All Forum Posts by: Marylin OShea

@Account Closed you've either said too much or too little!! I'm intrigued.

Totally agree with @Michael Beauchemin, part of the representation of clients is the ability to guide you through the process, put a solid offer together, how to negotiate, and advise you post inspections on how to get to the settlement table!

Full disclosure - I recently became a realtor, the above isn't that obvious if you've worked with a weak agent in the past. Sad, but true.

Welcome to the BP community @Harrison Chaires!

There are pockets of opportunities in Annapolis, but patience and persistence are key! Best of success on your journey, and as others have suggested, start outlining your goals on paper, decide what kind of cash outlay you're ready to commit to, identify funding sources, etc.

This is a great thread and I'm hoping others will chime in as I have recently become licensed in MD to help others acquire real estate, and I want to be the best I can be for my clients. 

From my own experience, I've found that reactivity is key. In our market (AA county), deals are done without even a preliminary visit to the property within hours of the listing being "public". It's very competitive and you need to be ready to move FAST!

When I bought my rental last year, I relied on an agent friend who was very responsive and available, but she wasn't that knowledgeable about investing. And I was fine with that because I had done my research and was doing the analyzing myself.

My guess is that it's difficult to have it all. And that's where I want to make the difference and become a trusted resource for either investment or residential properties in the greater Annapolis area (Severna Park, Davidsonville, Arnold, Edgewater, etc.). I should be affiliated with a broker by the end of next week - and I can't wait to get started!

Wish I had seen this sooner, please keep me posted for the next event!

Bought my first SFH and my primary residence this year... Looking at another SFH in Annapolis now. Buy & hold is my thing while I work full time.

I would recommend the inspector I have used from

Baltimore: contact George Fair. He is also an investor. www.georgefair.com

Best of success to you! 

Thanks all, particularly grateful for your feedback @Rocky V. and @Brian Nordman: put this way, it's clear that paying early isn't a great idea especially as interest rates are expected to rise. 

And good point re: HELOC)!

I'm working on my first deal, due to close May 12. Got a 30-year loan, and I am interested in paying it off sooner (I chose 30 over 15 to have the flexibility). My strategy is to buy & hold.

Now, I'm trying to figure out whether I'm better off paying the 30-year loan in 15 years thus reducing some of my investments elsewhere, like a Roth IRA since I've maxed out my 401k.

My question: is it worth doing?

I am looking at different amortization tables for my loan of $101,250 over 30 years at 4.625%.

That loan paid early with an extra $300 principal per month adds up to: $36,400 so it would be paid off in April 2031, roughly 14 years from now. (that's 168 payments) 

I look over to the 30-year table, at that time (Apr 2031), my interest total would be $56,700.

(this makes sense, a 4.625 yield compounded annually over 14 years on a $300 monthly deposit generates me about $20,300 of interest, I checked with a calculator like this one)

Returns on my Roth IRA are (maybe) 7% per year. Though I recently moved my allocation to some longer-term Vanguard funds and the returns should be sensibly better.

The beauty of re-channeling my investment funds into an earlier loan repayment is that in 14 years I'd own the house free and clear and my monthly cashflow would increase by $700.

Also I could tap into that equity with a HELOC and repeat the investment process into another property or two.

Am I looking at this right?

What would you do?

Thanks for reading and sharing your insights.

M

Inspection came back, need to look into some old termite damage, trying to schedule that inspection today. No other big surprise, at least not a deal breaker.

Due to close on May 12!!

Purchase price $135,000

Down payment $33,750

Loan amount $101,250

Rate 4.625% (30 year conventional)

Goal rent $1,400 (for a 2-BR in that area, it's very conservative, welcome to Annapolis!)

Vacancy 8% (1 month/year)

PITI $721

Management & CAPEX $265

Cashflow $302 /month

ROI 10.75% 

(I haven't factored in closing costs - I've seen it done both ways - est.  $3,500)

The tenants I have lined up for the property are ready to sign a 2-year lease. I hear this duration is increasingly popular in our area.

Meanwhile I started my LLC, and I'm now looking for a CPA.

Thoughts on the above?

Thank you @Ned Carey I really appreciate all your help and recommendation, been reading a lot of your posts here on BP and I'm headed over to your blog now! 

I will find out more about lead testing and inquire with LeadProbe.

For as much as lead can be a "threat" it's also a great opportunity if handled properly, right?

Have a great day!