All Forum Posts by: Marina Sorbie

Welcome to BP! Which neighborhoods in Baltimore are you currently investing in? 

 Hi Steve, feel free to reach out, I am fluent in Spanish and Portuguese and would love to help!

Thanks for sharing, Brandon, and congrats on your cash flow property! If I were you, I’d keep the duplex for the next three years. The appreciation and extra income are great benefits, and by holding onto it, you can take advantage of the 2.5% interest rate and $2000/month cash flow while avoiding capital gains taxes.

Instead of selling or converting the duplex into condos, consider using your HELOC or a home equity loan to buy or build your new single-family home. The duplex is appreciating nicely, and area improvements (like the new grocery store and paved road) should keep that trend going. The $2000/month cash flow and the low 2.5% rate are tough to beat! You can leverage the equity in your duplex through a HELOC or home equity loan to help finance your new home without selling the duplex. With the ongoing improvements in your area, the value of your duplex could rise even more, giving you a bigger return in the future. That 2.5% interest rate on your mortgage is a huge advantage in today's market.

So, my suggestion is to keep the duplex and use a HELOC or home equity loan to get into your new single-family home. This move maximizes your benefits and sets you up for future opportunities.

Good luck!

It depends on your short-term and long-term goals. You mentioned you are moving to PA. Are you buying there? How long do you plan to live there? Would you come back to Mechanicsville at some point? What would you do with the money if you sell the house?

My advice would be to sell and buy a duplex or a small single-family home with a basement that you can rent out in a more desirable location if you can't afford a multiunit yet. Instead of renting, move that money into a more valuable asset and continue building equity. Hopefully, in 2 years, you can use that equity to buy a bigger project. A low rate doesn't mean much if you can't rent out the unit, and HOA fees tend to increase over time. Also, remember you can always refinance once the rates go down.

Then my advise will be to focus your search on a SFH with a basement that has a walkout entrance to keep it as separate as possible, in case you decide to rent it out. Look for a home that you qualify for and that only needs some cosmetic updates. This way, you can immediately rent the basement, whether STR, MTR, or long term and use that rental income to update the rest of the home, one room at a time, to increase its value. Don't forget, location is key!

Welcome to real estate investing! It's awesome that you're ready to dive in. I'm also in Maryland and have been working in the local market for a while now. I know the prices can be high, but there are definitely opportunities out there. If you decide to look out-of-state, I can help with that too. Feel free to reach out if you have any questions or need any advice as you get started. Happy to chat and share what I know.

Best of luck on your journey!

If the duplex is listed at $515k, you could probably qualify and use your VA loan for the unit you are living in, and they will be able to use the projected rental income of the second unit to cover that difference. keep in mid that loan limits vary by County. Talk to a lender that specializes in VA lending, preferably a local one. Let me know if you need a recommendation. What state are you planning to purchase this duplex in? You will have to consider that the VA interest rate is probably going to be higher than what the lender is currently offering. As for the disability benefits, it depends on the state, but as a general rule of thumb, you are typically only exempt from property taxes on your primary residence.

It really depends on your personal goals. If I were in your position, I would keep things as simple as possible and focus on building equity to save money for my next property. You could consider house hacking if you're comfortable with roommates. If not, going with a single-family home or a duplex could be a good option.

For larger investments, you'll need at least six months of reserves to cover any unexpected issues. Having $30k-40k can be tight when you consider the down payment, closing costs, and other expenses, unless you qualify for a VA loan.

Remember that if you don't qualify for a VA loan, most properties with assumable loans will require you to be VA-approved, as sellers don't want to lose their entitlement. However, in rare cases, a motivated seller might make exceptions.

You are correct that assuming a loan means you'll need enough cash to cover the difference to qualify. If possible, seller financing could be ideal. If not, consider conventional or FHA loans based on your income and debt ratio.

Good luck with your purchase!

Renting out additional rooms to offset the mortgage is a smart move, and transitioning to a full-time long-term rental down the line sounds like a solid strategy so I think you should definitely buy now with your 3% downpayment because right now there is less competition. 

Regarding the LLC, my suggestion is to consult with your CPA and lender. Some lenders may not allow the transfer of a loan to an LLC, especially if not all the names in the original contracts are included. Be sure to thoroughly review the due-on-sale clause. Additionally, consider the cost-effectiveness of forming an LLC. While many investors choose this structure for liability protection, it may not be necessary if you currently have no significant assets. Instead, focus on having a well-drafted written agreement with your partners outlining the co-ownership structure.