All Forum Posts by: Jeff K.

@kyle gregg   I learned a lesson the hard way from one of my first experiences. You got lucky to have found the problem beforehand due to the weather we are having!

In the future on a property that seems to work out for you,  and you put a contract on, put in a 10 day inspection addendum and bring back a contractor and/or pay for a home inspector to get a carefully trained set of eyes in there to make sure you are not buying someone else's headache. Maybe better and less costly for you than paying them for every house that you run to check.

Especially on your 1st few deals. After a while you start to know what to look for and may be able to find the big issues yourself.

I have found that Baltimore-especially the city, has plenty of cheap 100+ year houses with serious structural, foundational, etc. issues that I, like you, would not have the stomach to want to deal with if they gave it to me for free!

Welcome Troy (and Mike)!

Have you decided what parts of Baltimore you want to get your feet wet in? Do you want to flip, buy and hold, wholesale?

Definitely look at attending some baltimore area meetups/investment clubs that you can google. That is an excellent way to get referrals for team members, friends and partners.

Welcome to BP Larry!

I did the same thing-I used my HELOC to purchase my first 2 SFH properties in Baltimore and then was able to refinance to get some of my money back for more deals.

Make sure you go to the meetups and investor associations around town to network and build yourself a solid team to help you on your journey.

Were you thinking of a multi-unit to start off with so you could live in one and rent out the others?

Along these lines I am looking at a house with a similiar problem but the line runs from under  2nd floor window to 1st floor window and a bit under 1st floor window. I definitely want a structural engineer to look at it because there is also a stair-step type of crack a little further away.

Does anyone have any recommendations for a good engineer familiar with Baltimore City houses and its related issues?

@Steven J. sounds like a good idea to just assume, at least for plumbing and electric, it would need to be a complete redo and adjust offer accordingly. 

@Pat L.  I guess I am just one of those that has to factor in the contractor pricing :) 

- with the plumbing and electrical I would want a real pro to sort out the mess! 

Thanks for the responses!

Hi fellow BP'ers. I thought I could get some thoughts and experiences.

I am looking at a foreclosure, unoccupied for at least a year or so, that was previously owned by an investor. Their initial rehab was obviously shoddy, and many corners were cut.

There are also a few flags waving such as: only a few small spots in the basement painted (were they hiding water stains or cracks in wall and foundation?), electrical mishmash (Knob and Tube wiring with a new 100 amp box placed in upside down!?) one or two newer support beams placed under a joist showing some signs of sagging...

I did the following:

1- had a 10 day inspection addendum in the contract with the right to terminate based on inspection.

2-Had a home inspector and contractor go through the place.

3-Built a "surprise repair" cushion into the purchase price.

With a house like this, however, I have a concern that even a good inspector and contractor could be missing bigger hidden things, only to be discovered while we are rehabbing.

What have your experiences been in this situation? 

Do you take the leap, or say "other deals out there, don't want to deal with the headache?"

How have you mitigated the risks?

Thanks for any thoughts-

Thank you @Zana Blue , @Jason C. , @Brandon Hicks , @Roy N. .

It sounds like, as with everything else in real estate, everything depends. However it seems to be within the realm of possibility of getting some long-term 1 BR tenants as well.

Hi BP folks.

Does anyone have experience to compare the amount of time renters remain in their 1, 2, 3 BR apts.?

Are 1 BR renters more transient or prone to leaving and not renewing their lease? Do 2 and 3 BR renters stick around longer?

Although I am guessing it varies by region/type of tenant/ quality of property-have you found that there is a difference based on socioeconomics/neighborhood?

I would love to hear any feedback.

Very interesting thread. Although I am currently a buy-hold person if I do flips I might be interested in a service like this. 

What do staging companies usually charge? Is it a percentage of the sale price, a set fee? 

Jeff K

Hi Jason and welcome aboard!

Where were you thinking of looking? In MD or out?

There are great opportunities in the Greater Baltimore area.

Jeff K