All Forum Posts by: Tim Jacob

I can chat with you as well.  I have a decent amount of remodel experience including older homes.  I'm in the Baltimore market.  Its a little more affordable than DC but as was stated having capital is key.  Hardmoney will probably run you close to 10% which can really cut into profits.  

There are a few issues with this.  This is really right up there with those that self manage but trust tenant applicants to see the property by actually giving them the lockbox combo and figuring they will not target absentee landlords and go to the property and unlock a window and break in after the showing after it seems they are gone.  Then you have an eviction.  You are paying barely anything to agents.  Do you understand since many agents are broke they could be one of the squatters or charge someone to pay them a fee so the others can squat in there.  The best thing is to have 1 person you know responsible lease the place and not nickel and dime them.  Pay them what they are worth and have them lease the property.   If the area is in a good area and can attract decent tenants it will not be hard.  If it doesn't then I would lease my myself or offer more than a month rent to the agents or get full pm where the pm will be more incentivized to get a good tenant bc they will deal with them after.    Though the moratorium has come and gone most important is getting the right people in there.  Not figuring a way to nickel and dime the help.  Whether it be realtors, plumbers, electricians, etc.  I think the idea of offering the agent the ability to network won't really do it for them. That feels like getting the ability to work minumum wage.  16 year olds with no skills can have it better.  Being cheap with the help usually ends in failure bc you get what you pay for.

I think as others have said it is time to self manage.  It seems like you don't mind putting in the work, like being in control,  and since you live there travel is not an issue.  Getting the contractor list down is nice so far though that may change in time.  I think over time you have to ask yourself what your time is worth.  You can find good pm in any market as long as they are paid effectively which will depend on the asset class.  I think you have not seen enough maintenance issues yet where a good pm could void some cost potentially but if you DIY you will get a little better at that.  That will be more difficult in an older market like Chicago unless a lot of the buildings are new or the building's infrastructure has changed.        

Fyi.  The information is available in MD on the state sdat website.  

I did the same as Ozzy and found the same issue.  Their fb group is better.

I would probably reposses if you have something in writing.  Id go over at night to make sure they are in deed gone.  Chance of them coming back after an inspection or 2 at night are slim though they could try to move back with relatives over the holidays get kicked out and comeback.  Worst case they do and you can move forward with your judgement.

Worst case I don't know what county your in but in other parts of the state judgement to eviction is less than a month though in some places it can be 2.  I have not been to court in a while but from what I hear post judgement things haven't changed due to covid.   It would be the fastest to get them out via eviction from failure to pay rent.  

Most importantly make sure the power and gas are on with this cold front coming so there is adequate heat.  Ive heard of horror stories where foreclosure homes were not winterized and a realtor goes to show it with broken water lines in the kitchen leading to a frozen waterfall effect and all the mold and destruction that ensued.  If its a rowhome or 2nd floor condo you should be ok but I wouldn't chance it

Your priced too high and if a decent pm doesn't want to go there the reason is the asset quality is too  low for them.  Your options are price it lower and manage it yourself.  Dont try to dump this on someone else it will not work. If you get a good long term tenant great but if it becomes too much of a hassle to self manage I would sell it and by something probably for more money or in another city where your money can go further in regards to asset quality.

I think self managing is possible. As has been mentioned Rockville is an option to keep things more affordable. You can probably get a townhouse there or Gaithersburg or Derwood or Silver Spring that is less than 50 years old and such should have less issues than an old house that has not been retrofitted. You still will need to change the hvac, water heater, and roof periodically along with other breakdowns. You might have a small hoa fee but as opposed to a condo the fee will most likely not void any future cash flow. Project managing reputable contractors is not hard. I would say if you get something where the plan is not do a huge rehab and project managing contractors will be possible. The premium you pay will not be too bad for that amount of stuff and especially with their finance options. Finding them with Google reviews and Angie's list should be fine. Where the work is over whelming is getting finish contractors on a larger rehab. There will still be work to the smaller Capex stuff along with leasing that will be more time. It is possible just have a good maintenance plan when you buy.

I think starting out getting something close to where you work is a great idea.  Getting a multi unit in DC is going to be expensive as will housing in general. 

Property management is something a lot of people start out doing themselves.  It is a good idea as it gives you an understanding of the amount of work it entails.  Realistically its going to cost you a little over 100 per month for the management fee with leasing and maintenance coordination being separate.   Usually I would allocate over 10-12% per month for the entire job.  It might be cheaper if rents are really high. In terms of time its going to be more than an hour a week when everything is considered unless you want to delegate things.  Leasing is usually around 1 month of rent.  That will be the biggest time crunch.  Thats usually when a lot of maintenance is done as well and that will be more to it.  If you invest in buildings with a lot of deffered maintenance and lower asset classes you will spend a lot more time as well.  

One thing a lot of new investors think is ok so why don't I invest in lower asset classes and dump the work on the pm then sit back and collect the checks while the pm gladly works for a lesser rate in lower asset classes. This usually ends poorly for the investor. If you buy a primary residence and eventually move away and delegate it if its a good asset class it will not be a problem. Most quality pms see this and avoid lower asset classes as a result. Thus at that point the successful investors self manage low income areas. So if you don't want to manage it yourself keep that in mind when making a purchase. Additionally heavy Capex will eat into time and especially if you don't want contractors to take advantage of you. It shouldn't be too much but maybe more than an hour a week until things stabilize.

I have never done one of these in AA county but I doubt it I have without issue in other municipalities.  Big thing is having a valid rental license if needed in your part of AA county and lead cert.  Check out Maryland Evictions Online.  If its a basic FTPR you shouldn't have much issue with filing and representation.  For THO its still possible.  Never filed for breach of lease as usually so maybe get 1 there.  There are a lot of attorneys that aren't specialists in this.  Get 1 that is.  Sometimes people that aren't attorneys are actually better as they have a lot more experience.