All Forum Posts by: Ilya Z.

@Jerry Boyko good idea thank you. Will call the county.

@Michael Colebank thank you! I didn't realize there are disposals that are specifically designed for septics.

Hello Everyone,
As far as I know, in Maryland, if you have a house with a septic, you are not allowed to have a garbage disposer in the kitchen. Is there a similar rule in West Virginia? Or does it depend on the size of the house/septic or any other factors?
TIA!

@Kyle Robertson another potentially large expense I think you need to take into your calculations: your kids' higher education. The very high price tag of even in-state colleges + COVID-induced switch to online learning might lead to some monumental shift in how people get educated past high school. But it will probably still require quite a bit of money. You can of course rely on the kids taking out loans, but in my opinion it's a terrible option. 

Apologies if this is the best forum for this discussion but I could not find a better one.

I have a few SF rentals but want to explore the next big step and delve into MF investment.

I was approached by an investor to partner on a deal. He's buying 4 small MF properties in the same town (11 units combined). All except for 2 of the units are rented out by tenants that are supposedly reliable and have been paying steadily even through COVID (I think most of them are retired and/or are receiving some sort of Govt assistance). The total sale price is about $550K. He prequalified for a 80% commercial loan and is offering me to invest $160K that would cover downpayment, closing costs and the 3-month reserves that the lender requested. In return he's giving me 50% of rent profit and 50% of the equity.

This type of partnership is a totally new type of beast for me, so what questions should I be asking?

Thank you!

Hello Everyone,

We found a property that might be a good flip. We don't want to do the rehab/flip right away for a couple of different reasons.

The property has a good tenant and it seems that if we buy it with a conventional 30-yr fixed rate investment loan, it'll cash flow. So the plan is to keep it as a rental for about a year or less and then rehab and sell.

However, the seller wants to close by the end of this month. I don't think we can do it that quick with a loan (We're in MD, property in WV). We have a primary home HELOC that we can use for a "cash" purchase. But it will not be cash flowing in this case. So is it possible to find a lender who would be willing to consider the initial purchase as "cash" and allow us to refi right away into a fixed rate loan, instead of waiting it to season?

@Matt Vaughn no not yet. Things are on hold until the COVID thing blows over.

great thank you

Hello fellow BPers!

It's been my understanding that, before COVID, you could enter your rental property after you gave the tenant a 24-hour notice.

Under the new COVID-related rules, did this change? If the tenant says "no you can't come because you might be spreading the virus" am I forced to oblige? What if I suspect that the real reason is something sinister, like damage to the property? What if I have sufficient evidence to suspect that the tenant is actually not there, even though she claims "she has nowhere else to go"? Do I have to ask police to accompany me?

We were trying to sell our first flip but with COVID the buyer segment best suited for the house disappeared. Those are 1st time home buyers relying on Govt-backed loans like FHA, VA, USDA etc.

So what we've decided to do to reduce the bleed is to find a short-term tenant to rent to, and then put the house back on the market after things improve (will it be in a month? 6 months? 6 years? :-))

We would like consider a rent-to-own option. Question is, how do we figure out the numbers? As I understand, a R2O deal would include an upfront deposit of $X that would count toward the eventual purchase after Y months/years, which the tenant would lose entirely or partially if they decide not to buy. And there's also an option of increasing the "pure rent" by $Z/month with that difference also going toward the purchase. So how do I figure out what X, Y and Z should be?

TIA!