All Forum Posts by: Eric H.

Thanks everyone for the love. Since we last spoke I have found a tenant. It took longer than I wanted but my philosophy was don't be desperate. Don't approve any tenant for the sake of filling a vacancy. Yes I'm losing money while it's vacant but I will lose even more money by approving the wrong tenant. I had prospects come through with fake pay stubs and no verifiable income. Smh. BP definitely helped with great tenant screening tips. I'm confident in the tenant I eventually approved and we'll see how it works out.

@Shawn Sonny Yes I did. The main requirement was that I had some skin in the game. I purchased the property with my own funds. He mentioned that he would not have been talking to me if I didn’t have any skin in the game. He also verified employment and performed a credit check. He wasn’t looking for a certain score but moreso a record of consistent on time payments.

@KaTrina Jones I found the house through direct mail. Repair costs were about 25k.

@Tiffany S. Yes the property had to be in the name of a LLC. There is no prepayment penalty so I can refinance at my convenience.

@Richard Anderson The numbers are ugly. Purchased for 10k plus about 1.2k in closing. Rehab about 25k. All in at 36.2k. Hard money terms are 20k at 16% interest fully amortized over 5 years. Current value of property on a good day is 40-45k.

@John Moon My rehab budget was way off. I estimated 15k. What killed it was roofing issues, incompetent contractors, and not a clear scope of work. I think overshooting is better than undershooting. I think you should create a detailed scope of work and have multiple contractors come through and give you quotes based on that SOW.

@Steve Vaughan Great to be back!!

@Jamal L. My exit strategies include accelerating payment on the HML to pay it off in half the time. The loan term is 5 years. The other option is to refi into something more favorable. The issue with this strategy is my credit score and getting the right appraisal.

@Excell Alexander Thank you!

@KaTrina Jones Thank you!! Yes my wife was my biggest supporter emotionally and financially!! I'm in 21216. Acquired for approximately 11k. HML. No down payment. I paid for the property using my own funds. I used hard money for the rehab. Yes I'm going section 8. I used www.blockminvestments.com I love all of the questions. That is what BP is all about. Please stay in touch.

Great day BP family,

I haven’t been actively contributing to the site for the past six months or so because I have been managing and participating in my first rental rehab. I would like to share some of my learning experiences with the community.

1. Baltimore City does not do evictions on rainy days.

2. Rental property registration must be COMPLETE or you are subject to a $500 fine. I completed my registration in the office, no one mentioned that I was missing a phone number, and I was subsequently fined $500. I fought it and got it reduced by about $400 but it was definitely an inconvenience for a missing phone number.

3. No chipped paint for lead inspections means NO CHIPPING PAINT ANYWHERE. Anywhere that you can imagine.

4. Do not hire handymen for full renovations.

5. Do not hire the guy that says “I can build a house from the ground up”. Essentially the jack of all trades, master of none.

6. HAVE A CLEAR SCOPE OF WORK. Probably the biggest lesson for me overall.

7. Consider the cost of getting rid of tenants when purchasing a property. I would have paid significantly less for this one if I would have considered the time and resources it took to get the tenants out.

8. Nature’s Miracle does not work on severely stained floors/surfaces. Areas damaged by pet urine must be painted/stained to remove odors.

9. Your contingency reserve is never enough. Double it and then double it again.

10. Stay on top of your contractors. Weekly is too long to go without visiting the property and/or talking to contractors. Go by everyday, at least every other day.

11. Have personal funds to complete some of the first few tasks when getting funding. The lender is only going to lend on tasks completed. How are you going to get that first draw without having some cash upfront? My lender worked with me in many different areas and I will be using him again.

12. Do not let someone prove to you they have changed on your dime (contractor). Family member alert here!!

13. Make sure you and your significant other are on the same page. My wife talked me off the ledge plenty of times throughout this process. If we were not on the same page, my stress level would have been multiplied by 100. She is the true champ here and I am grateful for her support.

I could go on and on but I hope this short list helps someone out. Moving on to being a landlord now. I will let you guys know how that works out too.

Here are some pics.

Thank you for sharing Tariq. Im proud of you bro. You keep me going. The most important phenomenon you mentioned here was adding value to the site. That's what it's all about. You know DIY is not for me but I get in where I can fit in. Hate to hear you're leaving Bmore. Plz stay in touch.

@Tariq B. How long has the whole process taken from time of submitting application to inspection to approval?

@Chris K. Where did you get this information? How is the Section 8 experience coming along?

@Ian Barnes Do you mind outlining those steps?

@Andrew Boykins Please pm the specialist's info at your earliest convenience.

Thanks!!

@Shaquetta Chittams looks like the BP fam has come through for you!! But yes my question was answered. One can not ask for a reassessment before owning the property. Makes sense. I have not filed for one since acquiring the property. From the responses you have gotten here, it seems as if it may not be worth the hassle especially if you have to go through multiple hearings. Furthermore if you have to take an unpaid day off from your W2 job you are actually losing more money. So the difference between that loss and the gain from the new assessment have to make sense financially imo. Being who I am, I always like to try things at least once so I may go for it anyways just to see how the process goes. Keep us posted on your outcome.

See ya round!

@James Green What did you end up doing?

Thanks everyone for sharing those thoughts! @Ryland Taniguchi @Chris Mason @Ron S. @Brett Goldsmith I'll let my buddy know what you guys said.