All Forum Posts by: Paolo Nascimbeni

I am having issues with one of my tenants who is a few months overdue on rent.  I need to contact a tenant/landlord attorney in Baltimore MD since I have to start an eviction process.  

Hi - One of my residential tenants is several months overdue in rent.   Does anybody know a reputable eviction attorney in Baltimore City ?   

@Ned Carey  Thank you for using my name, this way I received an email.   After Russel gave me the page I started looking in there and I had forgotten to follow this thread.  I will start working on redeeming my ground rent next week following the link that Russel posted.  My cost of redeeming should be $400, the holder wants $1200 but the ground rent  was created in 1998 so I will follow the steps toward redeeming them ( there are 2 or 3  properties that I own that are affected by ground rent)

Hi I recently acquired 3 properties with ground rent.  One does not seem to be registered in the SDAT database, the other two I would like to redeem

According to the law: 
The amount to redeem your ground rent is set by Maryland Law and based on the original ground rent lease. Some ground rents state the redemption price. If the original ground rent lease is silent as to the redemption price then the following applies:

July 2, 1982 – Present – 12%
April 6, 1888 – July 1, 1982 – 6%
April 8, 1884 – April 5, 1988 – 4%
Prior to April 9, 1884 – Negotiable and possibly non-redeemable.

To compute the redemption price, take the annual ground rent and divide by the capitalization rate. For example: if the ground rent is $100 and the lease started in 1935, the calculation is $100 divided by .06, and thus $1,666.67 to purchase the ground rent.

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I did the calculation and I pay $48 a year so it would be 48/0.12 that makes $400 and I have a paper here that says $400 to redeem

I called the owner of the ground rent but he asked me $1200 ( claiming that mine are not redeemable and cost more but I went on the Baltimore SDAT database and it says my ground rent are redeemable)  -   Any idea on how I should move from here?  Thanks  Paolo

A commercial Mortgage requires about 25% down. If you did not do further deals it is difficult the bank would take less. So the property is collecting $2120 a month or $25,440 a year Gross , remove expenses, taxes and vacancies lets assume the property is bringing in $15K NOI.

Now lets take 75% of the asking price is $176,250 If you get a commercial loan a possible rate is 5.25% if you take a 25 years amortization your monthly payment would be $1056 - Your Income ( assuming the total NOI is 15k ) is $1250 monthly which covers the loan but does have a very little margin. You will need about $62k in cash to close since there are closing costs ( you might deduct the 30k owner financing if the lender lets you).

I formed just one LLC wich owns the properties. BiggerPOcket has a book for sal "Tax Strategies for the Savvy real estate investor" with chapters on this subject. ( 1 vs multiple LLC ) -

In Maryland at least the tax record of the property has a land value and a building value, I keep the same proportion in the depreciation.  If the building value is for example 3/4 of the total tax value I would take 3/4 of $600,000 as a deduction ( or $450,000). Then to be safe I give it all to my accountant.

$3000 In Rockville, MD SFH

I purchased an office condo about 3 and 1/2 years ago.  I have it rented to one tenant only ( maybe less money but also less to deal with since I only have to follow one lease ). My condo is however in the DC area, in Maryland and is giving me a much above average return ( for this area ) of 9%

The advantage compared to a single family house or a residential rental is that there is little that can go wrong: All I am responsible is a toilet and the HVAC unit.  The disadvantage is if the tenant leaves it takes a long time to find a new one.   Also I have been looking for another with the same returns for a long time now and I was unable to find one.  

I am a realtor and an investor in this area. I do not think you can get a CAP rate above 7 in this area PG or MC when you add in all expenses. I had some luck however buying properties that needed rehab, I fixed them up and then rented. I never really tried multifamily so far- I never wanted to deal with writing multiple leases and dealing with many tenants. Also there are few multifamily in the area and most of the one I saw for sale are quite old.