All Forum Posts by: Lance K.

Thanks for the feedback @Chase Louderback! That was quite helpful.

Hey Everyone,

I was approached with a Quadruplex opportunity in the Baltimore area by a listing agent.  Even though the agent indicated that all units were renovated, I asked to see pictures and perform a walk-through of the unit prior to submitting an offer.  The agent proceeded to provide only three pictures of the facility (exterior main entrance, kitchen of one unit, and the backyard) and relayed that I can only perform a walk-through upon the submission of a Letter of Intent.

Is it common to supply a LOI prior to seeing the units in an MFH? Are there any legal ramifications to provide an LOI and backtrack due to significant concerns with the property (e.g., significant rehab budget, title is not clean, etc..)? Are there additional consequences for exiting the deal that I may be missing?

Thanks in advance for your feedback.

Thanks for sharing your experience in great detail; it was quite enlightening.  I too am looking to procure my first procuring within the next few months.  

As such, would anyone on this thread happen to have any recommendations on realtors to work with in the Baltimore area?  I have a few properties that I'd like to further pursue.

@Michael P., my wife and I discussed multiple options in saving $ in order to re-purpose for REI and renting in a good school district was one of them. Unfortunately, what we found is that renting in a 7+/10 school district more often than not, resulted in higher rent (that is almost comparable to my mortgage payment). Also, we'll have to store all of our belongings in a self-storage facility which can cost a pretty penny given the amount of sq ft needed.

As for selling our home, the thought behind that was we can retain the property to eventually fund my daughter's college education when she's of age especially since major CAPEX repairs were just made (i.e., roof replaced and driveway re-paved).

Although this is how we currently plan on leveraging the property, our plans may change based on what's financially sound in the next year or two.

Thanks for the insight @Matthew Paul.  I may have to consider out of state options given my constraint.

Absolutely! @Trevon Hippolyte  Your ability to do so is a function of education, experience, and creativity which is what I'm working on to develop.

...as you may have gleaned from my last post, I would like to use the BRRRR strategy to recoup my funds and reinvest.

Of course!  I'm not sure how I omitted basic information. @Ozzy Sirimsi

Just a bit of a background, I currently own a 3/3.5/2 town home that I plan on renting out within the next 2 years as my wife and I plan on moving to a better school district for our daughter. I intend on refinancing the mortgage prior to my departure since the property will be cash flow negative a few hundred bucks as it stands today.

My short-term goal is to focus on MFRs with a long-term strategy of breaking into the commercial RE arena. In considering the advice of my accountant (who also invest in RE) to start off small, a duplex or a triplex may seem feasible as a starting point.  I intend on managing the property myself.

Property characteristics are as follows:

1. Purchase price of no more than $75k with the addition of $25k for rehab costs
2. Cash flow positive of $150/unit minimum with a preferred amount of $200+/unit
3. I would prefer a property that is in a Class B location, but can settle on a Class C.  The property itself can either be class B/C.  Based on the location, I presume the tenants would be blue collar workers.
4. I will consider a property that is in the 100-year floodplain, but I would prefer not to as this can be a cash flow killer 
5. Appreciation is not important to me considering that the units are cash flow positive

I am open to any suggestions/recommendations that you may have.

Thx!

Any recommendations on investment locations in Maryland along with reputable property managers and contractors? I’ve noticed several mentions of Baltimore being reasonably priced, but highly risky at the same time. My focused is on MFRs.

As a novice to the RE investment arena, I'm open to partnering with interested parties. Thanks in advance for your suggestion/recommendation.