Rockville, MD · Member since 2017 · 8 posts · 5 votes
Hi everyone! My name is Alex and I am new to BiggerPockets. I am a web developer living in Maryland and looking to invest in my first property very soon, hopefully locally, but I'm not opposed to out of state. My goal for the rest of 2017 is to purchase my first rental property and begin learning the ropes with renovating and landlording. I have saved up enough for 20% down on a 50k - 60k house and am searching for a good first deal. I would appreciate any advice that can be offered and I can't wait to get to know the community here on BiggerPockets!
You are to be commended for your plan. Line up your lenders first. Then identify an area that fits your criteria. Study hard and learn the areas through agents and other investors. Find out how and why they are succeeding. Find someone, such as myself, to give you guidance. Be persistant and diligent.
You are to be commended for your plan. Line up your lenders first. Then identify an area that fits your criteria. Study hard and learn the areas through agents and other investors. Find out how and why they are succeeding. Find someone, such as myself, to give you guidance. Be persistant and diligent.
Attorney · Clinton, MD · Member since 2016 · 70 posts · 55 votes
9y
Have you considered using your web developer skills to set up a website to find motivated sellers? The skill set you already have can be your unique advantage!
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Baltimore is definitely an option for more local properties! I know of a lot of deals there but they require about $90k minimum upfront (get it back after a refi). But in general the market works for numbers. Out-of-state is an option too...it's all I've ever done, living in LA.
Lots of options! Do you want more rent-ready or one you can put work into?
Rockville, MD · Member since 2017 · 8 posts · 5 votes
9y
@Rich Baer Thank you for the advice and the vote of confidence! I may reach out in the near future for guidance. I am looking at lenders now.
@Brian Pendergraft I have considered using these skills. I think they will come into play a little later on after the first property and I am ready to really ramp up in acquiring properties. Thank you for the advice I appreciate it!
@Ali Boone I am definitely looking for something I can put some work in, not necessarily rent-ready. Thank you for the advice in Baltimore! I will definitely look at that after a doing a smaller property in the 50k to 60k range to learn the ropes.
Rockville, MD · Member since 2017 · 8 posts · 5 votes
9y
Hey @Vic Vega thank you! Anywhere I can find a good deal in the 50k to 60k range. I'm looking at Salisbury over on the Eastern Shore currently. Around the college campus and hospital.
Investor · Towson, MD · Member since 2014 · 472 posts · 257 votes
9y
@Alex McLean - 20% down on a $60K property is a base loan amount of $42,000. You're going to have difficulty finding lenders willing to lend on that amount. Many won't go below $80K-$100K. You may want to try some local Credit Unions. There are a lot of good ones in MD.
Rockville, MD · Member since 2017 · 8 posts · 5 votes
9y
Michael Cohen thank you for letting me know! I'll definitely look into local credit unions as far as lending is concerned, that makes a lot of sense. I appreciate it!
Halethorpe, MD · Member since 2016 · 77 posts · 21 votes
9y
@Alex McLean I don't know much about investing on the Eastern Shore but the 50-60k price range would probably do better in Baltimore compared to most areas. The market in Baltimore is a little rich at the moment in my opinion but there's certainly deals to be had in that price range. What is your plan to fund the rehab cost? It's good you have 20% to put down but being able to make all cash offers on properties will certainly help you. Have you looked into a possible way to get funding?
Rockville, MD · Member since 2017 · 8 posts · 5 votes
9y
@Vic Vega I'm not 100% on the specifics with the funding for rehab but a person who I like and trust who does buy and holds in that area said getting the construction loan shouldn't be an issue. As far as your question about getting private money for all cash deals, I haven't thought about it too much just because I have this saved up and I just want to go ahead and get started. I know having a first deal done gives you credibility for private funding in the future which I would definitely be interested in. Thanks again!
North Beach, MD · Member since 2017 · 11 posts · 4 votes
9y
Welcome to BP! I'm also new and looking in Maryland. I've looked a little into Baltimore but it seems the good deals are pretty rough. It sounds like you already have someone to help you out. I have to rely on learning and figuring things out on my own. Haven't found a mentor yet.