All Forum Posts by: Sam Lewis

All of this can be learned with a few google searches or Youtube videos. The hardest part is discipline and to actually drive up and down streets noting properties that may be distressed. You can purchase lists online but they have been farmed by countless wholesalers.

Ah  got it. In that case I would keep buying at a minimum 12 cap for properties that need a little bit of work (paint and flooring). Sweet spot could be 3/1.5 townhomes in a C class neighborhood. 

This is my advice for a hands off investor who has trusted contacts who can do the basics (install a lockbox, paint, have property pass inspection etc.)

Rinse repeat : )

@Brian Lewis

Looks like great options regardless. Cap rate is one way to look at it, but with the numbers so close to each other, which property would give you less headache?

Numbers aside, I always prefer 3 beds (3/1.5+) since it’s the sweet spot for growing and shrinking families.

I have some property management contacts if you need a greater Baltimore area referral

Nice, what is your cash flow?

I second everything Brandon said. 

In general, new construction is not as common in Maryland due to government restrictions and opportunities for divvying up land for development. 

There are plenty of newly renovated properties in Hagerstown and Frederick in the 200s and 300s that would be well suited for you.

That being said, new construction is still within reason, but these properties are not flooding the market

@Anthony Triano early welcome to Maryland! 

Mello Roos is prevalent in California, but this type of "tax" is not prevalent in Maryland unless you consider nicer neighborhoods with HOAs, another form of "tax." 

I do not recommend new construction unless you are looking in the 500, 600, and 700+ range, or are planning to develop multiple parcels of land.

Let me know if you have any questions! 

@Sharad Peterson Hey there, fellow Baltimore investor here. How are you man?

@Ben Pearce everything looks good. Aim to live there for a minimum 2 years and you avoid paying significant capital gains taxes.

Look up the “2-out-of-5 rule”

Great question! 

My biggest failure was doing all the work on my first rehab myself. I remember sitting on the stair steps of the property covered in blood after accidentally hacking myself with a saw. 

It was not fun!

Once I realized "saving" money on labor costs wasn't worth it and that it actually slowed down my rehab two-fold, I became a much, much better investor : )