All Forum Posts by: Julie Hassett

@Account Closed - that's a great question.

At  first, $30K was just a random number I picked that seemed "about right".

Then, I used some of the resources I've received from the RehabberPro meetups and J Scott's book and found it to still be around that number.

Then, after my inspection, my inspector (who is a fix and flipper) said, "I think you'll be able to do a lean reno for about $30K."

So, I'm hoping that will be the case!

Also, we opened the bleeder valves on all the radiators and still no heat. Some of the old shutoff valves appear to be in the off position and impossible to budge.

Thanks for your input!

@Robert Shaw - I've attached a screenshot of what numbers we're aiming for on this property.

@Steve Sendldorfer - maybe I misunderstood something. When I clear it up with my peeps, I'll clarify what the heck they were actually talking about!

@Geoffrey Schnake - I will update you on what exactly this is referring to when I meet with another electrician. But both my inspector and the first electrician mentioned this and it's something I've never heard before either. I think it is a safety measure the inspectors are newly paying attention to. Right now the electricity is grounded to the main water line, but much of the lines have been replaced by PVC.

Hello BP!

Today I closed on my first buy and hold rowhome in Baltimore City. It's my first real estate deal ever - and seeing as how I only have the faintest idea of what happens next, I figured my journey of figuring it all out might come in very handy for anyone in my boat. That is:

• employed full-time
• the only "boots on the ground" 
• total newbie
• very determined!

Here's the quick and dirty on the deal:

• purchased from a wholesaler on the local REIA email list
• purchased for $42K all in
• located in 21213 (Belair-Edison)
• delivered vacant
• Would like the rehab to come in under or at $30K

What I've done so far (in order):

1. answered wholesaler's ad/email
2. set up a showing (it was a very quick walk thru b/c tenant was there and didn't know I was coming)
3. put in a cash offer over text message
4. wholesaler emailed me the original contract between him and seller and an assignment contract
5. chose a title company (because this wholesaler didn't insist I use his) - first verified over the phone that the title company is familiar with how wholesale deals are structured
6. dropped off my $1,500 EMD deposit at the title company
7. scheduled an inspection of the property through the wholesaler - this was delayed multiple time because tenant vacated later than planned and the electricity was shut off
8. called BG&E to get the power turned on in  my name (even though I didn't own the property yet) so that my inspector could properly check the boiler and electric system
9. purchased a lockbox and left a key on the front door for BG&E to verify that the property was vacant - they most likely required this because the previous tenant had a large unpaid balance
10. got a full inspection from a licensed inspector (who is also a contractor, flipper and appraiser), which took about three hours altogether and cost me $375
11. Met the neighbors and gave them my phone number in case anything funky happened at the property. (Told them I was the property manager, NOT the owner.)
12. wired the funds the day before closing to the title company
13. went to the title company and it took about 15 minutes to sign about 5 documents
14. became a real estate investor!

What the inspector found:

• structure is surprisingly sound - no damage or warping to joists, basement appears to have never taken on water, i-beams are steel, foundation is a-ok (phew!)
• electric panel is made by Federal Pacific - it is a fire and safety hazard and must be replaced by doing a panel swap ($1K - $2.5K) 
• electricity in the house is ungrounded - in order to pass section 8 inspections, electric must be TRIPLE grounded. This would require rewiring the property and ripping out perfectly fine walls to do it. Costs could run as high as $10K.
• HVAC - boiler is probably from the 1940s, but still fires up like it's brand new. However only 2 of the 6 radiators are heating up. Need to call a plumber and locate the blockage.

What's next:

• changing locks on front and back door (a little late on this but I didn't perceive the previous tenants to be the vandalizing types)
• getting insurance - not sure yet whether I start out right away with a landlord policy or if I do a build policy during the rehab
• Scheduling a plumber
• Get a second quote on electric work
• Have a couple GCs scheduled to come by next week for a walk through
• Deciding if the high cost of triple grounding the electric will be worth the extra cash flow I can receive from section 8 tenant vouchers

I'll be posting regularly as I progress... feel free to ask me questions or give me advice as well!

If I can do it, you can too!

- Julie

Sent you a colleague request with a couple places to start....

@J Scott Just embarking on my first rehab/buy and hold property in Baltimore (closing next week), so this thread was incredibly helpful to me. Thanks a ton for walking us through your experience!

@Ned Carey - Holly Edelstein and Clearview Settlement Solutions' number is almost impossible to find on Google. When I finally found one for her, it was disconnected. Could you PM me her contact if you have it? Thanks a million!

@JJ Conway - Thank you for sharing your story! I was concerned about exactly that. I met the tenant and she seemed fair and great and I can see that her stuff is all packed in boxes, but she also said she wasn't sure where she was headed yet. And the end of the month is about a week away. Squatter situation would be no fun!

Thank you @Sean Cole - I was wondering about that. Seeing as how in a traditional transaction, you don't contact the seller, you would just deal with the RE agent.

I got a copy of the contract between wholesaler and owner. Owner name matches the name I see on the MD property databases.

He asked me who my title company is and I just named the company that I used to purchase my own house. Contract states that I need to deposit the $1,500 with the title company within 48 hours. So, I assume I just call the title company and tell them what the deal is and they will walk me through it....

Do I schedule the closing since I picked the title company?

Jeez, you can read and listen and read and listen... and then when it's happening, you realize you actually know NOTHING! Ha!

You guys are saving my hide right now. I promise to pay it forward as I learn!