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Maryland Ground Rents

Property Owners Have Little to Fear From Maryland Ground Rent Title to real property in Maryland is either “in fee simple“‘; meaning there is no ground rent, or “subject to a ground rent” in which case it is known as “leasehold property.” Ground rents originated in Maryland when ownership of land was concentrated among the […]

Maryland Ground Rent Redemption Rates

Ground Rents are unique to the Baltimore Real Estate Market and often time seem mysterious and confusing to clients from other areas of the country. Simply, a Ground Rent is a fee, usually paid twice per year, that is paid to an investor who owns the ground under the property.  Grounds rents are 99-year leases […]

New Tax Law Affects Apartment Property Owners

Congress and the President gave the country a huge Christmas present with the signing of the “Tax Cuts and Jobs Act” on December 22, 2017.  We have all heard varying accounts about this new tax law; but what is the impact for rental property, apartment property, and commercial-investment real estate owners and managers? Our models […]

Cash Out Refinance Your 1-4 Unit Apartment Building

One of my best loan officers just advised me that she can do a cash-out refinance of a 1-4 unit investment property even if you have up to 10 financed investment properties.  Maximum loan-to-value is 75% on a single-family rental property and it is 70% loan-to-value on 2-4 unit apartment properties.  Most lenders can only finance […]

Investment Returns Part 2: Appreciation

Investors often examine the cash flow a property generates, that is, rental income, minus operating expenses (property taxes, insurance, maintenance, and utilities), less mortgage payments to arrive at the monthly or annual cash flow profit from the property.  While this is an important metric, are you considering the three other sources of return on investment? A […]

Seller Financing

I was asked, “What is the advantage for a seller to take-back financing?” In most cases, the seller can earn a higher monthly income taking back financing than selling the property, paiying the taxes, and putting the balance into a savings account. Selling and paying the capital gains tax, leaves me with less money to reinvest.  Holding  financing, […]

Important Financing Update for 1-4 Unit Multi-Family Investment Properties

If you have 4-Financed Properties and feel you cannot buy more, you need to know about important new changes to Freddie Mac underwriting guidelines. Previously, you would max out at 4 financed properties with 30-year fixed-rate loans. Now, you can have up to SIX (6) financed properties. Qualification is based on one-year’s income as reported […]