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All Forum Posts by: Michael Wu

Michael Wu has started 4 posts and replied 23 times.

Post: My first deal

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

Looks great! Hopefully it gets rented quickly

Post: First Time Investment

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

Just finished my home inspection. He found an issue with the AC unit (very old unit that needs to be replaced) and flex duct in the crawl space. I got an estimate from HVAC tech and it will cost around 5-10k to replace. I talked to my agent and aparrently they will not repair the unit but they will reduce the offer price by 3k, to 84,000.

Personally, I don't think it's worth the hassle for just 3k reduction, which comes out to a savings of 600 bucks on down payment but will increase my out of pocket repairs.

I was just wondering if there are any recommendations on how I should proceed? I sent my agent a list of repairs so I'll be able to back out of the deal with my earnest money.

Post: Lead Paint Issue

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

Awesome thanks for the great advice/replies.

@Marcia Maynard Yeah, I've read through the posts but the thing that was worrying me was all the lawsuits MD (primarily in Baltimore) seems to be getting from lead based paint. It shouldn't be a major concern for me because I'll be renting to college students for the most part and I'm not purchasing in Baltimore.

@Jenna Stonecipher That is one of my major concerns with purchasing this house, the age. There is probably already a bunch of things that may go wrong because of the age, plus it is a homepath REO so they don't disclose anything.

Hopefully this is a good house to begin my real estate investment journey!

Thanks!

Michael

Post: Lead Paint Issue

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

@Jenna Stonecipher Does a home inspector usually find the plumbing issue during inspections? Sorry this is my first investment property, just want to make sure I have most my basis covered. Also, was it expensive to paint over?

Post: Lead Paint Issue

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

@Jenna Stonecipher Thanks for the advise. Yeah this house has a great Cash on Cash Return (35%) and great cash flow. I just only put $300 a year for lead paint testing for tenant renewal.

Post: Lead Paint Issue

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

Good afternoon all BP Users:

I currently have a contract that I can sign tonight for a house built in 1930. The exterior is wood and the wood seems to be chipping. Has anyone had any issues with lead paint? Is it worth purchasing this investment property?

Thanks,

Michael

Post: First Time Investor From DC metro area, DC, MD, VA (DMV)

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

@Paul Timmins Thanks for the advice, hopefully once I start putting some more equity into this property I can refinance and do this whole process again!

Post: First Time Investment

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

@Jordan Thibodeau The eviction point was just an example, I couldn't think of any other examples for real estate attorney off the top of my head when I was writing this. I was thinking, much like the CPA, it would be good to set up a relationship with an attorney but I wasn't sure if this early in it would be necessary.

I think I will go with the umbrella policy for this first one. Two benefits this way is that I don't have to pay to transfer title and I don't have to transfer the title back to me if I was to refinance for my next investment property.

Post: First Time Investor From DC metro area, DC, MD, VA (DMV)

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

@Darren Sager thanks! I just accepted the banks counter offer and hopefully sign the contract within a week!

Post: First Time Investment

Michael WuPosted
  • Washington, Washington D.C.
  • Posts 23
  • Votes 5

Good morning BP:

I currently accepted an offer on a REO property (offer accepted is $87,000 + 3% closing) and will hopefully be closing in the next few weeks. I just have some questions:

Should I get a CPA for my taxes just for one investment property? If so, does anyone have a recommendation in Washington DC? or Maryland?

Should I just use an umbrella policy or should I form an LLC ($300 annual fee)? Also to transfer the title to LLC I will have to pay taxes on title transfer each time.

I'm going to go through a Property Management Group who handles evictions and such but should I get a real estate attorney on my side as well?

I would love to hear people's opinions on this.

Thanks!

Michael