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Updated over 3 years ago on . Most recent reply

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Collin Miles
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Difference Rental: Bedroom vs. Unit

Collin Miles
Posted

Hello BP Community,

I recently moved to Baltimore, MD and my first day I began looking at the property around me. In searching I found a 6 bd 3 ba brick structure that looks abandoned. I am going to send a letter to the owner however I have some questions before I do that. 

   I know 5+ units is considered commercial

What is considered a unit? Would this purchase make me a commercial real estate investor? 

Depending on the replies, I have thoughts of turning it into 3 livable units separated by floor. Would that change anything regarding the purchase of this building?

Unit=own entrance, kitchen, bath; a completely livable area?

      Any help would be appreciated

Most Popular Reply

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Genny Li
  • Baltimore, MD
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Genny Li
  • Baltimore, MD
Replied
Originally posted by @Collin Miles:

Thank you very much @Genny Li ! This is great news

 I would check your specific county's ordinances just to be sure, but in all 3 counties that I've checked, a unit is defined as having a "complete kitchen", which means that tons of people get around it by making units with separate entrances and hot plates, microwaves, and really big toaster ovens. :P And then you just have a boarder not a tenant, too, if you live in the main house, which means they're easier to get rid of, too.  There are restrictions over how you are permitted to charge for utilities if the units can't be split. In Baltimore city itself, you can't charge for a utility if you can't meter it for each unit--that has to be included in the cost of rent. Not sure about other ones.

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