All Forum Posts by: Stephanie Lella

Hello BP members,

I recently got a potential BRRR property under contract however it is an REO "occupied" property and the bank is not allowing any inspections or appraisals. Based on a drive past, the property appears to be vacant- grass overgrown, no furniture in the house, clearly not maintained for several months. The property is located in a very good area of Baltimore City.

$65k purchase price

$45k rehab

$140k ARV

$1500 Rent/month 

The numbers work but the lack of an inspection clause is worrisome. Has anyone purchased an REO without an inspection? Any advice?

Thank you,

Stephanie 

Sounds like an exciting plan. Where do you plan on acquiring your buy and holds?

Looks like a great deal! Nice find. 

Thank you, Roy, for the advice. I am learning so much from all of you. Thank you!!

Thank you, Brandon for that detailed information. It is a lot to take in but it helps to be more informed. We are going to try and get some more quotes. When we bought the house, I never even thought about the venting as a problem. Lesson learned. 

Thanks, Pat for the advice, we are going to see what other contractors say about on demand venting or running a new vent out the side. Hopefully it comes out to be a little cheaper than the original quote. 

hi everyone,

Thank you so much for the advice! I agree, $45000 just seemed a bit too much! As far as I know this is the only vent but  perhaps we could run a line through the side of the house.I've been trying to get more quotes but it's been very frustrating finding contractors who actually show up and call me back.  Tenants are set to move in septembef 1st so I'm starting to feel the pressure to figure something out without spending am obscene amount.   

Thanks for the advice, Justin.  well, the chimney is the vent for the hot water heater and hvac system. As far as I know, there is no other venting system. The company wants to reline and re vent the entire system but it's a lot more expensive than I expected. Luckily, The fire place was walled up years ago so we don't have to worry about that.

Hi BP,

Looking for advice regarding one of my rental houses in baltimore.  The original problem that came up in the inspection was that some bricks at the top of the chimney were crumbling. We were told it should only cost $500 to recement them. However, when we replaced the hot water heater about a week ago, the plumber told us there is a carbon monoxide leak due to improper venting through the chimney. Our latest estimate to fix it was around $4500. Has anyone experienced this same problem? Any cheaper solutions or contractor recommendations?

And I also agree with the mindset that almost any animal can be destructive. The rabbits I had growing up absolutely destroyed the flooring and walls in my mom's apartment, which she happened to be renting! 

@Shar Day I will be in Baltimore City. I do not have a property under contract yet as I am focusing on 'easier' rentals in Baltimore county first to get started. My partner and I have a few offers out and we are waiting for counters any day now. I do hope to get a Baltimore city house by the end of the year. 

Thank you everyone for all the input! You all are so great! I agree, it is probably way more trouble and liability than it is worth. It is too bad, I really like pit bulls, but you can't rely on the owners to be responsible with them.