All Forum Posts by: Kent Verge

Welcome Kelly!

Why do you feel that you need to move the duplex to an LLC? Likewise, why do you feel that you need an LLC in Maryland?

My recommendation would be to just keep them under your name at least until your CPA tells you it's time for another entity. The LLC will add extra costs both up front and at tax time, and unless you follow the operating guidelines to the letter, any perceived benefit in terms of risk is weak at best.

Kent

I was finishing up a make-ready and changing out the cylinders on the locks when I noticed that the old cylinders were missing the pins. The previous tenant complained about one of the doorknobs being loose, which made sense since someone had taken them apart at some point over the last five years. This was especially sinister because to the tenants, the locks functioned normally, but they would unlock with any key that fit the grooves (most any house key).

I understand that one of their ex's lived across the street for the first few years they were there. Creepy no matter who did it.

If you have a family member who was in the service, you can open an account with Navy Federal Credit Union. They offer a 70% LTV lines of credit against investment property.

They needed the cash when you sent the first mailing. Mailings 2-4 broke through their denial.

All that I called said essentially the same thing @Jason Burr .  A family friend who's a building inspector for the county said that it's state-wide; I think they are looking for creative ways to cut costs...

If I remember correctly, it was Farmer's that canceled our policy. We built a house and had a difficult time selling our old one. They cancelled the policy after being vacant for six months (they were calling me to ask if it was sold or occupied every few weeks). We toyed with renting it out, but we needed some of the equity for the new house.

It was before I got into REI, but I learned a lot from that sale/purchase. One thing that comes to mind is that it's possible to close on a loan within 24 hours of applying if you work with an aggressive broker who has lots of contacts n the business. It's a long story for another thread, but that also included getting a full appraisal on the new house. :)

There's more risk (vandalism, etc.) while it's empty. Mot companies will insure it at a higher cost. I did have a company cancel my policy once because my house was vacant...

I guess I'll be the first to throw out a negative. :)

As I posted in another thread, it seems that most insurers in Florida exclude damage caused by PEX plumbing in their policies. Some only exclude it in policies for houses older than 2012. From what I could tell, it's related to a Zurn lawsuit a few years back for a defective fitting. 

I'm redoing all of the pluming in an older house with PEX, and I couldn't get it (the plumbing, anyway) insured. I could see this as an issue for houses that you're selling to non-investors. They may not like the idea of essentially self-insuring damage caused by the plumbing.

My best purchase to date came from a relocation company. I made an offer the day it hit the MLS (a Thursday) that expired the next day at 5PM. They asked me to extend the offer through the weekend (lol!), and I refused. The ended up accepting it anyway. If I remember, their contract was definitely in their favor on several terms, but it ended up being a great deal nonetheless.

If you live there for a year, and save up the money you would normally be paying into rent, you can move into another one with a homeowner loan to rinse and repeat. At that point, you'd rent out the first unit so that it's cash-flow positive. It's a good way to get started out. I wish I had considered it when I was renting years ago...