All Forum Posts by: Gayle Melnick

@George Blower

Thanks for sharing that information.

I have a question that you could probably answer. If I meet one of the criteria for withdrawing from my employer 401k, could I withdraw some of that money and use it to fund a self directed 401k?

@Tim Robinson there’s a list of licensed inspectors on the city website. Here’s a link:

https://cels.baltimorehousing....

@Tim Robinson

You can get a lead free inspection. It's more expensive but once you pass you never have to get a lead inspection again at tenant turnover. Have you considered trying that route? 

Awesome, thanks everyone!

I’m closing on my second deal in a few weeks. It’s a 2 bedroom 1.5 bath in Remington. 

For people that have more experience investing in Baltimore city, what do you think about dishwashers and other kitchen updates? This rowhouse does not have a dishwasher. I already need to buy a new range and a new microwave and I need to replace the countertop. In order to install a dishwasher, I’d essentially need new cabinets. The cabinets are useable, but outdated and terrible quality. Do I wait until the cabinets must be replaced to have a dishwasher installed?

I know it’s not best practice to spend money on stuff that’s not broken, but I’m wondering if my vacancy and potential rent will be negatively impacted by not having an updated kitchen. People renting in this area have the money to care about stuff like that and when I look at recent comps, most other rentals in this neighborhood have a dishwasher.

Thanks for any input! 

@Seth Hochberg

I’m interested to hear about how your deal goes/where you decide to buy.

Keep us updated!

@Seth Hochberg

I did something similar to get enough cash for my first two rentals.

I took out a loan from my employer 401k and I withdrew my contributions from my Roth IRA. I have a colleague at work that did the same thing with taking out the 401k loan

I’m not a financial expert, but I think it’s a good idea for someone that’s younger, has decent job security, and is planning on continuing to work at the same job for the next 5 years. It looks like you already took all that into account and considered the fact that you’ll have to be able to live on the reduced income from paying back your loan. I think it’s great because you’re paying yourself, not a bank.

In terms of taking out the extra 35k, I think keeping it as reserves rather than using it for the BRRRR is better. Since it's your first time trying the BRRRR strategy, and things can go sideways even for experienced investors, it's a good idea to have plenty of reserves.

Good luck!

Baltimore can be difficult to invest in if you don't know the area. It's very neighborhood specific and even block specific. Having someone you trust and that is knowledgeable on the ground would be helpful.

Good luck!

@Sean Byrd

Is this the Chestnut Ave property? I looked at it when it was on the market.

I'm not a property manager, but I live in this neighborhood, literally within 100 ft of this triplex if it's the one I'm thinking of. I think you should expect the higher end of your estimate for all three properties. I don't think you'll have a lot of vacancy, there's not much to rent in Hampden so not a lot of competition and it's a popular neighborhood. I agree that you shouldn't expect a lot of appreciation, but Hampden is likely to stay a desirable neighborhood to live in and it never has a ton of rentals available, so if you're trying to make your money on cash flow I think it's a good strategy.

If you want any other info about this neighborhood, feel free to message me. Good luck!

@Seth Hochberg

I'm a newbie investor but Baltimore local. I own my primary residence in Hampden. I'd like to buy another in Hampden as a buy and hold but the market is pretty hot, most houses getting multiple offers. 

I bought my first buy and hold rental in Charles Village. I'm under contract for my second in Remington.

I'm wary of PIgtown, Fells, Canton, all the other more popular neighborhoods that are desirable to live in. When you look at zillow and trulia, there are always tons of properties listed for rent. The competition seems to be pretty steep.

When I look for places to rent in Remington, Charles Village, Hampden, there aren't usually that many properties available, never as many as the other neighborhoods I mentioned. I'd rather not have as much competition. That's just my personal observation, not sure if other people on here with more experience have a different point of view.