All Forum Posts by: Joe Norman

Wholeheartedly second what @@Tim Miller said! Until an estate is opened, and a Personal Representative (or executor, or whatever its called in your state) is named I would not release any funds or allow anyone to remove any personal property from the home. The deceased's estate is currently your tenant and until someone is approved by the court to act on their behalf I would continue to pay rent and utilities out of the money paid up front.

Good luck.

Nothing out of the ordinary for the commission to not be a 50/50 split, and at least here in Maryland 3.5/2.5 is very common. Its a misconception that the buyer's agent commission will dissuade buyer interest in seeing the property, however it COULD result in a lower offer if the Buyer's Agent has an agreement with the buyer to make up the difference between what they are charging (usually 2.5-3.0%) and what the co-op commission is.

I personally see no concerns with signing a listing agreement with a 3.5/2.5 commission structure.

I think all 3 of your goals are realistic in Baltimore, with one caveat - financing. A property that sells for 75% of the ARV is probably borderline in terms of "habitability" standards for getting a conforming loan. There are renovation loan options (FHA 203k is a popular one) that can mitigate that issue, but they come with their own challenges.

There are also plenty of homes in Baltimore that you can pick up that have room for forcing equity, they just may not be at 75% but still could be a win. Shoot me a PM if you'd like to connect and I can email you some options.

Piggy backing on Russel's comment about Source of Income being a protected class - not only should it not factor into your tenant screening, it also shouldn't play into your marketing either. 

That said, there are some areas that are just more likely (or less likely) to have subsidized tenants. If you are investing in those areas you do need to be prepared for the extra administrative hurdles that come along with these programs.

This is one of the rare instances where I disagree with @Russell Brazil. The exterior of the building will absolutely come into play when it comes to obtaining an MDE Lead Cert.

If you can do the work required and still have this be a good deal then go for it. What I wouldn't do is count on the Condo Association, or the unit owners, reimbursing you - they obviously don't care about the cornice or else it wouldn't have been deferred for so long.

I generally avoid condos as rentals for this reason, and if I were you I probably wouldn't be going forward with it.

Why do you need to evict them if they are month-to-month? Just notify them that you will not be renewing their lease for another month long term. Depending on the lease agreements and VT state laws you may have to give them a month or two notice (which you really should do anyway so they have time to find new housing).

There are plenty of homes for sale in that price range and those three counties. If you want to PM me we can chat a little to get more specific and then I can send you some options!

B&C Home Inspections is my go-to for multi family inspections in/around Baltimore. Good luck!

I'd talk to your tax prepare about how to properly account for your renovation expenses. You don't necessarily need a formal receipt/charge, or even to necessarily transfer the money from one account to the other - just be sure to keep good records of what you spent - you'll be able to write some of it off this year, and the rest will be depreciated and affect your basis when you eventually go to sell.

This doesn't look like a very good deal to me if you're only projecting to cashflow < $500/month on a four unit. Not to mention the fact that you're risking all your liquid savings AND your family's home. I can understand why you have some anxiety about it. Personally I'd take a step back, save up some more money, and look for a better deal.

Good luck!