Baltimore Rehab: Deal Closed!

[Martinis Jackson]

BP Friends

We have closed on our first investment property in Baltimore and can't wait to get started. 2 bedroom 2 bath ((we are adding a bathroom) 1200sqft. 30k cash purchase with a combo of line of credit and private financing. ARV is 140k-160k. Rehab is looking around 75k (line of credit), which leaves little room for error. We want to use the BRRR Strategy but are afraid if we get a low appraisal, we may not be able to get all of our money out in the refinance. So, maybe it makes more sense to flip. Received an ARV appraisal already from a hardmoney lender who we felt didn't justify his numbers. Appraisal came in at 135k, which isn't far off but wasn't good enough Hardmoney lenders to approve the deal.

Looking for any suggestions for portfolio lenders in Maryland who will cash-out refinance a cash-flowing rental property with no existing mortgage. Also, does this property make more sense to flip?

[Tim Youse]

Congrats on the purchase. How firm is that $75k rehab estimate? If you have a SOW, I would try to get more bids and see if you can get that rehab cost down so you'll have an easier time of cashing out on the refi.