All Forum Posts by: Teresa F.

Hi George -- You should have one lease and one rent check.  They haven't moved in yet so no harm done re security they will just need to bring that before they move in.  Not sure if you already had a lease signing but if not . . . make it clear that you want rent paid in full, the roommates can figure out how best to handle it.  I e-mail rent receipts so while I get rent from a single person, I e-mail the receipt to all of the roommates.  BTW, if one of the roommates move, you will want to make it clear that any new roommate will need to be vetted by you before move in.  

Best, Teresa

The security deposit belongs to the tenant until the tenant vacates the property.  When ownership is transferred, the security deposit should be transferred to the new owner.  

Hi Larry, I can only speak for Maryland and DC where I am licensed. Sales people must hang their license with a broker. Agents have to provide their brokerage information to register with the MLS.

Best, Teresa

Hi Connor, I am an investor and residential Broker in DC and Maryland.  I also have my DC property manager's license.  I manage my local portfolio (DC/Maryland) and manage a couple of properties for clients.  If you want to talk further, shoot me an email.   I also have a property where the ownership structure requires a property manager.  It is a single family rowhouse in DC.  Robtco Property Management is the company that manages the property and Robert Jones is the CEO of the company.  

Best, Teresa

Hi Josh,  Many great ideas from fellow members.  Let me add one more.  Look for help from the seller.  Many sellers are willing to help with down payments.  For example, you purchase a $100k property.  You finance $80k.  You have $5k.  You ask the seller to loan you $15k on mutually agreeable terms, e.g., $100 per month until paid in full etc.  Don't forget to be creative.  Another option may be to offer the seller something in trade.  Could they use a service that you would provide for free to them for a specific period of time?  One more idea is to skip the bank and ask for the seller to finance the purchase.  If there property has been sitting for sale for a long time they may be ready to just move on.  Be their solution.  

Good luck.  Teresa

Trent -- I doubt that you need individual LLCs for each property. I have three LLC's and they each have reporting requirements, tax requirements, etc. Just starting out and assuming that you are talking residential properties, it is probably more important to have excellent insurance for each property. I have multiple properties in each LLC and also carry insurance on each property and an umbrella coverage for the LLC. My accountant seems to handle the current structure just fine. By the way, I am also an attorney and liability protection also falls under the purview of the attorney. Even if you have an LLC for each property, improper handling of that LLC may result in personal liabiity. If you have a substantial number of assets or are really concerned about potential liability -- talk with an attorney.

Best, Teresa

Hi Jacquice!  YAY another local investor.  I am in PG.  I have or have had buy and holds in DC, PG and MoCo but keep looking and not buying in Baltimore.  I've decided that I don't understand buyers or tenants in Baltimore ( a problem you probably won't have).  Don't give up on DC, PG or MoCo yet.  I'm a real estate broker and every day I check for listings of $75k or less (in DC PG and MoCo).  Yes, they exist!   You just have to be quick and take action.  

Feel free to reach out anytime neighbor!  Teresa

Hi Camilo ---  I'm cheap but I am also a buy and hold investor so I have lots of experience on making kitchens look good on a budget.  So I will propose something a little different.  Leave the cabinets --  if a potential tenant asks mention that unlike the stuff they sell at home depot etc. these are all hardwood.  Generally the potential tenant won't ask.  They need enough cabinets for storage.  You are providing that.  Spend your money on buying a fancy countertop (if you want high end rental go for the granite or silestone), change your lighting, could do a track system that provides light throughout kitchen (cheapest), or cans with a couple of pendant lights over the island (shouldn't be too expensive but . . . .) and then change your appliances to black or stainless.  These don't have to be high end.  Paint, and if you want to top it off (or hide painting errors) put in some crown moulding.   May want to replace the floor but probably not necessary.  

Potential tenants pay attention to kitchens -- the appliances (if you have room for a double door fridge with a water dispenser -- that is not typically found in a rental and will be memorable), interesting lighting that makes the kitchen bright, and a fancy counter (it doesn't need to be stone, I've purchased the "stone looking" cheap counters at Lowe's and it worked just fine but for my higher end rentals I use real stone.  

Finally, when showing, I would put a couple of chairs up to the island to immediately show that it can be used for eating, talking to the chef, etc.  

Good luck!  

Teresa

Hi David --  Your down payment is whatever you can negotiate.  Traditional financing would be 20 to 25% down.  However, the owners may be willing to take back paper for some of the down payment.  Good luck!  

Hi Michael --  First in answer to your question . . . "improvements" a "tenant" makes are not something the landlord has to reimburse the tenant for unless otherwise agreed.  

In the future, agreements should be in writing.  Contracts for purchase have to be in writing.  A handshake isn't valid for a contract of one year or more.   

You may want to check Dodd/Frank Act.  My understanding is that carrying a mortgage for a non-investor is no longer allowed.