Investor Groups In Baltimore

[Quado C.]

Hello All,

I purchased a 3-Unit Row Home in the Madison Park area of Baltimore a year ago on a 203K loan. Construction has gone horrible due to a contractor that underbid on the project on purpose. I have been trudging along getting it moving slowly but I am now expecting my first child and changes have to be made. Can anyone recommend an investor group that might consider purchasing the project from me for what I paid?

Appraisal was for 240k with comps of 400k. I paid 190K and invested 32k of my own money. I am simply seeking to pay off the loan and what I invested which would leave an investor with about 100K in equity and potential rents of $3300 a month.

[Michael Krupp]

I truly feel for you as I have been exactly in the same place, crazy! I was burned by 2-3 contractors and the rehab took more than a year, same neighborhood. I bought mine for $150k and put $ 150k into it by the end. My concern is that I am not sure if $80k will be sufficient to complete the house? 

So you have had all the inspections to rough in? General, Insulation, Framing, Electrical, Plumbing, and HVAC?

FIrst thing I would do is get a solid licensed insured contractor in there to do a scope of work and estimate to complete the work.  My guidelines for contractors are as follows:

1)Licensed
2)Insured

3)Can show you their current work and quality

4)Are solvent and able to use their own funds to get started on the work and get paid in draws as work is completed - this protects you!  This is how we do it when we make hard money loans too.

5)References

There is no guarantees here, but you minimize the risks and a licensed contractor is liable.

Most investors are looking for a deal and this may not be as attractive as other options they might find in my opinion.  

If $3300 is the monthly rental income, what are the estimated monthly rental costs?? Are the units self contained and separately metered?