All Forum Posts by: Garrett Fulton

Hello BP!!

After 4 months of reading everything I could on this site, in March I finally took the plunge and bought my first rental property in Baltimore Md. After getting the property leased up( using property manager) with section 8 tenants in mid April, I purchased another property in the beginning of May and am just finishing up the drawn out section 8 process (found the tenant, inspection complete. Just waiting on the rent amount to come back from the housing authority.)

I'd definitely say that I have the itch and am ready to start looking for my third property... However others in my family and friend circle(who are more conservative in their investing) are advising me against it.

I'd like to get BP opinions/ experience. Have you any advice for a newish investor who is torn between playing it safe(waiting for a certain period before acquiring any more) or continuing until I reach my goal.

Below is some info so that you might get a better understanding of my goals and where I am coming from.

My goal: I am currently one full year out of college working as a marine engineer aboard a ship. I am away from home for half the year :( In 10 years I'd like 20 properties or enough passive income so that I can stay home full time and possibly start a family. I'd still work ( become a real estate agent or continuing in the field of engineering), however id like a safety net!

Current properties

#1) 2 bed 1 bath totally rehabbed (new mechanicals and 4 year old roof)

Purchase price: 55k

Rent: 1174

50% rule cashflow: 284 per month

#2 4 bed 2 bath totally rehabbed ( new hvac, appliances, and mechanicals)

Purchase price: 95k

Projected rent: 1700

50% rule cashflow: 250 per month

Both properties are financed through conventional 30 year loans. According to my lender i qualify for one more conventional loan up to 95k until I get a raise or show 2 years w2 income on current properties. If I were to purchase another property between 70k-100k with (20% down payment and closing costs), I'd only have about $12,000 in reserves for three properties.

Thank you for reading what seems to me a long, confusing and boring post! However, I would very much appreciate some thoughts on weather I should push forward or hold steady for the time being. Any experience, advice, warnings and the like will be greatly received!

Hey all,

Newer buy and hold investor in baltimore area. Thinking about making an offer on a row home in Edmondson village (21229) that is pretty much turn key! The kitchen is almost new and includes a dishwasher. I'm looking to rent out to section 8 tenants.

For all you section 8 or baltimore landlords, do any of you guys include dishwashers in your rental. According to "The Section 8 Bible volume 1" dishwashers should be eliminated from section 8 rentals as they can cause unneeded maintenance costs. I'm just noticing that many section 8 tenants in baltimore expect a higher quality! ( I installed granite countertops in my first baltimore rental because the PM told me it would rent faster.... He was right).

Anyone's opinion would be great!

Any members familiar with the Saint Joseph's neighborhood in baltimore md. I'm looking to buy some rentals in this neighborhood. Driving through the neighborhood, it seems like a pretty decent working class area as opposed to other neighborhoods I have seen in baltimore city. Anyone's input would be appreciated!

Hey all,

I set out last month to purchase my first rental property in the greater Baltimore area. I was preapproved for a 150k property with a 25% down payment . After looking at several properties in this price range and performing cashflowing analysis, I have found that most are not that great of an investment.

There are severel town homes in one area that are selling between 55k and 75k that come close to the 2:1 ratio and would provide solid cashflow!

How do I go about financing a 55-75k property?

I have read on these forums that getting a conventional loan for such a low amount is very difficult.

I have about 50k in cash. Would going to a hard money lender for the rest of the money and paying for the house in cash be a good option? My thought is that I could get a home equity loan on the property after closing to get some of my cash back for future deals.

Please help a new guy out!

Thanks Will for you input! I'm going to interrogate my realtor tomorrow to find out if he knows what he's talking about lol

I am currently looking for my first investment property in the dc area(cheap areas in prince georges county) where I plan to buy and hold.

I am interested in a particular home, however I'm not sure it's value. The home is listed for 159,000 and is fully renovated, new roof, new SS appliances and granite in kitchen, new ac/heat.... Pretty much new everything The comps given to me from my agent are townhomes in the area that are listed/sold from 45,000 to 60,000. Most of these are bank owned/foreclosed and pretty run down.

I know that I could get 1400-1600 a month on rent based on the rental comps given to me by my realtor.

The realtor is pushing me to come in at 146,000 for the townhouse, but I'm worried that I will be overpaying given that this area is so depressed with foreclosures.

Any input would be greatly appreciated! I'm very new at this and confused!