All Forum Posts by: Sebastian E.

Thanks all and that one made me laugh @Jeffrey H. If anyone knows of someone who does hauling on the cheap please let me know. I will have my guys do the demo but could use someone to haul drywall and carpet out.

I am doing some light renovations on a duplex I recently purchased in Baltimore. Mostly pulling up carpet and tearing out some damp dry wall in the basement. In D.C. Does anyone know the best way to get rid of things like this in Baltimore city? Is there a dump close by and is it only for Maryland/Baltimore residents?

Thanks!

Seb

Hi all,

The bank ended up accepting my offer. It needs a little bit of work but it all seems manageable and I should get pretty close to 1.5% rule on it in a seemingly appreciating market. My plan is to BRRRR which will be my first one so I will keep you posted.

I am now just figuring out if I will be able to get title insurance on it or whether it will be transferred using a quitclaim deed.

I will keep you all posted.

Sebastian 

Hi BP,

I was the high bidder on a duplex on auction.com but it did not hit the reserve. I have sent over the contract and EMD and was told the bank would get back to me within 15 days as to whether they approve the sale.

I have a question about title insurance. The contract reads:

 
"Buyer acknowledges and agrees that no title insurance of any kind is being provided to buyer by seller , that title insurance is not a condition to closing and the property is being transferred to buyer by quitclaim deed or other form of deed acceptable to seller is seller's sole and absolute discretion, without any warranty or representation regarding title"

I'd like to get some advice whether it makes sense to shell out the money for a title abstract to check the title on this while the bank is making it's decision. Is there anything else I should be doing other than waiting? 

Thanks all. Very helpful.

From what I can tell the market rare on these is 1k based on some discussions with neighbors. It is a cusp neighborhood, so I think it may be worth just putting in market rate tenants rather than jump through the hoops for a potential 200 dollars more a month on section 8. 

Hi BP,

I am looking at a duplex in Baltimore city that i'd like to run some numbers on assuming section 8 rentals. The top half of the duplex is a 4 bedroom / 1 full bath and the bottom is also 4 bedroom / 1 full bath. My question is what the legal requirements are to rent this property to a 4 bedroom voucher tenant. Must there be a living room in which case they would be 3 bedroom? Is there a requirement of the number of baths? Also can someone point me to a resource that lays out what the vouchers are currently at?

Thanks in advance

Sebastian 

@Brent Coombs thanks for the response. The market makes sense for rentals now so I would keep it as rentals and only do the conversion if it made sense down the line. For the area I am talking 10-15 years down the line. I was imagining a scenario where I had a 30 year fixed term loan on it and then could continue to ride that loan while seller financing but I understand now that would not be possible for the reasons @Aaron Smith and @Russell Brazil mentioned. It would trigger the due on sale clause so i'd have to consolidate the units into a commercial loan and then release them one by one. That makes a lot of sense.

Thanks all.

I have a theoretical question that I wanted to run by the community. I am analyzing a 4-unit building in an up and coming area. The numbers pencil out fine as is but I wonder if down the line the condo market in this area picked up whether it would be possible to convert the apartment building into condos (they are all 2/2's) and then so lease options on the condos using my low FHA rate to arbitrage a higher rate on the note to the buyer.

I guess the first question is whether the condo conversion would trigger some sort of due on sale clause with that original mortgage. 

Does anyone have any thoughts on whether this is even feasible and if so whether it's a desirable strategy?

I’ve gotten mixed guidance on the question. You certainly need to live there. 

The question of running the business in the space is associated with andy SBA loan from what I understand. 

Can someone give me guidance as to whether it is possible to finance a 4 unit building that is zoned commercial but is being primarily used as residential? The property in question has 3 apartments and a storefront and is zoned commercial. Any guidance on this would be most appreciated.