All Forum Posts by: Ray Slack

Just be upfront and honest with the agent about your intentions.. Tell them what you are looking for and tell them that you are looking for a good deal and are in the begining phase of looking and you just would like to get setup on an auto email. They will probably have you sign a buyer broker form that if you purchase anything through the MLS that you will agree to use them as your agent. They should be fine with you not being in a rush. And no it won't cost you anything.

Ray

How to tell when a shift is happening which way?  Prices going up? or dropping?  Inventory, absorption rate and days on the market are the best indicators of where the market going.

There is a current ad on CL baltimore that may work for you if you place has a gas stove..  Brand new and looks nice. 

Search baltimore CL for this title.

BRAND NEW STAINLESS STEEL, NEVER USED APPLIANCES FOR SALE - $1650

You can also search CL under appliances with keywords New & Stainless

I often drive to 2-3 lowes and 2-3 home depots and look through their scratch and dent appliances.  many times the dent is on the side of a stove or refrigerator that is going to be covered by a cabinet.  Usually save about 1/2 on these items.  

The first question is do you have a contract with him? or Did he just give you price quotes?

If you have a signed contract it's probably too late.  the time for negotiating is prior to signing a contract.   You also have to understand that changing the material also can change the time involved with installation..  So, you getting a different tile could add to the installation time.  

If you are happy with the work he is doing and the initial prices he gave you don't rock the boat. Paying him and his crew by the hour is the quickest way to being upside down in project. Also, buying the cheapest fixtures and finishes is the quickest way to have your property sit on the market for long periods of time and not sell or get rented.

When you say you have a limited budget of 40 to 50 thousand. Do you mean that's how much cash you have? Or that's how how much you're looking purchase a property for?

I own several rental properties in Baltimore city (Both in A/B areas i.e. Federal Hill and C/D areas Belair Edision, Biddle Street areas) and several In regular Maryland markets, like Bowie, Crofton, Severn, and Washington DC.  Being that you are both "Newbie" investors I would STRONGLY recommend not buying in the C or D neighborhoods in Baltimore City. Yes the returns are higher but they present a whole new set of challenges even for someone like me that has been doing this for 35 years.    As a new investor I would really recommend staying out of Baltimore City until you gain some experience with "Normal" rentals.

I don't believe it is allowed in AA county.. Call the Department of permits and inspections and ask to speak with the planner of the day and they will confirm with you.

Ray

It really depends on your motivate and what you are looking for..  You can run the cap rate on any rental.. The rentals in safer nicer areas will be lower cap rates than the areas in higher crime locations.  Appreciation varies from city to city.  The areas close in to DC (Mt Rainier, Hyattsville, ect)  have been going up more quickly over the last 4-5 years but that has stopped.  just as DC has stopped going up in value. All have Depreciated over the last year and Zillow predictes another drop in value of 1-3%  .. Personally, I invest in Bowie MD.. It's gone up slow and steady since the last market crash.. Very Safe, nice shopping and some good Elementary schools.. (None of the Jr. High or High Schools are good)   Anyway, most of my tenants are military out of Ft. Meade or J.B. Andrews.  Cap rates in Bowie are 5% to 8% depending on how good of a deal you get on the property.  Laurel is very similar to Bowie but with a lower cap rate.. (prices are more due to better commuter location to DC and Baltimore)  Prices in Laurel are higher but the rents are about the same as Bowie. Not sure about the schools in Laurel.

Unless you rehab is a rental in a super low income area, your best bet is not going for the cheapest things you can find. It will just cost you more money in the long run as nobody wants the cheapest things in their home except people that only care about having a roof over their head