All Forum Posts by: Nat Rojas

Hi BP!

Short Sale in Baltimore, MD. Acquiring with Conventional Loan 20% down. Only two Comps of same bed/bath and similar (within 200 sq ft) size within the last 30 days. Best comp (of the 2) last sold at 65K. $62K is absolutely fair and at market value. 

I'm in a financial position and happy with purchasing a cash flowing property at market value.

My initial criteria: $200 + monthly cash flow & 8% CoC ROI. deal passes as is.

Conservative numbers:

• Interest Rate 6%. (5.6 currently)
• Rent Amount: 1200 (as is without rehab. PM states she can get it for higher)
• Cap X & Repairs at 10% each
• 8K Rehab to get rent ready

If you'd like to see specifics, You'll see below images provide #'s. Spreadsheet is a build in progress as I continue to learn and analyze more deals.

I submitted an offer long before I knew how to inspect a property so I don't have notes from when I visited months ago. You'll see a vague guess-timate of rehab costs. 

Still growing a learning as a newer investor. Could you please provide feedback and help me understand areas in which I should focus.

Hi BP family!

Recently purchased our first rental home in Baltimore City, Maryland using Hard Money. We need to confirm whether we can turn the basement into a 3rd bedroom. The house is currently listed as 2 bed, 1 bath. If we can safely and under the proper rules/regulations turn the basement into a bedroom, then we can refinance with a higher ARV. If not, that's perfectly fine!

We have asked several people (Baltimore City, Contractors, RE Agents, etc.), but have no clear answer on whether our basement could qualify as a 3rd bedroom and the black and white to verify.

Based on the attempted drawing to scale of the basement, are we able to make the basement a 3rd bedroom?

If not, what modifications do we need to make to make it a 3rd bedroom?

We reviewed the international Property Maintenance Code (https://codes.iccsafe.org/content/IPMC2018/chapter-4-light-ventilation-and-occupancy-limitations). Chapter 4, we reviewed the sections below. However, we wanted to make sure our basement fit these requirements to make it a 3rd bedroom.

1.402.1 Habitable Spaces

2.403.1 Habitable Spaces

3.404.2 min room widths

4.404.3 Min ceiling heights

5.404.4.5 Other requirements

6.404.4 Bedroom and living room requirements

From the pictures

• the basement window is greater than 44inches from the ground on the inside. Window is currently not egress, but can certainly be replaced if needed.
• There is a walkout door right next to the window, so I’d imagine, that is what is necessary for an emergency.
• Front side of basement has another window (same size as back), and has a view to the underside of the porch. Side of porch has a wooden hinged door that allows someone to “crouch” for access. Not clean, but possible.
• Ceiling height is 7ft. Currently open wood, if we add a ceiling, then it will be lower than 7ft.

Hi Bendrick! Welcome to BP. Great post as BP Baltimore investors will be able to provide further direction.

While I'm unaware, specifically of that area, might I recommend other paths to acquire and/or verify the neighborhood itself.

1. Have you reached out to your Real Estate Agent for information on the neighborhood? 
2. Drive through the specific street to see the quality. Clean? Trash on the ground? Boarded houses? etc.
3. Crime maps on various sites (trulia, for example).

Hope that helps in addition to the word of mouth of others!

@James McDaniel welcome to BP, Jim! Thank you for your service. Best of luck in your investing career and definitely keep us posted

Nathanael

Welcome to investing in the Baltimore City area!

Best of Luck in your investing career

Nathanael

@Doug Johnson welcome Doug! I'm halfway through the Long Distance Real Estate Investing by David Greene. Highly recommend as it is an incredible read.

Best of luck in your Real Estate career!

Nathanael

@Gabriel O'Connor welcome Gabriel! There is so much to learn on this site to help you succeed in your real estate career.

Best of luck!

Nathanael

@Jorge Roman hi! Please do send me any tools or resources you use for calculating these costs. Thanks!

@Chris Mason #MindBlown. No seasoning period? Ex: Need to wait 6 months before?

@Wayne Brooks great SOP for Short Sales. Thanks for providing!!

I'll be using it this week as I work with my agent to place an offer on a short sale