All Forum Posts by: Joe Norman

If you're looking to rehab a home while living in it (i.e. House Hacking) then a 203k loan is a great option.  If you just want to get in-and-out on an investment property and not make it your primary residence then you'll likely have to go the Hard Money route or raise private capital.  There are several great 203k lenders and HMLs in the Baltimore area, and also a few sharks to stay away from, so feel free to PM me if you'd like some referrals.

I agree with Ned - as long as the damage isn't severe termites aren't usually a big deal (even though a lot of people think they are and it therefor makes a good negotiating point).  Any termite/pest company will do an initial inspection and certification for around $50.  That will include an assessment of damages and a plan/cost for remediation.  I suggest ordering that so you have a better idea of what you're dealing with and can make a more informed decision.

I personally will only rent out Lead Free units (which is different then Lead Safe, at least in MD, as Ned posted out).  I agree with Russell that if the status is known, and it was built before 1978, then it has lead paint and you should account for the cost of remediation in your offer.  This is not something I would compromise on - its not worth the risk of a lawsuit.

There are a lot of great areas in Baltimore for finding cashflow investments.  In general you'll find a lower purchase price in the city, however the higher property taxes can eat into cashflow.  I suggest you find some 4 units on MRIS that meet your general criteria, and then just start driving the neighborhoods  to get a feel for the area.  Good luck!

Congratulations Dan!

There are certainly some predator HML's out there, but there are plenty of reputable ones as well. Just like hiring a contractor, you want to get references and referrals and not only shop rates, but also the experience of the HML. For a quick, low/no risk profit then Mr. Parrish's Control and Roll strategies are fantastic, however if you want to be rehabbing then HMLs are often the cost of getting into the business.

My advise is to be doing both simultaneously, and as others have pointed out if you find a good deal then the money/partners will fall in line.

Seth and Ned asked some great questions, and I would focus on what value you add to your potential partner (I think the answer here is "the deal", assuming you find one), and what value they can add to you and your project (money?  experience?  access to their network?).  Its got to be a win-win situation for anyone to get involved and I know you will be able to work it out once you find the deal.

100% agree with Ned's assertion that "Its better not to do a deal than to do a bad one" - you want to find motivated sellers, not be a motivated buyer.

Good luck!

I suggest listing your rental on GoSection8.com.  Case managers for all different kinds of subsidized tenants (not just Section 8) will check this website for available units that accept vouchers.  Once you find a subsidized tenant you will go through the specific inspection process for the particular program that the tenant is utilizing (whether its Section 8, something for Vets, etc).

Thank you for the referral and the compliment Heath!

Jahmal - I'd love to connect with you here and in person, I'll drop you a PM to see how I can help.

Welcome to BP!  You'll find a great community of people on here.  Are you thinking about investing in NOVA/DC or up in the Baltimore market?