Baltimore Newbie

[Judy Godfrey]

Hi.  I am Judy and I have worked in the real estate industry in the Baltimore area since 1988, and became a licensed agent in 2011.  I would like to start flipping houses, with the long term goal of rental properties for passive income.  I feel very confident in my real estate knowledge, but the repair estimating part of flipping makes me a little nervous.  Looking for any advice on how to find reliable contractors and funding for my projects. 

[Jamie Robinson]

Judy,

The Baltimore City area is one of the hottest markets for flipping right now. A friend of mine just bought a house last year in Patterson Park and has seen insane appreciation in value over the past 12 months.

1. Estimating Costs - The following ebook, which I purchased several months ago, is a great, in-depth, guide to estimating rehab costs and funding such projects. Definitely worth checking out. http://get.biggerpockets.com/flippingbook/

2. As for contractors, I would ask people in your RE agent community for referrals. Then, I would set up a meeting with them and interview them (shoot for 3-5 contractors). See the link below for a great guide on interview questions for these folks and what you should be looking for: http://www.biggerpockets.com/renewsblog/2014/11/05...

At the outset of a project I would use #1 to estimate the costs (always be conservative). If the return fits "you/your investors criteria" then it should be downhill from there. After closing on the property, or during due-diligence (depending on the type of deal) a good contractor will come out and give you an estimate of repairs which you can use to create a final budget for the project.

Let me know if you have any questions or seek advice,

Happy Holidays!

-Jamie