All Forum Posts by: Kristen Ray

@James Wise 

Thank you for such a detailed response! I noticed I don’t see many side by side duplex properties as much as I see the up down duplex. My preference is a side by side model. Replacing the siding with Vinyl rather than doing the patch work is also an excellent idea.  Thank you for the advice.

Hello BP!

We are new REI in MD. We had an interesting conversation regarding water bills. If the tenant(s) are responsible for paying the water bill and they neglect to pay the bill (or they didn't pay it in full), can you legally apply additional fees (if the fees are spelled out in the lease)? I was informed that landlords cannot implement additional fees on utility bills.

Please share your thoughts. Happy Holidays,

Hello BP!

We are new REI in MD. We had an interesting conversation regarding water bills. If the tenant(s) are responsible for paying the water bill and they neglect to pay the bill (or they didn't pay it in full), can you legally apply additional fees (if the fees are spelled out in the lease)? I was informed that landlords cannot implement additional fees on utility bills.

Please share your thoughts. Happy Holidays,

Hello BP!

We are new REIs in Maryland. We are looking at purchasing our first multiple family unit. However, we’ve noticed that most of the multiple family units in our area are very old. Most of them were built in the late 1800’s and early 1900’s. We lived in a fully updated Victorian home built in 1925. And although we took stellar care of the property the property required a lot of maintenance (we lived there for 5 years).

So what are your thoughts and experiences with purchasing older properties as investments?

In addition, we’ve noticed several multiple family units have few bathrooms. Thus, tenants from the various units would have to share bathrooms.

What have been your experience with such a set up?

@Ned Carey thank you for the recommendations! I appreciate the response and will contact Cohen after the holidays.  

Best Regards 

@Omar Ruiz Hey!

Great discussion! As a millennial I am with you related to the online advertisement. If it fits your budget I'd go for it. I am a new REI and I plan to use a combination of online marketing and direct mail. I am aware that grandma and grandpa may not check FB or IG. However, they take a daily trip to the mailbox. On the other hand you may have tech savvy customers that only pay their cell phone bills and are apart of your target audience. Or perhaps their tech savvy friend can send them a screenshot of the advertisement. As a tech savvy person I often locate numerous services for myself and others online.  Thus, I am aware of the value that type of marketing brings.  The only draw back is that you may get a lot of leads outside of your target areas. Thus, good networking can allow you to send those leads to someone else who invests in that area. I'd say go for it! Keep me posted on your outcome.

Best

Hello Brian,

I would directly mention to your target audience that you can save them thousands of dollars on closing costs. I agree with @Jason M Pagan about wanting them to call you for more information.  However, most people in a bind want a fast way out with saving as much money as possible. I would mention that you are willing to pay closing costs and not assume they will connect the dots. You never know who will read it. Some people are better at connecting the dots than others.

Hello Pros!

Recently I have been on the tax assessment website for my state (MD) at 

https://sdat.dat.maryland.gov/RealProperty/Pages/d...

When I input the street numbers and street name as requested by the website I cannot find a dollar amount for the taxes on a particular property. I have tried this with several properties. Does anyone know what I am doing wrong? Is there another site? Am I missing something?

Thanks in advance

Hello BP! 

We are excited to say we received news of a deal today! We used the BP calculator to review the numbers. However, we would love some expert advice.

This is a buy and hold deal in a good part of town. The seller is motivated to get rid of the property and move on with their lives. 

Details:

Townhome/rowhouse built in 1875

2 BR 1.5 bathrooms

unfinished basement 

Desirable neighborhood

Current owners owe $155,000 with a 2% interest rate

Current mortgage: $825 (not including taxes and insurance)

Resent sales in the area are $200K-$240K

Average rent in the area is $1,811

Management company fee: 9%

Property taxes (estimated): $4,000/year

Insurance (estimated): $100/month

House size: 764 square feet (average for homes in the area)

We are estimating 6% of the selling price in closing costs including the inspection, title etc

The seller wants to keep their current mortgage on the property and is asking for $20,000 down which includes the wholesaler cost and realtor cost. 

The seller does not want to tell the bank about the deal. The seller wants the buyer to take over payments and will sign over the deed. 

I have read articles about mortgage companies due on sale clause. I am not a fan of the method the seller wants to proceed with. My hope is to negotiate a sale price that is beneficial for all parties and get the mortgage under our LLC.

Thoughts, ideas, opinions, suggestions are all welcomed. Thanks in advance.

Great discussion BP! I agree with many of the other posts. Personally, it depends on the circumstances. If I’m doing a flip I generally try to use lower cost materials whenever possible. However, in a case where it is my primary residence or a buy and hold depending on the circumstance I will use higher quality materials as I do not want to replace them soon. Sometimes you get what you pay for. I’ve found that to be true with contractors and electronics. Like they say you can have it good, fast, and cheap pick 2. Depending on what I’m doing (and my budget) will determine which 2 I pick. Good is always one of the two choices I pick. Now do I need it cheap or fast?