All Forum Posts by: Brad Fallon

Hello BP, 

I'm in the process of assessing deals in southeast Baltimore (Butchers Hill, Upper Fells, Highlandtown, etc) and can't seem to make any of my numbers work. My variable expenses (CapEx, maintenance, vacancy, property management) are consistently hovering at around $750/month. I have gotten to that number by setting side 10% for CapEx, 10% for maintenance, 8% for vacancy, and 10% for property management. For a 3 bedroom 2 bath for rent at $2,000 Upper Fells, that breaks down to $200 for CapEx, $200 for maintenance, $160 for vacancy, and $200 for property management.

My question is whether anyone thinks I'm setting aside too much each month for CapEx and maintenance? I'm hesitant to cut down but don;t want to drive away potential deals becaise I'm overestimating my costs.

Thanks for any advice!

Brad

@Tim Jacob That makes sense. I had the day off today so spent a few hours driving through neighborhoods and it definitely seems like the Patterson Park area (Upper Fells, Butchers Hill, Highlandtown, etc) seem to be appealing for room rentals and young professionals. I thought that parts of Hampden were nice but 1) started to reach out of my price range and 2) seemed to cater to a different crowd that I am hoping to target with room rentals. 

I'm going to continue learning that area at different times of day but now I just have to figure out whether I can actually make properties in that southeast area cashflow!

@Gayle Melnick that’s very helpful to know! Thank you for the advice.

Follow-up question: what do you think of Hampden as a whole? I’ve heard that blocks on the southern parts of the neighborhood can be less desirable than the northern parts but I don’t have a great feel for it yet.

@Gayle Melnick that’s how I’m assessing properties - my goal while living in the property is just to cut down on my cost of living

@Seth Hochberg Thanks! I am not familiar with a couple of those and will add them to my list to check out. 

@Gayle Melnick Thanks for the suggestions! I've been checking out those neighborhoods in the southern parts of the city and am doing my first drive-around in Hampden and Charles Village tomorrow. With a goal of cashflowing $100-$200 monthly, I'm beginning to wonder whether I can make these A-grade neighborhoods work. Do you have suggestions for anything that is particularly up-and-coming? I've heard Greektown, Bayview, and parts of Upper Fells but not much else. 

@Tim Jacob Thanks for the advice - do you have experience with folks renting by room in any areas in Baltimore? I've heard of a couple in Canton but I can't seem to lock down how much they are able to reliably pull in monthly. 

Hello BP, 

I am currently evaluating different neighborhoods in Baltimore to do a house hack -> hold. I came into this research thinking I knew the city but now I'm quickly discovering just how much there is to know! Recognizing that the city is completely different block-to-block, I've been making regular trips at different times of day to check out prospective areas. 

Does anyone have recommendations about neighborhoods that I should start getting to know? I am looking to do either a 203k or simply buy with a conventional mortgage and move out after a year. I'm balancing finding an area where there is still room to cashflow that I will also feel comfortable living in for a year. 

Any recommendations are appreciated! 

Hey everyone, 

Are there any currently active (through video chats I would assume) real investor meetup groups in the Baltimore area? I'm looking to get started as a real investor and am interested in a few neighborhoods in Baltimore. Would love to find a group to chat with folks in the area to get a lay of the land. 

Thanks!

Brad 

@Stephen Kehoe I think you hit the nail on the head on this - I have been stalled finding the right property. You would suggest that I focus primarily on a househack model using a 203k that does not take into account refinancing? 

As I've moved along (and need to find a place to live soon), I've put more consideration into buying a property to serve as my primary residence with roommates to at least cut my housing costs way down and help me save up for a future investment. If I can't cashflow off the property but could get my cost of living down to $600 or less/month I may still consider it.