Baltimore SFRs Ground Rent and Lead Free Cert

[Annie Li]

Hello BP,

I'm negotiating a sales contract for a property located in 21229 area.  My focus is cash flow so I accept the fact that the neighborhood is below average (but not a war zone area).  The property is close to Edgewood St & Hilton Pkwy (south side of Gwynns Park).  It's 4-bed 2 bath with almost rent ready condition selling for $50K.  The seller doesn't have any info on lead paint; the property has ground rent of $150/year.

My questions are:

1. How much will that roughly cost to  have lead-free certified and how long will that usually take?  I can't seem to get a straight answer from several PM companies I spoke to.

2.  Is it worth to spend $3,100 to have ground rent removed at closing ($2,500 for the sale price, $350 for attorney, $250 for recording).

3. What do you think about this neighborhood overall and whether the listing price is reasonable.  I noticed there were some flips sold in the same block.

This is my first investment property in Baltimore so I'm eager to learn as quick as possible.  I appreciate your help very much!

[Kim Coleman]

@Annie Li I'm a relatively new Baltimore investor. After my first buy there I can pass along a few things: 

1)Baltimore is block by block. Just knowing the neighborhood or area is not good enough. Houses on my street just 2 blocks away command at least $150 more in rent.  

2) lead paint certs just depend on the property. I spent way more on preparing the place for the lead test than I did on testing. Unless you are doing a full gut renovation it's unlikely you can get a lead free cert. Your other option is "full risk reduction" which means you must remove any Peeling, chipping or cracking paint from anywhere on the property. Then clean everything really well then get a lead test. And if you fail get retested. There's usually am inspection fee plus a per room swab fee.  But again the more costly issue is addressing ALL the Peeling, chipping or cracking lead paint. I liked the company is used because they come out 1st and do a walk through. They give you a detailed list of everything you need to fix then you get to work.  Then that's only what they check when they come back out to do the test if you call them back within 30 days 

If you're not onsight, definitely get some boots on the ground to help. 

Good luck!

Kim