All Forum Posts by: Tarik Larue

Greetings BP family,

I am mainly a buy and hold investor looking to start rehabbing in the near future. I am leaning towards getting my own RE license for 3 main reasons:

1. Having MLS access for accurate up to date reseach.

 2 Gaining rapid entry to properties for inspections.

 3. Saving lots of money on commissions when I buy and sell rehabs.

However I know that larger companies can be expensive with a lot of ongoing fees. Can anyway recommend an investor friendly broker or RE firm in the Metro DC or Maryland area? I would also consider Northern VA. I'm thinking I should find a 100% commission realty company. Where are other P/T investors in the DC area choosing to sign with?

I would suggest you look for a property that ONLY needs cosmetic upgrades like paint, appliances  and fixtures. Maybe a foreclosure that was well maintained or a short sale if you the patience.  Read some of the post on estimating repair costs, watch some YouTube videos and buy J. Scott's book. The Holmes Inspection by Mike Holmes is another great book. Learn to spot what's a major issue ie... foundation, roofing, old plumbing. Then when you get a good prospect under contract pay an inspector to verify your instincts. Lastly come up with a scope of work for your repairs and have 3 or more contractors give you estimates. Once you have some experience and/or you've hired someone to do rehab work then they might be willing to do some walk thrus with you.

I would suggest you really look at your competition to determine your level of rehab. If everyone else is doing the bare minimum and still getting GOOD tenants then I would just a really basic rehab. In my market however there's a ton of investors buying cheap houses for Section 8 tenants and these tenants are becoming picky. In order to command top dollar and get rented quickly I'm using nicer upgrades and better appliances then the lower end rehabbers. It also helps to increase my appraisal value when I refinance in 6 months and pull out equity. Hope this helps.

In my area homes before 1950 have lead and/ or asbestos. Your plumbing may be corroded and need replacing. The electric needs to be replaced or upgraded for higher usage. The roof needs inspecting. Are the water heater and furnace still in good shape. Probably needs AC and heating installed. Good luck.

Hey Shannon. I puchased my first rentals late last year's after looking for several months. BALTIMORE REIA has an excellent class this month on rentals that you should attend. The two women that teach it own over 150 units. What I suggest is buying in the $30-40,000 range with cosmetic rehabs to start getting use to working with contractors. Full guts are NOT for newbies unless you team up with someone experienced.

I would also use Hard Money Lenders, Private Money or a short term bank loan for most of the purchase cost. Your money would be the down payment, closing and the first rehab draw. After you rehab and rent it,  then refinance in 6 months  pay off the lender and buy the next rental. At that rate you would hit 10 houses in 5-6 years. Make sure you tour the areas and blocks that fall into your price range and look up the zip codes on gosection8.com or rentometer.com to assess rental rates. I won't accept ANY boarded up houses on the block. I bought in 21216 and 21229. For appraisal value I avoid zip codes with too many properties under $20,000. Good luck with your first rental. Feel free to email me any additional questions.  

Thanks a lot Del. I will let you know who I end up refinancing with.

Greeting BP family,

I recently bought and rehabbed a 2 unit townhouse with separate electric and gas meters.  However there's only 1 water heater and 1 furnace to heat the water and radiators (its an older rental). The thermostat is located in one unit to control the heat for the entire house. Not sure what my options are. Do I buy and install a second furnace which sounds costly? Perhaps I can install a thermostat that only I can control? Then I will just pay the gas bills and split it among the two tenants. Experienced landlords and property owners please advise me on my options. Thanks

Hey Christina, I'm currently searching for a great PM in Baltimore City. Who did you end up choosing and are you satisfied with them?

AgentPro247.com, HouseFlippingHQ.com and REtipster.com.

 Thanks Jerry. I will definitely get signed leases before I shop for refinancing.