All Forum Posts by: Kenneth Cheston

Hi @Angela Zanti, looks like you got some helpful tips. Love BP.

SO I had an FHA loan and I could not rent out both units until a year had surpassed (in the contract). I could have rented one of them, but I was slow to renovate. Typically you have to live in your primary residence for a year before renting with homeowner loans.

For BRRR, you can BRRR just about anything. It's simply Buying the property, Renovating it, Renting it, then Refinancing (or HELOC, HEL) to hopefully get all your money back while the tenant pays the new loan.

Best of luck!

Hi Angela,

I just bought a duplex that was my primary residence last year and was able to pull money out using a cash out refinance after some renovation BUT you don’t have to renovate to do a cash out refinance especially since it seems like you have a bunch of equity already.

I think if I understand you correctly you want to continue to live in your home but cash out some of your equity to purchase a rental property that could potential be a future BRRR? If that's the case you can start talking to local lenders and get a better picture of what your terms could be. I had better terms with credit unions (I recommend BCEFCU). I would be weary of comparing your property to homes 2 miles away. As you know, Baltimore is a block by block city. Even at $80,000 though you could potential get 75-80% of that value out (typical conditions) and have about $15,000-$20,000 in your pocket after paying off your previous loan and loan costs. This is super ballpark numbers and keep in mind your monthly payment will go up especially with the rates trending upward as well. Lastly, it could be worth hiring an appraiser to take a look at your property so you have a better idea of how much your house is worth but Zillow estimate is actually not a bad guess either. Anyways just my take. I'm a rookie but figured I'd offer local advice.

@Dennis Wayne hahahaha

@Nathan Gesner - Good tip - I've asked for a quote; however the bottom of the basement window is at the sidewalk. So it's probably an expensive job IF I'm even allowed to do it.

I'm house hacking this property by living in this basement and renting the upper rooms so I can prolong the decision for a year. I'll revisit my options then. Thank you everyone!

Thanks Tim - yup you are correct. Also as previously mentioned things get dicey if this hypothetical basement tenant does not pay rent. 

Alright last thoughts - I'm pivoting. I just talked to my realtor and he informed me that an inspector will look through the home as a whole and not license specific bedrooms. In other words, the rental license is contingent upon the property as a whole. 

Beat that one to death...

Hey Stephen!

Thank you for the reply! I’ll keep this thread going rather than message you for any future BPer looking for info. So my inspection report came back and it cited the same egress requirements. The basement bedroom is enclosed with its own interior door so there’s no privacy issue although I’m not interested in section 8 at this time. 

@Stephen Kehoe - my worry is that after I house hack for a year by living in the basement and renting the upper floors, an inspector will need to review the property to obtain a rental license as I will no longer be living there and is considered a rental SF. The inspection checklist specifically cites the basement egress criteria for a bedroom in the basement. So I don’t think there’s a way around it. 

I hear what you’re saying though. Anyone would consider a nice finished room with great natural light a bedroom, but in the off chance the tenant doesn’t pay rent then I would be in the wrong for letting he/she live there in the first place. Additionally I need an inspection every two years. 

Personally - the roof of the house I have under contract is a fish pond so I’m probably bailing on the house.

Okay BPers - I'm back yet again to pester you with obvious questions, but not so obvious to me since I've called the entire Baltimore City Government and no one seems to know how to use a phone (Called at least 10 numbers - maybe it's a snowday?).

So for those who may be following my journey via Forum Posts, I had a home inspection on the Remington rowhome and the roof was poorly redone and may be a deal killer. Regardless, my strategy was to live in the basement and rent out the bedrooms on the 2nd floor. While this is all good and fun, I understand that there is some criteria to meet when I eventually move out and have to apply for a rental license. What I have gathered through 3rd parties is that if a basement does not have access to the outside then the windows in the bedroom are considered to be the 2nd means of egress. One of the windows has to be at least 24"H x 20"W in dimension and the bottom of the sill cannot exceed 44" from the floor. I'm looking for solid answers on this or may be a good source to look for this bit. The IBC doesn't seem to mention it.

Thanks in advance for whatever tips you have to offer!

@Ozzy Sirimsi and @Gayle Melnick thank you for your input! I may message your guys about other questions if you don’t mind. Appreciate the tip.

@Russell Brazil of course. Do you own rental property in Remington?

Hello BP world!

Thank you in advance for any advice on this matter. This has always been a great site to seek out advice and I’m truly in debt to you all.

So I am currently making an offer on a place in Remington that is not too far from R House. Based on my research I should he able to rent out rooms for $800. They each would have their own full bathroom. My real question is what is the rental market state in Remington? My sense is that this is somewhat quiet time because winter semester just started for JHU. Any thoughts in this matter would be appreciated!