New Baltimore city Maryland small multi family deal

[Solomon Morris]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Baltimore.

Purchase price: $196,080
Cash invested: $56,648

Cash flowing duplex in the city east of the stadiums

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

Investing in small muti family properties is the strategy I decided to roll with when I I decided to start taking RE investing seriously. It's been incredible and fruitful thus far. This duplex popped up on the MLS in Baltimore City, Maryland and is located a block south of another duplex I own on the same street.. Literally a one minute walk apart. Speed landed me this deal. I submitted my offer sight unseen Thursday afternoon with it being on the market just 2 days.

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

I am constantly scanning my search criteria via an app on my phone called Homesnap. For those of us without MLS access, it has been the the best interactive RE tool I've found to date

How did you finance this deal?

Living a humble Soldier life. I've invested into the stock market diligently on a monthly basis for the past 12 years and have done extremely well. I personally brought 100% of the funding to this deal, putting down 25% of the purchase price. For the next deal, I will research how to re-use my VA loan (I just crossed my year mark from using on my primary residence in PG county!) for an owner occupied multi family to keep more money in my pocket and further expand my portfolio while serving.

How did you add value to the deal?

Switching the PM company, billing utilities back towards the tenant and enforcing pet fees is my plan going forward. As is, the property is cash flowing but there is still room to minimize owner expenses

What was the outcome?

A cash flowing rental property

Lessons learned? Challenges?

I encountered some additional headache with one of the sellers not being a legal citizen. I learned this could make me liable for additional tax penalties come tax time when Uncle Sam needs to get his. I filled out some additional forms at closing and made a photocopy (advice of the title company) of the passport from the seller that is a citizen of the United States. Going forward, it might be worth asking if the opposite party is authorized to conduct a RE transaction here in the States

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

I work with an incredible agent and lender in Maryland. If you are looking to buy/sell and need help, shoot me a PM