All Forum Posts by: Joe Dimaio

Hi All,

I currently own my primary residence which I am house hacking and just purchased my first investment rental as well. Both properties are located in Baltimore County, Maryland. My initial plan was to transfer the title of my rental property to my LLC however once I started that process I received some interesting information from my title company. Here is what they said.

"I want to make sure you understand the rules for this type of transaction. In order to be exempt from transfer taxes, you need to transfer all of your Baltimore County investment properties into the LLC at the same time. You’re allowed to keep your personal residence in your own name. But, every other Baltimore County property that’s currently in your name needs to be given to the LLC. Also, you won’t be able to do this in the future for additional Baltimore County properties. You’re free to purchase additional Baltimore County properties as the LLC. But, you can’t purchase additional Baltimore County properties in your own name, and then transfer them to the LLC without paying transfer taxes."

My intention is to make my primary residence a full-time rental in the next 1 to 2 years. As I see it I have 3 options.

1) Transfer the rental property to the LLC like I originally planned and just pay the transfer tax on my current primary residence and any additional investment properties I purchase in the future.
2) Transfer both my rental and primary residence into the LLC now.
3) Leave both properties in my name and wait to transfer the title for these properties into the LLC at a later date once I have more properties I would like to place in the LLC. If you were faced with this situation which option would you choose for yourself and why?

Thanks,

Joe

Hi All, 

I currently own my primary residence which I am house hacking and just purchased my first investment rental as well. Both properties are located in Baltimore County, Maryland. My initial plan was to transfer the title of my rental property to my LLC however once I started that process I received some interesting information from my title company. Here is what they said.

"I want to make sure you understand the rules for this type of transaction. In order to be exempt from transfer taxes, you need to transfer all of your Baltimore County investment properties into the LLC at the same time. You’re allowed to keep your personal residence in your own name. But, every other Baltimore County property that’s currently in your name needs to be given to the LLC. Also, you won’t be able to do this in the future for additional Baltimore County properties. You’re free to purchase additional Baltimore County properties as the LLC. But, you can’t purchase additional Baltimore County properties in your own name, and then transfer them to the LLC without paying transfer taxes."

My intention is to make my primary residence a full-time rental in the next 1 to 2 years. As I see it I have 3 options.

1) Transfer the rental property to the LLC like I originally planned and just pay the transfer tax on my current primary residence and any additional investment properties I purchase in the future.
2) Transfer both my rental and primary residence into the LLC now.
3) Leave both properties in my name and wait to transfer the title for these properties into the LLC at a later date once I have more properties I would like to place in the LLC.

If you were faced with this situation which option would you choose for yourself and why?

Thanks,

Joe

@Solomon Morris That's very good to know! Thanks for the tip. Happy to hear you did end up receiving all payment including the payments that were delayed. I'll be sure to keep some extra cash on hand to cover extended expenses especially during these uncertain times where it could take even longer than usual to process. 

@Daniel Suarez Thanks for the info! I'm finding that is the experience a lot of people have with section 8. Although it does seem to have it's own unique challenges not every experience is bad like I thought. In fact, a lot of people seem to have fantastic experiences with section 8. Thank you for your insight! 

I am currently considering the purchase of a duplex in Baltimore county. One unit is vacant and the other unit has a section 8 tenant who has been living there for six years. I am curious to get a little more information on how section 8 works in Baltimore County. I know it is subsidized by the government but other than that I don't know any of the nuances of how the program works. Thank you in advance for any information you can offer! 

@Jonathan Keith Joseph I've worked with Tim Gray the owner of Property Fitters before on a couple of jobs. He has always done high-quality works and is scalable from small one-off jobs to major projects. He is also a licensed home inspector. Send me a message and I can share his contact info with you if you're interested.

Thanks everyone for the information! Sounds like it could be a promising area.

@Jamie Bateman I appreciate the offer and will reach out if I run into any specific questions.

@Account Closed I'll be sure to follow up if I need an Auction Broker in the future. 

I'm looking at a couple of row houses in Baltimore County in the Loch Raven Village,Hillendale, Parkville areas. These would be buy and hold rentals. I've been calculating that after renovations these houses could rent for around $1650 per month. I was wondering if anyone has experience with the row houses in those areas? Do they make good rentals? Any common issues with the houses or that area that I should keep an eye out for? Thanks! 

Hi Natalie, are you still organizing this event? If so when is the next meetup? I'd like to come hangout and network if this group is still active!