All Forum Posts by: Joe Norman

I'd talk to your tax prepare about how to properly account for your renovation expenses. You don't necessarily need a formal receipt/charge, or even to necessarily transfer the money from one account to the other - just be sure to keep good records of what you spent - you'll be able to write some of it off this year, and the rest will be depreciated and affect your basis when you eventually go to sell.

This doesn't look like a very good deal to me if you're only projecting to cashflow < $500/month on a four unit. Not to mention the fact that you're risking all your liquid savings AND your family's home. I can understand why you have some anxiety about it. Personally I'd take a step back, save up some more money, and look for a better deal.

Good luck!

First I'd ask what your goals are for transferring to an LLC? There are some pros, but also some cons.

Pros: LIMITED liability protection (but everything related to the property has to be separate from your personal accounts - talk to a lawyer), potential for anonymity

Cons: Several hundred dollars per year in fees (at least in Maryland), refinances are more expensive, potential for bank to recall your current loan under the "due on sale" clause (doesn't apply to your free and clear house, obviously)

As far as how to make it happen if you do choose to go this route:

1) Create the LLC through SDAT (relatively easy process)

2) Get an EIN from the IRS (also relatively easy)

3) Open a bank account for the LLC

4) Open a new email account for the LLC (communicating through a personal account could "pierce the corporate veil", albeit I'm not a lawyer so take that with a grain of salt)

5) Find a title company to do the transfer for you (Universal Title White Marsh has done this for some of my clients)

Hey Tony, I'd love to connect to talk through your goals and how I could help. Feel free to shoot me a PM!

@Tony Zhangundefined

First I'd ask what your goals are for transferring to an LLC? There are some pros, but also some cons.

Pros: LIMITED liability protection (but everything related to the property has to be separate from your personal accounts - talk to a lawyer), potential for anonymity 

Cons: Several hundred dollars per year in fees (at least in Maryland), refinances are more expensive, potential for bank to recall your current loan under the "due on sale" clause

As far as "how to make it happen" if you do choose to go this route:

1) Create the LLC through SDAT (relatively easy process)

2) Get an EIN from the IRS (also relatively easy)

3) Open a bank account for the LLC

4) Open a new email account for the LLC (communicating through a personal account could "pierce the corporate veil"

5) Find a title company to do the transfer for you (Universal Title White Marsh has done this for some of my clients)

Can't help you with the vacancy rates, but a word of caution: Baltimore severely regulates short term rentals. You can find more information at this link. Good luck!

Sounds like maybe Ellicott City? If so I would definitely proceed with caution if it is in fact in the flood zone.

This is definitely doable but you'll run into issues with financing on an auction rehab (since this is your first purchase I'm making an assumption that you're not doing this with cash, pleases correct me if I'm wrong!).

As far as the appraisal goes, appraisers are going to be appraisers. By that I mean that they generally will find what they feel are "the best" comps they can, and then make the adjustments they think are warranted. Sometimes I agree with them, other times I don't.

Good luck!

Hey Shane, congratulations on your first rental! I am a Realtor and Property Manager and have a lot of experience in Dundalk. Most of the homes there were built pre-1978 and so in addition to a Baltimore County Rental License (you can find more info on the steps you need to take at this link), you'll also need to get a Maryland Department of the Environment Lead Certificate (you can find more info on the steps you need to take at this link).

You'll need two inspections done, one for the rental license and one for the lead cert. There are many inspectors who do both and I'm glad to send you a referral if you want to shoot me a PM.

 Yea it stinks. Property management is the Wild West here in Maryland and we end up with operators leaving their owner clients high and dry, giving the whole industry a bad name. Strongly recommend that anyone looking for property management in Maryland hire a PMC that has taken the OPTIONAL step of getting a Real Estate License and submitting to the scrutiny of the MREC.

 Unfortunately Property Managers are not required to me licensed in Maryland, and so the Maryland Real Estate Commission doesn't regulate them.

The one exception is if the PM happens to also be a licensed real estate sales person/broker. Most are not, but some are. I would go back through your emails and write down the names of EVERYONE you communicated with at PropertWize and then look them up on Real Estate Commission Public Query website to see if they hold a license. If one of the individuals at the PMC happens to have a real estate license then you can file a complaint with the commission against them.