All Forum Posts by: Kevin Brenner

I'm moving to the DC area next month. I'm interested in purchasing small MFH (2-4 units) and small commercial properties (6-10 units) in the Baltimore market. I'm getting the vibe that it may be more trouble than its worth? Anyone had any success with small MFH in Baltimore, Maryland, or VA?

@Elliot Galpern thanks for responding.  I agree that the batteries in the locks are definitely a limiting factor.  Some locks say batteries last 6 months, others say they last 3 years.  I was looking at Tacklife Electronic Deadbolt Door Lock.  It's reasonably priced.  It's battery only lasts 6-8 months, but it does have a low battery warning light and a backup key.  

@Blake Jarrett thanks for the clarification.  I'll look into that option as well.  Kwikset makes some great products.  

@Blake Jarrett Thanks for the comment.  I'm researching some Kwikset double cylinder deadbolts and I'm only finding deadbolts with cylinders on both sides of the door.  Can you help me understand how this would be helpful from a landlord perspective?  Do you know the model number that has top and bottom cylinders as you described in your post?  I understand how that could work (having a master key for all the doors would be super convenient).  Thanks!   

I'm in the middle of rehabbing my Quadplex and am considering installing electronic keyless entry locks. My idea is to pay the money now to install locks that won't need to be replaced during tenant turnover. It should help me avoid the infamous ziploc bag of keys too. Also, I the keyless locks will come in handy if I ever decide to transition and turn my property into an AirBnb. That being said, does anyone reccommend a brand/model of electronic keyless entry locks?I understand that "smart locks" are available as well. Would they be beneficial for a rental? Thanks in advance BP!

@Christina J. Thank you!  I'm looking forward to applying some of @David Greene's principles found in his long distance real estate book (shameless plug).  Seriously, it's a great book, and I'm moving out of state in December so I can't wait to watch this thing grow and stabilize the rent over time.  I'll make sure to keep everyone posted :) 

@Gerald Arnold I'm interested.  Please message me through BP and we can connect.  Thanks! 

@Steven Hu Thanks! Right now my cash flow is $400 per month. When I stablize the rents ($1100-$1200) and after all expenses and property management I'm projecting conservative cash flow numbers between $1200 and $1400 per month! But that won't happen until next Spring. The key is reinvesting the cash flow back into the business to spur more growth! I can't wait to see where this road takes me.

@Bryan Zuetel I ended up going with USAA. As long as your place doesnt have knob and tube wiring and can carry 100 amps USAA will cover it. I had trouble finding other reasonably priced policies due to the older fuses, however. Where's your quad located? Love the small MFH as an investment vehicle. Hope this helps!

Jay,

It's tough to buy A+ properties and still get a CoC. Typically A+ properties are A+ because they are new construction or because another investor has put the capital into transforming them. In rare cases, I suppose a vast shift in the market like a substantial "pathway to progress" or neighborhood development could greatly improve a property's status.

Regardless, my suggestion is to look for value-add opportunities. My Quad is a C property in a B- neighborhood. The backyard was literally a swamp - now its a parking lot for tenants. I plan to invest about 40K into the property over the next 3 years while simultaneously doubling the rents to market value. Once I stabilize the rents, I'm going to refinance out of my VA entitlement into either a commercial loan or perhaps a conventional option. I expect a much higher appraisal considering the initial appraisal at its current state before closing was $45K higher than the contracted selling price. So once, I fix it up, I should be setting myself up for a large HELOC to purchase another deal.

The deals are out there, they just might not be as pretty as you'd like.  I do a lot of driving for dollars and cold calling homeowners (I'm headed out to lunch with a prospective seller here shortly).  If I see a C in a B then I'll make the call.  Plenty of people have hung up on me and cursed me out, but it's all good.  Wouldn't be the first time and won't be the last :) 

Hope this helps! 

I purchased my first 4 Plex apartment recently. There are some pros and cons, but as long as you incorporate all of your planned expenditures into the front end of the deal, you'll be fine. I'm doing some deferred maintenance on the building itself now. I will then begin rehabbing the interiors as tenants cycle out beginning in January. I'm budgeting $40K for all rehab costs and looking at a 57% CoC once its all said and done (I'm 100% LTV) so if I had a downpayment that would be around 20+% CoC. I'm looking to refi and HELOC into another MFH deal by early June 2019.