All Forum Posts by: Ryan Van Fleet

I'm going through the closing process and my mortgage agent is giving me a quote of $750 for the appraisal. The house is 1000 sq ft on an 1/2 acre. Its priced a $102k.  Does this appraisal fee seem high. If so what are the average price for appraisals.  I've been told $300-$400 by other realtors.

I don't know a whole lot about looking for vacation rentals and more seasoned vacation landlord can give you more complete advice. But running an intellectual exercise on the numbers, I think you should be able to figure it out.

Essentially, you need to make sure your entire expenses/cashflow is covered in 3-4 months. 

At the 1% rule you have 12 months to cover this. With a vacation you have, lets say 4 months. So 12 divided by 4 is 3. So 1% times 3 is 3%. 

So total your rent from one month (monthly rental, weekly, daily) and see if it is 3% of the mortgage.  That is if you feel confident that you can rent it 100% for 4 months of the year.  

MD/DE beaches are becoming more year round and June, July, August are going to be your big rental months usually with a few weeks in September. Personally, if I was to undertake vacation rentals, I'd want more buffer.  Pick your numbers wisely and be sure to figure in MGMT fees, weekly cleaning, winterization, utilities, etc.  

This is going to be a broad question, but I've recently come across a couple of lots that are priced well in a very good area. I want to put together some numbers to see how the deal would work if I picked up the lots, cleared them, and put a modular on them. 

I think my first step is to call a modular company and get a construction estimate and go from there.  I know I need to factor in purchasing, interest from the construction loan, as well as the taxes on the property while the construction is happening. I also need comps for similar homes. I was wondering what else I need to factor into the equation to see if the numbers work.

Also any suggestions on how to take the deal to investors for financing.

@Jimmy S. You are in the power seat letting them out of the contract. So you could request what you think is fair. 

Personally I'd set the termination date to the end of the month and hold them responsible for the utility and lawn care up till then. If they are moving out before the end of the month and moving far away, take enough out of their security deposit to cover that month's lawn care. In Maryland you have 40 days before the SD is required to be returned.  

Whatever you decide on be sure it is stated in the lease termination so expectations are clear.

Air on the side of human kindness and let them out. I know it business, but we prosper by offering services above the norm. You should use a lease termination. Be sure to indicate that it's a mutual decision requested by the tenant. Also get their request in writing, letter or email.

I agree the quadplex with the parking is probably the is probably the better way to go, but I haven't heard anyone mention the out strategy for 2 duplexes. 

If you have two duplex, you might be able to petition for a split in the property. This would give you the extra option to sell or lease one of the duplexes, while keeping the other.  

Thanks @Russell Brazil. Thats what I did with my condo, but wanted to double check. I'm house hacking my townhome and the prospected tenant is studying to be a real estate lawyer. So I'm crossing my T's and dotting my lower case j's.

Hi,

I'm wondering what other Maryland landlords do with their tenant's security deposits. I know it has to placed in an bank account within the state of Maryland.  

Do you open a savings account?

Do you use an escrow service?

If yes who do you use?

What fees should I expect?

Any other Suggestions?

Thank you in advance,

Ryan

Hello everyone,

I have a question about private lending deals.  I'm curious how private money structures deals. It seems like you can make a deal a little bit more creative then a conventional, but what does one typically look like.

• Do they charge a higher interest rate?
• Do they set payment terms like a conventional?
• How do they protect them self? Do they take out a lien on the property?
• Are there example contracts?
• Do they typical take a stake in the property for the long term?
• Are there any books, blogs, or materials, or private lending?

I ask, because I got a buddy who is considering to use some of his home equality to finance some deals in the future. I told him there are private money lenders, but I don't know too much about it yet. I want to be able to give him a clearer picture of how it works, so he doesn't get screwed. 

Thanks,

Ryan

Rebecca has got a point.  Depending on how much baking the tenant does that could put some stress on the fridges compressor. Being that the stove is Gas it might be costly to move the stove, but moving the fridge might be more doable.

One thing I would consider without seeing more pictures is having cabinets put in above the fridge and stove maybe with a hood over the stove.

Other thoughts are to dry wall the ceiling and the walls. That might give it a more classy look over the drop tile and vinyl walls. However the current ceiling and walls are probably easier/cheaper to maintain.