I am planning on doing a total rehab project in the Baltimore(gutting and all). I want to hire a general contractor , I don’t want to do this myself because time is of the essence and I am new at this. This would be my first one. I am a newbie. I was told to be careful and that I should probably get a general contractor the first go around. I am not sure how much something like this should cost. So I plan on talking with a few people and getting quotes and was wondering if any of you could reccomend some general contractors or tell me where I could find them. Is there some kind of network out there.
There are tons of rehabs/fixer uppers in Baltimore. I wouldnt suggest going for a TOTAL REHAB on your first project, there are to many properties in Baltimore that wouldnt require you to do that.
Be sure you are getting a great deal. There is a lot of inventory in Baltimore and it is easy to lose money there. The back end sales price that works for you in terms of profit should be, in my opinion 10% lower than the most current comps. There is a lot of inventory in Baltimore. Even experienced full gut job rehabbers can lose money there. Ask me how I know?
I do not want to disuade you in any way. Just be very conservative on your numbers. Add cushion, etc.
krober, what neighborhood in baltimore are you looking at?
my partner and I are currently looking to do the same thing. the numbers we are looking at are 100-150 for shell, 65k for rehab (we will be doing most of it ourselves) and 250-325 resale.
bluechip - have you done rehabs in baltimore before?
I have a full time rehab crew in Baltimore. Shells are a lot of work for 2 people. I’d expect it to take close to 6 months to a year for completion (hope your budgeting for carrying costs). There are a lot of make it or break it things to consider in Baltimore.
-Choosing the right block (not just neighborhood) can mean the difference between disaster and a small fortune.
-Not all shells are created equal. Some have serious structural damage that need experienced contractors to resolve. Most are not gutted, so the problems won’t become evident until you start filling up dumpsters.
-Different sizes. I assume we’re talking about row homes here, and the sizes vary A LOT. I only rehab 3 story row homes that are 3 windows wide. There over 3,000 sq ft with 12-15 foot ceilings. That means I need to buy a huge amount of material for a gut job.
-Getting robbed. As rehabs are very common in Baltimore, so are job site thefts. The very first thing you should do on a project in Baltimore is put good windows and doors on the place and have it alarmed. You should already have insurance for big thefts. It’s not uncommon to have an air conditioner, water heater, kitchen appliances, etc. stolen in one night.
-Your resale is not going to vary as much as 250-325. It will be clearly defined prior to purchasing. Your resale value can change by 50-150k just be crossing the street. This is not because one person decided to overimprove their property either. Again, make sure you pick the right block.
-Shells are cheap, there are plenty of them, DO NOT overpay. I’ve bought a shell for as little at $100.00 and as much as $75k. $100-150k is too much for a shell in most parts of the city.
-Does the price include the land it’s sitting on? This little (HUGE) factor is often overlooked by first timers. I don’t know the exact percentage of land leases in the city but there are a significant number of them. Don’t use comps where the land conveying or not is different from your subject property.
Danny, the areas we are looking at are Highlandtown, Washington Village, Locust Point and Patterson Park. THat is why the variance for as much as 250-325… like yo u said depending on the block etc. We could get more in Highlandtown and LP than we could in Washington Village or Patterson Park.
I am familiar with the getting robbed aspect. Ive heard many stories about copper piping etc being sold.
Danny what neighborhoods do you work mainly in? and do you have any more infor online about your projects. I would love to read see more.
The shells I have seen have been from 110-145 in the Highlandtown and LP areas (these are the areas we are looking into most). I am trying to locate more birdogs and sources of vacant properties though.
You can make money in any area of Baltimore. I prefer the more expensive areas because I’d rather do high end rehabs, but that’s just me. You could make an equal amount of money on lower end rehabs. In your list of possible places, the only one I’d stay away from is Patterson Park. You’d be competing with a non-profit with very big pockets! http://www.ppcdc.org/
They own most of the neighborhood.
The thing most investors are doing in the lower-middle income areas such as Washington Village, Sandtown-Winchester, etc. are to buy up as many properties you can afford, boarding/ blocking up the doors and windows, and sitting on them until the market come back around.
Affordable housing in Baltimore is what’s “in” right now. If you stay close to JHU/ Biotech area, you should be in the safe zone as many new jobs will be created very soon.
I don’t keep any blog-type info about ongoing projects. I do have 1 residential project, 1 commercial project in Baltimore right now and 7 completed houses for sale, I will email you some pictures. I will be visiting Baltimore next weekend to get refreshed on what’s happening around the city so I’ll give you some better info on which areas to be in.
