All Forum Posts by: Eric M.

My GC just notified me that the Baltimore City electrical inspector wants him to install (a) hard wire smoke detectors, (b) GFIs, and (c) replace electrical wiring in the entire two-unit building. The building is old, and was purchased as an REO. My general contractor quoted me $3,500 for the job.

My questions:

1. Is this "necessary?" 

2. If it's not necessary, is it a good idea to just get this work done now and not have to worry about it for awhile? 

3. Should I get some of it done, and pass on other stuff? Stated differently, should I "negotiate" this with the inspector?

3. Does $3,500 seem like what I should expect to pay here. I'm not worried about nickels and dimes, but I just want to make sure it's "in the ballpark."

Thanks for thoughts!

I am seeking an agent in Las Vegas for assistance in purchasing an investment property. I will be very upfront, this purchase is probably a few months away. However, I'm an agent in Maryland and DC, so I promise I will not waste your time. Please DM me if you can help. Thanks!

The two areas I find myself most drawn to are Reservoir Hill and Pigtown, both of which have already been mentioned. I know other investors like other areas, but I think those two areas are notable because properties can be acquired cheaply, but also resold or appraised for good value after renovations.

I realize this is an "artificial" boundary, but I tend not to want to invest west of Eutaw Street in Reservoir Hill. Seems like a very clear line of demarcation. Good luck!

I was initially interested in the program initially, but I found that, in Baltimore, I could typically find better deals from a wholesaler, word of mouth, or even the MLS. The vacant to values are dirt cheap, but they almost all need complete renovations. You'll acquire the property cheap, but the costs come on the back end in the renovation costs.

Maybe others have had different experiences, but that's my opinion.

 LOL. So true. Let's not "tap the tank" though. ;-)

I agree with @Carrie Giordano. Knowing that there is some cash flow on one property can be a good "measuring stick." It's less financial and more psychological in nature, but I think it's sort of a simple way to make sure you're not spreading yourself too thin.

To answer the OP on this, by the way, it doesn't bother me one bit. Yeah, that's a lot of money, but Maryland is a pretty rich state, and you can be sure that there are going to be a lot of people, in the city or not, that want to keep Baltimore as a viable city for business at the absolute minimum.

Yes. Seconded. Most major cities in America have a "liberal" or Democratic mayor or council. Some are run well, some aren't. As an investor, I care about competence, regardless of the letter in the parentheses behind their name.

 I haven't purchased anything there, but I have to admit that it catches my eye compared to some other neighborhoods in the city. I have to agree that some of the prices seem a little high compared to what I'm prepared to spend, so it never really works out for me.

I recently purchased a two unit property REO in Baltimore. It needs work, regardless. However, I am really on the fence about whether to flip it or repair for buy and hold. Here are some of the details:

- Two Unit in Good Area, purchased for $45k

Option #1
- Needs around $50,000k of work to ready two rental units in the same property, which would allow for around $2,000-$2,200 of rent per month (meets 2% rule).

Option #2
- Needs probably $100,000-$120,000 of work for a flip. House next door sold for $220k, house across street sold for $210k. So, opportunity for profit of around $40k-50k, all told.

Some additional thoughts/factors:

- There are a lot of opportunities for rental properties in Baltimore that would meet the 2% rule, there are fewer opportunities for flips.
- I originally purchased this with intent to rent, light rehab, and I don't have "full flip" experience.

How would the seasoned investors here approach this? I am REALLY torn, but I really need to make a decision on it ASAP. Thanks for any thoughts.