All Forum Posts by: Joseph Beilke

I have a rental in Baltimore, sounds to me my past tenant moved to your house after doing the same damage to mine. I was not able to do a full on Reno. Could the house use it sure but the ROI wasn't there. I fixed the holes, fix the rot, replaced flooring, added a new fence and deck. Painted inside and out and new appliances. The kitchen got sub par upgrade and repairs. I got new tenants that current pay a little below market, and haven't missed a payment in 4 years, just a few late. I have now replaced the roof and windows. Next year hopefully a new HVAC if I can keep the current one running. I'm into for about 15-20K over the past 4 years. Nothing went on credit.

Sounds like you over improved for the neighborhood and rental rate.  I'd probably take a long look at the numbers, project out how much interest you will be paying over the next few years and talk with a local realtor and see what the house prices are doing in your area.  Here in Palm Coast FL, I'm projecting a 10-15% price correction.  That would put us inline with a 40 year over year 2.5% average going back to 1981.  

If your find the the projected prices in your area are going to depress quickly, but rents are going to rise and if it is as nice as you say. I would set the rent high and find a tenant willing to pay it and take care of it and do my best to max out the ROI, if you can't justify one or get one to pay the amount needed, then Sell and Sell fast. Good Luck Bro!

@Tammy Ginsburg

Ethan is right mostly, but if you can make cash flow do it. Don't hold the rents down to not show a profit, that just crazy talk. Rent at market value and raise with the market, show ROI and positive cash flow to build up for the next property. The property depreciation will help off set the ROI tax burden. Get a good CPA and don't be afraid the challenge them.

@Donald Krenzien

The answer is right in front of you.  Find a duplex that one side would cash flow enough to cover the whole nut.  You live in one side and rent the other.  Keep your current house and rent it out and again earn positive cash flow.  You know have 2 units making you money,  you live for free, and your can depreciate the asset for tax proposes.    Once you have 3 to 5 month of good history and look for a lender that will right you another loan and buy another duplex and rent out both sides.  Risen and repeat.  

@Michele Velazquez

Make sure if you do invest in the Baltimore area that you have a good attorney to handle your tenants evictions if you do go that route.  Maryland and Baltimore County and City are very pro tenant and not landlord friendly.  The extra cashflow you might earn in that area can vanish with the cost of one bad tenant is a month.  If you want to know more about my personal experience please feel free to DM me.

@Mary Jay

I'll sending you a DM

@Jibu V.

I just went through this myself and I shopped around found a carrier that approved my roof because it was inspected by approved roofing company and gave it 5+ years of life and I will have to have it inspected each year till it does have 5+ years left.  It on my primary home and the roof is 16 years old and looks great, no leaks or problems.  Inspector said under normal weather you got 10+ years his personal face to face opinion 

Had a listing for a friend that was getting married and they wanted to move out in the country so she could have horses.  Before the open house I played a prank on them.  I google "big black dildo" found an image of one on a dark brown night stand similar to there's, the toy was easy 12inch long.  I sent them the photo about 10 minutes after the open house started and said " your neighbors came through and informed me that you left this on the night stand" and sent them the picture.  It was a group message with him and her on it.  She replied within seconds,  "OMG please put it in the top dresser drawer".   She is about 4'10 100 pound soaking wet!  

About 2 hours later they came home and she apologized repeatedly for leaving it out and having to ask me to put it away.  He was laughing the whole time and I could't keep a straight face.  

Sold the house that weekend and 30 days later after closing and right after we took a picture together for Social media I told her it was a prank and it was a picture off google, she  turned bright red.  He new it right away it wasn't there night stand and played along the whole time.  

I'll never tell if I looked in the top dresser drawer.

@Marcus Auerbach

I agree with you almost 100%. I don't thing the number of closing an agent does is as important as how well or close to asking price an agent sells the listing. My wife and I do about 15-20 a year.   Only one listing in the last 6 years we did not close.  That was for a number of unusual reasons, nothing to do with price or location.  So taking that one odd ball off the list we have a 100% closing rate for our sellers and we got 98% on average of asking price.    I think if @Katrina Cabral does explore the idea of changing agents, it might be wise to have a better understanding of what make a good agent.  Not just volume, some of the worst agents in my town, do the most volume and are horrible to work with and when a buyer likes there listing you dread having to work with them, mainly because you will have to do some of there work also to make the deal come together.

My wife and I were recently were told buy a past customer that we should have a tag line that goes something like this,  "Do you want an agent or do you want the truth". we pride our business on being straight forward and honest, even if what we tell you isn't going to sit well.

@Katrina Cabral

Let's be talk about the 3 real reasons a property doesn't sell

1 Location, if the location is not desirable for your target customer you need to adjust the price. You said its an AirBnB, it sounds to me based on what I have read that your income from rent does not justified the price. The ROI just isn't there and investors are passing on it. You may need to consider taking off AirBnB and selling it vacant and AS IS. Let the next investor figure out a way to have it cash flow or hopefully get an homestead owner.

2 Condition, You may feel the property is priced well for it's current condition or level of finishes the property has.  Are you selling the view or are you selling the property? In my opinion again only based on what I have read you are selling a 450K view because you said it "mine isn't spectacular". Might be time to ask yourself if you would pay your asking price.

3 PRICE,  All roads always lead to price.  If location is great but won't sell, adjust your price.  If the condition can't justify the price, adjust the price.  If your feed back is priced wrong, adjust the price.  

You are in an area that is definitely desirable but you are in a state that many investor are going to steer clear from for a while.  I personal worked with a seller in Hawaii, I was working with them as buyers here in Florida and the horror stories I heard from him and his agent that was listing his home in Hawaii were crazy to me.  He was in a very similar setting and ended up last summer when (everything went over asking) reducing he home by about 10% to final sell and had to replace the roof.  It took me having a real heart to heart with him to understand that it is all about the numbers.  Nothing more Nothing less.  

I hope it sells, I know the stress is probably giving you sleepless night.  Good Luck

@Jeff Willis

Have you pick out your builder yet for lot on Crandon?