Baltimore,MD., Buy, Rehab, Refinance, Rent, Repeat!

[William Lamb]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $80,000
Cash invested: $50,000

Baltimore, MD rehab had it's challenges. However, Baltimore market 2019 is best I've ever seen for BRRRR! Many buys under $60k, rehab, refinance, rent, repeat, netting $600+ per/mo positive cash flow (RE Agent Managed).

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

Great off market numbers for buy, rehab & ARV!

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

RE agent referral... under contract within 2 hrs with 15 days due diligence & 30 days to close. Extended closing date due to failed efforts of slow lender broker.

How did you finance this deal?

2nd Hard money lender closed in 11 days.

How did you add value to the deal?

$40k gutted rehab - ARV as of late Dec 2018 $193,636

What was the outcome?

Priceless rehab experience, excellent ROI, cash flow & appreciation.

Lessons learned? Challenges?

Verify, verify, verify! Measure three times-cut once. Get lots of references if dealing with (everyone ha ha) a broker for a hard money lender BEFORE paying application fee . We had to babysit 1st broker, loan didn't close after 30 days of his minimal efforts and fortunately found Broker who rushed lender closing through, although we had to put up additional earnest money to extend closing. *Every step pay close attention to Pareto principle.

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

NO! !st Contractor took money and immediately claimed 100% disability - referral agency is paying us refund for their Guarantee. RE agent who brought us off market deal referred 2nd contractor who cut corners wherever possible, flooded basement due to neglect and walked off job. In spite of repairs & remediation we recovered nicely!