All Forum Posts by: David Hathaway

@Sai Paladugula Love the markets you choose. I have analyzes all of these markets and they pencil out as good rental markets for long term Buy and Hold investors. I currently have 40+ unit portfolio in Baltimore where I have had success. I don't necessarily think it hinges on which Market you choose.

The more important choice is where you'll be able to build the best team that will make your investing Journey the easiest especially with all those markets being great markets. If I were to start over again i think those markets are better than Baltimore however since I've already built out a team in Baltimore i know that's where my unfair advantages and so I still invest in Baltimore even though i think the landscape and the markets that you chose is better.

Happy to share the analysis I performed on those markets if you want to look at market analytics that shows factors like population growth, unemployment, price to rent ratio, etc. Just send me a message and I'll share them.

Again I think figure out your Core 4 first and that you have the most confidence in Agent, property manager, contractor, lender and then determine which market you invest in from there.

Hope that helps and best of luck!

David Hathaway

Quote from @Shay Yao:

Quote from @David Hathaway:

Shay Yao, I have found if you can invest within an hour and a half or less away from where you live its much easier to build a super squad of A players that can super scaling a rental portfolio. I would look for $250-400 of cash flow per property in areas that you think have potential to get better. Hope that helps. We invest in properties in Baltimore, MD and have scaled up to a 50 unit portfolio 

 $250-400 per month? I don't even know where to find deals like this these days...  

You have a few levers you can pull to get cash flow. It's definitely harder these days for sure but the levers are purchase price, buying down points for interest rate, bigger down payment, or multiple of those levers. Most likely you'll have to look at properties that need significant value add and become a specialist in the area you're investing in. I do still see cash flowing properties in Baltimore and Richmond. I would join the local meetup and Facebook groups and get on the wholesalers buyers list and really narrow your search and filters.

Will first off I love the question you're asking. Sounds like you're looking for freedom of responsibility. I still have a sizable rental portfolio but have been investing in real estate syndications in a multitude of different operators. This includes a hotel, winery, mobile home park, parking garage, debt fund, etc. It's as passive as you can get you just have no control and have to vet the operators. Happy to share what I've been investing in and the returns if you're interested in.  Dave

Shay Yao, I have found if you can invest within an hour and a half or less away from where you live its much easier to build a super squad of A players that can super scaling a rental portfolio. I would look for $250-400 of cash flow per property in areas that you think have potential to get better. Hope that helps. We invest in properties in Baltimore, MD and have scaled up to a 50 unit portfolio 

@Kyle Weinapple always consulting a local lawyer, I would recommend Jacob Rappaport for the Baltimore area. I have my rental properties in a couple LLC's up to a certain equity amount and then start using a new LLC. I also did a video interview with Jacob Rappaport that is about 36 minutes on YouTube that is phenomenal and he talks about the pros and cons of different set ups. it changed the way I structured my rental business and I have watched it several times since doing the interview with him. Hope that helps, Dave

@Andrew Owlett if you're investing locally in Baltimore you can reach out to Mark Owens as he has a bunch of private money lenders. You can also reach out to Trius Lending if you're looking for Hard Money and or DSCR products if you're a buy and hold investor

@Joshua Jacobs I think you maybe referring to a DSCR or Debt Service Coverage Ratio loan if you're looking for a 30 year fixed mortgage. Happy to Recommend the DSCR lender we use to REFI our properties into 30 year fixed mortgages. The current rate is right around 7%. You might also be referring to a conventional loan that is for properties that aren't super distressed and most credit unions will be able to do them for you I would just make sure the property is owned in an LLC to protect you

@Raj Balakrishnan happy to introduce you to a local leasing agent who only does section 8 rentals and has a great reputation and rents most of our section 8 properties. The only thing you should be aware of is there is a section 8 specific inspection prior to move in that usually takes 1 month to complete so best case scenario is usually a section 8 tenant moves in in 2 months often its closer to 3 months if you fail the inspection and have to be reinspected which is common. Often the inspections are very picky and they happen every 12 months so although section 8 tenants normally stay longer then market tenants it sometimes feels like a built in vacancy of 1 month every time they do the annual inspection depending on how much your contractor charges. 

Hope that helps Dave

Quote from @David Hathaway:

@Elizabeth Rose There are lots of BRRRR neighborhoods in Baltimore, 21213 is a good one, although I think it is better for long term rentals. I would also suggest neighborhoods like

Waverly

Old Coucher

New Northwood around Morgan State

Lauraville and Waltherson and that whole area up to Parkville

Dundaulk and Highlandtown

Up and down Broadway St near Hopkins is getting some great comps.

That's a start. I interviewed 2 investors with big portfolios in Baltimore recently and can share that video with you if you would like a more in depth explanation of where to invest and where to stay away from just DM me 

 Here is the video on youtube that goes into to details on zip codes and discusses the best areas to invest in Baltimore 

@Elizabeth Rose There are lots of BRRRR neighborhoods in Baltimore, 21213 is a good one, although I think it is better for long term rentals. I would also suggest neighborhoods like

Waverly

Old Coucher

New Northwood around Morgan State

Lauraville and Waltherson and that whole area up to Parkville

Dundaulk and Highlandtown

Up and down Broadway St near Hopkins is getting some great comps.

That's a start. I interviewed 2 investors with big portfolios in Baltimore recently and can share that video with you if you would like a more in depth explanation of where to invest and where to stay away from just DM me