Converting SFH to Multi in Baltimore

[Sebastian E.]

Hello Baltimore BP folks,

It was a pleasure meeting some of you at @Account Closed lunch on Friday. I learned a bunch in that hour and a half. For those who are thinking about investing it is a great way to meet folks from the entire value chain of real estate from wholesalers, to plumbers, to hard money lenders, to other investors.

I have decided to take the plunge and purchase a property in Baltimore. I am looking for either a large SFH (3500 sq ft plus) or up to a 4 unit that I can purchase using low money down financing with a Fannie Mae 5% down loan product. From a financing perspective the easiest would be a SFH that is currently quasi converted that I can finance as a SFH primary residence. If I do a multi I will have to increase my down payment to 15% which I would do for the right cash flow deal.

Two questions for the group:

-Do you know how difficult it is to convert a SFH to say a 4 or 5 unit multi? It seems like plenty of people have done this although the zoning seems quite tenuous to do a conversion. Does anyone have any experience on this front? Is the city actively trying to restrict more usage for multis because of the oversupply of housing?

-If anyone knows of any off market deals for larger SFH in Reservoir Hill, Madison Park, Station North, Old Goucher please keep me in mind. Same goes for positive cash flow multi units up to 4.

I am looking forward to continued networking with you all in the coming months.

Thank you,

Sebastian