All Forum Posts by: Alan Salgado

If the numbers work then it really just depends on your financial ability to put up the $$ as you likely will not be able to leverage a mortgage on that small amount. I'd give it a thumbs up but would need to weigh the age & distance from my home if I was going to manage it myself.

Part of your due diligence at this point would be to familiarize yourself with the state, county and or city Landlord/Tenant laws. This will give you the power to ask the right questions and understand each others rights. My thoughts are that you can always present a lease. But one approach would first be to introduce yourself to the tenant and have a conversation on how your costs are now higher than the previous owner and you need to bring rent up closer to market prices. $150 a month increase may not be possible for many folks on a structured income. However, there's a lot of value to place on a tenant that takes good care of the property and pays rent on time to cover that mortgage.

Investment Info:

Single-family residence buy & hold investment in Hanover.

Purchase price: $234,000
Cash invested: $12,000

Contributors:
Agne Salgado

Beautiful newer townhouse I acquired at the county foreclosure auction. Had to wait 60 days to close. 4 months later I ended up renting to a voucher holder in BRHP.org a program for helping qualified applicants move into class A neighborhoods.

This is my second time being a landlord. My first did not work out so well 10 years ago, but now I have renewed interest and a tremendous more amount of wisdom thanks to the wealth of information from all the folks on this site.

What made you interested in investing in this type of deal?

After completing 7 Fix and Flips in the past 3 years, I came to the realization that I needed to start building a portfolio. Now my criteria for acquisition has changed. I still look for good flips. However, my primary goal is to build a portfolio of rental propertied with cash flowing income.

How did you find this deal and how did you negotiate it?

It was a foreclosure auction purchase.

How did you finance this deal?

Private money loan.

How did you add value to the deal?

I immediately removed the all the toilets and vinyl flooring in the upstairs bathrooms and installed tile floors with good caulking to protect the underlying ceilings from possible water damage. Water always gets on the floor when you shower. A well sealed floor helps prevent water damage and mold issues.

What was the outcome?

After listing for 6 weeks, I ended up renting to a voucher holder where the voucher covers the entire rent. Renter is only responsible for the utilities and renters insurance. Let's see how it goes.

Lessons learned? Challenges?

I have been reading many articles here on BP and throughout the internet on best practice for rental properties. I followed a couple of recommendations like adding on site visits every 60 days in addendum. Only a one year lease to start.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My wife Agne Salgado is my real estate agent. She's very good a leveraging everyone she knows at her Compass brokerage for advice.

I'm cashing out with Daniel Porto of Chase loans. At first I was skeptical that I'd get a good rate considering it's titled as an LLC, but Dan got me a rate that beat all other lenders with 0 points as well.

@Lamont Marable thanks for your response. I called the County Clerk's office for some other questions earlier in the process and spoke to someone in Land Records. To your point they were very helpful.

For this question I also reached out to my title and escrow company. Here's what their legal said:

If Maryland property, no Motion for Entry of Judgment. If vacant, no Request for Writ of Possession. 

I'm buying a property I just won at a courthouse auction. Question for those who have bought at foreclosure auctions in Maryland: If the property is vacant, do I still have to file a Motion for Entry of Judgement and Request for Writ of Possession?

@Sean LeBlanc thanks for the advice.

I was told I needed to wait 12 months before I could cash out at 75% of LTV. Glad I reached out for experts advice.

@Harjeet Bhatti thank you! That’s exactly what I’m looking for since I’m not interested in borrowing more than the initial investment.

@Kyle Jiron I learned that HOA rules can add to the cost of materials. What should have been $4k in windows was double due to the exterior color requirements. Not to mention the delivery time.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $224,000
Cash invested: $45,000
Sale price: $338,000

Fix and Flip Townhouse in Derwood Maryland

What made you interested in investing in this type of deal?

It was very close to my home

How did you find this deal and how did you negotiate it?

I bought it from Hubzu Auction

How did you finance this deal?

I used LendingONe Hard Money

How did you add value to the deal?

We completely gutted and rehabbed the house

What was the outcome?

Very fast sale. was under contract in 7 days with 7 different offers over asking.

Lessons learned? Challenges?

I learned a lot about Hard Money, HOA, and dealing with subcontractors.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My wife Agne Salgado was the realtor.

@Daria B. I have a reliable and reasonably priced HVAC technician you can call for inspection, repairs and replacement depending on the part of Maryland your property is in.