All Forum Posts by: Brandon Allenczy

Hey BP!

I'm looking for some information for my duplex in Hagerstown, MD. Our upstairs tenant has not paid rent for February or March. I filed for non-payment of rent on Monday, and the set court date isn't until May. The tenants lease ends on 3/31, and I gave her notice back in January (60 day notice) that I would not be renewing her lease. The problem I foresee is the tenant holding over until the court date in May.

My question is this: can I file for holding over after 3/31 if I already filed for non-payment of rent? This would mean I have two 'complaints' about her at the same time. Is this doable in Maryland?

Also, let me know if you have any recommendations on real estate attorneys here in Hagerstown.

Thanks for any advice!

Hello BP!

I need your input on a decision I'm making for our househack. I woke up this morning and realized the oil in our furnace had run out again after a little over a month since we last filled it. Each time we refill it, it's around $600. Assuming we have to fill it for 4 months out of the year, that's around $2400 for the year.

I'd like to buy a mini-split system for the duplex. I've looked at the equipment and we should be all-in to this for around $4300. Since we recently purchased the househack, we don't have the reserves right now to pay $4K out of pocket but I see there is an option to finance it at 7%. The payments would be about $141/month over 36 months so a total of $5076 ($1692 per year) . Even with this interest, I'd be saving around $708 per year ($2400 in oil - $1692 in mini-split payments). Plus, having central AC/Heat would up the home value and help it rent better. 

Can anyone think of a reason for me not to do this? Am I missing something here? Seems like I could get a better system, it helps the unit rent better, and saves $700/year.

Love this series man! Keep doing what you're doing!

Hey BP!

I have some family out in Rose Hill, NC and while out here I have seen some properties that could be good deals. I'm hoping to have a conversation about this area with anyone who has done some deals here. There's one in particular that might make a good wholesale deal and I'm trying to gauge the ARV.

If you or anyone you know has done business in this area let me know! 

Thanks everyone, for your input! I messaged my tenant and told them I wanted to keep open communication with them about everything and asked if they had made arrangements for their move out date yet. They said they hadn't found a place, but whether or not they found a place they would make sure to be out. I guess the cash for keys worked (let's hope it stays that way).

@Marlon Lacayo instead of making a case about what I think about the real estate market, I'm going to answer the second part of your question about strategies to impose to keep your position in 2022. Before I say what I think, keep in mind I don't know your family situation or your age/stage in life. But assuming it's practical for you, I wholeheartedly believe house hacking is the best way to get started. 

I believe we're in a great position now for you to buy a small multifamily property (2-4 units), get locked in at these crazy low interest rates for the next 30 years, and offset one of the biggest expenses in your life (housing) by renting out the extra space. Think about it, the worst case scenario is that there IS a market crash and rents take a little bit of a hit; you're still paying a fraction of a housing payment that you would otherwise have to cover 100% while gaining equity, loan paydown, and experience with being a buy/hold investor. After a year or so of living there, take the cash you saved up from not having a huge housing payment, use it to buy your second one, and rent out the entire first property. 

A big part of wealth creation is how much money you keep, not how much money you earn. That's why I believe this is the best way to get started. My wife and I are doing this exact same thing in MD and just closed on our first duplex.

Good luck!

@Russell Brazil we haven't served a formal 'Notice to Quit' yet. All we've done is told them that their lease will be ending and they need to move. We're still on good terms with the tenants right now. If they're not able to leave on the 29th then we may be able to still rectify the situation and tell them to stay there as long as they pay rent. This would less ideal than actually getting them out and be able to househack like we originally planned though. Also, I've heard that evictions are still taking place. It takes a specific tenant and an eviction for specific reasons in order for the courts to not actually carry it out. I may be wrong, but this is what I've heard from the area.

Hey everyone!

I'm in a bit of an unfortunate situation. We just purchased a duplex in Hagerstown MD that is fully occupied; while we were under contract we had the seller provide the bottom unit with a 60 day notice to vacate (which is completely legal as their lease was month to month). The tenants then told me they needed more time, so I extended their date to vacate to 12/29, and gave them a cash for keys option saying if they are OUT on this day I'll pay them 1 month's rent.

My question is if they don't move out on the 29th, do I have to give them ANOTHER 30 days in the formal Notice to Quit? Or since we've already given proper notice can I legally move to the next step in the eviction process? Also, I understand the moratorium on evictions right now, but I'm hoping being served a notice will let them know we're serious about this and need them out. I don't believe these tenants meet the moratorium requirements anyway.

Any insight is appreciated!

@Richard Updegrove, thanks for your input! Our strategy is buy and hold. Our specific goal is to grow from 3 units to 31 units over the next 3 years, at an average cash flow of $200/door. We're doing this through a combo of small multifamily (househacking) and BRRRR.

The rent on the unit I mentioned here is actually slightly under market value but it's in great shape, I just didn't raise the rents on the existing tenants when they renewed. So I think I can hit our target of $200/door on this and utilize the HELOC. If not, then I probably will look at selling and snowballing into a better deal that gives me more cash flow a lot sooner.

@Nicholas Bolcon I get what you mean, but after the input here I decided to not do the refinance. If I sell the house I could snowball that into an even better deal and still get a good ROI with much more cash flow. I see your point and the benefits of both, though.

If you or @William Wilson want to know more/get connected in Wilmington, I recommend reaching out to @Joe Prillaman; I moved away from Wilmington but he's still in the market and is crushing the Airbnb game there. He can tell you all about the market and give great recommendations.