All Forum Posts by: Joseph Stapleton

I put this deal on the back burner for a little. I'm circling back now and digging a lil deeper specifically on the second property I listed in my original post. This property is in the Deanwood Neighborhood, which seems to be the better neighborhood of the three. 

I wanted to get BP's opinion on tenants that are Veterans and their rent is paid through a voucher program. That's the tenant mix that currently occupies this property. Thoughts on these type of tenants and collecting rent this way?

Hagerstown, MD (32-34, 36 E Washington St.) - 2 Buildings, 9k SF, 12 Units, Mixed use Commercial/Residential, Parking lot income.

Asking - $655k

NOI - $68,262

Cap - 10%

COCR - 35%

Terms of Seller Financing:

• Down payment amount: $195,000
• Seller agrees to finance the balance and closing costs at 5% for 3 years. Interest rate to adjust to prime plus 1.5% every 3 years. Amortization over 30 years.
• Buyer to obtain and keep insurance with applicable LLC.
• Buyer responsible for property taxes and insurance.
• Buyer to personally guarantee loan.
• Buyer to pay $15,000 towards closing costs, transfer taxes, recordation charges, settlement fees, and the balance (if any) credited to Seller as Loan Origination.
• Utility shut off, fire insurance lapse, property tax lien shall be grounds for immediate nullification of Contract for Deed. Copies of all utility and insurance bills sent to buyer.
• Buyer recognizes that there is an existing mortgage on the property and shall subject to the terms of the mortgage. Copy of current mortgage sent to buyer.
• All electrical/plumbing/mechanical work shall be performed by licensed contracts only (if applicable).
• Buyer authorizes property management company to pay Seller directly, the monthly installment payment before issuing to the buyer the rent collection proceeds (‘net check’).
• Rental licenses, lead certificates shall be maintained. Operating without a rental license and/or lead certificates shall be a default under contract for deed. Copy of current rental license and lead certificates sent to buyer.
• Copy of city inspection reports sent to buyer within 7 days of closing (Notice: It passed city inspection)
• Copy of expense report and rent rolls for 2013, 2014 and 2015 from current management company sent to buyer.
• The current rate of 7% with Synergy Property Managers is to be set up by seller for the property.

Baltimore, MD (4900 - 4908 Curtis Ave) - Consists of 2 separate apt buildings with 7 units, 12k SF, a tavern (1st fl) w/ multiple units on 2nd & 3rd floors. A total of 10-12 units in 3 bldgs. One apt bldg needs total rehab but upside is HUGE for this property. Zoned B22 (Comm Biz).

Asking - $180k

Rehab Costs - $150k

Projected NOI - $75k

Cap - 23%

**A full scope of work can be provided upon request for qualified buyers**

Curtis Bay is a blue collar, working class neighborhood, with many rentals and under going redevelopment everywhere. Google "Under Armour Campus Port Covington" Located just across the water, UA will employ several thousands of jobs and those employees WILL NEED housing.

@Russell Brazil Thanks for that link!

@Vasa G. Why more of an issue with the lower rents?

@Russell Brazil While I am new to the DC laws, I'm aware of the TOPA rights and to beware of them before committing to a property. How long do residents have to act on their TOPA rights?

@Russell Brazil Thanks for the reply. Wouldn't a landlord be subject to rent control based on the number of units on the individual property? 

Great point with the unit being vacant. As for the the asking price, at the moment I only know of the asking for the 3unit - $360k and the package price for all three properties - $935k.

Hello, I'm currently in the process of reviewing an off market deal that consists of 3 Multi-unit buildings in NE Washington, DC. These properties can be bought in a package or separately. Ideally, I would like to buy all three and plan to hold these properties for 3-5yrs and then sell. While this will personally be my first deal, I have three years experience buying investment properties. I'm looking for some advice as far as buying all three, two or just one. Also, if anyone has experience leasing and selling (comps) in this area of DC.

Unit Mix: 2 - 3BR/1B

NOI - $32,880

Income Value - $365,281

Loan (75% LTV) - $273,961

Unit Mix: 3 Units

Sale Price - $360k

NOI - $31,464

Cap Rate Value - 9%

Downside - One vacant unit

Upside - Rents can be increased from $1,032 to $1,184.

Unit Mix: 4-1BD/1B

NOI - $34,284

Income Value - $360,909

Loan (75% LTV) - $262,500

Looking to see if anyone has had any experience or can give any advice when it comes to utilizing crowd funding, equity sharing platforms?

I did a bit of research and there are a handful of these real estate investment crowd-funding companies out there. I narrowed down a company called Interactive Shares because it's right here in DC.

Has anyone on here ever worked with this company or can give any additional insight into this form of borrowing?

Project - Looking for financing to purchase 3-4bedroom residential units in DC, $400-700k.

Website - interactiveshares.com

Great, looking forward to it! Thanks @Ned Carey

Hey Bigger Pockets Community!

My name is Joe and I'm new to BP, I'm interested in connecting with other investors and professionals on this site. I also have access to a few investment properties in MD, FL & CA. We are always looking to network with other landlords and investors. Open to discussing properties that we have available as well as new site acquisitions!

Look forward to being a part of the community!