All Forum Posts by: Matt Schelberg

@Tarik N. I agree that this in this case it is the landlord's responsibility to seal up holes and set traps.  Tenant is responsible for keeping a clean house with no food the rats can get to.

You might also try working with your neighbor to combat the rat problem (hopefully the adjacent house is not vacant). The rats will be able to chew through plaster and drywall, but if you seal the exterior wall on your neighbor's house it will prevent them from entering.

This happened to me once -- I requested the use & occupancy permit for a house that had been recently renovated without permits.  The inspector showed up and said, "the house looks great, but that is new wiring and new ductwork.  You need permits."  So I had to pull permits and work with the city inspectors.  Fortunately they did not make me cut open any walls to inspect wiring or ductwork.  It delayed me by about 1 month. The most expensive part was hiring tradesmen to pull permits for me (most won't pull permits if they didn't do the work).  I believe I paid about $500/each for plumbing, mechanical, and electric permits.

Selling this occupied rental to raise cash for another project. Rented at $1,373/month to great tenants. Produces lots of cash flow. Beautiful renovation featuring hardwood floors, stainless steel appliances, finished basement with full bath. New windows. Updated HVAC and tankless water heater. Certified lead free.

What Tenants Love About the Home

Tenants love the covered front porch, private parking, and central AC. They also love the finished basement that acts as a bonus room and features a 2nd full bath.  It was very easy to rent -- it rented before the renovation was complete.

Financials

Rent:  $1,373/month

Monthly Cashflow when Financed: $253 (assuming standard FHA rental property mortgage)

Tenants are a married couple w/ 1 child. Both adults are employed. Application, lease, and tenant info available upon request.

Neighborhood

Essex is a neighborhood in Baltimore County (not city) where many investors and funds hold rentals due to the high rent:price ratio.  Good schools, low taxes, good economy w/ strong tenant base.

Additional Info

Address: 909 Middlesex Rd, Essex, MD 21221

Please reply to this post for additional info or to arrange a showing.  Photos are on Dropbox here.

@Ken Nyczaj yes you can and glad you did!  Good to meet you.

Perfect for house-hacking! Live in one side and rent out the other. This beautiful new renovation of a 2-unit home in Baltimore City was designed to cashflow. The rent from the 5-bedroom unit will pay for the entire mortgage (AFTER allowances for maintenance, capex, and vacancy).

Many investors are doing projects designed for Section 8 in this area, and this house was designed for that purpose.  It has the high-end amenities that Section 8 tenants demand.  The 5-bedroom/ 2-bath unit has 1,900 sqft and estimated rent is $1,700/month.

The 4-bedroom unit has a master ensuite bath and the rooms could be rented out for additional income for unmarried buyers.

Tenants will love the hardwood floors, granite countertops, stainless steel appliances. It is a massive house with high ceilings and an open floor plan. Lots of natural light.

We did a full gut-rehab of this house and replaced the major mechanical systems including electric, plumbing, and HVAC. All new windows, doors, sheetrock, and insulation. All work was properly permitted and inspected; this is a legally-zoned 2-unit.

The separate electric meters will help the owner minimize operating expenses. Separate, high-efficiency HVAC units will help both you and tenants save money on utilities.

Located in a "C" class neighborhood of Park Heights on a good block with great neighbors. There is a new community center 2 blocks away.

3308 W Garrison Ave, Baltimore, MD 21215

Photos and Financial Pro Forma on Dropbox here. Please email me at [email protected] if interested.

This beautiful new renovation of a 2-unit home in Baltimore City was designed to cashflow. 28% ROI with conventional financing with 20% down. $1,200+ in monthly cashflow (AFTER allowances for maintenance, capex, vacancy, and management).

Tenants will love the hardwood floors, granite countertops, stainless steel appliances. It is a massive house with high ceilings and an open floor plan. Lots of natural light.

We did a full gut-rehab of this house and replaced the major mechanical systems including electric, plumbing, and HVAC.  All new windows, doors, sheetrock, and insulation.  All work was properly permitted and inspected; this is a legally-zoned 2-unit.

The separate electric meters will help the owner minimize operating expenses. High-efficiency HVAC units will help the tenants save money on utilities. 

Located in a "C" class neighborhood of Park Heights on a good block with great neighbors.  There is a new community center 2 blocks away.

3308 W Garrison Ave, Baltimore, MD 21215

Photos and Financial Pro Forma on Dropbox here.  Please email me at [email protected] or reply to this thread if interested.

Join us for our monthly meetup!  Special guest speakers Brooke Kaine and @Jarred Sleeth will be returning following their top-ranked meeting in 2017 to discuss how to properly sequence a renovation.  Join the meetup group and RSVP here.

What we're about: We create an environment where good people come together to discuss real estate in the Baltimore metro area. We (the organizers) don't pretend to say we're #1 or that we have the secret sauce to real estate riches. We point to people who have figured it out. We bring in local experts to share their ideas and insights. We keep the conversation at the "201 level".  Our meetup format is heavy on moderated discussion, with plenty of time for Q&A from our guest speakers. Pitch-free. Friendly, relaxed atmosphere. Attire is casual. 

This Month's Topic:  As hard money lenders, Brooke and Jarred of Kaine Investments will spill the beans on all the bone-headed mistakes they've seen investors make on renovations. The laughs will all be in good fun because the true objective of this meeting is to save ourselves from future pain, frustration, and wasted dollars. We'll learn how to avoid the costly mistakes that are most common in renovations. 

RSVP here!

Instant equity and cash flow in this near-turnkey rental. Great location in northern Baltimore City.  Located within "the triangle" of 4 nearby universities: Morgan State, Loyola University, Notre Dame, and Johns Hopkins. Property was fully renovated in 2016 and the owner-occupant is moving.  The repairs are a standard paint-and-carpet turnover.

Kitchen features granite countertops and breakfast bar. All new windows, plumbing, electric, high-efficiency HVAC, and central air. Bonus room on the 1st floor + fully finished basement with full bath.

Why is the property selling at a discount?  The owner-occupant can no longer afford to pay the property taxes and needs a quick close.  This is an assignment and title work is complete.  Must be able to close within 2 weeks.

Price: $99,900

Repairs: $4,000 (replace carpet on 2nd floor, paint, other small punchlist items)

Rents: $1,400.  See rental comps here.

ARV:  $135,000 (conservative)  Sold comps here.  Comparative market analysis here.

Monthly Cashflow with 5% down and interest rate of 5.5%:  $238/month (includes allowances for vacancy, property management, maintenance, and capex)

ROI with 5% down:  22%

Equity Gained:  $22k (conservative)

Photos:  here.

Please do not knock on the door or otherwise disturb the seller.  Property will be delivered in vacant condition; owner-occupant is moving out prior to settlement.

Please reply to this post for additional info or to see the property. 

And here is a photo of the kitchen in its current condition 2 years later...

@Quintin Gulley Jr The closing costs of $3,000 look a little low for a $170k deal, recommend confirming with a title company.  Insurance premium of $1,200/yr seems a bit high, at least compared to what I'm paying in Maryland. 

Vacancy of 5% seems a bit low, I would use 7.5% (1 month per year) unless you are in a very hot rental market.  What makes up the "misc expense" of $190/month?

@Kendall Vrana that is good advice from @Ned Carey.  A release will also require him to provide his full name and personal info, which will remind him that he cannot commit any crimes against you with anonymity.

A similar thing happened to me a couple years ago when I met with an unvetted handyman.  He threatened violence and damage.  I didn't know his full name or any info to make a police report if he did something stupid.  So when he left in a huff all I could do was make it very obvious that I was taking photos of him and his vehicle.