All Forum Posts by: Jeffrey Miller

Thanks @Mark Moyer. I ended up scratching that area from my list. After additional analysis the costs to renovate these properties are cost prohibitive given the shallow value ceiling and lack of quality renters or buyers. Yes, what can make Baltimore so unforgiving is that siren song of an A-class neighborhood like Bolton Hill being so close to a war zone like Marble Hill.

@Ana Garcia

Thank you for being so transparent about your campaign. How would you recommend wording an offer in a zip letter? Did you see success in being short and simple with "I want to buy your house for $40k. Please call me at 800-555-5555."?

I recently made the mistake of purchasing a property with a squatter and can tell you my new rule is never again. You open yourself up to a lot of liability as you are responsible (at least in Maryland) for maintaining existing utilities and are then responsible for their payment. As a new owner you unfortunately have no new "set of rights".

My suggestion is to have the current conduct a "cash for keys". They can offer the squatters some lump sum of cash ($500-$1500 or whatever you find appropriate) to have their items out of the home "by Monday at 10 am". If they agree the owner can then return at that time, verify that all items are out, and then provide the cash given that the squatter signs a sheet of paper stating that they are moved out of the house (this will be helpful when having utilities turned off or put back in his name). At that time it is highly advisable to change all of the locks, post no trespassing signs on all doors and windows, and setup a cellular security system like Simplisafe. None of these transactions should be performed alone as squatters can be exceedingly dangerous.

Given this signed document you can feel safe in purchasing the property but be aware that it is likely that the squatters will attempt to return to the property if not secured properly.

 Kyle is right on 21214 being a great bang for your buck area. Hamilton has recently had a positive upturn with home prices raising in the past year thanks to the activity of professional flippers. You are now able to purchase a large single-family home in the neighborhood that has been fully renovated for around $200k. This is highly desirable price point for young professionals who desire staying in the city limits but need additional space for a growing family.

Given the trade-offs the neighborhood may not provide the lifestyle many young single professionals desire in terms of easy accessibility to nightlife and the financial district where many of these professionals work during the day.

Does anyone have any experience with Baltimore's Upton / Marble Hill? I spent yesterday walking through the inventory and am having a hard time getting a feeling for the neighborhood. It boarders Heritage Crossing (2002 development) which is a plus but that neighborhood is tied in with the McCulloh Homes project.

Many of the homes on McCulloh Street and Druid Hill Ave are boarded up or vacant but people have been preaching this area as being the next up-and-coming area for years. I see the occasional $100k+ reno in it's past but most of the comps are essentially shells.

Does this area have any potential or is it just another urban wasteland?

Understandable. The numbers look great but the neighborhoods are very intimidating from a suburban's perspective. I'm sure giving the right knowledge base and experience these properties are not as risky as they appear.

Did you ever follow through with this? I currently invest on the outskirts of Baltimore and am considering lower income areas like the ones you mention and am looking to hear peoples' experiences.

And possibly pair above (PlanGrid) with MagicPlan

http://www.floorplanner.com/magicplan

Asana, as mentioned earlier, is fantastic

I haven't used this product myself, but it looks to have a lot of potential for heavy renovations.

http://www.plangrid.com/en

Bill, thank you so much for the response. This is exactly the kind of direct advice I'm looking for.

Agreed. This deal would be risky for someone with my small financial profile. It's tough passing on a potentially profitable deal, but having others validate the risk helps me pass on the opportunity.

If I want to make something happen with this deal it sounds like I should look for a more experienced investor to partner with and bring the risk down to a manageable level.