Newbie - Found a duplex deal I think - Motivated seller looking for Cash/Hard Money - Advise

[Justin Bernsten]

Hello Everyone,

I am a younger guy that has been preparing to jump into REI in the coming months. I have been learning what I can and trying to get a good grasp on the local market I plan to invest in.

Rather unexpectedly I came across a listing for a duplex in the area I am looking for that I suspect could be a great deal. The owner is looking for $150,000 obo. The home has 2 units each with 1,050 sqft 3Bed 1Bath kitchen/living room. 1 is remodeled and looks like a great job was done. The other is still a mess but looks livable (I would move in there while renting the other and slowly rehabbing my side). There is an unfinished basement as well that I would look into renovating. The property is in an area in Baltimore with 0 crime and top public schools for all grade levels, easy highway access, and close to several hospitals/Universities etc. 

He claims rent for a 3br of the size goes close to $1,600. Rentometer said the same thing though I think a more realistic # is $1,400. In either case I think the #'s work for a first property for me to start in as a live in rent out situation. 

The main problem I have and want to get advise on... if I decide to move ahead in considering the property:

1. The seller is looking for cash/hard money I imagine for speed of closing. How do i finance this instead of a Bank loan? I should be prequalified for more than the amount needed quickly/easily. For my first property I wanted to do low interest FHA loan plus there is a program here to take a class and receive closing cost assistance.

2. What steps do I need to follow to make sure the title/ownership is being transferred properly without any risk on my end?

3. Should I have concerns about zoning of the duplex and how do I confirm there are no issues there?

4. Does anyone know a good inspector to recommend here in Baltimore to let me know of any issues? Perhaps a contractor to recommend as well to do a walk through to get an estimate on rehab cost of the 2nd unit? 

Thank you for any advise and guidance you can give!

-Justin Bernsten