All Forum Posts by: Stephen Chittenden

Are you telling him that you want a redacted one that shows only the property you are acquiring? If he thinks you want to see the entire schedule, I can see why he'd say no. It's full of information that is none of your business.

You could keep the tub and put in a glass half-wall to avoid the need for a shower curtain. That is a more modern design, I think that could appeal to you and not eliminate the tub for those who want one.

Not to resurrect an old post, but we're in the middle of doing a cash-out finance on a rehab at 5.25% with 30-year amortization. It is a 5/5 arm with a 10-year balloon. Seemed pretty good for a commercial loan.

Originally posted by @William Morrison:

Originally posted by @Stephen Chittenden:

Originally posted by @William Morrison:

 Andy it's interesting getting multi state and county requirements on BP isn't it.
The county I live in, in Maryland will not allow me to offer less than 2 years on a lease.  But the tenant can counter with one year.  We get so many people in our area from out of state who at first look are surprised by two years when they see it.  Then we tell them we have to offer and they can counter.

 Ah, the People's Republic of Montgomery County.

 Ah, Stephen you know of the country, I mean county of which I speak.  <Grin>
Seriously it hasn't been a problem.  I don't think any tenant sense 1999 have agreed to the 2 years.
Now the annual $105 landlord license per property and the new $30 state wide registration for pre 1978 properties with lead based paint and the associated inspection, that real fun here in the Republic.  If the numbers work, the numbers work.  

 Yes.  I've lived in the county in the past.  Our investments are in areas where we have avoided the landlord license, but we do have to deal with the lead paint registrations and lead paint testing and all of the other joys of being in Maryland.  We also got nailed by not understanding that a triplex in Elkton would be billed for 3 x the minimum water usage even though it has one meter.  That took a bite out of our cashflow estimates with a bill for 27,000 gallons of water usage per quarter even though actual usage is about half of that.  

The property taxes seem really low to me, but I don't know where you are.  The insurance costs also seem low, but not entirely implausible depending upon the area.  I'd want to make sure the units are separately metered for water, gas, electric, etc. and that there are no other costs you would have to pay (such as trash).  Given that rent is less than 1% of the selling price it seems like it will be tough to cash flow.  

Originally posted by @William Morrison:

Originally posted by @Andy Robison:

This does not pass the smell test. With a list of other qualified renters in reserve... I'd advertise with a 5-15% markup and see how many bite. Rent out to another tenant who's not requiring a 4 year lease. Some states actually do not allow leases to go longer than 2 years. Check local laws.

 Andy it's interesting getting multi state and county requirements on BP isn't it.
The county I live in, in Maryland will not allow me to offer less than 2 years on a lease.  But the tenant can counter with one year.  We get so many people in our area from out of state who at first look are surprised by two years when they see it.  Then we tell them we have to offer and they can counter.

 Ah, the People's Republic of Montgomery County.

What are you going to do with them after you are done?

Just a consideration, but a lease in excess of three years could trigger a due-on-sale clause.  A bank may exercise the due-on-sale clause if you enter into a lease in excess of three years.

Well, two months behind schedule, but we are finally done.  Unfortunately, our team was hit with the flu which pushed us back about two weeks.  Everyone is mended now, and the house came out pretty well, I think.  After pictures are below.

No deduction seems right to me. The HELOC is not secured by your primary residence (no mortgage interest deduction) and it was not used for a business purpose (no business expense deduction).