All Forum Posts by: Mike Geier

We had a property inspection done which neglected to flag significant, plain sight issues in the electrical work and structure.  We ended up purchasing the house not knowing out these things.

Total estimate to fix this is around 15k.

has anyone experienced this?  Do i have any legal recourse with the inspection company?

Hi BP,

We have a 4 plex that rents for 700-850 per unit.  The local market sees anywhere from 1-2% rent to price ratios. 

Let's say i get 750 per unit. That makes $36,000 per year in gross rent. Conservatively, i'll use a GRM of 8.333 (1%) to give me a valuation of $300,000.

Where does vacancy factor in? Capex?

Is this correct?  How might I more accurately value the building and how should I price the building for sale?

Thank you all so much, this was very helpful!

I'm renting out my first property in baltimore county this month. The residence uses baltimore city water.

I was told by someone that landlords must pay water bills and that they cannot be transferred to tenants in Maryland.  Is this true?

Also 185k left on the mortgage

@Samantha Miller The PITI = 1377/mo Utilities run less than 130/mo on average Hoa = 45/mo So about 1550/mo total The purchase price was 251k, Zillow estimates it at 267k now Original loan was 10/10/80 where 10 was a heloc and that is paid and just sitting there

We plan to move in the next 4 years to a better school district. We purchase our townhome for 251k. If we keep it as a rental we can get 1750-2100 per month in rent. This violates the 1% rule. The mortgage rate is 4.5%. The place is in good shape so I think the cap ex would be low. Should we do keep it as a rental or sell it and invest the money elsewhere?

Do any owners not sign their leases & let the PM only sign?

I am doing this, but i'm a newbie.

I spoke with a colleague who is more experienced and she said that this is not a good idea and she seemed to think it wasn't even legal.

I have an update on the situation and another question for the community.

First the update!

The PM sent their spreadsheets to me (scanned as pics.)  They were supposed to include all 4 apts, of course they only include 3 of the 4.

Summary of Issues Shown in Spreadsheets Sent.

Apt 1

• No spreadsheet.
• Lease began in August 2018.
• August 18 rent paid.
• September rent not paid.
• October Rent not paid.

Apt 2

• August 18 – Oct 18 Rent not paid
• August 18 Rent is with PM, needs to be mailed to Mike
• September 18 Rent is with PM, needs to be mailed to Mike
• October 18 Rent is “promised” to PM
• The rents from Aug and Sept with the PM were paid to the PM on 10/1 per the spreadsheet

Apt 3

• August 18 – Oct 18 Rent not paid
• In writing on spreadsheet it reads:
• "September rent will be paid on 10/13/18
• October rent will be paid on 10/17/19
• November rent will be paid on 11/10"
• There is no mention of August Rent in writing on the spreadsheet.  might be a typo and all the above months should shift back one, i plan to clear this up with them on the phone

Apt 4

• Last full payment was to cover May 18
• The spreadsheet is missing June 18
• Spreadsheet indicates a Payment in July, Mike did not receive this payment.
• Overall, Mike does not have June 18 – Oct 18 rent.
• PM is owed $1,659 including late fee
• Mike is owed 89% of 2,029 (1659 + 370 not received by Mike but collected by PM)

Over text the PM said he's filing eviction on Apt 4

Of course all of this was done late and in reaction to me.

I spoke with a colleague who used to run a PM company.  Her advice:

1. Get a copy of the lease within 15 days of a new tenant (she was very surprised i didn't have this)

2.  Do a maryland case search against the PM, we did that together and found no owners suing him

3. Ask to be notified within 15 days of a non-payment

If i can clear this up and get everything paid, i may stick wiht the company.  Bad idea still?

Second question for the community - Does anyone out there not sign their leases and let the PM only sign them? 

Thanks for the advice @Bill Kenny and @Luke Anthony.

My inexperience is showing - i don't even have copies of the leases, the property management company does.

I'm going play nice at first to get copies of the leases, then i will follow up with the Bill's advice.  @Bill Kenny

Bill - do you manage any properties long distance without a property manager?  I have a 1 year old and a very busy job.  I'm not sure how I could do it without a property manager.  Your statement about not trusting property management in the area is concerning.

Mike