All Forum Posts by: Kelly M.

@Gayle Melnick great info! If it's a multi family I would have the owner pay water because water is not metered separately and just consider the average cost into the rent. If it's single family I would have the tenant reimburse the owner. Almost every tenant I have had has forgotten to pay the city.

I bought a 120 year old row house in Baltimore that I love! I knew going in that an old house would definitely come with some risk and expenses but I wish I would have expected those expenses more. Next time I buy an old house I am taking care of everything on the inspection report! It seems small problems in an older home tend to have a domino effect. I had a sewer line clog and back up that cost me $5k for plumbing, water mitigation, and drywall repair. This was all because my contractor forgot to repair a loose toilet that was noted in my inspection report and I didn't check his work. If that toliet wasn't loose the toilet would have overflowed before it went through the lower floor ceiling. That's why my advice is to do everything in that inspection report especially if it's an old house! As a real estate agent I love to tell this story to clients that are unconcerned with inspection issues.

Where did this data come from and what time frame is it reporting on?  Baltimore city and county home prices are still increasing, maybe not as much as some places in the country but the lack on inventory and the amount of motivated buyers is definitely driving prices up. 

Station North

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $430,000
Cash invested: $24,000

House Hack

What made you interested in investing in this type of deal?

The location is great, it will apperciate, it rents easily, and I live for free.

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

FHA

How did you add value to the deal?

Renovated one of the 4 units, painted entry, basement use for storage, drainage system installed, roof repaired.

Anyone have experience with investing in parking lots. I am an agent and I have a client that I would like to purchase one. What is the best way to calculate ROI?

Are you looking for a house hack?  I would recommend a good agent rather than a turn key provider.  I have some resources for agents, lenders, and property managers, pm me.

I totally agree with the house hack idea. It’s a great way to get started. Definitely find a good agent, I went through 3 before I found a great one. In Baltimore I would recommend to start in areas near colleges. There will be minimal vacancy and are usually in safer neighborhoods. It’s also a good idea to check out websites like niche or live Baltimore.

@Ned Carey that is super helpful, thanks. I'm actually looking for a multi unit to live in, what the BP folks call "house hacking" I guess. I thought multifamily would be the best way to do that.  I have been looking for about a year now with no success. I'm starting to reconsider my options. Would buying a affordable starter home and renting it down the road make more sense in Baltimore?

I'm new to the BP world and real estate. Planning on purchasing a small multi family soon. I'm curious about the monthly rent percentage mentioned by @Ned Carey. I'm currently searching in Station North and I'm finding the percentage is closer to 1or 1.5%. Is it just hard to find good deals right now or is this normal for this area?