I’m considering putting the pursuit of my first rental purchase on the back burner.

I feel I might have a BRRR opportunity with hopefully less risk (meaning without the Buy)

My folks have a fairly neglected property in Arnold MD that they’re willing to let me renovate and rent to recoup my cost. Then perhaps sell down the road and perhaps split profit or refi...

It’s a home from ‘84 bought for 90k. Near AACC

I won’t be doing the work; that’s about all I do know at this point...

Does this endeavor even make sense (what else might I consider)

How do I start? Should I do all of the project through one GC? Any recommendations?

Should I pay cash? Heloc, etc?

I know there is mold issues among other probs, would the person doing the estimate give me fair feedback as far as if it’s a complete tear down vs a rehab?

Thanks in advance for any feedback!

I feel this could be a good learning opportunity and hopefully a win-win for myself and my folks.

Do it yourself.  There are plenty of videos on YouTube that'll show you how to do just about everything under the sun/moon to fix up that house.

@Paul Sandhu I wish I could; chronic back issues and working overtime prevent that.

@Keith C.   Be your own GC.  My uncle built his own house.  He's a professor.  His PhD is in Finance.  He was the GC when he had it built.

If you don't think you can manage the project use a GC for sure but you still have to keep track of them.

Tear downs are expensive in AA county . The new administration is cutting no slack . You are in a desirable school district , Broadneck is right up there with Severna Park . If you are on well and septic it makes it a bit harder , but a lot  of Arnold is city water and sewer . If its a single family , its basically worth $200 to $250K  as is just for the lot and the fact there is a building on it . 

YouTube is absolutely no replacement for an experienced contractor. There is a ton of misinformation on YouTube, and other online sources, which will yield results that look fine in the short term but may not last. If you're not experienced in construction, find yourself a licensed, qualified contractor who can oversee the project for you. Most contractors these days are booked 4-8 weeks out minimum.

i now subscribe to the Paul Sandhu model. Find a low cost property that can make good rent.

Rehab, handyman special? I would rather find a foreclosure or auction property that's in reasonable shape at a great price and near ready to go with what landlords called paint and carpet only needed.

My first two properties were auction. 63k appraised for over 80k (was on markets at 119k originally. Another 38k, tax appraises at over 80k. each easily has longterm rental value near $10k and i had instant equity.

No interest in rehab by a contractor. You often spend more the value you get back.


Originally posted by @Keith C. :

I’m considering putting the pursuit of my first rental purchase on the back burner.

I feel I might have a BRRR opportunity with hopefully less risk (meaning without the Buy)

My folks have a fairly neglected property in Arnold MD that they’re willing to let me renovate and rent to recoup my cost. Then perhaps sell down the road and perhaps split profit or refi...

It’s a home from ‘84 bought for 90k. Near AACC

I won’t be doing the work; that’s about all I do know at this point...

Does this endeavor even make sense (what else might I consider)

How do I start? Should I do all of the project through one GC? Any recommendations?

Should I pay cash? Heloc, etc?

I know there is mold issues among other probs, would the person doing the estimate give me fair feedback as far as if it’s a complete tear down vs a rehab?

Thanks in advance for any feedback!

I feel this could be a good learning opportunity and hopefully a win-win for myself and my folks.

I appreciate everyone’s feedback so far.

I’m going to at least follow up on getting estimates and consider possible next steps.

I’m not sure if I’m allowed to ask, but if anyone knows any contractors or companies I should contact, please advise!