@Jennifer Bryant thank you so much for sharing your experience. It helps others and myself to know more about opportunities in Baltimore from out of state.
@Jennifer Bryant congrats on your first property you mention using cozy for tenant back ground check do you also have your tenant pay their rent through cozy? I heard great things about cozy I just also heard takes u rather long time for money to actually deposit
@Jennifer Bryant very helpful post! I’m just starting to read about rental property investment and all the associated costs and such. This was insightful. Congrats on the new property!
How much do closing costs normally go for around a $100-$110k house?
@John D. A friend of mine just rehabbed a property in Baltimore with the intention of using it for short term rentals. I'm not personally interested in that strategy but I'm curious to see how it turns out for her. Thanks for the info.
@Denzel Ray Yes, my tenant paid the security deposit and rent through Cozy. I'm loving it so far. It's seamless, easy to set-up and free. I will say though that most of the prospective tenants that reached out to me to view the home found it on Zillow or Craigslist. So I'd recommend listing the rental on multiple websites. I thought about doing the background/credit check/accepting payments through Zillow too, but I think Cozy is more robust.
It does take a few days for them to transfer the money into your account. This has not been an issue for me. I recommend keeping 1-2 months of reserves in your account so waiting a few days won't matter.
@Eric Ippolito Thanks! This is my first time buying a home in the $100k range so I'm not sure. I didn't shop around to compare interest rates and closing costs as I should have. I've read that closing costs should be 2%-5% of the purchase price. My closing costs were 10%.
Originally posted by @Jennifer Bryant :
My closing costs were 10%.
I had a similar issue and posted about it here a year or so ago. Most likely part of that 10% is pre-payment for escrows like taxes and insurance. The settlement fees, title work and loan origination are probably closer to that 2% to 4%. Taxes are quite high in Baltimore (around 2% of assessed value), so that adds to it.
Speaking of taxes, have you checked the assessed value? If they are more than what you paid, you might consider appealing them.
@Jennifer Bryant Thank you for sharing your first deal. Very inspiring!
How long was this on the market? Did you list any other contigincies in your offer other than the home inspection and bank financing?
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