First Time Investor Questions?

[Jonathan Dawkins]

Good Afternoon BP, 

First of all thank you for all of the knowledge and information you guys post. With that being said, I am buying my first property in Baltimore, MD. I lived there for two years but due to work i am currently located in Los Angeles, CA. I have enough saved for a property under 110k with a 20-25 percent down payment.  I am only interested in multi-families. 

I look at properties on real estate sites like zillow, redfin, etc. 

I am at a point where I am stuck. Should I speak with banks first to see what I can get pre-approved for and then find a house . Or find the house then speak with banks? 

With being an out of state investor will I have to speak to banks in Maryland or will banks out of state be willing to invest? 

If there are any experience real estate agents that can guide me through the process please feel free to reach put. 

Thank you, 

[Ozzy Sirimsi]

Originally posted by @Eric G.:

Welcome @Jonathan Dawkins

        I am also a newer investor who is only interested in multi-family properties in Baltimore. I currently have a two unit property in the Southeast District of the City. First, I agree with everyone on this post who advises you to get your financing in order. I feel like it would be really hard/disappointing to put a lot of work into a potential deal to find out the bank won't finance it anyway. With that being said, yes, speak to your bank or financier first. Second, I think you might be a little low on the multi family price point as @Russell Brazil said. Most MFH at that price point are going to need a substantial amount of work. I'm no expert but I would think its accurate to say that a "turn key" MFH that needs no work will run you anywhere from 160-260 depending on the neighborhood. If you went into Canton or Federal Hill it can be substantially higher or even double that estimate. I have a list of MFH that are on the market right now, I would be happy to share that with you. (I'm not a realtor though)

Is there a specific reason you want to invest in Baltimore while living in LA? Also, are you planning to move back here because you could potentially occupy a MFH at a higher price by putting down less, just a thought to a potential strategy. Best of luck.

-Eric

I am going to disagree with you guys.  

Location is the key on this, he can find a duplex for 110K in an okay neighborhood in Baltimore. 

They don't come everyday, but you can find it. 

We recently got 2 multi units under contract, one for 72K ( needs 25K work in it) and another for  85k ( needs 15K wok in it)  

When you see it you need to jump on it.