All Forum Posts by: Joe Norman

I don't think I can help you, but I commend your enthusiasm.  Good luck!

I suggest you go where you can house hack/BRRR for cashflow, build up a small portfolio over a few years, and then make the move to a major metro area like NYC as a *lifestyle* decision instead of an *investment* decision. As The Real Estate Guys say - "live where you want, but invest where it makes sense". If you want to get out of Iowa, but aren't quite ready for NYC, there are other smaller cities to explore, like Baltimore for instance, where $40k to put down would go a long way following the BRRR strategy.

My advise is to proceed with caution, especially when it comes to the ARV/Refi. What you and/or the wholesaler are using as a "comp" may as well be in a different galaxy if its more then 2-3 blocks away, so unless you really know the neighborhood and have driven past all the "comps" then I strongly suggest you get a second opinion. Not to mention that a house with an ARV of $115k isn't much of a deal in the first place at $60k pp and $30k reno.

Do your due diligence and find a deal that works for you.  There is plenty of other distressed properties in Baltimore for you to buy.

Awesome vision Dylan!  My first thought on this is that the Refinance part might be difficult with an unstable income of $30k.  You may want to talk to a few lenders before you get too far into this to confirm that you can qualify for the loans you'll need to make this happen.  If traditional banks won't lend you can always try a portfolio lender or private loans.  Good luck!

Great question! When I'm dealing with a wholesaler it starts with the deal analysis. Make sure your ARV is on target and your asking price leaves enough room for the end buyer to make at least $30k. You'll want to do a renovation budget so that you can estimate the value of the home, however I suggest that you do NOT share the reno budget with your buyer's since no one will ever agree with it anyway.

Besides the deal itself, I look for wholesalers who are ethical and have fully disclosed to the homeowner that they are going to assign the contract.  Its easy to spot someone who is trying to play games so just don't be that guy!

Welcome to Bigger Pockets Rowan!  This is a great place to share, learn, and ask questions.  There are also some good networking events in the Baltimore area, including a weekly lunch (Fridays at Noon) at Spirits West in SW Baltimore.  Come join us one week!

There are a lot of hoops to jump through for the 203k/Fannie Mae Homestyle loans, thats for sure.  Keep in mind though that these are only for owner occupants, so unless you're planning to live in one of the units they are off limits for you.  I think your lender is correct in advising you to do a cash-out refi on one of your free and clear properties to finance the renovation costs.  

I agree with several comments above - it was probably your responsibility to investigate the legal status of the basement apartment during your due diligence period.  If you feel like you weren't properly represented, or if you just want a second opinion, you can always have a conversation with your agent's Broker.

I've won several HUBZU auctions on behalf of my clients.  Their closing department can be difficult to deal with from a customer service perspective, but I didn't have any issues that I would consider "scammy".  Good luck!

Check out Dundalk too - you can get a near-rent ready townhouse in the low $100ks in some neighborhoods and the revitalization of Sparrows Point is going to bring hundreds of jobs to the area.

Parkside is also a good alternative to Belair Edison - its just on the other side of Herring Run Park.

Good luck!