>

### **Property occupancy**
Delayed financing utilizes the same guidelines as a purchase, therefore a single family rental property can be vacant at the time of funding and there will not be a haircut (reduction) to LTV. In other words, the property will be eligible for max LTV, all else equal.

<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
  <tr>
    <th></th>
    <th>Leased Units: Delayed Purchase</th>
    <th>Leased Units: Cash Out Refinance</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>Single family</td>
    <td>0 of 1</td>
    <td>1 of 1, -5% max LTV if vacant</td>
  </tr>
  <tr>
    <td>Duplex</td>
    <td>1 of 2</td>
    <td>2 of 2, -5% max LTV if vacant</td>
  </tr>
  <tr>
    <td>Triplex</td>
    <td>2 of 3</td>
    <td>3 of 3, -5% max LTV if vacant</td>
  </tr>
  <tr>
    <td>Quadplex</td>
    <td>3 of 4</td>
    <td>4 of 4, -5% max LTV if vacant</td>
  </tr>
</tbody>
</table>
</div>

Here's a more concrete example:

- **Purchase price:** $80,000
- **Verified rehab:** $20,000
- **As Is Value:** $135,000
- **Loan amount:** $108,000 (80% LTV)

### **Purchase transaction interest rates**
The interest rate for 75% LTV purchase is nearly 0.5% lower than a 75% LTV cash out refinance. The table below illustrates this concept: 

<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
  <tr>
    <th></th>
    <th>Purchase </th>
    <th>Cash Out Refinance</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>80% LTV</td>
    <td>8%</td>
    <td>N/A</td>
  </tr>
  <tr>
    <td>75% LTV</td>
    <td>7.625%</td>
    <td>8%</td>
  </tr>
  <tr>
    <td>70% LTV</td>
    <td>7.5%</td>
    <td>7.625%</td>
  </tr>
</tbody>
</table>
</div>

## **Delayed Financing vs Cash Out Refi**

<br>

Delayed Financing is essentially a cash out refinance that happens within 180 days of the cash purchase of a property. The key limitation with a delayed purchase, is that there is typically a maximum loan to cost imposed.

Here's an example where the delayed financing loan amount is limited based on cost:

- **Purchase price:** $80,000
- **Verified rehab:** $20,000
- **Cost basis:** $100,000
- **As Is value:** $200,000
- **Maximum cash to borrower on settlement statement:** $100,000
- **Maximum loan amount:** $100,000 + closing costs (~$108,000)
- **80% LTV:** $160,000
- **75% LTV:** $150,000

In the example above, the investor bought the property deeply below market value and cost effectively rehabbed the property. Unless they wait for 180 days (6 months) of seasoning, they will only be eligible for a ~$108,000 loan amount instead of a $150,000 loan amount. While this scenario is fairly uncommon, it presents a tradeoff for the investor who will either need to sacrifice time or cash out proceeds.

Cash out refinance is ideal for rental property investors who purchased the property with a hard money "fix and flip" loan, or for those who do not want to be limited by cost at 90 days or 180+ days of seasoning.

## **Summary: Delayed Financing**

Delayed financing is a strategy that all rental property investors should become familiar with. Whether you're purchasing a turnkey property off market below market value and you want to be able to move quickly and recoup all of your invested cash, or you're using the BRRR method to purchase and rehab a property with cash and you want to quickly refinance to do your next deal, delayed financing is an attractive option consider for every deal as you build and optimize your rental property portfolio.

---

[![DSCR loan quote](https://cms.offermarket.us/uploads/DSCR_loan_quote_62b32bf99b.jpg)](https://www.offermarket.us/loans?ref=content-delayed-financing)

---

## **Grow your real estate business with OfferMarket**

OfferMarket is a real estate investing platform and leading private lender for real estate investors. We focus on [Fix and Flip loans](https://www.offermarket.us/fix-and-flip-loan) and [DSCR loans](https://www.offermarket.us/dscr-loan) for 1-4 unit residential properties and would love the opportunity to partner with you on your next transaction. Our mission is to help you build wealth through real estate. Across our uniquely positioned platform, thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:

💰 **[Private lending](https://www.offermarket.us/loans?ref=content-delayed-financing)**</br>
☂️ **[Insurance rate shopping](https://www.offermarket.us/insurance??ref=content-delayed-financing)**</br>
🏚️ **[Off market properties](https://www.offermarket.us/listings?ref=content-delayed-financing)**</br>
💡 **[Market insights](https://www.youtube.com/channel/UCRoNHXFVgI36SV0QQpyf9fw)**</br>

---

[![Got off market listings - access deals](https://cms.offermarket.us/uploads/Got_off_market_listings_access_deals_73468e4b7a.jpg)](https://www.offermarket.us/listings?ref=content-delayed-financing)

---


Many rental property investors do not realize that delayed financing is an excellent tool and strategy to build your portfolio and recycle your capital.

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