FIRST PROPERTY & PARTNERSHIP!!

[Courtney Rollins]

I am excited beyond measure to have my first property under contract! I know there is a long way ahead, but I am thankful to the BiggerPockets community and all the investors who are have been willing to share their advice and support.

Here is the skinny:

Property: Zoned 2-Unit, Baltimore County, 3,056 sq ft

• Unit 1: 2 bed 1 bath; Unit 2: 3 bed 1 bath; Basement: unfinished w/ 2 bed 1 bath w/ a 1,000 + sq ft, full bath, kitchen

Purchase: $135k Rehab: $75k ARV: $295k projected monthly NOI: $3,000 (not including if I rehab & rent the basement)

Strategy:  Rehab, Rent, Refinance

Challenges:

• Mold Remediation. There is a serious mold issue in the basement unit. We have to locate the source of the water. Since it is in the basement and there are 4 trees lining up next to the property, I am going to have a structural engineer inspect the foundation to see if we can find the water source. If the project fits my budget, then, I am going to waterproof the basement. Then I will order the mold remediation
• Rezoning. I have to decide if I want to go through the hoops of rezoning it from a 2 unit into a 3 unit with the basement. I am checking the numbers to see if that will increase my ARV significantly enough.

If you have any experience with mold remediation or rezoning I’d appreciate any advice. Take care!

[Frank Chin]

Normally, I wouldn't do a deal if it involves rezoning. See recent discussion: Rezoning

Can't comment on the politics and codes of Baltimore, but local opposition is normally about traffic, parking etc., besides the opposition of the city due to infrastructure issues. In my case, bought properties in foreclosure with an illegal unit and tried to rezone unsuccessfully. Turns out a 2 unit structures are built to different codes than a 3, so  it's a 2 prong problem. Is the expense to upgrade to a 3 worth it even if you can get a variance which you probably won't? This upgrading is in addition to putting in kitchens and bathrooms,