All Forum Posts by: Andrew Boykins

@Ned Carey It's hard to get to the Baltimore meetups for me given I live in VA but i know I should go to them. What is the mix of attendees(experience investors, noobies, contractors, wholesalers, etc.) like?

@Christopher Haynes I have found two and am looking at one more currently.  However, we're always looking for more

I'm a buy and hold investor in Baltimore City. On BP it seems that there are a lot of wholesalers. But for investors how do you go about finding a great wholeseller? I'm looking for someone that can find Duplex deal. Thoughts? 

There are also Tax appeal specialist that will appeal them for you. I found one that only takes a fee based on 25% of what they save  you so there will isn't really a downside in terms of money or time. 

This is an overly complicated way of looking at debt but I think it's great that you're running numbers. I think you missed the taxes and the fact that a portion of the debt payment is going into the house. 

The general rule is that if ROI is greater than the interest rate you pay then leverage gives you higher ROE.

I wouldn't take advice from folks not in those neighborhoods. It's mostly unjustified fear. If you're that worried get a Property Manager and pay 10% and never have to worry. That's what I do for all my properties. 

Also keep in mind the concept of selection bias. Look on Zillow at the quality of the highest recent sales in some of these neighborhoods. They are nice. And the people in them are good hardworking people. Be smart as there are definitely people looking to take advantage of the system but that can happen anywhere. 

@Katrina Jones I have used both Quicken and Eagle bank. I get two appraisals and go with the higher one typically.

As I said, if you're just starting out you can get a investment property loan from any bank with decent credit and income. 

I don't think it's difficult at all to find financing until you get to a certain scale. Starting out if you have good credit and income you can finance your properties through conventional loans. I have a business partner and one of the things we do is trade off on who gets the loan. We are both on the title, but only one of us is on the mortgage. Hence we can get 2x the mortgages! Eventually debt to income will be a problem but starting out you should have an easy time getting financing. 

Based on your post you're looking for cash flow but what is your overall goal with real estate? 

I can't speak to 4 unit properties or using FHA financing. Can someone elaborate a bi on FHA? All my deals have been cash, and I can't imagine I would have been as competitive if they weren't cash.

I've got 2 duplexes in West Baltimore and can attest that the brrr strategy works. I think it works just as well in my experience as single family row homes. 

I would start with cash and then move quickly into borrowing.

The reason I would start with cash is because based on your post, you're limiting factor isn't going to be capital starting out, it's going to be building a team that can renovate, manage, rent, find deals, etc.  However, once you have line of sight to having those things in place and can start to build your business I would quickly look for financing.  Don't underestimate the time and potential hurdles you could face getting financing.  The opportunity cost of waiting is too large!  Borrow sooner, rather than later.

Please take your personal preference into consideration.  Mathematically it's almost always better to borrow if you can invest at a higher rate than you borrow at.  So if you can borrow at 5% but get 10% returns, the more you can borrow at 5% the higher your ROE is and the more money you make. Think about it, that's how banks make money!  However, you're not a bank or a corporation so if you are uncomfortable handling and managing debt take that into consideration.

@Ian Barnes  I also invest in Baltimore City and agree 100% that it's a block by block city. I'm from out of state, kind of, I live in Virginia.  I don't know the city block by block but can make the trip in <2 hours and do so regularly to buy and check-in on properties. One thing I think that may help the discussion is sharing how you get some of those connections.  My experience/guess is that most successful investors in Baltimore may not come from those neighborhoods and had to find a way to learn.  One of the things I found beneficial when I originally started was working with a property manager and leveraging their connections and knowledge about the neighborhoods.  I had to talk to a LOT of them in order to find one that was competent and willing to share some knowledge, but if you can convince him/her of the upside of a relationship with you then you have a chance.  Any tricks or tips others use?