Securing Baltimore Flips

16 Replies

Hello,

To all active Baltimore real estate investors, I am about to start a rehab project in Baltimore city (21229) and I was wondering how successful Baltimore flippers have successfully secured their flips (i.e reduced or prevented theft of new items)? Are installing fences necessary? Installing security cameras? 

If someone wants to break in , thats whats gonna happen . You could have steel doors and a watch dog . If someone wants in they will get in 

Not leaving a lock box on the property where it's not well lit or neighborhood is poverty stricken. Reinforcing the doors and windows with steel and bars. But it depends on what part of the city your in. Some Negihborhoods that have strong HOA/ Community Associations, have guide lines and many still go by the communities original covenant which may prohibit the use of bars on windows.

go on craigslist and call some tree removal companies for a quote. Call 6 and 2 might show up. Give them the address and they'll drive by and give you an estimate. You don't have to be there.

Originally posted by @Francis Ifeacho :

Please what is your take on tree cutting/pruning in Baltimore city? I am about to purchase a property in the city that its entire front view is blocked by about 3 trees with lots of branches. What is the best/recommended route to go on this?

@Ian Barnes

@Ned Carey

@Jamal L.

 There are plenty of tree trimming companies to call in the city.  

I've added a pretty comprehensive crime map below.  The chart shows that 21229 is well above average in violent crime and property crime.  If I were rehabbing, I would install appliances including central air at the last possible second.  I would not use copper and I would recommend the contractors take everything they can home with them.  Like others have said, if someone wants to break in, they will, but having nothing there to steal is a deterrent in itself.

https://www.bestplaces.net/crime/zip-code/maryland...

Best of luck

Stephanie

@Francis Ifeacho When you do install the AC unit outside have someone ready to put a cage over it. Put cheap paper blinds in the windows so it is not as obvious it is vacant.  

(although in poor neighborhoods it might be more realistic to use a combination of cardboard, blankets and trash bags to cover the windows.  Take a Sharpie and use it to  look like a window pane or two is cracked)

Thanks for the responses everyone!

As we probably know, flipping income is taxed as ordinary income if performed under an S-corp. I am about to purchase a wholesale property owned by regular LLC (non c-corp or s-corp), however my own LLC is elected as an S-corp for tax purposes. Please how do I go about transferring the ownership of this wholesale property to my own LLC (s-corp)? Quit claim deed or buy the rights/ownership of the LLC that owns the property?

@Ned Carey

@Ian Barnes

So I am buying a townhouse in Baltimore city today that has a code violation notice and order regarding one room in particular (replace window sash, replace carpet and install missing switch plate) and repair/replace the mechanical system. The house and room in particular were going to be renovated anyway and the old HVAC system replaced. Do I fix these right away and have the inspector on the notice inspect it or do I call the inspector after the entire renovation has been completion (with time extension obtained, given that I have 30 days as on the notice)? What is the best way to take care of an inherited code violation notice?

Your useful input on this would be highly appreciated. 

@Ned Carey

@Ian Barnes

What kind of notice? A use and occupancy notice that failed? The only way an inspector would tell you about those types of violations is if a permit was pulled or it was a section 8 inspection, either way take care of it now, pull proper permits, get reinspected, move on.

Originally posted by @Ian Barnes :

What kind of notice? A use and occupancy notice that failed? The only way an inspector would tell you about those types of violations is if a permit was pulled or it was a section 8 inspection, either way take care of it now, pull proper permits, get reinspected, move on.

It was most likely a section 8 inspection done back in 2014. Thanks for the quick response.

Section 8 does not issue code violations. As Ian said get them fixed and get an inspector to look and remove the voilation. You are not on the citiy's radar so make sure you pull appropriate permits. 

Regarding the property in an LLC. Just buy it. The title company will create a deed from the LLC that owns it now to your LLC.

If you are buing the LLC that owns the property vs buying the property that is a different matter. i don't like the idea of buying another LLC. You could be buying past liabilities you don't want to buy. you may have title and or title insurance issues. You are getting into some technical areas. I suggest a lawyer and a good CPA. Ther may be a cheaper easier way to funnel the money through the S corp.

flipping income is taxed as ordinary income if performed under an S-corp.

Another good reason to see a CPA. You need to get clarity on that issue. The advantage of the S corp is some of the profits can be taxed as dividends instead of earned or ordinary income. The dividends are not subject to self employment tax.