All Forum Posts by: Lakshay G.

Thank you again everyone. 

 Thank You for your input Sir. Are you willing to share which insurance company you use? I don't think my insurance company State Farm gave me an option to drop my premium just because a renter would have insurance as well.

@Russell Brazil Can I ask why you don’t require renters insurance? In your opinion, why is it that some landlords to require it and the others don’t? Your liability is set at $300,000 that you’re paying for, why shouldn’t a tenant have some sort of insurance?

@Beth H. I purchased the forms from bigger pockets that are Maryland Based (I mentioned it in the subject 😉). I literally quoted the words from that lease. And why don’t you require renters insurance, just curious?

I’m about to rent out my first deal, first property.

Hello Everyone,

I have a question regarding the MD Residential Lease. On page 8, point 19B states 

"Landlord, in its sole discretion and for its sole benefit, shall cause the Premises to be insured as it deems appropriate. Tenant shall have no right or claim to any insurance or insurance proceeds of Landlord. Tenant understands and agrees that Landlord has no obligation to obtain insurance for Tenant including, but not limited to, liability, hazard, or contents insurance. Tenant shall, at Tenant’s sole cost and expense, obtain renter’s insurance covering the full value of all personal property of Tenant in the Premises, and providing liability coverage to Tenant in an amount not less than $_________, which policy shall name Landlord as an additional insured. Tenant shall maintain such renter’s insurance at all times during the Term of the Lease. Tenant shall provide a certificate of insurance to Landlord demonstrating that Tenant has procured the required insurance coverage, within ten (10) days after the commencement of the Term of this Lease and within ten (10) days after any renewal or change in such insurance coverage. If Tenant fails to procure the required insurance, allows such insurance to be cancelled or to lapse, or fails to timely provide the required certificates of insurance, the same shall be a Default of this Lease.

What should be the amount? I know this amount is circumstantial but what would be the number in general? It's for a 2 bed/1.5 bath row home property.

Thanks in Advance.

I am looking for a CPA who is a REI in Howard County/Anne Arundel County. All references are welcomed as well. Thank You.

Thank you @Russell Brazil. Thank You @Ozzy Sirimsi :)

Thank you first of all, #4. I am using Turbo Tax Premier this year as I don't have a complicated tax return filing (couple of W2s, one K-1, small things here and there). I guess my direct question should've been, when Turbo Tax asks me whether a purchased a property in 2017, should I say No and worry about it when I'll be doing 2018 year taxes in 2019? Sorry if I'm confusing everyone :(

Originally posted by @Logan Allec:

@Lakshay G.

Congrats on snagging your first deal!

#1. I can't speak to this.
#2. Yeah, I'd imagine this is pretty typical.  I have a property with a small shed on it.  I rent it out for storage for an extra $50/month to the tenant.
#3. Yes, the typical practice for those who own property in their own name is to have the payments made out to their own name.
#4. Based on what you've described it sounds like you will have to capitalize your 2017 expenses to the basis of your property.  Also if you obtained a mortgage some of your closing costs may be amortizable.  Check with your tax professional.

Hi there,

-What is the maximum number of unrelated people that can live in one house (unit) in Anne Arundel County? I believe in Baltimore County, limit is two. 

-Are landlords charging a little more if there's a shed at the property and a tenant wants to use it for storage purposes?

-For the landlords who are collecting payments on their name (payment not being written out to LLC or Inc), in your lease are you writing just your full name (Pay to:) or anything else ? I have great mentors who have shared their lease with me but they have LLCs. Although I am pretty close to opening a LLC, I still wanted to ask this question as a general one.

- I purchased my property in 2017 but haven't rented it out yet due to rehab, should I write off the closings costs as well as other expenses when I'll be doing my taxes for 2018 in 2019? 

I am about to start looking for a tenant very soon on my first property. I have lead inspection left at this point which may lead to a couple of repairs (hopefully small).

I can not thank enough to the BP community.

Aren't you uncomfortable writing your name on all the leases that you do with your tenants? What if you piss off a wrong guy and he/she comes to your house and does anything wrong with you? I only have 1 property and I am leaning towards LLC so hard because I really don't want any tenant to know my address, at the same time, my house address is on mortgage paperwork and in Maryland it's public. Either way, I think if a tenant is tech savvy, it won't be hard for them to find my address. As always, of course I will do background check and whole nine yards first. Thanks.

Originally posted by @Chris Simmons:

I just had the same talk with two attorneys today and both said skip the llc for properties. Just do an llc if you want for the management side, but like you, i do some repairs myself and hire others out....depends on my schedule and the complexity of the job. regardless of llc, what i fix, i am liable for. both attorneys are experienced with piercing the corporate veil but said frivolous lawsuits against landlords are not common. if you run your business right, your risks are low....insurance will take care of the rest if you buy enough. if you are negligent, shady or plain wrong, you are screwed and deserve to lose.

i will look into the llc for my management company but will stick with owning properties in my name until i get enough to take the next step...possibly as i get 4 or 5 paid off, then transfer them and lump 4 or 5 together. at some point i will pass the point of consumer type loans and will have to go to the commercial lending side but am avoiding that as long as i can. i am also looking into getting a realtor license so i can eventually become broker to assist my investing and possibly manage rentals for others....looking for ways to get out of my current job and replace income. Rentals is not a get rich quick game. I own 3 and need about 25 more minimum.

@Vaughn Smith Thank You, Sir. @Joseph Tramonte thank you.