All Forum Posts by: Bart Modzelewski

Has anyone had experience with Renter's Warehouse?

@Account Closed Not disagreeing but I don't think we should have to look for loopholes because they want to push their BS laws down our throats...

@Lou Ruggieri I'd go floating floor. There are below grade floating floor vinyl options that look great. Take a look in that direction.

@Sebastian Taylor @Rich Baer
There are plenty of older buildings being rented in the county and city with lead paint. The lead paint may be under another layer of paint but it is still present within the structure somehow. What is the point of the lead paint inspection (that has to be reinspected every time a new tenant begins to rent)? You can either inspect the property to be lead free which would require eliminating everything that had lead paint on it (pretty much gutting the property) or you can test dust samples. I'm not sure how the dust sample test works but there would still be lead paint hidden under other coats of paint. At that point, the city/county and tenant would be made aware of the findings. Are you safe from a lawsuit then?

@James A. Depending on the scope of work you may be spending a little more. I always try to over estimate the cost of rehab even when doing most of the work myself. As far as mulit units... a few reasons... there are not that many multi's in my farm area, the initial cost would be significantly higher (both purchase and rehab), and the multi units I have found tend to be in lower grade areas in which I am not currently interested.

@Adam Juodis The lender I spoke to took into account the estimated ARV and gave interest rates for different percentages of the ARV cashed back out. They also reviewed debt to income to determine qualification for the cash out refi. I guess they would still like to make sure you can afford the refi if something happens and you're not renting it.

@Tim Jacob Thanks for all of your input. It was all very helpful and relevant. I will keep you in mind if/when looking for a pm.

@John Leavelle You are correct, the banks I have contacted will not give a conventional loan for a property that is not "livable." On to the backup plan!

Thanks for the heads up!

@Tim Jacob After listening to a few podcasts I decided to include it, even though I wouldn't be using it from the beginning, just in case I decide to turn it over to a pm down the road. It is great to know that you have not had an eviction. You must have the screening process down pretty well. This is one of the parts or renting that worries me the most especially since I have never done it before but live and learn I guess. I plan on doing my homework before starting to screen possible tenants. 

I would be more than happy with 1,425! That seems very good considering it's not rented to section 8 (don't sec 8 properties usually rent for a little more?).

Rental inspection / lead inspection was something I did not know about. Are inspections absolutely necessary to legally rent? Does the property need to be registered (or something along those lines) with the county? Could you point me in the right direction on where to find these "codes" from the county? 

Thank you for all the information so far - all of this is great to know before actually having everything finished and then needing to address these issues.

@Matt Schelberg You are right, after speaking speaking to a lender I realized that the interest rate would be around 5% instead of 4%. Up until now, I have been using basic purchasing calculators on Redfin/Zillow just because they have a relatively good concept of  property taxes.

The cost is on the high end because I plan on gutting most of it... new kitchen, bath, floors, finish the basement, etc.

Thank you for your additional feedback and viewpoints.

@Jon Robbins You are correct. I am getting percentages from the wrong numbers. I will have to recalculate all of the numbers! Thank you for pointing this out. I don't know why I thought I should be calculating off of the mortgage price.

Thank you! I don't know what I was thinking!

@Brent Coombs Yeah, that was a HUGE mistake on my part! Hopefully that is the way it works out... all of the cash comes back out with the refinance. 

Thanks again!

Eastern Savings Bank they do portfolio loans

I ran into a Loan Officer from Eastern Savings at the Bel Air, MD REIA monthly meeting. I'm not sure if he's a regular attendee or not. He seemed willing to help and they offer portfolio loans.