All Forum Posts by: Gayle Melnick

@Tony Vicente the city website has good information about zoning. Here is a link to their zoning district summary:

https://planning.baltimorecity...

You could also call them if you want more specific information. They've been helpful for me when I've called to ask questions.

I hope this is helpful!

R6 allows for single family detached, rowhouse developments, and allows multifamily. You can find this on the Baltimore city zoning website. Here is a link to the zoning district summary available on their site now:

https://planning.baltimorecity...

You can find the zoning code on the website too if you want to get deep into details about converting a single family to multifamily. You could also call the zoning department. I've had an easy time calling them and getting someone on the phone to answer my questions.

Hope this helps!

@Jean Fleuriot

The ground rent owner can only charge up to three years of back ground rent. If you consider that ground rent is usually between $50-$150 annually, that’s a maximum charge of $150-$450, then the annual rent going forward.

The lender is likely lending tens or hundreds of thousands of dollars for a property. It’s surprising that a potential maximum payment of less than $500 would completely ruin a deal. I didn’t have an issue finding a lender when buying a property with ground rent. I’d do more research and call some lenders to see what they have to say about the ground rent situation. If you’re trying to redeem it because you’re concerned that you won’t find a buyer because they can’t get financing, that may not be true. Going through the bureaucratic hurdles to redeem it may not be worth it if the lending issue isn’t actually an issue at all. Good luck! 

@Jean Fleuriot

That’s strange. Paying a title company should have been sufficient. 

There’s no information in the MD land record archives? The owner of the ground rent should be recorded there. The website is https://mdlandrec.net/main/ If you haven’t searched yet.

Another option maybe would be to try to contact the city and try and speak with a human? Or use a title company that has experience with ground rent redemption? Or a real estate attorney is another option.

Did you follow the instructions on this website?

https://dat.maryland.gov/realp...

The instructions mention specific steps to take if you cannot find the ground rent owner. 

@Luis Torrico

I live in Batimore. I'm a new investor. There are some other folks that I've seen posting on here that are experienced property managers, investors, agents, etc. If you look in the local Baltimore forum you'll see a lot of them there.

This whole thread has been really interesting. I'm a newbie and still moving forward to purchase my first rental even through all this covid stuff. I just wanted to share my perspective in case anyone else is new and feeling paralyzed to take any action because of the whole "sky is falling" mentality. 

I'm buying a 3Br/1.5 bath in a desirable neighborhood in Baltimore city. It needs some cosmetic updates, but all in all less than 10K rehab. I've gone through the numbers and figured out my worst case scenario to make sure that I won't lose my shirt if the market tanks. The market rent is 1600. I can charge as little as 1000 and still not lose money. I still work full time as a nurse and I live below my means. I can afford the mortgage myself if I can't find a renter. If things get really bad, I own my primary residence in a desirable neighborhood in Baltimore city. I have 2 extra bedrooms. I could easily rent them out if I was desperate for extra cash. As an ER nurse, I also have the ability to pick up overtime whenever I want. I have multiple "backup plans". 

For other newbies, if you have the money and are afraid of getting started because some people are saying that the sky is falling, I think it's helpful to go through all the worst case scenarios and make sure that you have backup plans and reserves. Ultimately, most experts agree that timing the market is useless. If you plan on being in the REI game for a long time and buying multiple properties over several years, look at it like dollar cost averaging when buying stocks. This one purchase shouldn't make or break your entire investing career. If you buy now and the market tanks, have a backup plan. At least you'll be getting started though.

Have you asked the lenders that are turning you down why they are turning you down?

@Adam Martin interesting, great tip. You suggest communicating that request to the seller? 

@Mike Cumbie thanks for the advice! While I’m hoping that nothing will delay closing, I know that things can happen. Lining up a tenant and then having to delay the move in date probably isn’t the best idea. 

@Isaac Pepper

Interesting idea. The seller doesn't have an agent. I am 99% sure this was a rental property for him. He did allow me access multiple times to allow my contractors to look at it. It's not a turnkey... I am changing a few things, minor stuff. 

Since I am doing some work I'll probably just wait. I'll keep that in mind though for my next deal.