All Forum Posts by: Jeff K.

@David Fernandez Did you find a lender that could do the loan in your timeframe?

I am also in Baltimore. Would you mind sharing (or can you PM me) the name? I have been under contract for a month and a half and am still awaiting approval for my loan-unresponsive people and bank bureaucracy I feel might cost me the deal. I am thinking of ditching this bank and looking into another lender. I know commercial loans usually take longer but the lack of communication is unacceptable to me.

Thanks!

Jeff

Thanks Tim! 

Informative thread! 

When I look at SDAT as well as the home sale sights (zillow, trulia, etc), it gives me a picture of wanting to be all in for no more than 50-especially with the mostly 2 BR houses around that area.

It is just surprising to me to see so many homeowners in that area-and still buying there over the years- but zero appreciation or equity to be had after you finish your purchase and rehab. I just hope there is some cash flow available.

Hi all.

I have a possible off-market deal in the Morrell Park area in south Baltimore. 

I was curious if any seasoned investors have any experience with that area?

The ARV's appear low- but there do seem to be plenty of homeowners around. What type of rentals work best; market or section 8? What are market rates like and possibilities of stable tenants?

Overall neighborhood stability? 

What would you like to be your "all-in" number of purchase price and rehab for a rental?

Any ideas would be a great help!

I would add that with a multi unit you will probably be paying for water bills and, if applicable, grounds maintenance (grass/snow) unless you can somehow bake those charges into your leases (difficult to do with a multi-unit.) Sometimes if you have a responsible tenant you can give them a break on the rent and have them take care of the grounds, but it still nicks the bottom line. These charges could add hundreds per month.

 Will you be re-financing? Add that payment as a monthly charge. I would also make sure to add the taxes ( for 125,000 you're looking at close to $3000-3500 or more per year for a typical row house). If you are not managing the property yourself add 10% to the gross income for that. And don't forget to add insurance costs and a yearly repair allowance that is not cap-ex. Are you paying for grass cutting?

If your strategy is strictly cash flow, with all these variables, you can do much better in Baltimore than 1300-1400 at a 125000 purchase price.

@Tim Jacob are you able to share (through PM) any email contacts within DPW?(I wont use your name!! :)  

I sent in plumbing invoices to request an adjustment of the ridiculously high water bills for several properties, per the procedure told to me by customer service, and it seems those emails have gone into cyberspace. I am waiting for responses since November, and when I call (and actually get through) they tell me there is no record of having received the emails. They just tell me to resend the invoices to the DPW.billing email address.

So frustrating.

Thanks!

I would also take into account the possible vandalization i.e. copper plumbing that might get ripped out, in certain neighborhoods, when the criminals smell a vacant property.

Just to add my 2 cents, Google maps is not as good as laying your eyes on a Baltimore street. Especially in one of those rental neighborhoods. Houses are bought and sold, and get abandoned in a heartbeat. Google maps is usually a year or two behind the times.

Also, with this particular property, do you have verification that the tenants are paying on time, without hassle?

And buying properties with tenants can be a pitfall-how well did the previous landlord screen? How well did they do the "turnkey" rehab. Did they get a lead certificate?

Just some things to consider.

Hi all.

My LLC currently has a 30 year commercial mortgage for several Baltimore City properties that, under the agreement, goes up for re-eval every 5 years. This is my first re-eval so I am not sure what to expect. I was originally told that they usually do not call the loan, but might adjust the rate. I am currently paying 6.5% with a credit union. Does anyone have any experience with these types of periodic re-evals? Any tips for negotiating to keep the rate the same or even getting it lowered??

Thanks for any insight!

MD tax assessor site is http://sdat.resiusa.org/RealProperty/Pages/default.aspx and then enter your criteria for searching homes. You can search blocks in city or county, or previous sales on a street etc..if you search by street name look for an H or an N in the line of the chart for each property which will tell you if it is a homeowner or not. Good Luck!