All Forum Posts by: Chrissy L.

@Jessica Chow Hello, apologies for the delay in reply!  I didn't end up going through with it.  The neighborhood is still up and coming and there's no signs of appreciation or ease for rental.  I'm keeping an eye on it.  Again, sorry for responding so late.

@Ernestine Johnson Hi there, I just sent you a private note.  I have a vacant property in Baltimore and would consider your friends if they are still looking.  I look forward to your reply.

David Fernandez Ned Carey Brad Cogswell thank you all for your actionable suggestions! I did reach out to other resources and understand that the 25% down is a Fannie Mae requirement for multi families with more than 2 units. I had done all my numbers based on 20% and while it's not a deal breaker, I'd like to hold on to as much cash as possible. It looks like I need to get better connected with those who can offer less than 20% without PMI. Michael Noto thank you too, it's like you're in my brain! :) I'm getting a little nervous about pulling the trigger and am being overly cautious. This has been the most informative discussion thread yet. Please continue to impart the wisdom! :)

Seth Sherman Your questions are great and have been considered and factored into decision-making. Complacency isn't an issue here. I will, however, need to dig into the required down payment. Lakshay G. I am financing on my own. Per my CPA, given that I'm just starting, having a LLC isn't going to make a big difference from a tax perspective. I do appreciate that it is from a legal prospective. I'm trying not to get bogged down by LLC and miss deals. What are your thoughts on personal vs. LLC? Many thanks!

David Fernandez Hi David, from a lender. I wanted to avoid PMI and thought 20% is standard. I was told any investment property with more than 2 units has the 25% requirement. The property I'm looking at has 3. I've yet to do extensive research around this, does this sound off to you? Does your 10% down come with PMI? Many thanks!

Thank you both! The numbers are sensible. I am more looking for other things I might be missing. For example, I just learned that any investment property that has more than two units require 25% down in Baltimore City. It isn't the end of the world but I had run my numbers based on 20% down. Also, how do the existing tenants transfer over, am I responsible for their security deposits when they move out? Adam Sanders Brad Cogswell

Hello BP, after months of diligent and persistent search, I've finally found a deal to put an offer on.  It's a 3-unit multi, two of which are currently tenant-occupied.  Based on the rental market in the area, the third should be very easy to rent. I want to make sure I have all my ducks in a row.  Even with a lot of due diligence and a highly experienced realtor, surely I am missing something.  I would appreciate any advice, pointers, key questions to ask, as I take the next step.  Many thanks!

@Evan Schluederberg Hi Evan, have you had successes in Baltimore since your original post?  I've gone to Baltimore pretty much every week for the last two months, to see the neighborhoods and streets for myself.  It certainly is block-by-block.  If you haven't already done so, I highly recommend driving through the various neighborhoods to better gauge.  I've seen about 30 properties so far, there definitely are good deals.  I look forward to hearing your success stories.

Hello BP, I've come across an opportunity to buy the model home of a new construction development. The developer will use it for another 12-16 months as their sales office while the homes are still under construction. If purchased, the developer will essentially pay me rent until they vacate. With the most conservative analyses, it's a healthy cash flow. At the end of the lease, I plan to treat it as a rental property, or use it as a primary residence. Has anyone out there had a similar experience? What are the pro and cons and what are the key questions I should be asking in advance? Many thanks!

Thank you Tamara V. This is exactly the type of feedback I was nervous about, the added paperwork and process. As for me, I am looking to buy and hold a CHAP property, presumably all the paperwork has been taken care of by the seller but could never feel too comfortable. Have you bought a CHAP property in the past, and how did your rehab turn out? CHAP could be very powerful. I'm also looking forward to more feedback from our fellow Baltimore investors!