All Forum Posts by: Brandon Malone

@Tom Gimer how do you go about finding out that information? Call the water company? The agreement is already signed. Signed it to get property under contract and use inspection to back out if need be?

@Tom Gimer what you mean by PSA? And do you mean water turned after closing? They are adamant on not having it in for inspection. I will do an air pressure test but not sure how much that will show if the water is shut of from the outside by the water company.

@Chris Mason I should mention it’s a townhouse built in 1992.

@Chris Mason the property is a foreclosure and the lender has stated they can do conventional financing even with the water shut off for inspection.

Hi All,

I put a contract in on a property and have been informed by the agent that while electricity is on, the water will not be turned for the inspection, even if I offer to repay to have it turned on for inspection and off after. Need your help to determine the worst case scenario that could happen? Please include the cost of the worse case scenario if you know it. 

@Aaron Cavazos The property is located in Clarksburg, MD. I would classify it as a Class A/B neighborhood, probably more on the B side. As you know Clarksburg is fairly new, so this is a new townhome surrounded by single family homes valued between 550-575k. It was built in 2004 I believe. I can't speak to appreciation much with great certaintiy, but as long as they continue to build shopping centers around Clarksburg (example is the new outlets), there could be potential for even greater appreciation over time. 

@Jeffrey Holst @Michael Noto Appreciate the feedback. The market is so crazy in the DC area and pretty much everywhere else- Whatever I'd get from selling, the time to find another property to avoid cap gains taxes will be difficult. I suppose I could get out of my comfort zone and explore properties past the DC region. 

@Thomas S. It seems you're thinking of the 1% rule. Which has always been a goal, but in the DC market- getting close to 1% of purchase price as rental price is near impossible. But I also see your point in possibly subsidizing for a renter to live the moment I get hit with a maintenance issue. I suppose with $60k equity, I'll have to to strongly consider selling. 

@Thomas S. Thank you for the prompt response. I've been torn on this, it will be the first property that isn't cashflowing for me. I wasn't sure if it was worth using the cashflow from another property to prop this thing up for sometime. The actual going rental in the area is $2100 to $2150. The reason I selected the $1850 rent was because that's the price the individual I know can rent it for, and thought it might be advantageous since it's unlikely he'll move anytime soon. It's either that, or rent it for $2100-$2150 with a renter that could leave after 1 or  2 years, in which case I'll spend a good amount of money to get it ready for rent again. 

Need help with this property. Here's the information. My parents decided to retire overseas. They have a property that was modified by the bank three years ago. By modification, the bank extended the term of the property to 40 years to drop the mortgage payments. If I rent the property at $1850, I'll just be breaking even on debt service (mortgage, HOA, insurance, taxes). Good news, it's fairly a new build property so there isn't much maintenance. The other positive news, I have a tenant ready for the property that will stay there a minimum of five years, he doesn't move much. He stayed at his last place for ten years and has been on his job for 20 years. He recently had a baby and looking for a bigger property. The property is valued at $395k, and has a loan of $331k. My question to everyone- what would you do with this property. Hold and rent, sell, or another creative solution I'd be open to hearing. Lastly I'll mention I have three other properties with decent to strong cashflows.