J Scott - Author of Flipping/Estimating Book - Ask Me Anything!

318 Replies

Originally posted by @J Scott :
Originally posted by @Huong T Nguyen:

Russeel Brazil: Thanks so much! Great info! 

As long as the work is done inside my home, without any change to the footprint of my house, which is not known as vacant property to the city, and no sign of my roof getting raised, I guess there is no reason for the city inspector to pop his head in and ask me what is going on.

Again, can't speak for Russell's area, but in my county (and in one or two other places I've invested), it's not crazy for inspectors to see a 30 yard dumpster and knock on the door to see what's going on or to put up a stop work order if there are no permits.  Certainly not common (never happened to me), but it happened to another BP member I know here (I won't mention his name here)...

 It can take just a work van outside of the house and the contractor carrying something into the house in Rockville to get an inspectors attention.  It becomes less a problem, as you move to locations in the county further away from Rockville (further from where the inspectors are very day) or where houses get further apart, so they arnt right next door and wondering whats that work van doing next door.

Now you go to DC, just a few miles south....and there the inspectors are actively out looking for people to fine. They literally will go to some neighborhoods where a lot of renovations are taking place like Petworth/Brightwood and drive up and down every street looking for work being done, and fine you.  One day a few months ago, I think they gave out $250k in fines in 1 day in DC.  DC at times may make you tear things out that were not permitted either. MoCo that doesnt happen. I have a screened in porch addition on one of my rental properties that is unpermitted and no one cares at all.  

MoCo though, you have some hard *** inspectors and some who dont care at all.  Ive literally had properties pass a final permitting inspection where there were things that didnt meet code, and the inspector was like fix those things, I say ok, he finals me and I never fix those items. DC is harder, PG County is harder. Frederick is easier than any of the aforementioned.  Ive never owned, or renovated in HoCo where  J is the next county over, so I dont know how strict they are.

Originally posted by @Russell Brazil :
Ive never owned, or renovated in HoCo where  J is the next county over, so I dont know how strict they are.

Howard County has some of the nicest inspectors I've ever worked with (with the exception of the electrical inspectors, who are the bane of my existence)...  

More details: Met with a banker about getting a loan for a different property. I then have asked, " hey do you have any REO's" He showed his list and I told the banker that I would take one of the listed properties for cash. He then went on to tell me that all I have to do is put in an offer via email. That they have a comity meeting once a week and that is when they will review my offer to either accept it or counter offer it. I have submitted it and now I'm just waiting to hear back. But my question is also if I shared the address to this property that is off the market with my realtor, is she legally allowed to give that address info to a friend or colleague investor? Or are they bound to keep our conversations confidential?

Originally posted by @Jeremy Roach :

More details: Met with a banker about getting a loan for a different property. I then have asked, " hey do you have any REO's" He showed his list and I told the banker that I would take one of the listed properties for cash. He then went on to tell me that all I have to do is put in an offer via email. That they have a comity meeting once a week and that is when they will review my offer to either accept it or counter offer it. I have submitted it and now I'm just waiting to hear back. But my question is also if I shared the address to this property that is off the market with my realtor, is she legally allowed to give that address info to a friend or colleague investor? Or are they bound to keep our conversations confidential?

Got it.  Sounds like they don't need anything formal -- at very most, a state contract.

As for whether your agent can steal the deal, I don't know the legal answer to that question.  Certainly, I don't believe she is legally bound to keep this information confidential. But, if you have a Buyer Brokerage Agreement signed with her, she does have a fiduciary responsibility to you.  And I would *guess* that this responsibility would extend to not taking a deal you're pursuing (that you found) and disclosing it to another investor without your permission.

Again, I don't know from a legal perspective (perhaps read your agreement and see what it says), but I can't imagine a good agent would do this. 

THIS MAY BE A QUESTION WORTH POSING IN THE BROADER FORUMS...

Thanks, J Scott, you have been extremely helpful.  What is this "state contract" that you are referring to?

Originally posted by @Jeremy Roach :

Thanks, J Scott, you have been extremely helpful.  What is this "state contract" that you are referring to?

Every state has a formal contract that Realtors use (some states have multiple contracts or different versions for different Realtor associations).  Real estate agents and banks who sell REOs are accustomed to these contracts, because they use them every day.  I imagine most/all local banks that sell REOs will eventually expect the deal to be written up on a state-approved contract, so if you start with this, the agent/bank won't have to rewrite anything on a different contract or ask you to supply a different contract.

Technically, only agents should have access to these contracts, but they are generally floating around out there and I bet if you ask another investor or an agent, they can provide you a blank one that you can use to submit your offers.

@J Scott , you really came through for me! I thank you very much, and I will post on the forums if & when I pull off this deal! I'm really hoping that this one will help get me some start-up capital to pursue my path to purchasing multifamily homes.

This post has been removed.

Originally posted by @Eric Michaels :
Originally posted by @Andrew Syrios:
Originally posted by @J Scott:
Originally posted by @Andrew Syrios:

If you get scarred half to death and then get scarred half to death again, do you die? 

Did I miss something???

 An extremely stupid joke perhaps.

 And not knowing how to spell the word scared killed the joke too

Grammar Nazis kill all jokes though. 

Hi: Jay. Can You Help:

 I am brand new and just starting out. I am trying to figure out how to make my first deal work and really want to help out this couple. Due to medical reasons a couple came to me looking to sell their house at a discount. They need to walk away from the home. So before their house goes to foreclosure I have been trying to wholesale since Dec. 1. no luck. Info: They owe 101k on house.

Arv 162k

Renno 15k

Contract to me for 105k -Sell price: I started at 118K and moved to 110k. Still no buyers to assign.

With nothing coming from Craigslist, google and REIa: I am trying to be creative. I sampled the market for rentals and found two families in the area who want to rent the house for 1400.00 and entertained the option to buy. One family is on board. I checked rento meter and it came in at 1300 to 1400 so ok with numbers. Did bigger pockets calculater. Numbers are ok. Running on Brandons base line numbers from webinar: . cashflow is 230 pm and cash on cash ROI is 15 percent. My goal was to go back to a few buyers with a package deal haveing a house and it already rented I thought would be a good deal. I am 1.5 hours away so I do not know the area and buyers there at all. So most buyers are in my area adn dont want to manage that far out.

I am getting confused what to do: Ideas. Speak with owner to maybe: assume the loan.  I got no cash. I also do not know if the house is sound enough for me to be a new rental owner, then fix it up myself adn get a hard money loan and roll that into the house with an assumed mortgage.

Can you help with some input and ideas? this is getting complicated....My plan was to start with wholesalilng to build some cash. do one or two flips to add more cash and buy one house a year for a rental. I  am siked to begin with a rental but I do not have the reserves to pay for repairs and property costs for what ifs. And nervouse with all the other stuff I do not know

Maybe I do a hard money loan for 20k for the rehab and the 5k buffer to cover what ifs in the beginning. At this point a lot of moving parts and not sure. Can you help!

Drew Powers : 

Stocks you buy on etrade.  How do you invest in horses? Htrade?  I should look more into that I have inside info my uncle has spent his career writing about book/articles about horses, and commentates on espn.  but I never connected that to an investment vehicle until you mentioned it.

Seems like there are a lot of great investors within a 2 hour drive of me :) Maybe we'll meet some day

Originally posted by @Drew Powers :

Hi: Jay. Can You Help:

 I am brand new and just starting out. I am trying to figure out how to make my first deal work and really want to help out this couple. Due to medical reasons a couple came to me looking to sell their house at a discount. They need to walk away from the home. So before their house goes to foreclosure I have been trying to wholesale since Dec. 1. no luck. Info: They owe 101k on house.

Arv 162k

Renno 15k

Contract to me for 105k -Sell price: I started at 118K and moved to 110k. Still no buyers to assign.

With nothing coming from Craigslist, google and REIa: I am trying to be creative. I sampled the market for rentals and found two families in the area who want to rent the house for 1400.00 and entertained the option to buy. One family is on board. I checked rento meter and it came in at 1300 to 1400 so ok with numbers. Did bigger pockets calculater. Numbers are ok. Running on Brandons base line numbers from webinar: . cashflow is 230 pm and cash on cash ROI is 15 percent. My goal was to go back to a few buyers with a package deal haveing a house and it already rented I thought would be a good deal. I am 1.5 hours away so I do not know the area and buyers there at all. So most buyers are in my area adn dont want to manage that far out.

I am getting confused what to do: Ideas. Speak with owner to maybe: assume the loan.  I got no cash. I also do not know if the house is sound enough for me to be a new rental owner, then fix it up myself adn get a hard money loan and roll that into the house with an assumed mortgage.

Can you help with some input and ideas? this is getting complicated....My plan was to start with wholesalilng to build some cash. do one or two flips to add more cash and buy one house a year for a rental. I  am siked to begin with a rental but I do not have the reserves to pay for repairs and property costs for what ifs. And nervouse with all the other stuff I do not know

Maybe I do a hard money loan for 20k for the rehab and the 5k buffer to cover what ifs in the beginning. At this point a lot of moving parts and not sure. Can you help!

Drew Powers : 

 Hey Drew - I received your email as well...I'll just respond to that in a bit, as this is a very specific question...

Originally posted by @Michael P. :

Stocks you buy on etrade.  How do you invest in horses? Htrade?  I should look more into that I have inside info my uncle has spent his career writing about book/articles about horses, and commentates on espn.  but I never connected that to an investment vehicle until you mentioned it.

I don't do any stock trading, though I do some options trading.  Mostly short term puts to hedge other long investments, so nothing that would make sense to mention...

As for horses, I own a bunch of racehorses with a partner (who has been in the business for a long time).  It's a lot more volatile investment than real estate, and not something I would recommend investing in unless you were willing to take some short-term cash swings (monthly costs are pretty high and income isn't steady) and unless you have some other reason for being in the business (I'm a city boy who loves animals and wants my kids to grow up with some experiences I didn't have, so getting to the horses/farm with my kids is a big bonus for me).

Horse have many of the same exit strategies as real estate -- you can buy them, improve their racing form quickly and resell at a profit (flipping), you can race them consistently (once or twice a month) for years and just collect the cash flow from their races (buy-and-hold), you can breed horses and raise them to be racers (development/new construction), you can buy really expensive horses with passive investors (syndication), etc...

Happy to answer any specific questions, but don't want to bore everyone with this topic...  :-)

Scott, I don't know if you discuss this in one of your newer books, but I would really appreciate your advice on how I can finance a deal.

Recently the owner of a property in Wheaton MD about 15 minutes of brisk walk to the metro station is trying to sell me his house and he wants to sell it  quick this Spring. The house was built in the '60s with 8 rooms, 3 baths this house but one of the room is not a legal bedroom i.e. no egress. IN the property's current condition, each room brings $500 to $600 so the total rents I could get is around $4000/month. The for-sell-by-owner guy is asking for $370,000 and since he will not need to pay any commission fees there could be some more room for the price to go down. Property tax is $3500 for 2019. This is a solid, split foyer house with good drainage but the kitchen is dated and bathrooms look old. A good renovated house with 4 beds 3 baths in this neighborhood was sold for close to $460,000. 

1. Do you think this could be a candidate for wholesaling? 

2. If not, should I buy it as a rental property? BTW, in general, does the 2% rule apply in the DC Metro area? Maybe Russell Brazil and others familiar with this market can chime in here?

I can come up with $170,000 in cash (that is by taking a home equity loan on my residence home), but don't know how to finance the rest.

Thanks so much, Scott and everyone in advance!

@J Scott I live in Winnipeg, Canada. Do you think your estimations work up here or will I have to adapt them to fit my market?

Originally posted by @Dave Allen :

@J Scott I live in Winnipeg, Canada. Do you think your estimations work up here or will I have to adapt them to fit my market?

Hey Dave - Unfortunately, I know absolutely nothing about the Canadian market, so I don't know if the price ranges in the Estimating book are close or not.  Sorry...

That said, the methodology for putting together your SOW and getting bids should be applicable in any market, so even if the price ranges are off, it should help to learn the process of estimating.

Originally posted by @Huong T Nguyen :

Scott, I don't know if you discuss this in one of your newer books, but I would really appreciate your advice on how I can finance a deal.

Recently the owner of a property in Wheaton MD about 15 minutes of brisk walk to the metro station is trying to sell me his house and he wants to sell it  quick this Spring. The house was built in the '60s with 8 rooms, 3 baths this house but one of the room is not a legal bedroom i.e. no egress. IN the property's current condition, each room brings $500 to $600 so the total rents I could get is around $4000/month. The for-sell-by-owner guy is asking for $370,000 and since he will not need to pay any commission fees there could be some more room for the price to go down. Property tax is $3500 for 2019. This is a solid, split foyer house with good drainage but the kitchen is dated and bathrooms look old. A good renovated house with 4 beds 3 baths in this neighborhood was sold for close to $460,000. 

1. Do you think this could be a candidate for wholesaling? 

2. If not, should I buy it as a rental property? BTW, in general, does the 2% rule apply in the DC Metro area? Maybe Russell Brazil and others familiar with this market can chime in here?

I can come up with $170,000 in cash (that is by taking a home equity loan on my residence home), but don't know how to finance the rest.

Thanks so much, Scott and everyone in advance!

First, are you confident that it's legal to rent the property by the room?  This will be location dependent -- in some areas, there is a cap on the number of non-related people who can share a house.  You should verify this before moving forward, as it could impact your strategy and the value of the property to an investor.

Regarding your specific questions:

1.  If it's generating $4000/month and can be acquired for $370,000 in that area, it's probably a wholesale candidate.  I imagine there are investors around there who are willing to buy properties that exceed 1% in income.  I could be wrong, but Wheaton is a popular area for investors.

2.  You won't find too many 2% properties in the DC metro area these days.  1% is still pretty good for around here.  As for whether you should buy it, it depends on whether it helps you get closer to your goals or not.  This is going to be a personal question that only you can answer.

As for financing, does the seller have any equity?  Can they provide some seller financing?  Subject to?

Can you get a bank loan?

Can you get a private loan?

Do you know anyone who may be interested in partnering and can provide cash?

Originally posted by @Drew Powers :

Hi: Jay. Can You Help:

 I am brand new and just starting out. I am trying to figure out how to make my first deal work and really want to help out this couple. Due to medical reasons a couple came to me looking to sell their house at a discount. They need to walk away from the home. So before their house goes to foreclosure I have been trying to wholesale since Dec. 1. no luck. Info: They owe 101k on house.

Arv 162k

Renno 15k

Contract to me for 105k -Sell price: I started at 118K and moved to 110k. Still no buyers to assign.

With nothing coming from Craigslist, google and REIa: I am trying to be creative. I sampled the market for rentals and found two families in the area who want to rent the house for 1400.00 and entertained the option to buy. One family is on board. I checked rento meter and it came in at 1300 to 1400 so ok with numbers. Did bigger pockets calculater. Numbers are ok. Running on Brandons base line numbers from webinar: . cashflow is 230 pm and cash on cash ROI is 15 percent. My goal was to go back to a few buyers with a package deal haveing a house and it already rented I thought would be a good deal. I am 1.5 hours away so I do not know the area and buyers there at all. So most buyers are in my area adn dont want to manage that far out.

I am getting confused what to do: Ideas. Speak with owner to maybe: assume the loan.  I got no cash. I also do not know if the house is sound enough for me to be a new rental owner, then fix it up myself adn get a hard money loan and roll that into the house with an assumed mortgage.

Can you help with some input and ideas? this is getting complicated....My plan was to start with wholesalilng to build some cash. do one or two flips to add more cash and buy one house a year for a rental. I  am siked to begin with a rental but I do not have the reserves to pay for repairs and property costs for what ifs. And nervouse with all the other stuff I do not know

Maybe I do a hard money loan for 20k for the rehab and the 5k buffer to cover what ifs in the beginning. At this point a lot of moving parts and not sure. Can you help!

Drew Powers : 

Hey Drew,

I responded to your email, but figured I'd post my response here as well, in case it helps anyone else...

-----------------

If you can’t find anyone interested through Craigslist or local REIAs, is it possible the deal isn’t as good as you think? Perhaps needs more than $15K worth of work? Or perhaps won’t rent for as much as you think?

If you’re confident it’s a good deal and you want to buy it, talk to the owners and see if they’re willing to do a sub-to type deal so that you only need to come up with the rehab costs. This is win/win for both sides and can be a great way to start your portfolio.

If you're interested in wholesaling, perhaps try listing on BP. Have you advertised through the Southern Maryland REIA?

Another option is to get it under contract with sub-to, and then owner finance it to another buyer. Collect 10-20% down and monthly payments. Use the payments to pay the mortgage, and any difference is yours to keep. Of course, this would depend on the mortgage details and whether the numbers worked out, but it’s an option.

I would start by talking to the homeowners and see what they are willing to do with respect to Subject-To financing…

Originally posted by @J Scott :
Originally posted by @Huong T Nguyen:

Scott, I don't know if you discuss this in one of your newer books, but I would really appreciate your advice on how I can finance a deal.

Recently the owner of a property in Wheaton MD about 15 minutes of brisk walk to the metro station is trying to sell me his house and he wants to sell it  quick this Spring. The house was built in the '60s with 8 rooms, 3 baths this house but one of the room is not a legal bedroom i.e. no egress. IN the property's current condition, each room brings $500 to $600 so the total rents I could get is around $4000/month. The for-sell-by-owner guy is asking for $370,000 and since he will not need to pay any commission fees there could be some more room for the price to go down. Property tax is $3500 for 2019. This is a solid, split foyer house with good drainage but the kitchen is dated and bathrooms look old. A good renovated house with 4 beds 3 baths in this neighborhood was sold for close to $460,000. 

1. Do you think this could be a candidate for wholesaling? 

2. If not, should I buy it as a rental property? BTW, in general, does the 2% rule apply in the DC Metro area? Maybe Russell Brazil and others familiar with this market can chime in here?

I can come up with $170,000 in cash (that is by taking a home equity loan on my residence home), but don't know how to finance the rest.

Thanks so much, Scott and everyone in advance!

First, are you confident that it's legal to rent the property by the room?  This will be location dependent -- in some areas, there is a cap on the number of non-related people who can share a house.  You should verify this before moving forward, as it could impact your strategy and the value of the property to an investor.

Regarding your specific questions:

1.  If it's generating $4000/month and can be acquired for $370,000 in that area, it's probably a wholesale candidate.  I imagine there are investors around there who are willing to buy properties that exceed 1% in income.  I could be wrong, but Wheaton is a popular area for investors.

2.  You won't find too many 2% properties in the DC metro area these days.  1% is still pretty good for around here.  As for whether you should buy it, it depends on whether it helps you get closer to your goals or not.  This is going to be a personal question that only you can answer.

As for financing, does the seller have any equity?  Can they provide some seller financing?  Subject to?

Can you get a bank loan?

Can you get a private loan?

Do you know anyone who may be interested in partnering and can provide cash?

 Only 5 unrelated adults can live together in that location. (Montgomery County, PG County...DC allows 6).

Based on the desription of the house, I would expect 2300/2350 a month in rent. I own 2 rentals fairly close to there just a little bit north on Georgia and on the east side.  One is up for rent right now, $2800 a month, and its completely updated and much larger than a split foyer.  I can tell you from experience, occupancy limits are one of the few things you can actually get in trouble for in MoCo.  Certain cultural backgrounds are going to have multigenerational families, thus more adults.  My rentals with people of those cultures, the neighbors call the county on me, and I have to go meet the housing inspector for them to check the place out.  Its happened to me a variety of neighborhoods, Rockville, Gaithersburg, Silver Spring, Burtonsville.  It is the extra cars that bother the neighbors.

By and large expect rents to come no where close to 2%, or even 1%. 0.67% is the ratio to be expected in Montgomery County on SFH. On very cheap condos, you can get close to 1%. In DC, on something very expensive, large, in a primo area and rented by the room, you could push 1% if you ignore occupancy limits, which I know people who do, but by and large you will be looking at 0.5% in DC. PG County, 0.75%. Southern part of PG ratio will be a little higher on the cheaper properties. The only place close by you will get 2% would be in parts of Baltimore. You can get to 3 or 4% in parts of Baltimore. Yield though is a measure of risk in the asset or market. So these properties that rent for 4% of the properties value, should be viewed as some of the riskiest assets perhaps in the country.

Scott and Russell:
Thanks so much for your replies, both are highly educational and informative about financing.

Now the occupancy limits changes the whole equation. Hmmmm....

Scott and Russell: your replies are both highly educational and informative, NOT just about financing. 

Originally posted by @Russell Brazil :
Originally posted by @J Scott:
Originally posted by @Huong T Nguyen:

Scott, I don't know if you discuss this in one of your newer books, but I would really appreciate your advice on how I can finance a deal.

Recently the owner of a property in Wheaton MD about 15 minutes of brisk walk to the metro station is trying to sell me his house and he wants to sell it  quick this Spring. The house was built in the '60s with 8 rooms, 3 baths this house but one of the room is not a legal bedroom i.e. no egress. IN the property's current condition, each room brings $500 to $600 so the total rents I could get is around $4000/month. The for-sell-by-owner guy is asking for $370,000 and since he will not need to pay any commission fees there could be some more room for the price to go down. Property tax is $3500 for 2019. This is a solid, split foyer house with good drainage but the kitchen is dated and bathrooms look old. A good renovated house with 4 beds 3 baths in this neighborhood was sold for close to $460,000. 

1. Do you think this could be a candidate for wholesaling? 

2. If not, should I buy it as a rental property? BTW, in general, does the 2% rule apply in the DC Metro area? Maybe Russell Brazil and others familiar with this market can chime in here?

I can come up with $170,000 in cash (that is by taking a home equity loan on my residence home), but don't know how to finance the rest.

Thanks so much, Scott and everyone in advance!

First, are you confident that it's legal to rent the property by the room?  This will be location dependent -- in some areas, there is a cap on the number of non-related people who can share a house.  You should verify this before moving forward, as it could impact your strategy and the value of the property to an investor.

Regarding your specific questions:

1.  If it's generating $4000/month and can be acquired for $370,000 in that area, it's probably a wholesale candidate.  I imagine there are investors around there who are willing to buy properties that exceed 1% in income.  I could be wrong, but Wheaton is a popular area for investors.

2.  You won't find too many 2% properties in the DC metro area these days.  1% is still pretty good for around here.  As for whether you should buy it, it depends on whether it helps you get closer to your goals or not.  This is going to be a personal question that only you can answer.

As for financing, does the seller have any equity?  Can they provide some seller financing?  Subject to?

Can you get a bank loan?

Can you get a private loan?

Do you know anyone who may be interested in partnering and can provide cash?

 Only 5 unrelated adults can live together in that location. (Montgomery County, PG County...DC allows 6).

Based on the desription of the house, I would expect 2300/2350 a month in rent. I own 2 rentals fairly close to there just a little bit north on Georgia and on the east side.  One is up for rent right now, $2800 a month, and its completely updated and much larger than a split foyer.  I can tell you from experience, occupancy limits are one of the few things you can actually get in trouble for in MoCo.  Certain cultural backgrounds are going to have multigenerational families, thus more adults.  My rentals with people of those cultures, the neighbors call the county on me, and I have to go meet the housing inspector for them to check the place out.  Its happened to me a variety of neighborhoods, Rockville, Gaithersburg, Silver Spring, Burtonsville.  It is the extra cars that bother the neighbors.

By and large expect rents to come no where close to 2%, or even 1%. 0.67% is the ratio to be expected in Montgomery County on SFH. On very cheap condos, you can get close to 1%. In DC, on something very expensive, large, in a primo area and rented by the room, you could push 1% if you ignore occupancy limits, which I know people who do, but by and large you will be looking at 0.5% in DC. PG County, 0.75%. Southern part of PG ratio will be a little higher on the cheaper properties. The only place close by you will get 2% would be in parts of Baltimore. You can get to 3 or 4% in parts of Baltimore. Yield though is a measure of risk in the asset or market. So these properties that rent for 4% of the properties value, should be viewed as some of the riskiest assets perhaps in the country.

 The house is filled up with tenants, including one in the illegal bedroom. Up to this point, the owner's parents stay in 2 of the 8 rooms and they manage the property on behalf of the owner who resides in FL, so it brings around $3000 a month but unlike them, I do not have any plan to go against the occupancy limits.  I used to rent one room in that house many years ago when I first moved to Wheaton and paid $600/mo back then. The owner's father is getting very sick so he wants to sell the house and move his parents to FL so that he can take care of them.

Sorry if I bore everyone to death here.

I have just checked with MoCo, and they sent me this piece of information, and told me this is the only rule they go by. 


Description: The size of the dwelling is used to determine whether it is overcrowded. There must be 150 square feet for the 1st person and 100 square feet for each additional person. Please note that if the dwelling has been inspected within the last 6 months and found to be in compliance with regard to overcrowding standards, a case will not be opened. See Section 26-5(a) on attached link for the Code reference.

So looks like we are back to a projection of $4000/mo in rents for a $370,000 property.

Rockville and Gaithersburg have their own rule, i.e no more than 5 unrelated people staying at a single property.

Originally posted by @Huong T Nguyen :

Sorry if I bore everyone to death here.

I have just checked with MoCo, and they sent me this piece of information, and told me this is the only rule they go by. 


Description: The size of the dwelling is used to determine whether it is overcrowded. There must be 150 square feet for the 1st person and 100 square feet for each additional person. Please note that if the dwelling has been inspected within the last 6 months and found to be in compliance with regard to overcrowding standards, a case will not be opened. See Section 26-5(a) on attached link for the Code reference.

So looks like we are back to a projection of $4000/mo in rents for a $370,000 property.

Rockville and Gaithersburg have their own rule, i.e no more than 5 unrelated people staying at a single property.

 The person who gave you the information is wrong. The problem with that, is that even when a government employee gives you the wrong information, you are still liable.

I go through these housing inspections at least once per year, and they count the beds, they count the cars etc.

Below is a link to the MoCo Housing Code book. Page 5. No more than 5 unrelated people may live together in a dwelling unit.

Id also suggest reading the MoCo Landlord Tenant Handbook.

housing code - Montgomery County

PDFMontgomery County MD (.gov) › code

https://www.montgomerycountymd.gov/DHCA/Resources/...

Originally posted by @Russell Brazil :
Originally posted by @Huong T Nguyen:

Sorry if I bore everyone to death here.

I have just checked with MoCo, and they sent me this piece of information, and told me this is the only rule they go by. 


Description: The size of the dwelling is used to determine whether it is overcrowded. There must be 150 square feet for the 1st person and 100 square feet for each additional person. Please note that if the dwelling has been inspected within the last 6 months and found to be in compliance with regard to overcrowding standards, a case will not be opened. See Section 26-5(a) on attached link for the Code reference.

So looks like we are back to a projection of $4000/mo in rents for a $370,000 property.

Rockville and Gaithersburg have their own rule, i.e no more than 5 unrelated people staying at a single property.

 The person who gave you the information is wrong. The problem with that, is that even when a government employee gives you the wrong information, you are still liable.

I go through these housing inspections at least once per year, and they count the beds, they count the cars etc.

Below is a link to the MoCo Housing Code book. Page 5. No more than 5 unrelated people may live together in a dwelling unit.

Id also suggest reading the MoCo Landlord Tenant Handbook.

housing code - Montgomery County

PDFMontgomery County MD (.gov) › code

https://www.montgomerycountymd.gov/DHCA/Resources/...

 You are correct! I saw that provision now.

Thanks so much! 

Well, in that case, I will pass!

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