Are Baltimore County BRRR deals a thing of the past?
is anyone still able to find a good BRRR deal in the Baltimore County these days? What are the numbers and where do you source the inventory? Million dollar questions lol
Yes, i think there's still a bunch of opportunities. The prices points have moved though. Before you got something for $100k and the arv was $150k. Now they're closer to $130k and the ARV is $180k
For sure, I'm just refinancing one now. Not getting 100% of my capital back, but that was due to some unforeseen renovation costs not necessarily it being a bad deal. Purchased for $72k, put approximately $50k into the renovation, just appraised for $175k. Sourced through a private source but have seen plenty of deals like this one on the MLS.
You need to update your price points a bit probably.
All in 125-150K and leaving some money in after the refinance might be more realistic.
I am closing one today for one my investors today, 141K, already appraised for 165K, and planning to put 30K, ARV would be 220-230K.
@Joe Norman, what banks should I be talking to in Baltimore in regards to refinancing? Thanks
Originally posted by @Kareeb Beckham:@Joe Norman, what banks should I be talking to in Baltimore in regards to refinancing? Thanks
I'm currently doing a refinance through Direct Mortgage Loans - they're a national lender and have a strong local team in Baltimore. DM me if you'd like contact info I don't think I can post it in the forums.
@Joe Norman True BRRRRs are in the past in Baltimore County. At least for now. I did many of them a couple years ago.
Originally posted by @Dassi Lazar:@Joe Norman True BRRRRs are in the past in Baltimore County. At least for now. I did many of them a couple years ago.
I disagree that they are a thing of the past. The deals are still out there, investors just have to work harder to find them. I just completed a Rent/Refi on one and am looking at 3 new options today that I intend to offer on. Don't let the tight market deter you!
@Joe Norman
You're successfully pulling every penny you put in?
I agree deals are still to be found, but pulling out 100% is unlikely now. But it's all up to the appraiser 😉
@Ozzi so on the example you have given me, your investor is all in on at under 180k. Thats a 1500-1700/month mortgage. Your Arv of low 200s is telling me this is in a cheaper area where rents top out around 2000/ month for a 4 bedroom unit. This is a flip deal but not buy and hold deal
Originally posted by @Dassi Lazar:@Joe Norman True BRRRRs are in the past in Baltimore County. At least for now. I did many of them a couple years ago.
I do agree with you... right now houses that were less than 100k 3 years ago are not 145k. I look each and every day, and nothing exiting. I want to expand, but not overpaying just to get more doors.
@Ken Chud Where do you get those numbers? If he refinanced his 200k, his new mortgage is $810 pm + 60 ins + 200 taxes so $1060 not what you mentioned. Yeah the $2000 a month sounds realistic, maybe a bit more with section 8.
BRRRR is still a go in Baltimore...you just need to leave some cash in the property. @Sara Frank just finished a BRRRR in Canton.
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@Russell Brazil are you renting that Canton one by the room? Also, was it a chap Reno? Would you mind sharing some numbers?
Quote from @Daniel Suarez:Hi there, I didn't do a traditional BRRRR because I am living in the property and used 203k loan so my money down was very low. It was a 2 bed 1.5 bath, I did a 70k Reno that turned it into 3 bed 3 bath. Still a legal single family but I put a kitchenette in the basement and rent that as a studio on airbnb. Upstairs is 2 bed 2 bath. I plan to put another ~10-15k in before I refinance at the 1 year mark (tenancy requirement from FHA). This is the Canton neighborhood, though so much higher purchase price. I believe you can definitely get better margins in some other neighborhoods in Baltimore.
@Russell Brazil are you renting that Canton one by the room? Also, was it a chap Reno? Would you mind sharing some numbers?
250k PP + 85 k reno = 335k all in. Comps are around 415k. PITI (w/ steep $280 PMI) is 2200/mo. Airbnb brings in 1700/month (will be higher in the summer) and I rent second upstairs bedroom for 700/month so I make a couple bucks living there. It will end up being a good deal for me but that's largely due to the financing I used as a FTHB. PMI should go away at refi. Purchase prices are definitely higher in Baltimore but the refis are coming in high as well, it has just shifted.
Just my 2 cents, but I think the opportunity is still there. I did a deal in Dundalk in 2021 and got all capital out plus an extra 30k on top of that. It was an estate sale though, so got a great deal. Bought for 75 and it appraised for 200 after only about 30k of work. Haven't seen any deals like that on the MLS though. You need an estate sale or need to get lucky at an auction.
Quote from @Michael Sack:That is a great on paper, and if market rents are above 1600, you are in the money. 30k is actually very little rehab money for older properties typically in that area. To me Dundalk is not as desirable because of commute there
Just my 2 cents, but I think the opportunity is still there. I did a deal in Dundalk in 2021 and got all capital out plus an extra 30k on top of that. It was an estate sale though, so got a great deal. Bought for 75 and it appraised for 200 after only about 30k of work. Haven't seen any deals like that on the MLS though. You need an estate sale or need to get lucky at an auction.