All Forum Posts by: Blake Wood

Hey @Ryan Reich - If you're still looking for one, I have one.

 Thanks Jonathan - That is certainly the vibe I am getting from asking around but I have yet to see anything in black and white stating this.

Got it. The only reason for the yearly timeline is for financing purposes. In the perfect situation I would essentially be turning single family homes into duplexes in a work around way by being an owner occupant during the permitting process. This is happening on pretty much every street in San Diego to help fight affordability challenges. I was not aware of the yearly inspections once the spaces is permitted to be rented out. So yes, if the ADU can't be rented once I make the main living quarters a rental, then it is a complete waste if we plan to move to a few houses in our first few years here.

Thanks, Aaron. So I think the major question is, when I try to buy another house to live in, can I rent out both the ADU and the main house that I had been previously living in. I understand, at a basic level, the ADU laws in AA County and Annapolis but we wouldn't want to do this long term so I don't think the return would be there unless we could continue to rent out both spaces. @Russell Brazil, said it is not feasible.  In that case I would still lean towards doing a live in flip and then renting it out after a year to get started.   

Hello Bigger Pockets,

I am planning on moving to the Annapolis area in the next year and have a few questions on their rental and ADU laws.

In a perfect world my plan is to buy a house every year to live in, fix up, and convert a basement/attic/garage into an ADU. After a year, I would then move onto the next house while renting out both livable spaces in the previous house. I know AA County and Annapolis are very strict on their zoning laws and do not allow duplexes to be built on SFR lots but by being an owner occupier for a year, am I able to get around this? I know of people doing this in California, where I live now, to help offset the expensive prices but I am wondering if anyone has any experience doing this in Maryland.

Any other house hacking success stories in this area?  Would love to hear about them and connect!

 Matt - Hope you are doing well.  We actually talked a lot about some of the earlier deals I was coming across when I first moved out here - its been a while! Thanks for the insight and sorry that I am now just getting back to you.  I'd love to dive into the option as acting as the owner occupier for a partnership with you a little more.  I'll reach out when I get back in town!

You the man for reaching back out and sorry for the late response (Haven't been on here for a while).  I ended buying a deal I could have wholesaled back in April and put it on the market in July after throwing $130k into it - TERRIBLE Timing!  Lost a good chunk of change and am back to the grind digging out via wholesaling.  The new/adjusted plan is the continue to wholesale/help broker deals and eventually buy rentals back in Maryland where I am from.  

 Appreciate the response, Luis.  

The "edge" you noted at the end is a big proponent of why I can't decide.  "Why invest some where else if my current job is finding deals here!?"  Haha That is the little voice I fighting with inside my head...  I know creativity is the answer and talking with people like you guys will help me get there.  Here are my quick answers to your questions...

1. If we are in PB where I live now, each room could rent about $1,500 if it is going to be a shared living situation for them.  A private studio situation could rent closer to $1,800 or more depending on how big the place is.

2. I am living with my Fiancee (another reason why rent is so cheap), so unless that are close friends, I don't think I'll win that battle.  We'd ideally be able to renovate the place to have two or more separate living spaces.

3. After purchasing, I do not have a safety net in the case of losing my job and taking on the full mortgage without selling off some of my investments in the stock market. So yes and but I absolutely don't want that to be the plan if things go sideways.

4.  I am not exactly sure what this means but I'll try to answer it.  Since I am getting married, potentially starting a family is on the horizon in the next five years.  Being able to support our life style without working 70 hours a week is the goal when that time comes.

5. Yes that would be affordable.

 Hey Adam - appreciate the response.  Yes, living in PB and yes, I ask my landlord if I can purchase the property once every other month haha.  You're right - There are a ton of older owners that have paid off the property and keep rents low for long time tenants.  I am starting a mailing campaign (hand written) to some targeted properties around me.  Unfortunately, these are the properties that, I'm sure, get bombarded with marketing material.

 Appreciate this, Brad.

I am leaning towards cash flow.  I am early in the process and my income is not consistent so buying something in a heavy appreciation market that's more expensive and doesn't cash flow out of the gates would be hard to handle right now.  That being said, I understand the +'s and -'s of only buying low appreciation cash flow properties so, eventually, I would want to move into more expensive capital gain type markets like San Diego.  

Your note on flips is perfect.  I am starting to round up my team (capital partner, contractors, etc) to start to take on my own flips.  That is 100% the next step for me and I should have mentioned that.  This kinda falls into option 3 though.  Should I just put my head down, grown my flipping/realtor/wholesaling business here until I have something consistent and then move into rentals later.