All Forum Posts by: Scott Kronzek

Sorry, title should say "in maryland"

I am purchasing a 3 unit property, image below. The landlord was previously renting the 2nd floor as a 1 bedroom, and I'm wondering if it can legally be a 2 bedroom? The kitchen and bathroom are down the hall at the bottom of the picture. So, for someone living in the potential 2nd bedroom to go to the bathroom or kitchen they would either have to walk through the first bedroom or walk through the common staircase area. Thoughts?

I am about to close on a 3 unit and looking to add as much value as possible. Currently tenants have to walk a couple blocks to a laundry mat. They obviously have to pay to use them. 

Current market rent for each unit:

1st floor - 1/1 $600

2nd floor - 2/1 $900

3rd floor - 1/1 $750

How much would an in unit washer dryer add to each unit?

As I mentioned it appraised at 75k currently, vacant and needing work. After 15k in improvements + renting it for $2500, that's where I come up with that number. 

I've been wholesaling in Baltimore for a while, and I have a property under contract that I'm interested in holding. It's not in a great neighborhood, 21215. It's a large duplex in a detached home (the whole building has 4 units, the duplex is half of the building). 

I got it under contract for 57k, and had the contract sold for 75k, but buyer backed out. It actually got appraised for exactly 75k. Previously, the owner was renting it for 2500 (1100 downstairs in a 3/1 and 1400 upstairs in a 5/1). 

The house does need 10-15k in work (new kitchen, paint, a little carpet, and a cleaning). My thought is that if I close on it for 57k, put 13k into it, I'll be all in for under 75k. Then I rent it out for maybe 2300, and I feel like at that point it should be worth at least 110-120k? At that point I refinance and hold it. 

Thoughts?

It's not the best part, but it's far from the worst. 

3 units, all 1/1

Purchase price 100k

2 units currently occupied, 1 vacant

Property is in a solid part of Baltimore, very close to the zoo

My plan would be to spend about 10k on the vacant unit, and then renting it. I'm estimating all three units will gross $2700/month.

My question is, will I be able to refi out at 75 ltv based on cap rate/income, or are banks only going to be interested in comps? Based on comps, I don't think I will reach the $150k appraisal I need. Based on cap rate (around 24%) I think it should hit that appraisal mark.

Thoughts?

What do you guys recommend as a referral fee on a wholesale deal? My good friend works for an investment company, he came across a deal that he decided wasn't for them, but he sent the seller to me. We ended up getting the house under contract for $12,000 and selling for $19,000. How much should I offer for the referral? 

Thanks for the help guys. From a strictly rental/income perspective, I'm having a tough time finding anything that even meets the 1% rule. What do you Baltimore people think of this? https://www.redfin.com/MD/Baltimore/815-S-Curley-S...

Might rent for $1450-1500?

3/3 cheaper than 3/2?