All Forum Posts by: Kwame Knights

@Arsen Atanasovski thank you for your response

@Bob Collett that's good info, i will have to check if Baltimore have any such requirements, but its sounds like good ask in general.

Good morning BP,

I'm looking to acquire good cash flowing rental property in the DMV area and have a few leads from wholesalers. A common theme i'm noticing is that they are requiring that i use their title company. Is there a reason for this, is there a downside in using their title company. I did some research and the only thing i found was some barging basement title companies may not do a great job on assuring i have a clean title. Is it possible to push back on that requirement and shop around for my own?

I would love your feedback.

Kwame

I'm also an out of town investor and have 1 property in MI and looking to expand. I previously used castle but they are no longer in business. Looking for another PM and a good investor conscious agent. Also willing to partner with other investors.

@Zabrina Horton [email protected]

Hello @Zabrina Horton, is this opportunity still available? 

same here, would love to hear about other similar deals.

Following...I'm interested in long term buy and hold in Puerto Rico specifically short term rentals. I started researching about 6 months ago but ran into a few dead ends trying to connect with local lenders and agents. Also willing to mastermind/JV.

@Seth Parmelee and @Account Closed thank you for your input. A little background of my original question. I have a few single family rentals running them as AIRBNB's. However i would like to scale up a bit and expand my portfolio in multi family. I've been looking a 2-4 units to get my feet week but open small commercial units 5-20 units. I'm evaluating a few properties on loopnet and some offer market deals, some of them a few hours away from where i live. Now for my next step, i'm trying to figure out the best path to getting the property under contract so i can do my due diligence. I would kindly appreciate your advice.

Good morning BP,

What's the use case for submitting an LOI vs having an agent submit a official contract?

@Linda Weygant Thank you for your response. 

Your real estate professional designation does not allow you to immediately write off rehab costs.

If i wasn't a professional would i be able to do the write offs?

For what you are proposing, the unit that you are rehabbing must be habitable and available for rental. If that is not the case, then your rehab costs are added to the basis of the property and depreciated.

I read once on BP and heard on a podcast that there's a way around that. Meaning as soon as i take possession, list the property for rent while the work is being performed.

The major downside of using a 203K loan for rehab is that you cannot do any of the work yourself as you must submit invoices. Also, if your laborers/contractors require payment immediately or up front, you pay that out of pocket, then submit the invoices for reimbursement.

Understood

The first thing you should do is make sure the lot is zoned for more than one dwelling unit. Running afoul of zoning laws is no fun.what iI initially assumed it is but 

I made the assumption that my lot was zoned for more than one dwelling unit because I got the idea from the next door property which is setup with two dwelling units. But I quickly looked at the Montgomery county Maryland website and it doesn't appears to be zoned. I will have to investigate further or reach out to the zoning commission to see if it can be approved. 

But that's more of a legal issue and shouldn't have any affect on the tax process, or does IRS look at that too?