All Forum Posts by: Kareem Aaron

Here's what my insurance provider told me:

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The damage would fall under the liability portion of your policy.

If you knew that the water heater was going bad and didn’t take any measures to have it repaired/replaced, then you would be negligent and the policy would cover it, less your deductible that you're responsible for.

If you didn't know that the water heater was going bad, then you weren't negligent, and liability wouldn’t apply. The neighbor would need to file under their own policy. 
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I talked to my condo insurance provider, they won't cover the damages to the adjoining unit. They advised me to tell the owner of the unit to file a claim on their insurance. I talked to the HOA, they said in an email:

"The Association will hold the homeowner responsible in accordance with the Maryland Condominium Act".

Am I responsible for the damages?

I would get it for the max amount I can get. Thanks for providing feedback.

In fact, in knowing what I know now, I would be looking for lenders that can give me the highest LTV as well.

-Kareem

The properties I'm targeting are ~$50K. If I can get a HELOC for more, then great. But $100K is fine for what I'm trying to do. Also, the amount aligns perfectly with what I have left on the mortgage.

I'm interested in getting a first lien HELOC on one of my investment properties (i.e., I don't live in the house). I plan to use the line of credit to invest in other properties.

The house is worth $246K and I owe only $100K, so my equity is $100K+. The HELOC would replace my mortgage, so it would be for $100K.

I have a great profile. My credit score is 800+ and I have a decent net worth from my investments. However, I am self-employed (own an IT company) and have erratic income. For example, I don't have any W2 income from last year because I left it in the business for R&D.

I'm providing all of this info beforehand so that interested lenders could perform a quick litmus test to determine whether I may qualify for a HELOC with their company. If anyone would like to discuss things further, feel free to send me a private message.

Thanks,
Kareem

My income is erratic: sometimes I pay myself and sometimes I don't (so that the money stays in the business for R&D). So my W2s from year to year fluctuate drastically, from close to $100K/yr to almost nothing. Is this a problem?

Just want to know if any members can point me to a reputable real estate investing club in the DC Metro area. Thanks.

I'd like to apply for a home loan so I can purchase a property in Dallas TX that I'll rent out. 

I own a small IT Consultancy business in MD and have a good credit score. However, I've been self-employed since 2010. 

From what I heard, banks and credit unions tend to decline loan applications from self-employed people because we're viewed as high-risk.

Are there any best practices or tips on how I can improve my chances of getting a home loan?

Thank you for all your valuable input, I appreciate.

Since all the applications I've been getting have really bad credit scores, and having gone through evicting a tenant who couldn't pay me three months' worth of rent, I decided to ask for double deposit and first and last month's rent.

The applicant I approved signed the lease with these fees specified but upon moving in, he only paid me 2 months' deposit and 1 month's rent (I was in a hurry when he handed the payment, I just assumed he paid what was agreed on in the lease).  

I found out later that he didn't pay the full amount and talked to him about it, he said it's illegal in the state of Maryland to ask for 2 months' rent on top of the double deposit, even if it's specified on the lease and he signed it.

I already talked to a lawyer about this, I was told that he isn't aware of any such laws in Maryland prohibiting or allowing landlords to ask for 2 months' rent in advance on top of a double deposit. 

Would anyone know if it is indeed illegal to ask for 2 months' rent besides a double deposit?