All Forum Posts by: Brendon Worst

Good Afternoon Bigger Pockets Crew.  Looking for advice.

Currently working a deal for a 2 bd, 1 bath condo in Mt Vernon (Baltimore City).  Was able to get the price down 9% from list and was planning to put $5-10K into updates prior to renting.  This would be my first deal (still a newbie).

Here is what I've run into.  Lead Paint certificates are a requirement to get a rental license in Baltimore City.  During the home inspection I had them do a "lead consult" with an XFR gun (detects lead).  They found lead in the windows (typical of many old buildings in Baltimore).  So I can either have them painted, wrapped in aluminum on the exterior or just replace them.  No big deal, as I can control that aspect.  However, this is technically a condo in a large row home with 4 units (I would own one of those four).  There is a HOA.  During the inspection they found large amounts of chipping/flaking paint on the exterior of other people's windows, the top cornice of the 3 story building, in the common spaces, etc.  Since I know my windows have lead, and the rest of the windows on other units are identical, when the lead test is performed on the exterior it will find lead.  As a unit owner, I will become a 25% owner of the HOA and a voting member (this is getting complex quickly).

The HOA is stating they are aware of the deferred maintenance but it's not on the list this year.  Therefore I cannot get the lead cert without fronting the money to paint the exterior of the building and negotiating with the rest of the HOA members to be reimbursed later.

My gut says to walk away.  My agent (also my buddy) still thinks this is a great location and a good long term rental.  Looking for thoughts from anyone else who has had to deal with lead certs and/or HOA maintenance.

Thanks,
Brendon

Hey guys.  So I've been working with a real estate agent here in MD and I've been looking in the better parts of Baltimore (for those familiar I found a 2 bd, 1 bath condo in Mt Vernon not far from Mercy Hospital).  I've been using the calculator and trying to get a good idea of what my return would be.  So I'm going to post it here and see what folks think.  I placed an initial offer at $165k (vs list of $180k) but they have countered at $172k.  Not sure if I'm being overly optimistic in my calculation or too conservative because I keep landing around 5% ROC and ~10-11% total return per year.

If anyone is willing to take a look at the report I put together with my Pro account and give me your two cents, it would be greatly appreciated.  I really want to make sure my first door is at least a solid investment.  Doesn't have to be a homerun, but also don't want to jump on something that isn't going to net solid returns.

@Christopher Sandys Thanks for the information.  That's valuable to know as I start looking at properties in the area and definitely something worth taking into consideration. Very much appreciate the insights!

So I've been spending time reviewing properties that pop up on MLS, as well as here on BiggerPockets. What I'm finding is that outside of Baltimore city, it's rather tough to find multifamily deals that have the ability to generate cash flow. And Baltimore City is hit or miss based on area as I've gone to see a handful of properties with an agent.

I'd be interested to get people's thoughts on having your first multifamily property outside of your state of residence.  For example, I've seen a lot of properties in Toledo, OH that look like they have much better financials/cash flow than here in Maryland.

Thank you @Sara Frank!  I've signed up and look forward to meeting everyone.

Thanks @Russell Brazil!  How would I find more information about the next meetup in DC in April? 

Good Afternoon Bigger Pockets,

I am an avid investor, but just recently starting to branch out and look to start investing in real estate.  I've spent time listening to a lot of the Bigger Pocket podcasts and perusing the forums prior to posting.  I'm looking to network with some other investors in the Baltimore/Columbia/Ellicott City area to learn from experienced investors.  If there is currently a group that meets up I'd love to hear about it.  Thanks!

Brendon