All Forum Posts by: Nick Bowes

Thanks for you input Sebastian E. ~ I'll be speak with local Section 8 authority and review finances with banks or hard money lenders before I dive in.

@Ozzy Sirimsi - thank you as well. 

As real estate agents do either of you have an opinion on the general appraisal value of $70,000? Zillow puts the zips in that price range based on recent sales but there's so much supply on the low end it makes me second guess.  Based on activity in the area do you expect values to stagnate due to crime or is there any chance of appreciation?

I have a property manager and contractor in place I trust who is able to video properties for me and recommend areas to avoid.  I've seen his cash flow numbers with Section 8 tenants in place on properties he own directly and it appears to be a home-run from that perspective.  I'm starting to understand the “pocket” neighborhood thing in Baltimore but lets assume I make smart buys in in the 21215 and 21216 zips. My biggest fear is eventually pulling my equity out. Lets say on average I buy row homes at 15K, put 25K into each and install my tenants who have vouchers anywhere from $1,200 - $1,325.  On top of the cash flow I’m being told each unit can appraise at 70K after renovation is complete.

1. Does anyone have an opinion on the 70K valuation?
2. If I buy 5-10 row homes is there a decent market for portfolio buys whether straight up or at auction?
3. Anyone know what the owner occupied home rate in that area is? or how to find it?

4. Why aren't more people doing this?  This goes back to the "if it sounds too good to be true it usually is" theory

Thanks for any and all input

Nick