All Forum Posts by: Robert Haworth

Do investors generally wholesale and/or rehab to rent in transitional or stable Balto neighborhoods? Among investors who rehab, do you mostly flip to retail or hold for rental? Our experience with the retail side is that demand/activity is very low in W Baltimore, 21216.

We are considering acquiring a small multifam for rehab/rent in W Arlington Balto, 21215. Anybody know about non Section 8 rental demand for 2Br and 1Br here? What are the expectation for the included utilities? What is the retention/turnover pattern and max rents--is $1100 for a renovated 2BR without utils reasonable?

Hi Shayne,

Welcome to BP! You'll learn alot in this community. We're living in NoVA, taking a look at Baltimore for a wholesale and rehab market, and have buy and hold investment properties in PA. Feel free to give us a ring if you'd like to talk real estate or meet for coffee.

Robert

Not marketing this deal, just asking for advice on it.

I am moving to the Irvington sect. of SW Baltimore for a day job that will last 9 mos, and am considering buying an FSBO (for all cash) that I already have my eye on there. I have personally toured the prop, and it looks very good. It's an estate that's been marketed (poorly) by the heirs for the last 4 mos. They have a clean inspection report and appraisal for about $61K.

While in residence I'll manage my GC in doing fairly light rehab (KTN, electrical, Bsmt spruce-up) to the 1280 s.f., 3/2 brick row home, which has an est. ARV of $88,000. Repairs & improvements will run $12,525, after 15% fudge factor.

Exit strategy is flip to retail in the last 2 mos. of my residence, trying to get it under contract within 45 days for the $88K, with seller financing to move the house faster. We are prepared to accept moderate credit challenges on buyer's part.

The planned selfin terms call for 10% d/p and all buyer's closing costs financed; 15 yr. note with a 5 yr. effective duration (baloon refi -- if allowed by then -- with some commercial lender) and int. rate of 7.5%.

This would yield about $754/mo. P&I to me, and have the buyer facing a $1,021 total monthly payment. (PITI). Median rent for similar homes within 1/3 mi. is $1,025, so they can basically buy my flip for what it would cost to rent it.

Questions: 1) Does this seem like a worthwhile endeavor? Direct profit on sale is $18K-$20K, with another $27.5K in accumulated selfin interest over the 5 yr. term. 2) Any red flags you see?

Thx! Robert

Hello Rancliffe and Brian, welcome to Bigger Pockets. I also live in the DMV area., am a landlord and have properties in PA, but my recent focus is on Baltimore. I'm more of a rehabber/PM than a wholesaler, haven't gone through that entire process yet. I go to a good REIA meeting in Tyson's called Traction. Nice to meet you, Robert Haworth

Hi Tracy, we're from DC as well, focusing on Baltimore now. Have solid landlording experience and am getting more active as a way to transition away from the turbulent government job market. Good Luck to you!

Thanks Brandon, Ned, and another Robert! I'm learning alot from this site already. My wife and I are tag teaming the Podcasts, valuable information from your guests. Great work, Brandon and Josh, Podcast pros!

For loan servicing and escrow, you could check out sellerloans.com.

Robert

Hi Everyone!

My name is Robert and I'm glad to be here networking with like minded people. My wife found Bigger Pockets earlier this year. I'm a systems engineer who is transitioning away from government work over the next year. Over the last several years, my wife and I have purchased and done light-moderate rehab on several properties in Chester County, PA, just west of Philadelphia where I am from.

Now I am looking to increase my activity in an area closer to home (Reston, VA/DC, near Dulles airport). We have a goal of replacing my income and building more passive income for retirement. We bought a run down property in Baltimore and made it shine, now in the selling phase. We are trying seller financing, preferred to managing rentals or property managers in Baltimore City. End unit row house is located in a transitional/stable area, Walbrook, need some ideas on this one. We have strengths in crunching numbers, and doing the project management for rehabs, even pitching in and doing the grunt work where necessary. Haven't done as much marketing, have read about it alot, and looking to increase my skills or partner with someone to show me how it's done. Also, don't relish the sell to retail paradigm in certain markets. Know that's part of the process, but not our favorite.

Like to meet savvy Baltimore experts for coffee and drive around with and talk real estate. Also willing to lend our skills to someone who has a need for what we do well. Trying to determine if this is the right market for us, or if we should wholesale in NoVA for current income.

If any of this resonates, please reply in the forum here and contact me!

Thank You,

Robert Haworth