All Forum Posts by: Tim T.

I would recommend you start with Baltimore City Zoning. They can tell you what the current zoning is for the property and your prospects for getting it rezoned from SFH to multi-unit. I'm dealing with this very issue and it's my understanding the Appeals Board is not very "generous" when it comes to rezoning. Not that it can't be done, but it can be labor intensive-

Then again, and as J Scott said, if the numbers work you could very well have found a diamond in the rough especially if the ARV/Comps hold at the high 400's

For conventional loans, anything less than 20% typically requires PMI as well. Even with PMI, and depending on seasoning requirements, you could refi/cash-out in 6 to 12 months and jettison the PMI as the same time. Non-conventional options to consider include Seller Financing, etc.

Janet, BCity's Vacant to Values program is hosting a conference in mid-November. May be of interest, especially if you're interested in securing your first deal and expanding your network! 

Terry, ensuring the property is actually zoned for "5 units" is key. Contact BC zoning. I was looking at a multi-unit in BCity the wholesaler was selling as "4 units" only to learn from Zoning that it was zoned for 3. Getting it to 4 would require going before the Zoning Board--timely and costly.  Other important issues to consider: 1) Metering -- are all units separately metered?, 2) Leases-- month-to-month or annual?, 3) lead cert/s, etc? 

Mike, with 0 to possibly negative cash-flow, and as a buy-and-hold strategy, "potential" appreciation is the only upside I can see for considering this deal. And that upside would need to be supported with solid comps and econ/growth projections for the area. Otherwise, you're better off taking the same 10k and putting it into a property that has positive cash flow.

I too, have had better results with local credit unions and community banks. In some, but not all cases, they use a "portfolio, in-house" approach to lending versus the strictures of Fannie/Freddie underwriting guidelines. Not that they ignore Credit Score, etc. but they tend to use a more asset-based versus income based approach to their lending. It makes it easier to start, and hopefully, sustain the conversation- 

Terry, the one major drawback that I see in this approach is that it assumes the "new buyer" has the requisite skills to conduct a rehab or are you saying the new buyer can sub out the work?  

In addition to "partnerships," it's usually at this point in the discussion when most options have been surfaced, that someone (like me) proposes "Seller Financing" (SF) deals. SFs, depending on terms and conditions can help minimize out of pocket expenses and provides some flexibility in how you can approach and structure the deal. Of course, SF's bring there own set of challenges and considerations- 

Brandon, sorry I was not able to attend yesterday's webinar. Can it be accessed via BP's Archives/Resources? Thanks very much!