All Forum Posts by: Joe Norman

If you can't get inside you aren't going to get a conventional loan. I assume you have the cash to purchase it so I would suggest going that route, doing any repair work, and then refinancing into a conventional loan.

1) What areas in Baltimore are the best to focus on? - There are plenty of good neighborhoods for this strategy in Baltimore, too many to list. I would look for neighborhoods that do not have an abundance of vacant board ups. 

2) is Baltimore overly tenant friendly? - Yes, but its really Maryland as a whole. If you're familiar with land lording in the "nicer suburbs" pretty much the same tenant/landlord laws apply. There are some differences for sure but I don't think they are substantial.

3) What laws should I watch out for (for example am I allowed to have the water/electricity be under the tenant's name) - You can put all utilities in the tenant's name, but I would advise keeping water in your name since that utility is a lien on the house itself. We pay all the water bills and then bill the tenant.

4) How hard is it to get the property section 8 approved in Baltimore? - Its cumbersome and frustrating dealing with some of the programs and their inspectors, but not necessarily hard. Just know that they are going to nit pick you on stupid little things.

Personally I wouldn't be putting my personal residence on the line (assuming thats where the HELOC money is coming from) to do a deal with a partner. I know the plan is that the partner is going to reimburse you for 50% of your HELOC payment, but what if he doesn't? You're the one with skin in the game here.

Also keep in mind that "source of income" is a protected class in Maryland. Saying you want to eventually "get out of Section 8" is akin to saying you want to eventually "get out of renting to [insert a traditionally marginalized race/ethnicity/religion]"

 It's also "mandatory" for contractors to have an MHIC license, but we all know that not all do! 

I suggest starting with the Washington State Real Estate Commission. If the PMC was licensed then they likely have resources/recourses for you if this was negligence on the part of the PMC.

I would need more information here, but if I'm reading your OP the same way as Theresa Harris than I agree with her assessment. The PMC isn't responsible for paying your, only managing the process and transactions. They also aren't liable for theft within the home, although they certainly should be securing it when vacant.

I think you may need to have an expectation setting conversation with your PMC to get on the same page. Good luck.

It sounds like you have a one income household. Is it possible for you to get a job for a year or two, and just dedicate all that money as your REI Fund? You could pretty easily get a down payment built up if you're not touching that income.

Personally that wouldn't be enough cash flow for me in a C-class Baltimore neighborhood where appreciation is likely going to be very limited. Did your agent back up their claim that "this one will be different"?

The only time I accept cash is if the tenant meets me at the bank and hand the cash directly to the teller to count. That way there is a receipt and independent verification of how much money the tenant paid (and I've only done this twice under very extenuating circumstances, for obvious reasons).

As others have mentioned, do not give out your home address! If the tenant will be mailing you a check or placing it in your mailbox use a PO Box at your post office.

We only accept electronic payment through our website, except under extenuating circumstances as noted above. ACH has its pitfalls as Chris mentioned but if you have good tenants its not really an issue.