All Forum Posts by: Sara Frank

Youll also most certainly need a lot of electrical work and a heavy up/subpanel to run a second kitchen/kitchenette. Most of these houses have a max of 150 amp service when you'll probably need 200+ to run the duplex model. Learned this the hard way on my own 203k 

 You'll often find moisture when you start opening up the walls as well as mortar degradation in exterior walls. Be sure to have a large cushion for repairing those items 

Agreed. Youll find that most "rule of thumb" advice from BP books and podcasts do not work or apply in our market. The principles are all sound and can be adapted based on market, but it's definitely not one sized fits all. Depending on your budget, I suggest some clients to look into what we call "fauxplexes" -- a SFH with a walkout basement that can be converted into another "unit" by adding a wet bar. For safety/code reasons these separate "units" cant have a stove and must of course meet building codes for adequate ceiling height, windows, etc, but it can be a great first step in a market where MF is so expensive. And a good alternative to a) SFH with a bunch of roommates and b) navigating ADU codes to build a whole other structure in the backyard. There are a lot of these "fauxplexes" in areas like Silver Spring, MD and I own one in Baltimore city as well. For mine, I live upstairs (2 bed 2 bath) and rent the basement (studio/1 bath) as a furnished mid term rental.

If you have the time and patience, some people are able to use an FHA 203k loan (same as regular FHA but allows you to finance renovation costs as well) to force appreciation and then refi out and get rid of PMI. A lot of pieces have to come together to make this work and it requires a bit more sophisticated knowledge of what renovations provide the most bank for your buck in appreciation - but it can be successful. Realistically, cash flowing with an FHA loan is pretty unheard of in the DMV. If youre looking to buy a SFH in the area I would recommend using a conventional low money down product, there are a few that even offer down payment assistance and no PMI for certain geographical areas. I would take advantage of that to keep your payment low so you can save up for the next move, maybe a MFH

 You can sign up at the meetup page -- https://www.meetup.com/dc-rei-...

Hope to see you there! 

 Hey Vince, welcome to BP. (and go ravens)  Would you consider investing in the Baltimore/DC area? Returns can be great with the right guidance. Happy to chat. 

 My group hosts a meetup every other month in DC: https://www.meetup.com/dc-rei-...

Goodluck!!

Agents can usually refer you to a good title company that they trust. Definitely also attend meetups in the area to meet other investors, lenders, agents, etc. 

Canton and Fells Point are best for MTR! The areas north of Patterson Park is not safe at all unless it's the first block. Greektown is a safer option for a place with lower prices, most of those travel nurses will be reporting to Johns Hopkins Bayview campus instead of the main campus.