All Forum Posts by: Derick Wolf

@Lavonn Warren  How has this progressed for you?  Also- does the NACHI course make sure it meets the requirements for different states?  Did your version specifically make sure it addressed all of the Florida requirements?  I am also thinking about taking one of these courses, but really don't know which is best either.  So basically you are paying the $50 per month membership, and taking the course for "free"- and your test will definitely certify you to practice home inspecting in FL when you are finished?

@Account Closed, I’m guessing if it’s being sold at a turnkey price it’s not going to be 2%.  Hopefully 1%...

OK- I ran it through the BP calculators, and got basically the same thing- so I guess I am doing it correctly- I'm not yet a premium member so I can't save the reports and share.  I just assumed that since I was above the 1% rule, that it should at least cash flow a little.  A 275K property with 3,100 in rent seems like I must be using wrong numbers somewhere- but I keep coming up with negative cash flow with these numbers.  I'm guessing the taxes are the thing keeping it from generating?  Or am maybe just that they don't have the renters pay any utilities...

Originally I calculated this out assuming tenants pay utilites, but then I found out they don't have separate meters, and landlords pay electric, gas, and water.  Maybe I could change this in the future- but can anyone check my numbers?  Am I being too conservative with my assumptions?  FYI, rents are $1,100 for unit 1, and $1,300 for unit 2 plus 7 garages fully rented at $100 a piece.  There are "decent" tenants with year leases.

This is assuming full MLS price of $275K with 20% down at about 6% interest rate. This is central pennsylvania, and the stated vacancy rate online says 5.8%, but I went a little conservative- but I'm not 100% how much I should choose for CapEx for 2 apartments and 7 garages. Assume tax and insurance are accurate below- are any other numbers off?

Thx for all of the feedback.

@Ozzy Sirimsi: Which areas would you recommend to start if someone is hoping to find a deal, but still be in a relatively safe/stable neighborhood around Baltimore (or the counties to the North, West, and South (I'm going to be a little closer to Howard County- so I'd like to keep my scope to things within an hour while I'm researching)- but hoping to find a fixer-upper for under 100K/ (200K if multi-family) to do a little BRRRR- Tim mentioned Lochraven area- I'm wondering if there are any other options that people would feel safe in, but still have a lower entry point.

@Tim Youse :  thx for the quick feedback, I was using the wrong number for coc  return, but even using your numbers, it looks like that should be .1092 or close to 11%, correct?  I’m assuming you should divide the $2184 (cash flow over 1 yr) / $20K for the 10.9%  While not stellar, that is OK, by some standards, no?  

It looks like that 3rd floor is one bedroom, and possibly only 1 on the 2nd floor.  Is section 8 the only way to go down there?  Does it make any sense to add a nicer kitchen in these areas, or is that just throwing money away downtown?

If there are any other Baltimore-specific expenses I should be calculating, plz let me know.   And if anyone wants to comment on some of the “better” neighborhoods vs others, that would be great.  I just chose this because it MIGHT be a slightly up and coming neighborhood by Baltimore standards.  

This is essentially my first real post. I'm planning on investing around the Baltimore, MD region within an hour or 2 if needed, and I'd like to do some buy/hold/BRRRR deals. I know best practice is to look for 2% properties, and I'm familiar with that and the 50% rule- but just looking on the MLS to get some practice, I see a house for sale in Washington Village / Hollins Market area of Baltimore for 85K that is 2BR/2BR, 1050 sq feet townhome that looks like it doesn't need any work unless someone wants to upgrade the kitchen or bathroom. Zillow says this could rent for $1,350- but I have it conservatively at about a $1,200 rental. This is close to stadiums, etc on Lombard St. Here is even the actual listing (which anyone is free to go after b/c I'm just doing this for practice):

930 W Lombard St, Baltimore, MD

https://www.zillow.com/homedet...

I ran the following numbers- but I'd love for anyone to check my math to see if I'm crazy on thinking this is at least a little over the 1% rule, and why/"why not" this could be a decent perspective rental.  At first the zillow page had taxes at $79 per month- but Redfin has them at about $276- which is one of my biggest questions (how can I get an accurate tax rate- what should I calculate for tax rate in the city for a 1050sq ft property??

Price 85,000 (I'm assuming I could get it for 80K with 16K as down payment
Rent 1200 (14,400/yr)



Tax 276
Ins 30
Vacancy 120
Propt Man 120
Capex 120

Tot: 666 (7992/yr)

P/I: 352 (4224/yr)

$1018 ($12,216/yr)

Rent of 1,200 (14,400/yr)

Cash Flow: 2,184
Cash Invested: 16000 + 4000 closing costs = 20000

?What is Cash on Cash return?  .72??  

Any input on the math, or even this neighborhood in general is welcome and appreciated.  

I'm just about to post about hypothetical scenarios in a rental property in Baltimore- so I'd love to hear your details such as your purchase price, neighborhood (and why you chose it)- and if you think it will cash flow immediately (what rent do you expect to get), or if you are doing a bunch of renovations to improve equity and rental value?