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All Forum Posts by: Jack Stewart

Jack Stewart has started 2 posts and replied 4 times.

Post: LIVE: Biggest obstacle to buying your first investment property?

Jack StewartPosted
  • New to Real Estate
  • Baltimore, MD
  • Posts 4
  • Votes 1
Quote from @Scott E.:

I'm not a rookie but I'll comment what I think is holding most rookies back based on convos I have at meetups and what I see around the forums:

1. They don't have the money for a down payment. And "creative finance" deals are much easier said than done.

2. They can't make the numbers work with high interest rates (unless they put a ton of money down, which brings us back to issue #1)

100%

Post: Ways to reduce or finance closing / escrow Costs

Jack StewartPosted
  • New to Real Estate
  • Baltimore, MD
  • Posts 4
  • Votes 1

Hey BP gang, was hoping to purchase a house hack in the Baltimore area and just talked to my first lender. They informed me that the money I would owe would twice as much as I expected because I had not accounted for the escrow cost. So that reduces my ability in being able to buy a place unless there some way around this. (I expected CC to be around 11k and I got the 23k total from that lender). 


I know in previous markets, the seller paying closing costs was acceptable, but in today's it is not. I read that there's maybe a grant or program out there that could assist this. Or I could possibly ask the buyer if I could incorporate them in the sale price.

Any advice? Please let me know if I could word this better - it is a little confusing.

Happy Friday,

Jack

Post: Good or bad: Overpaying for a property with reasonable cash flow

Jack StewartPosted
  • New to Real Estate
  • Baltimore, MD
  • Posts 4
  • Votes 1

Another part to this: I wish to buy in this current market because I can get the lowest rate possible with the lowest down payment = cash flow / benefiting off the banks money. That's whats leaning me towards overpaying. Thanks again!

Post: Good or bad: Overpaying for a property with reasonable cash flow

Jack StewartPosted
  • New to Real Estate
  • Baltimore, MD
  • Posts 4
  • Votes 1

Hi BP friends - I have a question and hoping some of you could share your opinion. I will go ahead and post the question, feel free to answer it and/or keep reading to get my full situation. Is it worth overpaying for a property if it cash flows well?

Further information: There are a few townhomes in the Harford County, MD area that are turnkey and tenant ready. Living in D.C. with a slim savings account (just enough for a down payment and blind start-up costs), they intrigue me [due to that being the nicest area I can invest in] but they are what you would consider an average price for today's market (very high). These 3b/2.5ba would cash flow anywhere from $400-$800 with the rates my lender gave me. 

Knowing the market won't be this high for long and that I'm possibly overpaying for a townhome compared to what the usual price would be at this moment in time without the Real Estate boom, I'm nervous about putting in an offer for the long run. My goal is to ultimately cash flow but I don't want to be in a rut if I wish to sell and buy bigger in a few years. 

Any advice on this matter helps. Also, any advice is also welcome for investing along the 95 area in Maryland (specifically Baltimore and above). If you're in NW D.C., feel free to DM me, looking to buy someone coffee to pick their brain for 20 minutes. 

Thanks in advance.