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All Forum Posts by: Meghan Custer

Meghan Custer has started 8 posts and replied 13 times.

I have an opportunity to purchase a vacant lot (.5 acre) from a family member for well below market value. Catch is - we would be responsible for getting water/sewer to the property - they just don't want to deal with the hassle. The lot is within a few hundred yards of a brand new development going in (with a SFH lot between the development and the lot in question).

The current owners JUST missed their opportunity to be included on the city plans for updating the water/sewer in the area (due to the letter from the city arriving days after the deadline to commit). I contacted the city planner's office and they said the plans have already been filed, so we're out of luck. She didn't give any real guidance on our options other than to see if the land has had a perk test. 

I checked with the lot owner and it has been perk tested twice and failed both tests, so the only option is public utilities.

Does anyone have any advice or experience pushing past this kind of barrier? I feel like even though the plans have been filed, there should be some way to work with the planning office to get utilities to the lot. (application, appeal, permit, easement ???)

Even if it costs 10/20/30K, we would just like to know if any other options exist. I'm willing to put in the work because this is an amazing deal IF I can build on it.

Property is in Frederick County, MD if anyone is local.

Post: Vacant lot. What would you do?

Meghan CusterPosted
  • Maryland
  • Posts 13
  • Votes 3

Thanks everyone!!! I really appreciate the feedback. I'm contacting the city today to get some more information on zoning in that area and to see if it's possible to subdivide. I also plan on contacting a few property managers in the area to see what renters are looking for in that part of town. That will likely determine if we are going to build a SFH and sell it or try for a duplex and keep it as a rental.

Post: Vacant lot. What would you do?

Meghan CusterPosted
  • Maryland
  • Posts 13
  • Votes 3
Originally posted by @Account Closed:

Why doesn't he get utilities and sell it for 100k?

I asked him that. He says he is well enough off and wants to see us get a good start in real estate, if we want it. It's essentially a gift to us. 

Post: Vacant lot. What would you do?

Meghan CusterPosted
  • Maryland
  • Posts 13
  • Votes 3

My husband and I are rookies but very interested in buy and hold real estate. Recently, I've been sharing our (my) goals with my father-in-law. He has offered to sell us a vacant lot at a huge discount to help us get started (he paid $10K and is willing to sell it to us for $25K - will be worth $100K+ once water/sewer is run to it). The lot is adjacent to a brand new single family home neighborhood with homes in the 300K-400K range.

My question is - what would you do with the property?

1. Just run water/sewer to it and sell it. (Essentially flip the lot to get cash for our next property)

2. Build a single family home and sell it. (FIL is a licensed home builder - so it's possible we can get discounts again - immediate equity)

3. Build a Duplex/Triplex and rent the units. (We just built our home, so house hacking is not an option for us)

4. Pave a large portion of the lot and rent out parking for RVs, Campers, Boats for the nearby neighborhoods (HOA doesn't allow large vehicles in driveways/street parking)

5. Other???

Again - we're brand new to investing in real estate and my FIL is anxious to help us get started (he is set financially and selling the property to us so cheap is a gift). We are guessing that it will be somewhere around 10-15K to get water/sewer run there. I haven't done much research other than that - came here first for an idea of where we should start.

Post: First Time Home Buyer Programs in Maryland

Meghan CusterPosted
  • Maryland
  • Posts 13
  • Votes 3

Just curious - does anyone know what the First Time Home Buyer Programs are in Maryland? Which ones to pursue for a primary residence? I've already had a home mortgage in my name, but my husband has not. We're looking to move and keep our current home as a rental. If my husband gets the new home mortgage in his name only, he should qualify for a FTHB program.

Specifically looking for programs that offer credits, etc as an incentive... We will be putting down a fair sized down-payment to avoid PMI, so offers like 3.5% down aren't that appealing to us.

Hi BP,

I am new to investing (still looking for first property) and have some questions about using a property management professional..I have not met/interviewed with any local companies at this point in time.

I know that I want to hire a property management company to manage the tenants, rent collection, leasing, etc.. but I have many very handy people in my family (one of whom is a licensed general contractor) and I would prefer to use them over an unknown repair man. I have never hired anyone out at my own residence. My fear is that a simple $15 repair could end up billed for $100.

1. Has anyone ever negotiated with their property manager to allow DIY repairs? 

2. Could I use that to negotiate lower PM fees? 8% rather than 10%? I would expect them to take the call, but inform me rather than calling and scheduling a repair man.

3. What am I missing that makes this a bad idea? (Other than availability/schedule of family members - they would, of course, be reimbursed for their time and materials)

Post: Buy and Hold - did you form an LLC or DBA?

Meghan CusterPosted
  • Maryland
  • Posts 13
  • Votes 3

@Joshua Wynn

Create an LLC or operate as a sole proprietor using a DBA.

DBA is the cheaper option and I've heard that an LLC can be "pierced" if you use your own money for business use.. Just not sure if DBA offers enough protection - I'm leaning towards DBA for the first deal and then worry about creating the LLC once I expand to second, third... deals

Hi BP Fam!

Our primary residence is valued today at about $215,000. We're 8 years into a 30 year mortgage with $95,000 left at 3.875%. I'm new to investing and still in the learning stages.

We are in the early stages of building a new home and had originally planned to sell our current home to make the down payment - otherwise, we don't have the cash.

I'm now considering simply taking out a home equity loan on the current home for the down payment on our new build. This would allow us to keep the first home as our first rental, but I can't seem to figure out the numbers. 

I'm not sure which BP calculator to use - BRRRR or Rental... or neither, because the numbers come out much different.

I should be able to get $1600 or $1650 for rent and it will only need minor work when we move out - estimating $5,000.

Any advice on how to figure out if this would be a good first rental for our family? How would you evaluate this deal?

Post: Buy and Hold - did you form an LLC or DBA?

Meghan CusterPosted
  • Maryland
  • Posts 13
  • Votes 3

Hi Everyone - 

I haven't made any deals yet - just information gathering at this point. I would prefer to not use my legal name on deals to protect my family's privacy. In your educated opinion, which is better - LLC or DBA? Neither? I'm leaning towards DBA at the moment. What are the advantages and disadvantages with regards to buy and hold investing?

Post: Getting spouse on board with investing

Meghan CusterPosted
  • Maryland
  • Posts 13
  • Votes 3

@Michael Albaum I LOVE the idea of putting the hypothetical money to something tangible. That might actually be the ticket to getting him onboard. Thanks for the tip!