Living in San Jose (CA), Investing in Owings Mills (MD)

[Matthew L.]

First things first. Thank you BP community for sharing your wealth of knowledge and giving me the motivation to take the big leap into real estate investing. I’ve been trolling through posts and listening to podcasts over the last few months, and your insights really helped me define the right numbers for my first deal and, more importantly, gave me the confidence to pursue them. This is an amazing group of people, and I look forward to connecting with other investors here.

My story: Back in October, I was on the couch recovering from a cycling injury and a divorce settlement, trying to figure out how I would afford the life that I want for my future family. I was lucky enough to stumble across Bigger Pockets, after which I’ve listened to just about every podcast and read every book I could get my hands on.

After investigating multiple markets, I began tracking foreclosures locally, in Fishers (IN), and outside of Baltimore (where I went to grad school). I bid on multiple HUD-owned homes, and finally got an offer accepted over the Thanksgiving weekend. This was exciting, but also scary, as it all just got very real!

By the numbers: Paid $87K for an Owings Mills condo with an ARV of $135K. The listing agent seemed annoyed when she heard how low my offer was but placed it anyways. HUD didn't even counter, so I may have left money on the table. That said, I don't know how many other bidders were involved, and the numbers work for me. The only "big" problem discovered during inspections was that the previous owner was a smoker. So, while I anticipated needing paint and carpet, I'll need to increase my paint and clean-up budget. Otherwise, it just needs minor updates; then it should rent quickly for $1300.

I’m flying out next week to get the unit rent ready, and build my team (I know, bass ackwards). Please let me know if you have any recommendations for property managers, painters, handymen, or flooring installers in the area. (All but one room in the house is wood laminate, so I’m going to make that upgrade instead of replacing the carpet.)

It's been a thrilling journey. I didn't know what to expect with bidding on a property across the country without seeing it first, and I've kept waiting for the deal to fall apart. But I've made it through the inspections and HOA due diligence, and everything has fallen into place nicely. Now, I just need to get it rented and managed, and I'll be ready to start looking for the next one. :-)