All Forum Posts by: Brittnie Stewart

I am scheduled to get inside today. I'm also looking to wholesale it. I have had some experience with estimating repair costs but I'm definitely not the greatest. I am trying to get my contractor friend to come out to help with that but it's not looking good at the moment. If you all maybe have some general rehab numbers (cost of a new roof per sq. ft. because I am pretty sure it will need one, electric and plumbing per unit, etc.) I know everything is pretty vague at the moment. But I was hoping to just kind of get an idea of where and how to start. A building this big is definitely way out of my league. I can continue to update throughout the process after I have seen the building.

I really need some help with figuring out if the numbers work for this deal I am trying to do.

It's a 9-unit apartment building that has been vacant for quite some time. The current owner doesn't even know when the last time its been occupied. I've seen the building personally for the last (at least) 7 years in the same condition. So, I know it will need a lot of work. Everything is going to need to be redone (plumbing, electric, heat, floors) I haven't been inside yet to see what other types of things it needs.

It's in an up and coming neighborhood in Baltimore City. Rent will range between $900 - $1050 for each unit. The owner is pretty firm that he wants $200,000 for it. There are no other buildings in the area to really use for a comp. And I'm not completely understanding how to use NOI and Cap Rate to figure it all out. Can anyone help in any way?

I know this was posted an entire month ago, but I've noticed there was no response. I actually do know of a very good contractor. You can PM me for the info.

I have been doing a lot of driving for dollars and came across some properties I'm really really interested in. However, upon research, I learned that they are currently in pre-foreclosure status. I've been advised to stay away from these unless I had a realtor who's an expert in short sales. So here I am. Are there any realtors out there that are really knowledgeable with shorts sales in the Baltimore area?

Im honestly not too sure if the CAP Rate is correct seeing as though I dont even know how to calculate myself, nor do I understand exactly what it means or the significance of it.

I wasn't considering it to be an agents fee. I figured once I got it under contract that it wouldnt be any different than a wholesale deal. I don't see how it differs.

 My goal was to get them all under contract but I didnt know an accurate price in which to do it. Would it make any different if I had contracts on them

I do tenant placement in Baltimore, Maryland. I'm still a bit of a novice when it comes to wholesaling, simply because I haven't had many deals to gain the experience. But I do have my own buyers list. So, one of my investors is pretty much asking me to sell 30 of his properties. All have recently had work done to them within the last 5-6 years maybe. 26 out of 30 of them are occupied. 20 of those 30 is federally funded (section 8) tenants. He has given me each rental amount, CAP rate, and what he wants for it.

Here is an example of one of the properties:

Occupied property with a section 8 tenant in it is getting $1,359 per month. CAP Rate is 25.80%. Asking for $49,000. The property was bought in 2010 for $48,500.

My questions are:

What will this CAP rate mean for the next buyer?

How can I calculate to make sure that what he is asking for isn't too much and to make sure that I can also add on my fee? 

In your opinion, how would you price this house to a new buyer including the wholesale fee? 

Are there any questions or important pieces to the puzzle that I am not considering? 

Thanks for any feed back and advice.

So I have a few deals in the works. It will actually be my very first closed deal if everything works out. However, the buyer wants me to just give him the lock box codes to the ones his interested in. It may seem like the simplest thing, but should I give it to him to check out by himself, or should I go with him? How does it look on my part if I don't go with him. 

Give me the codes or go with?

I've actually started doing tenant placement in Baltimore and have come to learn that Baltimore is a HUGE rental place. Especially with Section 8 if that would interest you. A lot of my investors prefer section 8 because its pretty much guaranteed money and you're more than likely to get above market rent. They've also opened their waiting list again a few months ago and are scheduled to give out 10,000 more vouchers. Add that to those who already have a voucher, and you have $20,000+ people that are need of rental houses.