All Forum Posts by: Jeff Brown

Yes, get a lead inspector.  I use Homecheck and they've always been great.  Get limited let free.  They will do several scrapings around the house.  Do not tell the inspector you want lead safe.  For lead free they will use the gun and they will find lead. It's a rowhouse in Baltimore it has lead buried.  It's safe, but it's still there.  If it was built in the 90s, you still have lead, you're just except from the testing.  When the lead is found, and it will be, you need to have a licensed abatement company remove it.  Do not do it yourself!!!!!  Painting over lead paint will make it safe, however the gun will still detect the lead and you're wasting you $$$$. You can GWB over the lead.  This will make it safe, however the gun sometimes can see through 1/2" GWB.  

Once you have the limited lead free you will need to renew every 10 years or after each tenant.

In this situation there is reality and perception.  You can have lead present in a home, have it covered, and be 100% safe.  If there is the perception you didn't 100% cover your butt, you are rolling the dice.

I just received my tax return. I got killed because I’m not a “Real Estate Professional”. I’ve never heard any discussion of the importance of this qualification.

I live in Baltimore, and have 3 rentals in the city. We had a lot of repairs last year and ended up with $30k in expenses. I picked up my taxes and my accountant was busy with another client, so I didn’t get to review the results with her. I usually break even, suddenly I owe a ton. I’m aware of the shift where I received more in my paycheck. As I reviewed the documents I discovered my $30k doesn’t apply. It looks like I need to have $150k in expenses for any of it to count.

Has anyone else run into this or did my account miss something?

Thanks

I haven’t used hard money.  I know people who have, but all my funding has been through “traditional banks”.

@Frank Patalano - I’m not sure I count as new. I moved in with my GF 10 yrs ago, and rented my house. We bought a house together, and rented her house. My mom died last year and I used her final gift to buy a 3/1 townhouse as a rental. My GF is now my wife, but I’ve only in the last year started focusing on learning investing skills instead of fighting through it.

We just bought a family home and are renovating our last house to sell. Given we are two working professionals I’d like to keep it to one transaction a year and manage my multiple buy-holds.

great question

Jeff

@Bob Romano - I have a tenant who is always late. I collect the late fees and laugh all the way to the bank.

It’s not worth going the eviction route. You’ll have legal fees, turn over costs, carrying costs, and the next tenant could be worse. In my experience it costs $6k to turn a property.

If your tenant treats the property well, eventually pays, and you have good numbers you have no problems.

It is a pain.  There is registration, manditory inspection, lead certificate, and courts are tenant friendly.  If you get a good tenant you can make money.  I own 4 in BC.  DM if you’d like.