All Forum Posts by: Garry Lawrence

Hi everyone, Happy New Year!

I just bought my first rental property in Baltimore, MD, and I’m planning to rent it out by the room, including the basement. The property is located near two colleges, so I’m focusing on student tenants and planning for 12-month lease terms.

Do you have any tips or advice for renting by the room? Specifically, I’d love to hear about best practices for managing shared spaces, screening tenants, and setting up house rules.

Additionally, I plan to split the utilities among the tenants—any advice on how to handle this efficiently would be greatly appreciated!

Thanks in advance for your help! Also, I wish you many success in 2025!

I need advice on a serious situation involving a property I’m about to buy. A mass shooting occurred tonight on the street next to the street where the property is located, leaving nine people shot and one dead. Police described the event as "shocking" and "unheard of." so far. I’ve already put down a $2,000 earnest deposit and paid for the inspection and appraisal.

This event is unprecedented in the area, as the area is typically low in violence and considered very safe. The neighborhood has been flourishing, making this incident highly unusual.

What initially drew me to the property was the potential for high rent and strong cash flow. This would be my first real estate investment, making the decision even more critical.

I understand that backing out would mean losing the $2,000 earnest deposit. Given the circumstances, I’m unsure whether to proceed or back out of the contract. What factors should I consider when making this decision? Are there other legal or financial consequences I should be aware of?

Any guidance from experienced investors, real estate professionals, or anyone who has faced a similar situation would be greatly appreciated.

Thank you for the valuable advice! After reconsidering the utility cap, I’ve decided to only include Wi-Fi as a provided utility, and have the other utilities split between tenants. I’m also making the property my primary residence to lower upfront costs, effectively turning it into a house hack.

With this setup of me now occupying a room and not including utilities. I will charge a rent of $850 for the other 2 rooms and $1,100 for the basement (because it's more private with it's own bathroom). My updated expected monthly rental income will be $2,800, resulting in a cash flow of $795 per month (excluding my share of the split utilities).I plan to set aside at least 80% of my cash flow for property-related expenses.

Additionally, I’ll be installing keypads and security cameras for enhanced safety and operational efficiency. Thanks again for all the helpful suggestions, and I look forward to hearing more advice!

Hi Health, 

I am planning on self managing it. Thanks for the advice about getting connected with the campus organizations. Again thanks for the advice it really helps and I hope you have a blessed day!

I forgot to add that the insurance and tax is included in my mortgage of $2,005. Thanks to God I have a well paying job and plan to use that income for any issues that may arise like vacancy or maintenance expenses. After buying the property, I also still have $12k in stocks that I plan to use as a last resort.

Hey everyone,

I’m 19 and about to close on my first rental property! It’s a fully renovated, modern-styled, 2-story townhouse with 3 bedrooms, 2 bathrooms, and a basement in Baltimore County, where I live. I got the property off-market for $250k from a trusted family friend. It’s less than 15 minutes by car from two major universities (Towson & Morgan) and just a 7-minute walk from a shuttle that services both campuses.

I plan to rent the property by the room, targeting mainly college students due to its proximity to the schools. With 4 rentable rooms (including the basement), I expect to generate $3,600/month with full occupancy. My mortgage will be $2,005/month, and I’m budgeting up to $600/month for utilities, leaving a potential monthly cash flow of $995.

I also set up an LLC and a business account to track rental income and expenses.

Questions:

1. Do you have any advice for me as a young real estate investor?
2. Do you think my age will impact my authority as a landlord?
3. I’m debating whether to furnish the shared areas or just stage them for photos and viewings. Which would you recommend?
4. I plan to put a $600 utility cap in the lease. Is this a good or bad idea?
5. What are your best tips for screening tenants, especially for student renters?
6. Are there any specific clauses I should include in a room-by-room lease for a shared living space?
7. What property management software or tools would you recommend for tracking rent payments, leases, and maintenance requests?
8. Based on the numbers and my strategy, do you think this is a good investment for my first property?

I’m excited but also know there’s still a lot to learn, so I appreciate any insights you can share. Thanks in advance!