Single-family residence buy & hold investment in Baltimore.
Purchase price: $60,000
Cash invested: $100
Townhouse purchased as primary residence using Good Neighbor Next Door Program with a 203K loan and $100 down
$35k Rehab rolled into loan
House hacked rooms to friends while I lived there
Moved out and full time renters in there for 3yrs, cash flowing $550/month
Currently $40k in equity in the house
What made you interested in investing in this type of deal?
Needed to purchase a house at a low price, location was decent, only had to put $100 down
How did you find this deal and how did you negotiate it?
Real Estate agent knew I was a teacher, found the property after I met with them and described what I was looking for
Negotiation was with HUD using the Good Neighbor Next Door Program
How did you finance this deal?
203K loan through Good Neighbor Next Door Program
How did you add value to the deal?
What was the outcome?
Lived in the house for 5yrs, rented rooms to friends
Had no idea I wanted to invest in real estate until after I moved and tried to sell it. Several properties came on the market way below value, couldn't sell this one at value, so I started renting it out with a property manager and Section 8 housing 3yrs ago. Had to fix the roof and HVAC first 2yrs, but cash flowing nicely now.
Lessons learned? Challenges?
Vet General Contractors for rehabs.
Rehab took 6 months, contractor had money issues and his subs walked off the job
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Denis Nash, Marathon Realty
Baltimore, MD area
Currently working with him for my family's next home and more investment properties
Nice job J!! What zip code?
Townhouse was purchased in Essex, MD. 21221
Learned a ton from the experience, working on my education to repeat the process.
@JC Cole how did you find properties? I am trying to leverage this program and it appears there are currently 3 on the market in the entire US?? Did you get lucky you found one in the district you or your spouse lives in or am I missing something. Seems like no one can find these.
Used the HUD website, searched Good Neighbor Next Door homes and got lucky it seems. There were a lot more houses in this program 10yrs ago. I looked today and there was 1 in MD, which seems low. I know at least 1-2 other teachers who used this program and bought a house in MD over the last 10yrs.
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