Closed on another Maryland-BRRRR

[Herbert Lewis]

Hello BiggerPockets,

My wife and I just closed on our 10th property last week. The house is located in Baltimore County, right outside of the city limits. We finally got to the closing table on 6/25.

The deal: A SFH 3 bedroom/1.5 bathroom with an unfinished basement.

Purchase: $80,000 found through a wholesaler we had worked with previously on another deal

Plan: We plan to entirely gut the property and redo the entire house on the inside adding used stainless-steel appliances, adding all-new lighting, refinish the hardwood floors, update the HVAC unit, paint, and updated the kitchen and bathroom.

Financing: Used hard money for the purchase. I used none of my own money for the deal—the loan terms 12 months at 10.9% interest plus 2 points. I have used the same hard money lender for seven other properties, so I have a history with him.

The property will be refinanced after we get a tenant in place. Current rent for Section 8 in Baltimore County range in the $1,600+ range. Most of our rentals have Section 8 tenants, so we look at Section 8 rent to determine the property's rent.

Disclosure: I have my real estate license in Maryland to compare comps and set myself up with auto-emails looking at my current criteria.