All Forum Posts by: Cate Mee

Thank you all for the input.  Its been very helpful.  One last request for advice - if my absolute ceiling on purchase price is 500K and my ceiling on renovations is 100k, from Roland Park (Baltimore) to the northern DC suburbs south and Annapolis east, where would you all suggest as the best bet with those financial limitations?  Again my only requirements are: yard with property and relative safety for my kids.  I know everyone has a different definition of the term safety - I have lived in cities all over the US from Denver to Houston to San Antonio for context.

Thanks for the input everyone @Russell Brazil - thanks for the feedback - I know every area is different, and I am not attempting to be unrealistic - those numbers had worked for us in other areas of the country - although I realize DC/MD is a very high cost area.  What numbers would you suggest targeting for the type/style of investment I am describing?  Purchase price, reno cost and out cost?  We move all over the country so we are aware each market has its own return structure/expectation.  We have in the past only moved to walkable, downtown areas (historic) and renovated those types of homes, but there seem to be very few towns  of that type within our desired purchase price (realistically, we need to stay below 500K) we have some flex with our renovation budget, we do quality updates and are usually very targeted on what will provide returns.  Branching more into a suburban environment would be fine, but we just dont have experience in Maryland or with that type of property or purchaser once we sell.

Good Morning BPers, 

Looking for some thoughts / assistance with an upcoming move to Maryland.  My husband and I will be relocating to Maryland (he will be working in Severn/Odenton).   We are searching for a good investment to "house hack" within 30-45 minutes.  We have been having a difficult time understanding the best option between all the areas we have looked at: Ellicott City, Catonsville, Roland Park, Clarksville, Fulton, Silver Spring, University Park or Annapolis (any other suggestions also welcome).  We move somewhat frequently, every 2 years or so, so we always look to buy a cosmetic fixer with some room for sweat equity in areas that we do our best to research are going to maintain current value or (hopefully) appreciate due to trends, schools, walkability, incoming commercial investment and perceived desirability.  Our target acquisition cost would be 300-450K and looking to add between 25-50k (floor refinishing, painting, kitchen and/or bath updates) and resell to make minimum 50-75k in a couple of years.  We have been able to successfully do this our last three moves, which has given us the flexibility to continue following career options.   We also enjoy the process/work.  Any thoughts on which (if any) of the cities/neighborhoods in Maryland will lend themselves to this?  Hoping to land a 3-4 bedroom, 1-2 bath, approx 1600 sqft minimum (yard is unfortunately a requirement).   We do have children, so a safe area is a requirement as well.  Thanks in advance.  I would appreciate any insight/opinions.   

When I checked with the state code, they said that it wasn't units per building but units per development...and anything over 4 sent you to commercial.  I appreciate the feedback from everyone, and it has definitely been an eye opener as far as the realization that there are times when developing can be a losing proposition.  I actually think we are leaning towards moving a small historic house onto the back of the property - found a big time developer that is going to cover the moving costs, because he cant demo the house, so the net cost to us is pretty minimal.  This will give us rental income and the best percentage.  Then we will reevaluate if the rates go down or the rents go up.

Thanks for the feedback @Seth Teel & @Rick Pozos.  This may sound like an ignorant question but - how does anyone make any money in development?  We were able to get the land for "free" because we subdivided another property that was already paid for.  But even with no direct upfront cost of land, the cost to build doesn't seem to be worth it.  Is it just the number of units that is the issue?  Is there some kind of break even on what number of units make a development cash flow positive or a good investment?  Would it make more sense to just put a duplex on the property and avoid the commercial rating and commercial building requirements?  The lot is 9,500 square feet, so not exactly huge.

Good Afternoon Bigger Pockets,

I have been reading the site for awhile, but first time poster. I am looking for some feedback/advice from the BP Community. My husband and I own a vacant lot near the riverwalk in a highly desirable (A) neighborhood in San Antonio. We are zoned for up to six units on the property, but in researching the cost of construction we have heard anything from 120 a sqft to 185 a sqft plus 200K in land development costs for a new construction multi-family. At 2 million dollars this project would not make sense in regards to ROI for expected rental income. Any suggestions from the BP community on what is realistic? We own the land outright and know the true market value to be around 250K for the lot at the moment. We could build single family up to a six unit. We have been told that the costs to build commercial are significantly higher than those to build single family due to regulation, etc. We have spoken to several GCs as well as several Architects. Any insight is much appreciated.

Hi Jessica my husband and i are relocating to the Fredericksburg area in the fall.  We would love the contact info for your realtor / investor.  We would like to purchase something that needs rehabbing in the area for some sweat equity.