All Forum Posts by: Brad Wood

@Kevin Escobar thanks! Would like to discuss what the best options are.

In DC your AirBnB has to be owner occupied. We are looking to rent out our English basement, but are way too busy to self manage.

Any recommendations for reliable management and cleaning services, and any idea of what we should expect to pay?

Thanks in advance!

@Marian Huish thanks for this! Our tenants left this month and I'm looking to AirBNB our English basement. While the property is owner occupied, can I still have someone manage the listing?

Or do I need to manage it and find a cleaner? As I have a lot on the go I would prefer to have someone manage the booking process too.

[If that is allowed, any recommendations are welcomed too!]

I am looking to become an agent, and I know there are a lot of factors that feed into this decision. That said, my very narrow question is that if I am a RE agent in MD, can I represent myself when I buy properties? I plan to buy at least 3-4 properties over the next few years and one factor in my decision to be a RE agent is the ability to represent myself. 

I looking to get licensed as a real estate agent in the DMV. Given a combination of COVID and my current full-time job, I am looking at online options. Does anyone have a suggestion?

Additionally, I am mostly interested in the DC and Maryland markets, but eventually will likely look to be licensed across all three. Is there a recommendation on where to start and approach? If you get licensed in one state/district is there reciprocity or are there suggestions in navigating the three?

Thanks!

Thanks for your reply on this Jaysen. It looks like I am going to have come up with another approach, which looks like it will be a cash out refi from my primary property. 

Your last para was super helpful though. I didn't realize you could take out a 2nd mortgage on a commercial property in that way which may come in handy down the road. 

I know a really good book i need to read on how to finance this deal - Investing in Real Estate with No (and Low) Money Down - but as I await it's arrival, i'd appreciate any advice on a current deal. 

The property is a commercial 8-plex. List is $850k and it is very close to meeting the 1% rule and will be if rents are brought up to the market rate. The deal is what i've been looking for and will more than cash flow and should have room to appreciate. Through a few sources, i can scrounge up about $85k or 10%. With it being commercial though, i assume i'll need 20 or 25% down. (Correct me if i'm wrong.) 

In this case, the crux of my question is that I know you can get a 1st and 2nd lien mortgage for a primary residence, is this possible for a commercial loan? I don't think i'll be able to BRRRR out of the deal over a short span, because the property is mostly occupied. If I can bring rents up over the next couple years, I would hope to pay off the 2nd lien mortgage and eventually cash out refi once rents are optimized but that will take time. Given this, I don't know if hard money is really an option that makes sense.

How can i make this happen?

For our live-in duplex we charge tenant's 1/2 of the monthly water bill. This varies each month. Is this amount considered taxable income and added on to their monthly rent? If it is, can it also be counted for as an expense?

With our outgoing tenant we deducted a small amount for repairs from the security deposit. Is this considered income as well? 

Thanks! 

-Brad.

I live in the DC area but am interested in Baltimore for RE investments. I know there is high RE tax and know it can change block by block so are there any recommendations of where you can best invest for cash flow? 

In particular i'm wondering if the areas around Hopkins (or their medical school) are good for targeting students, or if there are other neighborhoods that can be easily and consistently rented. Or, are there other areas - Fells Point, Patterson Park, other? 

Thanks in advance for any suggestions - or links to external resources. 

-Brad.

These are both fantastically helpful, thank you @Frank Chin and @Dave Foster. Frank helped clarify some of my initial questions, but you also have given me more to think about Dave. My intent - at least at this stage - is to move out eventually and to rent out both portions, but you've raised a really interesting point about the tax savings upon sale/1031 exchange. 

For the two year rule upon sale, is it 2 years in the past 7? I believe I heard this before, which would be great if we can move out rent both units for another 4 years and still have a window to ell while taking advantage of those benefits.