42 Baltimore Rowhomes Went From $3.7M to $9.9M. Now They're in Foreclosure.
Published by Cash Flow Deals · Last updated 2026-08-05
Federal prosecutors say a New York-based investor network bought 42 East Baltimore rowhomes for $3.7 million in late 2021, resold them to an affiliated buyer for $6.9 million weeks later, then sold them again for $9.9 million in 2022, all financed through DSCR loans with no real improvements to justify the markups. Nearly all 42 homes are now in foreclosure, and tenants like Diana Scott are still living through the fallout.
| Factor | Traditional Listing | Cash Flow Deals |
|---|---|---|
| Who's Really Buying | An LLC network can move title through shell companies multiple times in months, as alleged here | Title transfers once, straight from seller to a real, verified homebuyer |
| How the Purchase Is Financed | DSCR loans and investor financing can collapse fast when values were inflated to begin with | Buyer's own FHA or conventional lender funds the purchase, underwritten to real occupancy |
| What Happens to Occupants | Properties can cycle through owners with no clear line of accountability | One clean transaction, one accountable buyer, from day one |
The Scheme Federal Investigators Are Unwinding
According to court documents, a group tied to Spring Valley, New York, bought 42 East Baltimore rowhomes for $3.7 million in December 2021, about $88,000 a home. Weeks later the properties sold again for $6.9 million, roughly $164,000 each, to an affiliated buyer. By 2022 they sold once more, this time to Eluzer Gold's Zahav Ventures, for $9.9 million, about $235,000 a home. Federal prosecutors say none of those price jumps reflected real renovation or improvement, just paperwork moving value upward on its own.
Who's Named, What Happened to Them
Real estate figure Alexander Schultz already pleaded guilty to bank fraud conspiracy in 2024 and pocketed roughly $665,000 from the deals. Towson attorney Jacob Rappaport faces bank fraud conspiracy charges and a hearing set for April 22. Investigators point to Eluzer Gold and an associate, Benjamin Eidlisz, both tied to Spring Valley, as the architects behind the larger portfolio, which reportedly stretches past 700 homes citywide. Roc Capital, a private lender, originated at least $35 million in loans to this investor group.
The Rental Exodus This Left Behind
Nearly all 42 homes are now in foreclosure. None have sold at auction, which tells its own story: the properties were never worth what the paperwork said. Private lenders have pulled back from Baltimore in the wake of this and related cases, tightening credit for legitimate investors and landlords along with the bad actors. Tenants like Diana Scott lived through multiple ownership changes without a clear answer on where their rent money went. Baltimore Mayor Brandon Scott has called the activity fraudulent, and the city has opened its own fair housing investigation into the pattern.
A Cleaner Way to Sell or Exit a Rental in Baltimore
If you're a landlord or homeowner watching this story and wondering who's really on the other side of an investor offer, the lesson is straightforward: verify the buyer, verify the financing, and never sign into a chain you can't trace. With Cash Flow Deals, you choose between the Fast Cash Offer, where we buy your house as-is and close, and the Premium Cash Offer, where one real, pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. On Premium, title passes once, directly from you to that buyer, without a string of affiliated LLCs. We cover repair costs, and we figure out a way, so nothing comes out of your pocket. On Premium, only what the buyer's lender requires gets fixed, with repair costs settled from the sale proceeds from our share; on Fast Cash, we buy as-is with no repairs for you to make. For either offer, the number is agreed before any work starts, and it changes only if you agree. The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens. If the Premium buyer's loan falls through, that is our problem, not yours, and you can still take the Fast Cash Offer at its own number.
Common questions
How many Baltimore homes were involved in this fraud scheme?
42 East Baltimore rowhomes, according to federal court documents cited by the Baltimore Banner.
How much did the homes' price increase?
The 42 rowhomes were bought for $3.7 million in late 2021, resold for $6.9 million weeks later, then sold again for $9.9 million in 2022, all in under a year.
What loans financed these purchases?
Debt service coverage ratio, or DSCR, loans, largely originated through the private lender Roc Capital, which put at least $35 million into this investor group.
What happened to the 42 homes?
Nearly all are now in foreclosure. None have sold at auction as of the report, which investigators say points to systematic overvaluation from the start.
Has anyone been charged?
Yes. Real estate figure Alexander Schultz pleaded guilty to bank fraud conspiracy in 2024. Towson attorney Jacob Rappaport faces bank fraud conspiracy charges.
Keep reading
Related reading
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- Maryland Foreclosure Filings Climb 21% Year Over Year ›
- Maryland's Foreclosure Data Signals Distress Before Sellers Call ›
- Maryland Homes Now Take 51 Days To Go Under Contract ›
- Maryland's Housing Market Is Cooling. Baltimore City Sales Fell 12%. ›
- Baltimore City Sellers: What a 6.58% Mortgage Rate Means for Your Home Sale ›
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What this means for your options
When more landlords list rental property at the same time, buyer attention splits across more listings. Properties that don't compete on the open market close faster.
Wait and see
Keep the property as-is and hope conditions improve. The mortgage, insurance, and upkeep keep costing money while you wait, with no set date for things to turn around.
List with a traditional agent
Standard MLS listing, typically 5-6% in commission, and a financed buyer whose deal depends on appraisal, inspection, and lender approval — any of which can fall through after weeks on market.
Sell to Cash Flow Deals
Two offers for your house, Fast Cash or Premium Cash, and you choose. Cash: Cash Flow Deals buys the house as-is and closes. Premium: More money. A pre-approved FHA or conventional buyer we already have buys directly from you.
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