I understand how if you live in a state where you can implement penalties for late payment (this is day 11 now, so today she is out of the mandatory grace period) it may be easier to incentivize residents to pay on time (in Florida, where I live, they start eviction proceedings on the third day after you are late), but in areas like Baltimore that are more tenant-friendly, what do you do to incentivize people to pay on time?

The mortgage will be paid off at closing out of the sales proceeds. you’ll get whatever’s left after that. 

But even more importantly you can allocate your proceeds any way you want. 

I would encourage you to proceed with caution.

STR a suboptimal option in this market due to restrictive ordinances.Purchase price: $1,260,000 with 11% down @6.75% fixed 30 yrTotal Rehab costs (labor + materials) thus far: -$70,390Cashflow to date (NOT including Rehab Costs above): -$60,237Projected Cashflow: 3.1% with 3 LTR tenants Wanted the group’s expertise on options as I am considering parting ways with this property given the number of leaks that have come up in this relatively young property.1) In 2025, 1031 into another (potentially more units) multifamily at least 20 years old.2) Investigate leaks/Stabilize and proceed with original plan as LTR and accept uncertainty related to potential future leaks.3) Proceed as MTR (hospitals and NYC nearby) so that can intervene on issues during vacancy periods.

Keep us posted on this forum if you proceed forwards. 

I would like to purchase a 2-2.5 mil home with the proceeds that will eventually be our primary, but that we could buy initially as a second home/investment and rent out for the remainder of 2024.

@Yixiong Pan Since we found out about the unrecorded Welfare lien before excess funds were distributed, we alerted the Tax Claim Bureau and they paid the Welfare lien out of the excess proceeds. 

Our relationship with them is not ideal, we have already had to serve them a cure or quit notice earlier in their lease term (approx. 1-2 months after moving in) due to multiple, egregious lease violations, however because they “cured” the violations could not proceed with evictions.

She then proceeded to harass the landlord and property manager about EVERYTHING- the sewer, the gate, the garage - everything was not to her liking.