All Forum Posts by: Kyle Byrd

Any investor-friendly lender and/or agent recommendations in this area?

Quote from @Matthew Paul:

Finding a duplex in Anne Arundel with 1 deed is like looking for a needle in a haystack .  R 10 and R 15 are scooped up by developers quickly . Plus the cost of subdividing , and all that goes with it are for deep pockets . 

Your best bet is a property on water and sewer in a non HOA community and either convert the garage to an ADU or Build a separate ADU . Building a separate one isnt cheap , I have run the numbers , with permits , nd the other county BS its close to $200K for an 800 sq ft building .

If you are looking to keep your townhouse as a rental and find another primary , if you have kids in school , I would recommend Severna Park , Arnold , then Pasadena . ( preferably a community with either a pool and or water access .

Nothing in this county pencils out as a rental unless you look in Glen Burnie and North . 

I really appreciate this advice Matthew. Better to know this now than waste time in the haystack. I've been thinking about ADUs as well, so I will keep that as an option. Like you said, preferably convert an existing garage. I was also recommended the Catonsville area for multifamily. I may explore other areas in Maryland after I get my feet wet with the second property

Quote from @Jules Aton:

Love the area, had a rental in Arnold that was never vacant. As for your current home I would weigh the value of renting vs selling. Consider transaction costs as well as losing the principle residence exclusion. If you have had it a few years I would imagine the value has increased substantially. Being willing to live in a property that needs work is a big plus for someone just starting out who has the insight not to bite off more than they can chew. Be mindful that the nicer areas in AA Co have particular neighbors so follow occupancy rules. Best wishes. 

Thanks for the advice Jules! Is the "principle residence exclusion" the same as the 2/5 rule? If so, I have lived here for 3 years. So, I'd still have 3 more years to sell and take advantage of that benefit ... unless I'm missing something else.

Will definitely keep in mind the occupancy rules, thank you!

Hi there :)

I'm brand new to real-estate investing but motivated to take action and start gaining momentum on my dreams of building a portfolio of properties. 

I currently own a townhouse (2400 sqft, 4bd, 3bth) in Edgewater, MD (Annapolis area) that I want to move out of and rent. I have the funds to buy another primary residence in this area but not enough for an investment property that would require 20-25%. Plus, I'd prefer to take baby steps before investing out of state where I could better afford a 25% down-payment.

My preferred options are:

1. house-hack with a duplex under ARV; live in one unit => renovate => rent the other unit

2. buy a SFH under ARV that could be converted into a duplex (preferably adjacent units vs top/bottom) - I'm assuming the biggest challenge with this strategy would be separating the infrastructure for utilities; and costly. Zoning also seems to be a problem (see below)

3. buy a SFH under ARV; live-in renovate => rent => move to a new primary => eventually refinance to pull value out

It seems the multi-family options are extremely limited or nonexistent in this area. I did a little digging into zoning laws which may explain it. R10, R15 zones are sparse and seem to be the only that allow for duplexes. R5 is a little confusing to me - "intended for low-medium density single-family detached residential development at an urban density of 5 dwelling units per acre". The mentions of "single-family" and "5 dwelling units" seem to contradict each other. If R5 is an option, then I might have some areas I could look into.

All of this leads to my two questions:

1. any tips/advice on how to best transition between my current primary residence and a new one? I'm thinking of 1. find a renter 2. move out and rent my own place while searching for next deal 3. buy a new primary

2. Is pursuing a duplex a lost cause in this area? would option 3 from above be the best option in this area?

Any advice is much appreciated!