All Forum Posts by: Tim Youse

Welcome back @Joseph England

Your thread got me motivated to learn more about rehabbing locally and I'm hoping to get my first flip under contract in the next few weeks

@Brian Poole - what sort of numbers are you looking at? It looks like these properties with ARVs in the 160k to 180k, the purchase price is close to $60k, and all in for $100 to $110, so your net profit after selling costs is around $40k.

@Brad Cogswell

I sent you a PM for a local portfolio lender

Hey Kerry, I haven't done a deal yet, but I've set up financing with a local HML that a lot of local investors use. But figured I'd ask around and see if better terms are out there. I was hoping to use that lender for a BRRRRR rental purchase, but this particular lender only lends for 12 months (which is fine for a flip), and most lenders on the refi that I've talked to want at least 1 year of seasoning before the refi, so there's a bit of a gap there.

@Bobby Montagne

What are you terms for hard money? My current source is 12% and 3 pts with max length of 12 months, 65% LTV. I'm trying to find one that is at or better than 10% and 2 pts.

Many investors I know would tell you that it's very hard to cash flow in Canton, Fells and Fed Hill if you're buying there now. For the same price as a down payment on a property in one of those areas, you could buy a house free and clear in a lower income part of the city that will net $1000+ per month. 

@anna kahn - there are quite a few people investing in the 21223 zip code, especially along the Wilkens Ave area. If you are interested in investing locally, I would try to link up with a wholesaler in that market. 

@Nicole Bryan

Leadtec is a private company. They're not inspectors for the city. They'll tell you what you'd need to do to go lead free or lead safe for your lead cert for the city.

Is the property rent ready or are you about to do a rehab? How old is the property?

There are two tests - the dust wipe and the XRF test. I would recommend the XRF test. It is more thorough of the two and its only another $100 more. The dust test will tell you if lead is present, but the XRF test will tell you exactly where lead is throughout the interior and exterior of the home.

Lead paint was banned in Baltimore in 1950, so homes newer then that will cost significantly less to remediate than those build before. (some home built prior to that might not have much lead either, but you wont know until your test) In those homes, you still will probably have lead paint in the exterior, but that is easy to fix by wrapping the windows - and replacing any original windows.

Give Lead Tech a call and they can tell you all about it:

http://leadtecservices.com

Something to consider. In Baltimore, there are no limits to the landlord's liability if they are sued for lead paint, so it's always best to go lead free if you can.

That narrows it down - they're all Question "Q". :)

A: Baltimore County law prohibits more than two unrelated adults from living together unless the unit is authorized by the county as a rooming or boarding house.

The process for registering a property as a boarding house is outlined here:

Boarding or Rooming houses in Baltimore County

@Olabisi Adebayo Everything Ned listed... Join meetup.com and you'll find all those listed there and can see their schedules and sign up for each event. There is also a rehabberpro meet-up that meets up once a month at a location of a rehab - could be a rental or a retail flip - and the all the details of the deal and rehab are discussed.

The decision to go with a GC or to handle the project yourself and hire your subs depends on how much time you have to spend on the property. If you don't have the time or expertise to manage the job yourself, its going to be easier to let a GC handle the project. However, most local guys that are doing this day in and day out are hiring out their own subs. Starting out, I'd say its going to be easier to go with a GC. Just try to get multiple bids on the project and check their references - see if they have a history of quality work, being on time and schedule, on budget, etc.