All Forum Posts by: Ruth Gottuk

Hi @Kodie Altvater and others,

I'm wondering how your project is going.  I'm now in the place you were 11 months ago.  I am trying to figure out costs for my first house.

I'm a Mechanical Engineer, but I specialize in design, so the bones of the house are very important to me.  I'd like to specialize in upscale flips.  I'm a trash to treasure junkie & hope to get that upscale/urban chic look on the cheap.

That said, I've got my eye on a row house in an up & coming neighborhood.  It's about 2700 sq ft plus basement.  All it's got is a new roof & four walls.  Well, it has the rest but everything has to go, including structural, so there are demo & structural engineer costs to consider.

The sale comps for houses in the area are around $250,000.  There are a few rehabbers in the area advertising $320k, but nothing has sold at that price point.  I believe this area is up & coming.

Although I'd like to make money, profit is not my driving factor & I may keep the house.  The house is up for auction, so I'm trying to figure how much I should pay, given everything else.

So....with all the work that's required, am I already upside-down before even starting?

Thanks for your advice!  Anyone interested in walking through & giving me an estimate?

Ruth 

Well, I've become an amateur forensic real estate agent; being passed from one department to another in the City of Baltimore Department of Housing.  Baltimore has many different programs to deal with vacant houses depending on the circumstances.   I eventually found the property in the city database on vacant homes, but it's not owned by the city.  The house was put into receivership in September by the court and the owners have until the end of October to sell it or it goes to auction within the next 3 months.  I'm not sure which could be more lucrative for the owner; I suppose it's a risk.  I believe they are up-side-down, owe over 3 years of taxes (at a ridiculous assessed value) and I don't know if there's a bank in involved yet.

I've been looking for comps to try to figure out what a "full-gut" vacant property in this neighborhood is actually worth, but such comps are rare (I guess that's a good thing).   There are other houses for sale, but they are inhabitable, some fully renovated and some "authentic".  That gives me an idea of resale values, but not what I should offer right now.   And, of course, the owner told me I'd have to buy "sight-unseen"; if it goes to auction the receiver will allow a pre-sale inspection.

Anyway, I'm learning a lot about purchasing property in Baltimore.

Anyone willing to share their experience in writing a contract of sale on a vacant property?  Other than "as-is" & unoccupied and getting a good title company, are there any other things specific to such deals to look out for?

Hi @Joshua Velte, the house is in the Barclay neighborhood. The other strange thing is that they originally told me that a realtor was contracted to show the house, but it was still a FSBO. I asked if I should contact the realtor to see it, and the guy said, "No, call me in 2 days." The house has a key lockbox on it.

@JJ Conway, I have checked the Baltimore City database and the named owner is a partner in the same firm as the guy I've been talking to.  No idea if they're related.  I googled them both and they come up, not as developers, but as consultants in business reorganization.  Something tells me I'm not getting the straight story.

I wasn't going to use a realtor to save a little cash, but maybe I should for their expertise and my peace of mind!

Hi All,

I'm investigating rehabbing Baltimore City row homes as a career change.  I'm a mechanical engineer; I've done some home additions and built small houses as a hobby.  I'm looking to get into rehab/flipping as more of a career.

I have my eye on a property, which I thought was a straight forward FSBO, but it's getting weird. The house has a FSBO sign on the front, is vacant, was purchased in 2013 & a new roof was installed. According to the listing it's a full gut job. The listing contact turns out to be a development company who tells me they're based in D.C. and decided this property in Baltimore wasn't worth the commute, but it is FSBO. I asked for an appointment to see it and they told me to call back in 2 days. When I called back, they said they toured it, took pictures, & decided it was unsafe to show and the property needs to be purchased sight-unseen. I asked for the pictures, but they never sent them.

This property is not in a high-risk neighborhood, which is attractive to me as a newbie.  I'd like to specialize in upscale renos...and I love all aspects of this property.   However, they are asking $100,000 for a full-gut, sight-unseen property!  And, they don't seem very interested in entertaining offers.  I told the guy I was prepared to pay cash and then had to ask who to contact to make an offer, and the guy said, "Oh, you need to talk to me."  I'm thinking...But I am talking to you and you don't seem to care.

This property has not been declared vacant by Baltimore City, but they have a hot-line to call it in.  Special attention is paid to vacant properties in up & coming neighborhoods because they don't want such a property to drag the community back down, and they will force the owner to do something (sell or reno).  But, getting involved in government red-tape isn't enticing either.

Is this nonchalant attitude normal or is this a big red flag? The property has been on the MLS for almost a year.

Thanks for your advice!