New Member From Bowie, Maryland

Investor · Bowie, MD · Member since 2017 · 47 posts · 8 votes

Hello. I am new to BP. I am here to gather all the insight and information I can, find new friends, and most importantly, learn how to reach my goal of purchasing 10 properties in the next 2-3 years for cash flow. I am looking at purchasing in Florida and Washington. I think most homes in Maryland may be out of my price range. I have $50,000 to start investing.

Hope to hear from fellow investors soon!

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Nicole A.Pro Member

Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes

Unless you are purchasing a home via FHA (which means it'll be owner occupied/primary residence), I'm not sure what lenders anywhere will offer less than 20% down.

What specific towns were you looking at? If you're looking in expensive places such as Columbia, Bethesda, and the like, $200K doesn't get you far. Same if you're looking only at places such as Fells Point or the Inner Harbor in Baltimore.

Let me share one of my properties. It is probably rated as a C class neighborhood, but you said you're looking for cash flow, so obviously we will have a tough time finding cash flow in A or even B neighborhoods.

Here's my monthly costs, not including vacancies and repairs:

$586 mortgage & interest
$166 taxes
$34 water
$46 insurance
--------------------------------
$832 total bills per month

$1,650 total rental income per month
*$818 total gross cash flow per month (before any possible vacancies and/or repairs)

Purchase price of $98,000 (which looking back, I could have got for less but this was my first property and wasn't quite as good at negotiating). This property came with tenants in place and no renovation immediately needed.

This is an example and this property is located in Dundalk, MD.

I purchased another property in Dundalk for $70K and it was my first one needing work. I put $10K into it to get it rent ready AND to make it lead free.

I don't know a *whole* lot about the Tampa area but have been slowly researching it as I too would like to one day pick up some properties there. Tampa almost seems like another version of the DMV. There are tons of expensive places there, but there are also very affordable pockets.

Also, regarding closing costs, make your offers slightly higher but ask the seller to pay all closing costs. Estimate the closing costs will be roughly 5% of the purchase/listing price, so offer a little more on top of the property price number, and that the seller cover all closing costs. In the end, it washed out and is less money out of pocket.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
Originally posted by @Remus Phillips:
And do you have a realtor?
If you want to buy in Dundalk you should touch base with @Gabriel G.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group546 Reviews
Website View Page
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Shawn Luger
Investor · North Bethesda, MD · Member since 2014 · 11 posts · 5 votes
9y
@Remus Phillips, I used Samson Doyle at Norcom Mortgage. I'll send you the details.
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Nicole A.Pro Member
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
9y
@Remus Phillips Your best bet is to shop around at local (or at least regional) banks. Go to them in person and chat with them about your plans. Just a tip that calling (and definitely emailing) typically gets you nowhere. I'm interested in hearing which bank @Shawn Luger works with too, but also wondering if they offer 10-15% down to everyone or just him because he has a relationship. Also, Shawn, do you invest in your own name or do you have a business entity?
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Remus Phillips
OP
Investor · Bowie, MD · Member since 2017 · 47 posts · 8 votes
9y
@Nicole A. that's great advice! I've never thought about that. So when you say local banks, do you mean banks like SECU or Navy Federal or PNC?
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Nicole A.Pro Member
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
9y
I think SECU and Navy Fed are credit unions...they're not *local* banks. PNC...that might be regional? When I say local or regional, I mean small banks that are only in this area. Bank of America can be found just about everywhere; it's big!
Banks such as Howard Bank, First National, 1st Mariner, etc are examples of small local/regional banks you can only find in this geographic area.
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Remus Phillips
OP
Investor · Bowie, MD · Member since 2017 · 47 posts · 8 votes
9y
@ Got it! Are any of these three better than others? Do you recommend any in our area?
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Nicole A.Pro Member
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
9y
Last time I was purchasing, I was working with Susquehanna. However, BB&T has bought Susquehanna out since then. I think BB&T is regional, perhaps east coast? I know it's all the way down in FL as well as up here, but I do not see any say, out in Reno, NV.

I have not worked with the other banks I listed, but just gave them as examples of local banks. You could very well go chat with all of them to get an idea of who sounds like they're truly ready to work with you. That's the fun part....shopping around!
I had to shop around for my rental's insurance. I'll never forget calling this one company (i forget which) and the man I talked to on the phone seemed to push his personal opinions on me. Basically, once he heard that my business partner was also my fiance, he said that he could not insure LLCs where the partners were unmarried! How much sense does that make? lol I took the hint and went with another company for my insurance.
It's all part of the game. You gotta shop around. Interview people. That's how you find and build your relationships. :-)
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Remus Phillips
OP
Investor · Bowie, MD · Member since 2017 · 47 posts · 8 votes
9y
@Nicole A. thanks again for awesome advice!
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Shawn Luger
Investor · North Bethesda, MD · Member since 2014 · 11 posts · 5 votes
9y
@Nicole A., The 15% loans were with Norcom Mortgage. They have programs for 10-15% down, on your first 4 properties, I believe. The ones I did with 15% down I own personally. Right now I am also doing a loan assumption on a commercial loan through Midstate Community Bank. That one will be held in a business entity.
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