Baltimore City- construction loan if next to a vacant

[Dennis Bates]

Hello All- I'm an investor in Baltimore, MD, and I am in the process of buying a row home from a Baltimore City auction. Once rehabbed it should have an ARV of over $200K, which will provide a nice profit if I decide to sell. However, the property is in an up and coming neighborhood (several recent good sales right around the corner from the property), but has a vacant row home next door. The lender I wanted to use for this project has stated that they won't provide a construction loan since there are vacants on the same block. Is anyone aware of any lenders in the area that might provide a construction loan for a project like this, even if it has a vacant next door? I plan to buy the property using my own cash. I think I could complete the rehab using my own cash as well, but I'd have to wait a while to start the project if I go that route.

Thank you,

Dennis Bates

[Joe Norman]

Run away, this is not a deal.

First of all, I promise that if its in an "up and coming" area with multiple vacant houses on the block, including next door, then the ARV is not $200k. There may be "several recent good sales right around the corner", but that doesn't mean they are good comps for this house or this block.

Second, if a local HML won't fund the loan, trust his expertise that this is not a house worth investing in.

Don't be one of the dozens of DC investors who loose their shirt in Baltimore every year because they think every cheap property is a deal. If you PM me the address I'd be happy to give more property specific feedback.