All Forum Posts by: Tammy Vitale

In Maryland ADA allows the *tenant* to make modifications to a property but *tenant* has to put the house back in order before they leave.  Any questions about income are the same as for anyone else.  Do due diligence as you would with any tenant.  I'm sure laws are different state to state.

Know who you are going to before you try to refi as some lenders will only lend on what you paid for the first year, not the adjusted value.

no rent and the tenant is allowed to stay on the property for *years*?  is there a lease?  I'd ask a few more questions before I went on this - free lawyer or not if there is a rental agreement, that agreement governs in court.  There's a part of this story missing.

HELOC's don't require home inspections (neither do purchases - home inspection is up to the buyer, not the lender). HELOC's do require an appraisal. Loans on investment properties are only up to 80% (if that much) appraised value. If you're going for house number 3, your lender may require 25% down (that's usual, conventional).

Make sure that the HELOC plus mortgage payment still gives you room for positive cash flow from your rental unit.

All that covered, IMO you should absolutely let your rental earn money by helping you buy another rental.

you also need to be sure your conventional lender does require a wait period before they will refinance at the new value.  My usual conventional lender will only refi and the purchase price (not the price plus improvements) for one year after hard money.

I'm licensed in Maryland, work in Southern Maryland - I'm 1.5 hours away from Baltimore in Calvert.  Let me know if I can help you.

I think Wayne gives good advice.  And it sounds like the contractor was indeed sloppy in this instance tho I'm wondering about what's on top of the "new" unit - leaves or rust?

That said, it sounds like they brought in the a/c.  I wonder if they have renters insurance (I require that in my leases) and if their insurance covers it with a deductible.

Just some thoughts.  Good luck!

If you upset them, what happens?

Tell them the truth.  Don't imagine their response, get it and then deal with it from there.  At best they take responsibility.  

At worst you pay a plumber who verifies there is no leak,  and then hand the problem back to them with the truth.  I personally wouldn't go that far, but that choice is up to you.

My cottage tenant pays electric as a rule.  My electric utility keeps a note that the place is tenant occupied and all I have to do is call them to switch it over to me. Daniel above gives good advice about water.  If the bill accrues to the property and not the person, I would add the cost into the rent and pay it myself.  I have a mix of tenant pays/I pay utilities.  I like the tenant pays MUCH better and will be switching all but one propertiy over to that eventually (the one is a sober house and because of the set up, the utilities are more than covered in the rent)

I have properties where I do both.  I pay utilities and even cable  in the homes that have transient tenants (sober houses) - that way I know they'r getting paid.  That is of course built into the rent so you have to know costs.