All Forum Posts by: Joe Norman

Self management is certainly doable, I did it myself for many years before starting a PMC to manage for others. The kicker though is that you appear to be investigating taking on Long Distance management (properties in Atlanta, you live on the west coast), which is a much bigger hill to climb IMO. Do you have someone you trust in Atlanta who can do things for you like showing the property, doing regular inspections, and putting eyes on the house during turnover? Thats the problem I would try to solve first if I were in your shoes. Good luck!

Personally (and as an agent I have a bit of a bias), I'd start with interviewing a few agents and finding one you click with. Then ask them to refer you to a few good local lenders that they trust and work closely with.

I would be looking at this more from a personal/lifestyle perspective than I would from an investment perspective. If you plan to grow your family in the next year, and you know you'll need the space, then I would be looking to upgrade my living situation sooner rather than later.

If you start looking now then you will have plenty of time to find "the one", and to renovate it before the baby comes. If you wait until you need the space (e.g., you get pregnant) then you're going to be rushed and feel pressured to overpay.

I don't have a full financial picture of your situation or these properties, but it sounds like Option A is the way to go. Buy it under market, put in the sweat equity over the next year to make it "yours", and enjoy the space as you grow your family. 

Good luck!

 This 100%. It is beyond frustrating that Maryland refuses to require PMs to hold any kind of license - it enables so many fly-by-night operators who aren't looking out for the landlords best interest. However, even though there isn't a specific Property Management license, PMs may still opt to obtain a real estate sales person license and submit themselves to MREC scrutiny. PMs who opt to obtain this license are signaling that they are professional operators and have nothing to hide.

To your original question, you're probably best off just cutting your losses on the back rent/pet fees, and making sure the current tenants are aware of what they owe going forward.

Baltimore for sure is going to be a good bet for you to find a multi-family, in a decent area, for well within your price range. All the neighborhoods you listed should have opportunity, although there will be more multi-family buildings in Reservoir Hill and Bolton Hill than in the other three.

Baltimore is a very different city then DC though, so be sure to come up and spend some time driving, and walking, the neighborhoods you are interested in to really get a feel for them.

@Russell Brazil makes some great points as always.

Often times wholesalers will make the claim that they are selling contracts, which on the face of it is true. However what they are really doing is brokering real estate transactions - and that is a regulated activity (e.g., one that requires a real estate license). Its regulated for many reasons, most important of which is to make sure homeowners' always have someone looking out for their best interests when it comes to the sale of (what is usually) their most valuable asset.

I do think that the law is too narrowly written (e.g., I think an unlicensed person should be able to represent themselves in a purchase/sale in the same way a homeowner can make renovations to their own home without an MHIC license), but overall I think this is good for the general public (and, yes, its good for Realtors - but as Russell points out HB301 was introduced at the request of MREC, not Maryland Realtors).

To reemphasize Russell's last point: if a wholesaler believes they are operating in an ethical manner then they should get licensed and submit to the rules that MREC has put in place to protect the public from real estate scammers and incompetent licensees. If one can't/won't do that then they are probably just an equity thief and not actually providing value to the seller. 

If it isn't in the property management agreement then you don't owe it, plain and simple.

As to your question about if it's normal for PMs to markup repair/renovation costs - some do and some don't. I guess that doesn't make it "normal" but it doesn't make it "abnormal" either.

Good luck!

I love working with Shaun at Monument City Capital. Shoot me a PM and I can share contact info!

Great list Tim! One edit is to the sentence quoted above. The Buyer's Agent's commission is determined in the Buyer Representation Agreement between the Buyer and Buyer's Broker/Agent. The co-op commission (the commission paid by the Seller's Broker to the Buyer's Broker) may offset this some/completely and is detailed in the MLS listing. The buyer is responsible for the difference between the commission listed in the BRA and the Co-Op commission being offered by the Seller's Broker.

Do you have a property manager lined up? If not I suggest interviewing a few and getting their opinions on this house/neighborhood. Many won't manage properties like this - and there is a reason for it.