Wholesaling Small Multifamily Properties in Maryland

The short answer

Can you wholesale a small multifamily property in Maryland?

Yes, in most cases you can assign a contract on a two-to-four unit building, but the 2025 disclosure law can apply if the owner lives in one of the units. Have a Maryland real estate attorney review your contract and your assignment before you market the deal.

Maryland’s new rule is Real Property Article 10-715, from HB 124 (Chapter 508 of 2025). It took effect on October 1, 2025 and only reaches contracts signed after that date. It covers owner-occupied residential property with four or fewer dwelling units. A triplex where the owner lives upstairs fits that description. A fourplex owned by an investor who lives in another county generally does not. Read our legal guide for the wider picture.

When the law applies, the wholesale buyer must tell the owner in writing, before the contract, that it may assign the deal. Before assigning, the seller side must tell the end buyer it holds only an equitable interest and may not be able to convey title. Skip either notice and the owner or the assignee may be able to rescind before closing. Check the current text with an attorney, and learn the basics in our assignment guide.

The opportunity

Why small multifamily deals work around Baltimore

Baltimore City and the older parts of Baltimore County hold many two-to-four unit buildings that landlords bought years ago and no longer want. Start with a comps pull and judge each building on its rent, not its looks.

Lead sources

Where to find small multifamily leads in Baltimore

• Absentee landlords. Owners with a mailing address outside the city are often ready to talk. See our absentee owner guide.
• Vacant unit notices. Buildings flagged for vacant units can point to owners facing fines. Our code violation leads guide shows how.
• Tax sale lists. Owners behind on taxes may sell before a tax sale. Compare with tax delinquent lists.
• Tenant-occupied sellers. Read our tenant-occupied guide before you walk the building.
• Estate sales. Heirs who inherit a rowhome fourplex often want out. Try probate leads.

Your exit

Who buys small multifamily deals in Maryland

Local landlords, small operators and out-of-state investors buy these buildings. They want a clean rent roll, known tenants and a price that leaves room for repairs. Send them the unit count, current rents, lease dates and a list of known issues, and be honest about anything you have not seen inside.

Some buyers will use lender financing, so ask about timing. A DSCR loan looks at the building’s income rather than the buyer’s pay stubs. Our cash buyer guide helps you build that list.

Step by step

How to start wholesaling small multifamily properties in Maryland

1. Confirm who lives there. Ask whether the owner lives in any unit. That decides whether 10-715 applies.
2. Pull the numbers. Collect rents, leases, taxes, insurance and utility costs.
3. Value the building. Use the ARV calculator for the repaired value and the MAO calculator for your ceiling.
4. Check the title. Search for ground rent, liens and tax sale status. See our title search guide.
5. Disclose in writing. Give the owner written notice that you may assign, before the contract is signed.
6. Market the deal. Share facts with your buyers list and give the assignee the equitable interest notice.
7. Close with a title company. Use an investor-friendly title company that handles assignments.

A landlord in Baltimore County owned a brick fourplex in Hamilton. Two tenants paid on time, one paid late and one unit sat empty. She lived in Towson, not in the building, and she was tired of the repairs.

You agreed on $285,000 and still gave a written notice that you might assign the contract. You pulled sales, ran the numbers in the ARV calculator and found a buyer who wanted the cash flow. Before the assignment you sent that buyer the equitable interest notice.

A local investor paid $301,000 and a $16,000 assignment fee came through title at closing. The seller walked away with her price, and the buyer started leasing the empty unit the next month.

Maryland rules to know

Maryland rules for small multifamily wholesalers

The 2025 law is narrow but real. It covers owner-occupied property with four or fewer units and a monetary assignment fee. It does not apply to foreclosure sales under Maryland Rule 14-215. We found no fee cap, no wholesaler license and no seller consent rule in the enacted text. Do not rely on any tracker that says otherwise, and check current text with an attorney.

Other rules still matter. Rental homes built before 1978 generally need to be registered with the Maryland Department of the Environment, with lead certificates at turnover. Baltimore has ground rent, vacant building notices and tax sale rules for city liens. Marketing a building you do not control can raise broker licensing questions under Business Occupations and Professions Title 17, so read our license guide and talk to an attorney.

Learn it with a mentor

Underwrite the building before you sign

Multifamily deals fail when the rents are guessed. Mentorship students send us a rent roll and we walk through the numbers and the Maryland disclosure steps together.

FAQ

Small Multifamily Properties in Maryland: common questions

Keep going

More Maryland wholesaling guides

Read the full Maryland wholesaling guide or pick another situation below.

Guides that go deeper