First solo rehab deal. Cambridge, Maryland rehab.

[Maria Boykin]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $110,000
Cash invested: $48,000

This is a great property with a beautiful wrap around porch and nice size yard. The plan for this property was buy and hold, short term rental. It's in a great location, one block from the water in a small historic town that's 30 minutes from Ocean City, Maryland. This house needed a lot of rehab. My original contractor wasn't upfront about the work needed so I ended up firing him. After several months of looking for an affordable and qualified contractor with no luck, I decided to sell the home. I listed it for 100k and got an offer for 125k. There was a bit of a bidding war which I was surprised. Many lessons learned with this deal. I have no regrets.

What made you interested in investing in this type of deal?

This property had an ideal location, especially since we were at the height of the pandemic. The property values shot up close to 20% increase. I love older homes and this location was perfect for a low-key relaxing getaway or for working remotely. There are many events that happen throughout the year that bring people from all over (eagle man, festivals and historic sites related to Harriet Tubman).

How did you find this deal and how did you negotiate it?

I found this deal on redfin. I have friends that live in the area so I was checking every week for deals. I definitely didn't negotiate a good deal. I was excited and paid about 10k over. But the owner was eager to sell. He had been renting out the house for some years.

How did you finance this deal?

I applied for a fix and flip loan with 7% interested through my business. I had 9 month term with a 3 month extension for a fee.

How did you add value to the deal?

I had major issues with contractors and getting permits. I didn't do my due diligence in regards to getting information on the rehab process in that particular county. Dorchester county had very strict requirements for home repairs and remodels. That was an issue as well.

Lessons learned? Challenges?

I had major issues with contractors and getting permits. I didn't do my due diligence in regards to getting information on the rehab process in that particular county. Dorchester county had very strict requirements for home repairs and remodels. And since I had to fire my contractor for altering the agreed upon repairs I couldn't apply for the permits. I learned that I need to take my time and do more research before even putting in an offer. And when you put in an offer, have an exit strategy.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I met and worked with a great agent in the Maryland, Eastern shore area. Mary Losty. 215-920-3595. She was awesome! I hightly recommend her.