All Forum Posts by: Nick Harrington

PP means purchase price, I would be careful regarding any hopes in refinancing the property as a lot of the lenders around Baltimore will not lend or refi a property in the City unless you put a ton of your own cash into it or if you have a ton of equity in it. Lenders also want to see a proven track record of rental history, usually 2 years.

I wouldn't bet on getting a re-finance if this is your exit strategy so be careful and go talk to as many lenders as you can and find out what their requirements for a rental property refi and try to get a solid commitment to refi it when ready to do so.

If you have a wealthy uncle who would be willing to invest with you, why not partner up with him on your first property to dip your feet into the water while minimizing your risk and to retain as much of your money as possible for future investments. That is what I would do. Additionally, if your uncle built his wealth based on investments, he will likely know whether this is a good investment or not and learn from it.

For a proper analysis, I will leave it to others who are more experienced with multi-family properties.

That is an insane price, I see you are in Baltimore too, what company quoted this? As the poster above mentioned, I would report this type of activity to MHIC.

What do you exactly mean by "make any sense to make a profit."? Keep in mind, rental properties in low income high crime areas often looks good on paper but often isn't the reality of investing in those areas when you have to deal with unpaid rents, damages, evictions, and etc.

I'm not necessarily saying it would be an bad investment but what I'm saying is it often does not turn out like it looks like it should on paper so be sure to know the neighborhood you are buying in. Also, I feel buying in those types of areas is only worthwhile with properties that can be acquired at a deep discount with as little money as possible down to minimize risk.

Good luck.