what to look when buy $5000 home in baltimore

[Frank Closer]

Anybody with experience buying sub 30ks in Baltimore City have any advice for a newbie who isn't afraid and has lots of renovation experience. I have no clue on where to start. Only hidden cost I've found where "ground rents". What else should I be verifying before purchasing. Thanks in advance

[Eric H.]

What's happening @Frank Closer? At that price point you are more than likely going to be buying a shell. I would just make sure the 'bones' of the property are in good shape. No foundation issues, all exterior and load bearing walls are in good condition, roof is in fair condition and not leaking severely. As far as liens, that will be handled during title search. You can do some research of your own by looking up environmental fines, backed up taxes, and water bills. But the title search will reveal anything that you have missed. All of these bills have to be paid before property can be transferred and should be factored into your acquisition costs. Another major thing to consider is if you put 30k -40k (contractor prices) into rehab plus 7k for purchase how much equity will you have when it's all said and done. If you plan on doing the rehab yourself you could lower your rehab cost significantly but I think you should still factor in your labor costs when evaluating the deal because eventually the business savvy individual does not make much $$ slinging hammers. I would also line up some potential lenders that would be willing to refinance your property as part of my prepurchase planning.

I hope I answered your question.

Happy investing!

E. Harris