All Forum Posts by: Stephen Kehoe

Hey Sam,

The interest differences is from state specific numbers I found herehttps://www.businessinsider.com/personal-finance/average-mortgage-interest-rate#average-mortgage-interest-rate-by-state

I couldn't find data for just Baltimore.

My sources and calculations can be found here https://docs.google.com/spread...

Section 8 is a huge pool of the applicants in Baltimore. I recommend it. Officially you can't discriminate against voucher holders in Howard, Montgomery, Baltimore county & city & DC. Check out the below for something more in depth:

https://www.biggerpockets.com/member-blogs/13355/91152-what-you-need-to-know-about-section-8-in-baltimore

I am putting together a packet for my out of state owners regarding specific Baltimore costs. I am trying to illustrate how it is more important to make tenants responsible for utilities in Baltimore than elsewhere. I made the below table using the internet and one of my own rentals in north east Ohio (similar cash flow market). Am I missing any Baltimore specific costs? 

I agree that the upcoming economic situation is not yet perceived by most. The amount of section 8 demand is determined by how many housing vouchers the local housing authority gives out. Most housing authorities waiting lists are closed. With the burden of paying for the public health crisis falling on local government instead of federal I don't see their budgets allowing a big increase in vouchers.

Regarding remodeling: to determine if you should remodel divide the increased yearly rent by the cost of remodel plus the months of lost rent to get your ROI. If this number is well above the stock market return then proceed.

Regarding the inherited tenant: A 10 year tenant in Baltimore during this pandemic sounds pretty good to me. There are things you can do to control some of the negatives people talk about on here.

1. 1. Do an inspection so you have something to compare to when dealing with the deposit upon move out.
2. 2. Sign a new lease.
3. 3. Act as or hire a professional property manager.
4. 4. Set expectations.

Regarding rent: I would increase the rents to market and see if the tenant leaves.

Regarding a Baltimore real estate lawyer: you could try MONSHOWER, MILLER & MAGROGAN, LLP. They are very knowledgeable.

Pet rent is one of the easiest ways to increase your ROI. More people have pets than don't so disallowing them cuts you off from most of the applicant pool. I am pro pet. Make sure the dogs breed is not on the dangerous breed list according to your insurance policy.

The county will do the inspection. They can be reached at nvironEngProgram(at)co.pg.md.us

First you'll have to get it pumped by someone on this county approved list https://docs.google.com/docume...

Then if the inspection finds something you'll have to use someone on this list to repair https://docs.google.com/docume...

The north east would be slightly worse. Columbia is such a big rental market though that you will always find a renter. You just might need to drop the rent slightly and let the laws of supply and demand work out

The $99 charge is per bank a/c not per property. So unless you have each tenant paying into different accounts this shouldn't be an issue.

More important than states is the local city or county. That is where most of your head aches will come from. Big blue cities are generally hard work when it comes to evictions, inspections, and rent control