All Forum Posts by: Tim Youse

What was the cost for the new HVAC system? I have a similar home (1200SF rowhome) with radiant heat and window A/C and was quoted $11,500(!) - and that was just for AC. After that, I got a few estimates over phone for between $4,000 - $6,000. 

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Congrats on your purchase!

I have nothing to add, but will be following closely as I live nearby in Hillen/Ednor Gardens and will soon be converting my home to a rental, with the goal to acquire another income property in 2017.

One question - why did you decide to do a cash purchase instead getting a loan?

Also curious to learn about local REIA meet ups.

Good luck!

You know, I didn't even think of that. I could purchase the new $325k place with 3.5% down with an FHA loan (right?) - so just under $10k, and the mortgage would be $2000. If I put down 20% ($65k) it goes to ~$1500. It almost doesn't even make sense to put down 20%.

This was one of the places (too bad I was looking on Zillow initially so it failed to mention the HOA fees or that the place was already under contract. Already has a tenant paying $1200/mo.

https://www.redfin.com/MD/Woodlawn/16-Kettle-Ct-21...

The wide range for rents around my current home is due to the wide range of conditions and locations of the homes themselves. Most of the homes in my immediate area are owner occupied (few rentals) so it's tough to get an accurate gauge, so I've been going by asking prices on craigslist as well as an MLS list a realtor hooked me up with.

When I said $325k was modest for a new home, what I meant was I was approved for much more but thought it would be foolish to purchase anything near that max number. (daycare expenses in my area are about the same as a mortgage...ugh)

I've received a windfall and thanks to that I have a little over 6 figures available to me to spend on either a new home for my family now, or buy 1 or more income properties nearby and THEN buy a new home...

My current house is *just* underwater, so if I sold it, I'd lose several thousand dollars, and if I rent it, I might make $100-$300 more then the mortgage, and that's no guarantee. (bought house for $158k in 2006, I owe $134k, with mortgage of $1340/mo) Comps in my area go for $160k, but my lack of central air and no new kitchen drops that number back to the $125K-$135K. If I refi, I can get my mortgage to $950, but homes in my area (Baltimore City) rent for $800 to $1400 at most.

So with that in mind, I set a modest budget on a new house at $325k max. With 20% down that's $65k + closing, which still leaves me with about $45k in cash, not including investments, 401k, etc. Mortgage with tax, ins, etc would be around $1500.

However, if I do that, AND keep my house to rent, it doesn't leave me a comfortable margin IMO to buy an income property - at least not in an area I'd want to invest in.

Since I've never bought an income property, it's a little daunting. I did some research in various areas and I've found turnkey homes for sale in decent areas in Baltimore County for around $70k that could rent for $1200 +/- $200, for a cash flow of around $1k/mo.

So fellow BP members lend me your advice! Thank you!

Good to hear Matt. BTW, if your house is the one I think it is, it's pretty sweet. Congrats on the sale. 

I wasn't aware of that deal with Mr Lister. Sounds like it's basically a FSBO service? That could be an option.

I'm going to chat with another lender tomorrow to discuss some options and see if I can at least get the house appraised high enough to make renting it out worthwhile. (off topic: when I met with him earlier this summer we discovered out my "grant" I had for buying in the city was really just a $5000 no interest loan. My former realtor had told me that was supposed to be forgiven if I stayed in the home for at least 5 years.)

In the meantime, I'm buying a house in Catonsville that should close by the end of Nov, so I suppose the clock is ticking.

To answer some other points that were brought up. Yes, fortunately, I do have enough cash to put 20% down on the new house, with funds left even if I had to absorb a loss selling my current home, although I'd like to avoid that if at all possible - or at least try to take the smallest hit I could.

Thank you all for your input.

Hello BP. I'll get right to the point. Bought a house in Baltimore City in 2005 (about a year before the bubble burst) with very little down. Fast forward 10 years, the house is underwater, but fortunately the market has picked back up and I'm not that far under as I once was. Now that I have a family and am planning to purchase a new home outside the city, I'm trying to figure out the next move - rent out my current home, or sell at a potential loss. 

So here I am on BP looking for advice on deciding which way to go. 

Do I sell the property?
I've met with a listing agent to give me ideas of what updates the house would need before listing as well as getting a CMA. With about $10k in updates, he seems to think that the house would sell for about $8000 more than I owe. With no updates, he's guessing I will be out about $10k after closing costs and realtor commissions. So that's a bit of a wash.

Do I rent the property?

I don't plan to manage the property myself, so I've compiled a list of PM companies that were recommended to me by other investors and realtors. The next step here is to contact them and see what they would try to charge for rent. Looking at what other rents are near me, I will be lucky to cover my current mortgage of $1340/mo with rental income unless I can refi to a lower payment. To that end, I have contacted a mortgage broker to begin the refi process. If I can get the house appraised at more than I owe (big if) I will save over $400/mo, and then it would be possible to at least flow positive on the property each month.