All Forum Posts by: Vina Real

@DerickWolf

First example is from my first property. This I got from BP Marketplace in 2018. A nice rowhome in Argonne Dr. steps from St. Elizabeth School. No major rehab, just cosmetic rehab and a new roof.

PP- 60000 cash

Closing Costs/ Wholesaler fee- 6500

Rehab Cost 25000

Rent- 1400

Property Taxes- 250

Loan- 88,170 @ 5.375%

ARV- 117,500 Actual appraisal, refinanced after 6 months, left $3330 in the property but its ok.

Insurance- 64.35

Repairs- @ 8% 112

Capex- @ 8% 112

Property Mgmt- @ 10% 140

Vacancy- @ 8% 112

PITI $808

It was not a homerun but this got me started in REI and I learned tons. I only cashflow $256 including the PM fee. I asked a lot of questions from mentors and people I met thru REIAS and from here especially.

It's been awhile since my last post. There are 2 registrations that you need to do. One is for property registration at DHCD for $30. You need to do it within 10 days after you close otherwise you'll incur penalties. Another is the lead registration at MDE website which is another $30 fee. I manage my 2 rentals so I don't know any property management companies but @Ned Carey wrote an awesome post about Baltimore property management companies. He can give you a lot of feedback about the topic and is a great resource anything about Baltimore. Also confirm if there's ground rent on the property. Your realtor can help you with that. And lastly, I use NREIG for home insurance. Hope these helped...

I also attended his note camp last year for 50% discount but was not impressed with the content. It was mostly from his sponsors promoting their products. It was confusing and topics were not clear and disorganized. I wouldn't have done this if there was no discount.

Vina

@Arianne L. Congrats on your continued success!

Vina

BRRRRing in Baltimore definitely works. In fact I'm on my second property to close on May 1st because the cash flow is good there. I see you're also from Alexandria. And because we're kinda far from Baltimore,  I suggest you build a good team there first that you can trust. 

The boiler system is actually still working and I'm contemplating if I should replace it with central air/heating or keep it as it is.

Hi,

My offer on this short sale property got accepted by the bank 3 days ago. Got the inspection and house is in good condition in general. I'm under 10 day- due diligence period. I met 2 contractors so far and they're $15k off from each other. My numbers and SOW is as follows:

1. Replace old kitchen with new cabinets and granite countertops. 

2. Replace kitchen appliances 

3. Change existing backsplash and kitchen flooring. 

4. Refinish hardwood floors on first and second level. 

5. Replace quarter round all throughout the house. . 

6. Replace old boiler system with new HVAC unit and put new ductwork. 

7. Put exhaust fan on 2nd floor bathroom. 

8. Recaulk bathtub 

9. New toilet, vanity mirror and sink on second floor  bathroom. 

10. Replace door knobs and electrical outlets all throughout the house.

11. New paint interior of the house 

12. Put new recessed lighting in the living room. 

13. Replace carpet with LVP flooring in the basement. 

14. Place drywall in the basement after painting with waterproof paint on the walls. 

15. Redo basement full bath 

16. Replace water heater 

17. Change 100 amp electrical panel to 200 amp. 

18. Remove bushes and couple trees around d the exterior of the house. 

19. Repair porch and repaint porch shade. 

20. Remove rotten shed. 

21. Replace plastic covers on windows.

PP- 99000 conventional financing, 20% DP 19800
Closing Costs- 5000
Rehab Cost 35,000-40000
Rent- 1500 x 12= 18000
Property Taxes- 2912
Loan- 79200 @ 5.625% (PITI 773.59×12= 9283.08)
ARV- 150,000-160,000
Insurance- 900
Repairs- @ 8% 1440
Capex- @ 8% 1440
Vacancy- @ 8% 1440
1440×3= 4320
PM- @10% 1500
4320+1500=5820
9283.08+5820= 15103.08
18000- 15103.08= 2896.92
2896.92÷12= 241.41( monthly cashflow)

With all these repairs, is $50k a reasonable quote? What about $13500 for the whole HVAC system w/ ductwork? And also I think I overpaid on this 2nd rental although I have positive cashflow. What do you think of the numbers? Calling all Baltimore rehabbers here for feedback before my due diligence period ends. Thanks!

@Eric H. Thanks!

Bump

I got a short sale approved today and I need a Baltimore home inspector. I have Matt Schelberg as my inspector but he's deployed right now. Any recommendations?

@Jeffrey Douglas

I like Retire Early with Real Estate by Chad Carson. I have the audiobook and I listen to it everyday to and from work.