All Forum Posts by: Mike Warder

Thanks @John McKee. I spoke with someone on the city council and they were positive. Not too surprising if you consider the source though. I'll check out the chamber of commerce as well. 

Any thoughts on the business environment in downtown Hagerstown, MD? I am looking at non-residential commercial properties in downtown Hagerstown, and I've heard that within a two-block radius of the city center things are okay (less crime, better business environment, hub for many of the city's working professionals). 

Lots of previous posts talk about the difficult tenant base, but that tends to focus on residential real estate. There is a new $70m multi-use venue breaking ground one and a half blocks from downtown next month. Amazon developed a $140m fulfillment center not too far away. Net migration flows to Hagerstown are positive. But, have things really changed? Are existing businesses thriving? What kinds of businesses does the downtown area need? Any insights would be greatly appreciated. 

Thank you, @Eric Teran. It's a permit to dig the well and install the window. Thanks to the intervention of a close colleague, who sends my handyman lots of work, we resolved things. Handyman agreed to $3,500 for both permit and installation of the egress window.

Thanks @Russell Brazil for all of your contributions to this site. 

I would like to install an egress window in a property so tenants can legally sleep in a basement space. My handyman gave me an estimate for $1,500 to pull permits and $4,000 for the work. I already bought the window system. A small window already exists in the room at the exterior ground level, so the work will entail digging into the ground and cutting into the wall. Is this estimate reasonable for Hyattsville, MD? My handyman has been hard to work with on this and when I told him not to proceed until I could consider the costs, he said he already submitted a permit request and if it is approved I will need to pay him the $1,500. Any insights, advice, contractor recommendations would be appreciated. 

Thanks in advance! 

The monthly loan payment was taken into account by lenders when calculating the DTI, but other than that the overall loan amount didn't negatively impact financing. I had about 800 credit score each time I got loans, and I saved up enough for 20-25% downpayments. I stuck with conventional loans. There are also rules about being able to count rental income as income from a lender's perspective. I think they usually want two years of steady rental income in order to figure it into the DTI. I had had a rental for about ten years when I first started getting loans while enrolled in PSLF. I suggest you just contact a lender and see if they're willing to walk you through their process and thinking. Don't try to figure all of this out on your own as you might mistakenly self select yourself out of financing options. I honestly can't explain lending as I don't understand all the various factors, but that obviously didn't but stop me. And everything has been working out great!

I support sticking with the PSLF and paying off your private loans ASAP. I understand people have different views on whether to pay off debt, but it largely is a decision of whether you are okay having the debt hanging over you. It’s the same argument with 30 vs 15 year mortgages. Some people just can’t stand to have outstanding debts. Nothing wrong with that, just a personal thing for everyone to figure out for themselves. I have not had any problems getting loans on four properties while enrolled in the PSLF program. Though, it becomes an issue at some point. You are no longer taxed on the amount forgiven. Just make sure that if you get married in the next 109 months you file your taxes “married filing separately,” otherwise your spouse’s income will be considered when determining your monthly loan payments. 

I say trust your instincts and just stick to whatever plan you decide on. I’ve got less than three years left in PSLF and looking back I’m so happy I’ve utilized the program, made small monthly payments based on my income, and used my accumulated savings to invest in real estate. Good luck! 

@Arthur Means Historically, the financial point at which the PSLF makes sense, versus paying it off, is $60k in loans or more. When i signed up for it in 2011, their website said as much. A friend of mine had $60k in student loans and he did the math and it would have been a wash. So, PSLF shouldn’t drive your decision. That said, with $75k you’d need to make about 9% cash return each year to cover your student loans. Is that right? Depending on how you invest that money, I think that’s doable. I say buy an asset that will give you a return that covers the student loan. Once the loan is paid off, you still have the asset.