Union Square Baltimore 1st deal 90 day challenge update

[Edward Howell, V]

When I made my initial post the bank hadn’t signed off. I now have a ratified contract. It’s taken three weeks and they still haven’t signed the second home inspection extension, but they finally turned on the water and the home inspection is Tuesday at 9:00am (water wasn’t on the first time). My lender can’t do the appt until after the inspection, and contract states all utilities (water) must be on. Is it worth the extra money for the infrared/thermal, or are they charging me for something I can do on my iPhone?

https://www.century21.com/property/1320-w-pratt-st-baltimore-md-21223-C2180355185

To me it doesn’t look that bad. Initially I was *** u meing based off of bro science 20K in repairs. Obviously, that’s assuming all the major systems/structures are intact. Now I’m starting to think I need to plan for the worst and double that. Bro science!

I’m thinking I need to bring in a structural engineer. I’m thinking I might be looking at a rewire, or at least some sort of electrical upgrade. Probably a new roof. Definitely a new furnace (at some point, if it ain’t broke don’t fix it?). 

I literally called like 20 banks before it dawned on me to call the people I bank with (PNC holds their own paper). The current purchase price is 41K. 20% down 30 years @5.38%. P&I are going to be somewhere around $185 and current taxes are upwards of $300 a month. The upside of this hold up is that hopefully, this will push closing into next year. I’ve read that if you purchase a home between 1/1 and 6/30 of any year you can immediately appeal the tax assessment. Current assessment is 158,000 taxes are $3800. The land is valued at 60k. Will that change based upon lender appraisal/purchase price? I’m paying 41K. 1320 is under contract and I hope they got the whole 80K! 

The listing says it’s a 3/2.5, but in actuality it’s a 2/2.5. Am I unreasonable in asking for a 5K reduction? No never killed anyone. I’m still aiming for $1100-$1250 a month, but losing a bedroom is huge. Worst case scenario I make it a live in flip, and rent out my primary residence. I’d have to stay in my PR until 5/11 to hit the two year mark, but refinancing my car will cover P&I on the Bmore house. I also look at appealing the tax assessment as a cash flow increase without really doing anything.

This is my first one, so, I ‘m basically going in accepting that absolute worst case scenario... Exhaust my contingencies and see what the lender appraisal comes back at? I’m thinking I should be somewhere around 1% (pending HI and rerunning the numbers down a bedroom), and I see room for appreciation (gravy). I like the Union Squre Hollins Market area. I’m pretty sure you can see the Raves stadium from the roof, and it’s a stones throw from downtown Baltimore/ the inner harbor.

Any and all input is appreciated. Thanks!

[Ned Carey]

@Edward Howell, V  my guess looking at the photos is that it should not need major work. Of course without closer inspection it is hard to say about wiring plumbing and HVAC.  My gut feel is $25K. 

3 stories and it is only 2 bedrooms? That seems odd.

Tax appeals can happen any time of year after a purchase. I think you have 30-60 days after purchase to appeal. I would definitely appeal, that assessment is triple what is should be. Make sure you show pictures of the vacant properties across the street when you appeal. 

I don't know what the infra-red /thermal inspection is. I assume to check insulation and heat loss. I have  never done it. I don't think I would bother. 

If you mentioned the two years in your current residence because of the capital gain exclusion, that may be changing to three years in the new tax bill.