All Forum Posts by: Jamal Okon

All,

I have a property under contract that needs to be completely gutted.  The estimated cost to repair this 4-Unit is $120,000.

The purchase price is $16,000.00.  They are all 1 BRs in a C area.  Monthly rents for the area are $650-$700.  There are also 2 squatters there living in squalid conditions within 2 units. I have purchased investment property several times, but always avoided rehabs.

My questions: Where can I find financing for repair, while moving toward lease-up? Is there a local Maryland state, Baltimore city, or federal program than can provide grant money? Should I evict the tenants, even if they begin to pay rent (their units also need rehab)?

@Kirby Elliott Welcome to BP! Congrats on your first steps toward freedom.  I actually plan to invest in Pittsburgh (once I get an offer accepted).  Please read my blog on the City of Bridges and let me know if you ever need a partner.

What if the seller will take back a note for 20%, can you but down 5%? I know some commercial lenders that will do this, but I am not sure if it works under 5 units.

@

Jacqueline Carrington

is absolutely right Pittsburgh is an emerging market like none other.  Please @Michael Wolffs and @Jacqueline Carringtonread my blog on exactly why Pittsburgh is so valuable.  I have been there twice and already made several offers.

I have two condos and will never buy another.  As an active member of both Condo Association Executive Boards, I know that exit strategies are key.

1. How much delinquency is there in the community regarding condo fees? This impacts if FHA/VA will finance purchase from owner occupants. Above 20% be careful.

2. How many owners vs. renters/investors occupy these units community-wide? This will also affect financing and overall value in the community.

3. Lastly... Condo fees ALWAYS go up.

This is just my perspective, and I'm sure many people make tons of money from condos.  Good luck!

@Account Closed,

If there is a multifamily property that is already occupied, with the Auction House typically allow the bidders to perform an inspection prior to the auction?

@Chris Larkins

Run! That's unnecessary.  $6500.00 is better used as earnest money. 

I am also marketing in the Nashville market for multifamily.  I get all my market research from Nashville Business Journal, Multifamily Housing News, Area Development, Bureau of Labor Statistics, etc.

@Clay Condol

Welcome to BP!... I think you will continue to find this site highly informative and beneficial.  I was born and raised in Baltimore and still live nearby, feel free to connect anytime.  I am actually putting in an offer on an inner city 4-Unit today! Wish me luck.

Welcome again!

@Fratzces Lys

Have you considered Baltimore? It's right up the road and has some pretty good deals!

I agree, Atlanta is too hot.  If you must go there... get in North of the I-20 and sell by 2017!  My partners and I are about to close a 240-unit in ATL.  It was very hard to find at our price point. Texas is pretty overheated as well.  Please feel free to check out my blog for some better market ideas. 

I still like other areas, but generally speaking if you hear an area is hot you are already late to the party.  At least that has been my experience.