All Forum Posts by: Matt Schelberg

Do not rehab it if the cost is truly $50k. You could buy a 2/1 rental for that amount in 21216, and save yourself a lot of time and trouble. 

Sell it as-is and reinvest the proceeds. Pick your battles, don't just take this one because it fell in your lap. There are lots of Baltimore properties for sale that don't require a full rehab. Look for properties with nasty photos online but that actually have good HVAC, plumbing, electric, and roof. There are some solid values there. 

To prep for the as-is sale: Spend a weekend cleaning up the place so potential buyers can at least see the walls/floor. Your goal is to reduce buyer uncertainty. If BGE can turn on the power, turn that on so there is some lighting. Seal it up tight for security and put an alarm inside to protect it until closing.

Budget $150 for the window materials (contractor grade window). In my experience labor would be $100-$200.  The low end of that range would be if you are replacing multiple windows. The high end of that range is if the contractor is driving out only to replace that one window.

I'd be interested to know this too. I think the lack of replies so far illustrates that few investors are involved in new construction in Baltimore. At least in the city. We have so much excess housing supply that its usually cheaper to renovate vs build new.

But there is a good bit of new construction near the waterfront areas of east Baltimore. Hopefully your post will find one of them.

@Beau Ordemann "Lead free" and "limited lead free" do not need to pay the $30 annual registration fee. MDE requires only a one-time $10 processing fee.  (For limited lead-free you need to submit a renewal every two years, with an additional $10 payment.)

There is a form called "Form E - Fee" that you should include with the $10 check.

If you mistakenly paid $30 MDE might refund those if you call.

Agreed, the lead paint registration process is a less-than-optimal. It's another great reason to go lead-free (which is only a one-time registration fee of $10. No annual renewals.)

Combined with tracking rental registration and getting water reimbursement from tenants, it all takes a lot of time. I know there's a lot of fancy software out there. I've tried it and I still prefer the tried-and-true Google spreadsheets and calendar reminders.  I use conditional formatting on the spreadsheet so that it turns red whenever something is coming due, or if I need to do a periodic inspection.

Our hometown newspaper the Baltimore Sun usually has good promos. Often $1 can get you 4-10 weeks.  There is good information on real estate development and changes in laws affecting Airbnb.

And they have a great investigate team (they broke the "Healthy Holly" scandal that lead to our mayor getting indicted), so if you support good journalism this is a great place to start.

@Sam Gill During my last eviction in Baltimore County the constable required me to have 3 movers on standby. They also required me to change the locks immediately.  So the labor cost is probably why you are getting high quotes.   And keep in mind that the tenant can still pay on the day of eviction, so you might want to negotiate in advance a payment for your movers in the event the eviction is cancelled/rained out.

@Dennis Santa Paula I recommend hiring a realtor to run comps -- really depends on quality of the reno. The values will be pretty low because it is rare to find retail sales in this neighborhood. And few banks lend to investors there (due to the low loan amount...the juice is not worth the squeeze for them). Most investors are financing these low-end rentals as a portfolio or with private lenders. All these factors result in lower comps.

A certified check (e.g. a cashiers check from a bank). No personal checks. You want absolute certainty that the funds are good.

@Daniel Suarez No, a tenant's partial payment will not stop the eviction. The following is copied & pasted from a City eviction notice. Wish I had a County form handy, but the payment rules are nearly identical (except in Baltimore County it is the constable that conducts the eviction). 

"The tenant has the right to pay the amount ordered by the Court in the WARRANT OF RESTITUTION to the LANDLORD to stop the eviction, unless the court checked box on the WARRANT OF RESTITUTION that says "Without Right of Redemption". (The landlord may NOT add additional amounts to the court ordered amount to stop the eviction.) The Tenant has the right to pay the redemption amount to the landlord and or landlord's agent in cash, certified check or money order at any time before the actual execution of the eviction order. On the day of eviction, the payment shall be made to the landlord and or landlord's agent in the presence of the Sheriff to stop the eviction."