Maryland multi-family investors

[Khadija Daniels]

Hello BP, I am interested in multi-family investing and will be a first time home buyer. Are there any local meet - ups? Or individuals looking to connect in the Baltimore or surrounding areas?

[Khadija Daniels]

Quote from @Brian Tome:

@Khadija Daniels - What part of Maryland is the property in?  It's not a very big state, but the areas and property values vary widely depending on where you are located.

Some things to keep in mind - FHA requires you to live in (i.e. make it your principle residence) one of the units. FHA backed financing will only be permitted for a multifamily that is 4 units or less. I am assuming from the purchase price that your target property is a duplex. FHA will also require the property to be habitable, so if it won't pass an occupancy inspection or has health and safety concerns that an appraiser will pick up on, they will almost certainly not fund.

It's a great strategy for investing with minimal cash out of pocket and capitalizing on your sweat equity.  Just be careful.  Lots of cheap duplexes, triplexes, etc. are priced accordingly to the work and money they need invested.  Investors wanting to gain the upside of making the repairs and holding a cash flowing asset should realistically evaluate the time and funds they can commit to the project before pulling the trigger.  Selecting the wrong property to start with can so sour you (and your spouse/family) on rental investments that you never want to think about it again.

Thanks for replying Brian. Unfortunately, this property did not pan out. However, I recently saw a property in the Overlea. It is a duplex, very well maintained but outdated and unfortunately has not cooling system. There is a nice size 2 car garage in the back of the property as well. The price is 328,00, which I'm hoping to negotiate. I am hoping to use a 203K FHA in which there would be someone designated to oversee the improvements and ensure that contractors are appropriately completing work. I know that improvements need to be at 30,000 to qualify for the 203K.