All Forum Posts by: Nadiya Lonkevych

Well, I just put an offer on a multifamily property in Ellicott City… This is my very first investment property. Scary… But keeping my fingers crossed! :)

@Blake C. 10 miles away puts me into Baltimore city (Detroit-like market), and this is where I would really get scared to invest at this point. I do understand there's lots of potential, but I feel like you have to know what you are doing to get into that.

I'll keep looking, time is on my side I guess.

@Ned Carey, I was referring to  $300-400 cash-flow in College Park when you rent to students, not in Howard County. After several months of market watch here in Ellicot City/Columbia I wasn't able to find any properties that would cash-flow, at best I could break even after all the expenses and loan payments, never mind 2% and 50% rules… I guess it requires lots of patience and waiting for the "right" house to appear on the market.

p.s. I really enjoyed your presentation at BWI Meetup! Thanks!

@Jean Bolger 

I wouldn't mind purchasing in well established neighborhood because should something go wrong and I decided that the whole rental thing is not going great for me, I could move in into that property and ensure that my son attends a good school.

Thanks for the tip about the rental signs, I'll go check them out this weekend.

Also, I am thinking I may be late for the "student season"... By the time I close on the property it will be September most likely...

Well, the Crimean peninsula is now part of history... Originally from Ukraine and having my entire family there, I pay close attention to what's going on, and unfortunately it's not getting better. Putin is realizing he has power and he is engraving his name in history. Russians are fully supportive of his politics, mainly to massive mass media propaganda and false facts. I don't think anyone can give an accurate prognosis on how this will end, if it ever will. I sure hope Ukraine is not going to become new Syria.

I have been going back and forth trying to decide where to look for our first deal. Narrowed it down to two areas: one with great schools, a very desirable to live Ellicott City, MD, expensive also; and second - immediate area right outside of the state university campus. Analyzed, both markets, demand for rent should be great in both areas, except in the first scenario cash flow is near zero or slightly negative, but I would most likely deal with middle class families with kids; in second scenario it should bring 300-400 per single family per month, but the area is iffy and dealing with students may bring a whole tone of issues with police/parties/extra repairs etc.  I would appreciate any advice from anyone who has experience with either student rentals or properties that do not cash flow but are set to appreciate over time. Can't decide which way to go. Thanks!

@Jon Holdman 

Thanks for your quick response. I will definitely use an accountant for my taxes once we rent this condo out. It is way over my head at this point, since I have no prior experience. And yes, I was strictly talking about cash flow, not net negative taxable income.

p.s. Refinancing to 30 years instead of 15 (that what the mortgage currently is) would help actually creating positive cash flow of $50/mo but like I said in the previous post it's out of question because of the equity issue.

Hi everyone,

I am about to become an investor renting out the condo I currently live in (Columbia/Ellicott City, MD area) and purchasing another house for my family. The condo was purchased in 2006 at it's highest ever price of $160K. Two weeks ago an appraiser came back with a bad news: it's only worth $80K and is underwater (despite all the renovations and updates).  So, refinancing is out of question for at least three-four years until we lower the balance to it's market value.

The plan is to still try to rent it. It could easily bring $1100/mo. Our PITI + condo fee is $1509. That creates a negative cash flow ($409/mo).

After all tax deductions (i.g. depreciation, interest, insurance, condo fees, local taxes etc.) the taxable income is $2,269. This number looks great except after accounting for negative cash flow of $4,908 the adjusted amount is now a loss $2639. 

So, here's my question: can I deduct this amount as business loss?

This is going to be my first time! so excited!
Wednesday, June 14, 2014