All Forum Posts by: Yannik Cudjoe-Virgil

I would advise to perform a background check on every sponsor/operator. You must look out for yourself in business, and you can't depend on no-one else to do so. That's just how the business is. Partnerships are like marriage. Easy to get into, hard to get out of. Don't get stuck with the wrong partner. 

At the end of the day, it comes down to time and resources. Not everyone has the same of both. There are different ways to achieve financial freedom, and YOUR story is YOUR story. Sure there are "easier" ways to do everything, but at the end of the day, just do what is best for you with your time and resources. Not everyone starts with 100k. Some make have to make due with 10k. We are all trying to get to the same destination. Some may take the elevator, and some may have to take the stairs. That's just how the cookie crumbles. 

I love multifamily as it carries a lower risk profile, verses one tenant in a SFH. That alone should get you going!

Baltimore city is pretty strict. An inspector may walk by and but a stop work order on your door. If you are just changing fixtures, carpet and other small items, no need for a permit. If you are doing things like drywall, then just get a building permit to cover yourself. You can pull that on your own. 

Yeah. Those are better areas. I would buy in those submarkets

@Kristopher Allen 9 units at 50 per door in Baltimore sounds like a deal that in a lower income area in Baltimore. I would definitely recommend you perform some due diligence on the deal and know what your doing in Baltimore City. Like one prior post said, Baltimore is an at risk market, especially in the city. A lot of insurance carriers are declining policies in the city due to an increase in claims. 

Doubling down on Baltimore!

@Tony DiDomenico I just recently did an FHA 203k loan househack in Baltimore. Based on my experience and knowledge with FHA loans, if I had to do it again I would've gone conventional. This would also apply to a regular FHA loan. The reason being is:

1) You can put 3% down instead of 3.5%

2) Less strict policies

3) With conventional you can get an appraisal when you are a little over 20% of equity and get rid of PMI. In FHA, its my understanding that you cannot get rid of the MIP.

Speak to your mortgage professional about that

Costar is a great data base for Multifamily. I have CoStar and typically pull lists based on our criteria. It also has owner information. Not a lot of people may know this but CoStar also owns Apartments.com, so there is some accuracy to the rent comps, vacancy, market info, etc that the database provides. Pricey if its in your budget. 

I agree with these guys. Great checklist to use when evaluating a deal. A sponsor should be willing to answer the remaining questions. Prioritize the questions that align with your investment values and see if things check out in the sponsor's OM.