*** Official Real Estate Forum *** (3 Viewers)

[Willy]

Wondering what happens when you remove the AU from your account?  Does that come off their credit history or does it stay?

ETA:  Found it.  Looks like it will come off the AU history.  At the very least it no longer gets updated.  https://www.thebalance.com/authorized-user-credit-scores-961087#:~:text=The Impact of Being Removed,-Being removed as&text=If you're the primary,your credit report as normal.

 

[Chadstroma]

Wondering what happens when you remove the AU from your account?  Does that come off their credit history or does it stay?

ETA:  Found it.  Looks like it will come off the AU history.  At the very least it no longer gets updated.  https://www.thebalance.com/authorized-user-credit-scores-961087#:~:text=The Impact of Being Removed,-Being removed as&text=If you're the primary,your credit report as normal.

Correct. As with a lot when it comes to credit the answer is: It depends. In this case, it depends on the card issuer. It can remove the tradeline completely or it can just stop reporting and leave the tradeline there. The majority of the time, the tradeline is removed. 

Special note since we have discussed AU's.... NEVER, EVER, EVER "buy a tradeline" or in other words, pay someone to add you as an AU in one of these 'markets'. Though it is not illegal specifically, it can cause issues. The big reasons for this are since this is a semi-black market, you are opening yourself up to ID theft. The other is that once you apply with an AU on your credit that you paid for, it can be used to show mortgage fraud if applying for a mortgage or bank fraud for other loans or credit cards. Finally, in mortgage underwriting, the only AU that is not questioned at all is that of a spouse. Anything else gets questionable and an underwriter can force the AU to be taken off and credit repulled, potentially causing the loan to no longer be qualified. 

 

[cubd8]

Question - > Does anyone have any recommendations for specific areas to consider in Denver? What's the best way to explore an area without knowing much about it? Thinking in terms of housing that includes a back yard, open to solar panels, finished basement (man cave), but doesn't have to be more than a 2-3 bedroom place. 

Obviously safety and cost would drive any decisions. Currently, we are familiar with Colfax Street off of Sheridan, which is about 5-10 minutes from the Broncos stadium.

Long story short, would like to begin searching for some of the above just to begin exploring options. I realize Zillow and other sites like that will help in the actual searches, but need assistant from Denver area experts on places to live to help narrow down a search, etc.

 

[STEADYMOBBIN 22]

For the first time in years Zillow said I lost equity. (-$3,000)

 

[cubd8]

Question - > Does anyone have any recommendations for specific areas to consider in Denver? What's the best way to explore an area without knowing much about it? Thinking in terms of housing that includes a back yard, open to solar panels, finished basement (man cave), but doesn't have to be more than a 2-3 bedroom place. 

Obviously safety and cost would drive any decisions. Currently, we are familiar with Colfax Street off of Sheridan, which is about 5-10 minutes from the Broncos stadium.

Long story short, would like to begin searching for some of the above just to begin exploring options. I realize Zillow and other sites like that will help in the actual searches, but need assistant from Denver area experts on places to live to help narrow down a search, etc.

any help on this?

 

[Zegras11]

In the second quarter of this year, 48.1% of mortgaged residential properties were deemed equity-rich, according to a recent US Home Equity & Underwater Report. This means that the combined estimated amount of loan balances secured by these properties was no more than half of their estimated market values. In Q1 of 2022, that number was 44.9% and 34.4% in Q2 of 2021.

This Q2 increase means virtually half of all mortgage payers are in the equity-rich territory – the highest percentage on record. At the same time, just 2.9% of mortgaged homes were considered seriously underwater in Q2 of this year – the lowest percentage recorded. The second quarter improvement in home equity was due mainly to soaring home values. And even though home price appreciation seems to be cooling because of higher interest rates, it's expected that homeowners will continue to build their equity for the remainder of the year

 

[Zegras11]

Just had a great convo with a good friend that does development projects. He says that the larger builders have cut back on employees quite a bit, and with the slow down, labor costs are coming down as work has slowed down.

So instead of the labor getting top dollar, they are slashing their rates just to keep working.

 

[Chadstroma]

Just had a great convo with a good friend that does development projects. He says that the larger builders have cut back on employees quite a bit, and with the slow down, labor costs are coming down as work has slowed down.

So instead of the labor getting top dollar, they are slashing their rates just to keep working.

Homebuilders are done until mortgage rates fall

Tuesday's housing starts report shows that homebuilders are done with single-family construction until mortgage rates fall.

www.housingwire.com

 

[Zegras11]

Just had a great convo with a good friend that does development projects. He says that the larger builders have cut back on employees quite a bit, and with the slow down, labor costs are coming down as work has slowed down.

So instead of the labor getting top dollar, they are slashing their rates just to keep working.

Homebuilders are done until mortgage rates fall

Tuesday's housing starts report shows that homebuilders are done with single-family construction until mortgage rates fall.

www.housingwire.com

Housing is he #1 thing that drives the economy. When this subject is more main stream news, rates will fall.

 

[Chadstroma]

Just had a great convo with a good friend that does development projects. He says that the larger builders have cut back on employees quite a bit, and with the slow down, labor costs are coming down as work has slowed down.

So instead of the labor getting top dollar, they are slashing their rates just to keep working.

Homebuilders are done until mortgage rates fall

Tuesday's housing starts report shows that homebuilders are done with single-family construction until mortgage rates fall.

www.housingwire.com

Housing is he #1 thing that drives the economy. When this subject is more main stream news, rates will fall.

Rates will fall when the Fed realizes that economy is dying (they are always late on realizing anything), inflation falls and they react to get the economy moving again by buying bonds. My time frame is about 1-2 years.

 

[Sand]

Nutball story. And the lot owner is being sued on top of it for rejecting their proposed solutions. RE experts, what should the remedy be here?

Lot owner stunned to find $500K home accidentally built on her lot. Now she’s being sued

The owner of the lot says she had no idea a home had been built there.

www.wpxi.com

 

[Chadstroma]

Nutball story. And the lot owner is being sued on top of it for rejecting their proposed solutions. RE experts, what should be remedy be here?

Lot owner stunned to find $500K home accidentally built on her lot. Now she’s being sued

The owner of the lot says she had no idea a home had been built there.

www.wpxi.com

Wha in the wha. Crazy.

I love the part of "I just sold this house on your property... we have to figure this out."

 

[Runkle]

Build a 10 foot fence around the property and enjoy the free house

 

[ghostguy123]

I may have asked this before but can't remember.

I own a rental property that is paid off. If I were to do a cash out refinance, would the new loan interest be deductable on the property? Also would all fees associated with the refinance be deductable?
TIA

 

[FreeBaGeL]

I may have asked this before but can't remember.

I own a rental property that is paid off. If I were to do a cash out refinance, would the new loan interest be deductable on the property? Also would all fees associated with the refinance be deductable?
TIA

I'm not a CPA, but for my properties the way it works is...

Loan interest is deductable against the rental income.

Fees associated with closing the loan were capitalized and rolled into the cost basis of the property. I asked my CPA if we could just use it as an expense against rental income instead and they said no.

ETA: Note that my properties are short term rentals, not sure if that changes anything.

 

[ghostguy123]

I may have asked this before but can't remember.

I own a rental property that is paid off. If I were to do a cash out refinance, would the new loan interest be deductable on the property? Also would all fees associated with the refinance be deductable?
TIA

I'm not a CPA, but for my properties the way it works is...

Loan interest is deductable against the rental income.

Fees associated with closing the loan were capitalized and rolled into the cost basis of the property. I asked my CPA if we could just use it as an expense against rental income instead and they said no.

ETA: Note that my properties are short term rentals, not sure if that changes anything.

Thanks.

Also, what about depreciation? I bought the property cash a decade ago, in case that matters.
I have been using depreciation since. Assuming I can still use depreciation

 

[FreeBaGeL]

I may have asked this before but can't remember.

I own a rental property that is paid off. If I were to do a cash out refinance, would the new loan interest be deductable on the property? Also would all fees associated with the refinance be deductable?
TIA

I'm not a CPA, but for my properties the way it works is...

Loan interest is deductable against the rental income.

Fees associated with closing the loan were capitalized and rolled into the cost basis of the property. I asked my CPA if we could just use it as an expense against rental income instead and they said no.

ETA: Note that my properties are short term rentals, not sure if that changes anything.

Thanks.

Also, what about depreciation? I bought the property cash a decade ago, in case that matters.
I have been using depreciation since. Assuming I can still use depreciation

Yes I don't think the financing should affect depreciation at all. I have a loan on all of mine and take depreciation.

 

[ghostguy123]

I may have asked this before but can't remember.

I own a rental property that is paid off. If I were to do a cash out refinance, would the new loan interest be deductable on the property? Also would all fees associated with the refinance be deductable?
TIA

I'm not a CPA, but for my properties the way it works is...

Loan interest is deductable against the rental income.

Fees associated with closing the loan were capitalized and rolled into the cost basis of the property. I asked my CPA if we could just use it as an expense against rental income instead and they said no.

ETA: Note that my properties are short term rentals, not sure if that changes anything.

Thanks.

Also, what about depreciation? I bought the property cash a decade ago, in case that matters.
I have been using depreciation since. Assuming I can still use depreciation

Yes I don't think the financing should affect depreciation at all. I have a loan on all of mine and take depreciation.

I wouldn't think so, but ya never know I guess, which is why I was asking.
I'm only kinda half considering doing the cash out refinance anyway, and it's going to depend on if it makes sense for me to do it and pay off my house.

My personal home interest rate is only 3% though, so not even sure the tax benefits are going to make mathematical sense given a new loan will be what, like 7% or more?

 

[Chadstroma]

I wouldn't think so, but ya never know I guess, which is why I was asking.
I'm only kinda half considering doing the cash out refinance anyway, and it's going to depend on if it makes sense for me to do it and pay off my house.

My personal home interest rate is only 3% though, so not even sure the tax benefits are going to make mathematical sense given a new loan will be what, like 7% or more?

Investment cash out refi depending on all the specifics you would expect a 7 or 8 number. I have options in the 6's but that is paying a lot more points. Pretty much no lender that I have access to is offering par rates so it is just a matter of how many points you want to pay.

 

[Zegras11]

I may have asked this before but can't remember.

I own a rental property that is paid off. If I were to do a cash out refinance, would the new loan interest be deductable on the property? Also would all fees associated with the refinance be deductable?
TIA

I'm not a CPA, but for my properties the way it works is...

Loan interest is deductable against the rental income.

Fees associated with closing the loan were capitalized and rolled into the cost basis of the property. I asked my CPA if we could just use it as an expense against rental income instead and they said no.

ETA: Note that my properties are short term rentals, not sure if that changes anything.

Thanks.

Also, what about depreciation? I bought the property cash a decade ago, in case that matters.
I have been using depreciation since. Assuming I can still use depreciation

Yes on new loan being deductible

Your depreciation is good for 27.5 years. It's calculated from the day you bought property, but does not include the land portion , just the building

 

[ghostguy123]

I wouldn't think so, but ya never know I guess, which is why I was asking.
I'm only kinda half considering doing the cash out refinance anyway, and it's going to depend on if it makes sense for me to do it and pay off my house.

My personal home interest rate is only 3% though, so not even sure the tax benefits are going to make mathematical sense given a new loan will be what, like 7% or more?

Investment cash out refi depending on all the specifics you would expect a 7 or 8 number. I have options in the 6's but that is paying a lot more points. Pretty much no lender that I have access to is offering par rates so it is just a matter of how many points you want to pay.

That sucks compared to the 3% cash out refi I did in March 2020, lol

 

[Chadstroma]

I wouldn't think so, but ya never know I guess, which is why I was asking.
I'm only kinda half considering doing the cash out refinance anyway, and it's going to depend on if it makes sense for me to do it and pay off my house.

My personal home interest rate is only 3% though, so not even sure the tax benefits are going to make mathematical sense given a new loan will be what, like 7% or more?

Investment cash out refi depending on all the specifics you would expect a 7 or 8 number. I have options in the 6's but that is paying a lot more points. Pretty much no lender that I have access to is offering par rates so it is just a matter of how many points you want to pay.

That sucks compared to the 3% cash out refi I did in March 2020, lol

Ya... slightly different rates then.

 

[The Z Machine]

I decided to rent out our primary residence in Baltimore when we moved the Geneva. Vacated in late July and turned over keys to the property manager. He didn't communicate much until it was listed for rent in the middle of Sept. Then he hit me with an invoice for painting and cleaning that I didn't authorize. He never spoken to me about that work, which is what is stipulated in the management agreement. The invoice was already paid (to the tune of $1600+) of my money that he held in a contingency fund. Anyway, I disputed those charges and asked for compensation, which he refused.

Tenants moved in middle of Oct. without issue. I even went and met them last week to introduce myself since I was in town. Things seem smooth on that front, thankfully.

So I had to fire him this week because I had lost faith in his decision making and communication. He still thinks he did no wrong despite admitting he didn't adhere to the signed agreement. I hope he will cough up the money he has in the contingency fund + tenant security deposit. TBD if he will negotiate on the $1675 or if we'll have to go to arbitration. He know I live overseas so maybe he'll be willing to call my bluff of the legal dispute.

I lined up another property manager to take over and signed a new agreement with him. He's a friend and guy I have known for years. I didn't want to go with him initially as I didn't want to mix biz and friends. We'll ar least this guy I know won't actively try to screw me.

 

[Steve Tasker]

I may have asked this before but can't remember.

I own a rental property that is paid off. If I were to do a cash out refinance, would the new loan interest be deductable on the property? Also would all fees associated with the refinance be deductable?
TIA

The deductibility of the interest will depend on what you spend the refi proceeds on. If you reinvest it into the property (say, renovations, repairs, improvements), then yes, the interest would be deductible on this property. If you used it to buy a new property, for example, the interest expense would be deductible against that new property. If you were to take the refi funds and use them personally for items that would otherwise not be deductible (say - to go on vacation or buy a boat or something), the interest would not be deductible.

This is called "interest tracing", if you want to read more about the concept.

 

[Chadstroma]

I decided to rent out our primary residence in Baltimore when we moved the Geneva. Vacated in late July and turned over keys to the property manager. He didn't communicate much until it was listed for rent in the middle of Sept. Then he hit me with an invoice for painting and cleaning that I didn't authorize. He never spoken to me about that work, which is what is stipulated in the management agreement. The invoice was already paid (to the tune of $1600+) of my money that he held in a contingency fund. Anyway, I disputed those charges and asked for compensation, which he refused.

Tenants moved in middle of Oct. without issue. I even went and met them last week to introduce myself since I was in town. Things seem smooth on that front, thankfully.

So I had to fire him this week because I had lost faith in his decision making and communication. He still thinks he did no wrong despite admitting he didn't adhere to the signed agreement. I hope he will cough up the money he has in the contingency fund + tenant security deposit. TBD if he will negotiate on the $1675 or if we'll have to go to arbitration. He know I live overseas so maybe he'll be willing to call my bluff of the legal dispute.

I lined up another property manager to take over and signed a new agreement with him. He's a friend and guy I have known for years. I didn't want to go with him initially as I didn't want to mix biz and friends. We'll ar least this guy I know won't actively try to screw me.

Well.... that says it all about that guy.

I get the business/friend hesitancy. People can be down right ridiculous when it comes to that.... some thinking that they can take advantage of the friend aspect or some thinking business is business and that business is cut throat. But when you got a real friend who is competent- I think it is hard to beat that in business.

 

[ghostguy123]

Question. This would have been better had I done it a couple months ago before the stock market took a haircut, but figured I'd ask. I'm only semi-serious......

Would it make sense to cash out about 200k from my 403b to buy a house cash for around 150k (figure the extra would cover taxes and whatnot.

The house would probably rent for around $1,500 a month. I don't believe the house needs anything to be rent-ready.

The extra money from the rent I collect would go back into my 403b after increasing my contribution amount.

Ok, flame away.......go

 

[Desert_Power]

Ok, flame away.......go

Appreciate the bump here as my thoughts have turned back to real estate.

 

[BassNBrew]

Question. This would have been better had I done it a couple months ago before the stock market took a haircut, but figured I'd ask. I'm only semi-serious......

Would it make sense to cash out about 200k from my 403b to buy a house cash for around 150k (figure the extra would cover taxes and whatnot.

The house would probably rent for around $1,500 a month. I don't believe the house needs anything to be rent-ready.

The extra money from the rent I collect would go back into my 403b after increasing my contribution amount.

Ok, flame away.......go

I have investors who have IRA investment properties.

 

[BassNBrew]

I decided to rent out our primary residence in Baltimore when we moved the Geneva. Vacated in late July and turned over keys to the property manager. He didn't communicate much until it was listed for rent in the middle of Sept. Then he hit me with an invoice for painting and cleaning that I didn't authorize. He never spoken to me about that work, which is what is stipulated in the management agreement. The invoice was already paid (to the tune of $1600+) of my money that he held in a contingency fund. Anyway, I disputed those charges and asked for compensation, which he refused.

Tenants moved in middle of Oct. without issue. I even went and met them last week to introduce myself since I was in town. Things seem smooth on that front, thankfully.

So I had to fire him this week because I had lost faith in his decision making and communication. He still thinks he did no wrong despite admitting he didn't adhere to the signed agreement. I hope he will cough up the money he has in the contingency fund + tenant security deposit. TBD if he will negotiate on the $1675 or if we'll have to go to arbitration. He know I live overseas so maybe he'll be willing to call my bluff of the legal dispute.

I lined up another property manager to take over and signed a new agreement with him. He's a friend and guy I have known for years. I didn't want to go with him initially as I didn't want to mix biz and friends. We'll ar least this guy I know won't actively try to screw me.

If the old property manager has a brokers license, threaten to file a compliant with the Maryland real estate commission.

 

[The Z Machine]

I decided to rent out our primary residence in Baltimore when we moved the Geneva. Vacated in late July and turned over keys to the property manager. He didn't communicate much until it was listed for rent in the middle of Sept. Then he hit me with an invoice for painting and cleaning that I didn't authorize. He never spoken to me about that work, which is what is stipulated in the management agreement. The invoice was already paid (to the tune of $1600+) of my money that he held in a contingency fund. Anyway, I disputed those charges and asked for compensation, which he refused.

Tenants moved in middle of Oct. without issue. I even went and met them last week to introduce myself since I was in town. Things seem smooth on that front, thankfully.

So I had to fire him this week because I had lost faith in his decision making and communication. He still thinks he did no wrong despite admitting he didn't adhere to the signed agreement. I hope he will cough up the money he has in the contingency fund + tenant security deposit. TBD if he will negotiate on the $1675 or if we'll have to go to arbitration. He know I live overseas so maybe he'll be willing to call my bluff of the legal dispute.

I lined up another property manager to take over and signed a new agreement with him. He's a friend and guy I have known for years. I didn't want to go with him initially as I didn't want to mix biz and friends. We'll ar least this guy I know won't actively try to screw me.

If the old property manager has a brokers license, threaten to file a compliant with the Maryland real estate commission.

He agreed (verbally) to pay half of the $1675 back in Nov. Hasn't sent me any money other than the security deposits and the balance on the contingency fund.

 

[BassNBrew]

I decided to rent out our primary residence in Baltimore when we moved the Geneva. Vacated in late July and turned over keys to the property manager. He didn't communicate much until it was listed for rent in the middle of Sept. Then he hit me with an invoice for painting and cleaning that I didn't authorize. He never spoken to me about that work, which is what is stipulated in the management agreement. The invoice was already paid (to the tune of $1600+) of my money that he held in a contingency fund. Anyway, I disputed those charges and asked for compensation, which he refused.

Tenants moved in middle of Oct. without issue. I even went and met them last week to introduce myself since I was in town. Things seem smooth on that front, thankfully.

So I had to fire him this week because I had lost faith in his decision making and communication. He still thinks he did no wrong despite admitting he didn't adhere to the signed agreement. I hope he will cough up the money he has in the contingency fund + tenant security deposit. TBD if he will negotiate on the $1675 or if we'll have to go to arbitration. He know I live overseas so maybe he'll be willing to call my bluff of the legal dispute.

I lined up another property manager to take over and signed a new agreement with him. He's a friend and guy I have known for years. I didn't want to go with him initially as I didn't want to mix biz and friends. We'll ar least this guy I know won't actively try to screw me.

If the old property manager has a brokers license, threaten to file a compliant with the Maryland real estate commission.

He agreed (verbally) to pay half of the $1675 back in Nov. Hasn't sent me any money other than the security deposits and the balance on the contingency fund.

Makes me sick that people do stuff like this. I see it all the time.

Check here and tell me if they have a brokers license https://www.dllr.state.md.us/cgi-bi...arch/OP_search.cgi?calling_app=RE::RE_qselect

Property mgmt may not be covered in Maryland which would be ironic that my Red state has better consumer protections.

 

[ghostguy123]

Question. This would have been better had I done it a couple months ago before the stock market took a haircut, but figured I'd ask. I'm only semi-serious......

Would it make sense to cash out about 200k from my 403b to buy a house cash for around 150k (figure the extra would cover taxes and whatnot.

The house would probably rent for around $1,500 a month. I don't believe the house needs anything to be rent-ready.

The extra money from the rent I collect would go back into my 403b after increasing my contribution amount.

Ok, flame away.......go

I'm gonna reply to myself after thinking about this more.

The more I've thought about it, the worse of an idea it seems. I am not even sure from a just pure numbers standpoint that it would be all that lucrative (if at all) considering the 10% penalty right off the top, plus the taxes, not to mention missed growth on the 403b money (if there even is any, who knows, it might be a money SAVER in the years coming, lol).
Even if I put an extra $1,000 a month into my 403b, it would take about 20 years to get that 200k back in (minus growth).
Then factor in the extra actual work involved.
I don't know, was just a random thought I had last night.

 

[Chadstroma]

Question. This would have been better had I done it a couple months ago before the stock market took a haircut, but figured I'd ask. I'm only semi-serious......

Would it make sense to cash out about 200k from my 403b to buy a house cash for around 150k (figure the extra would cover taxes and whatnot.

The house would probably rent for around $1,500 a month. I don't believe the house needs anything to be rent-ready.

The extra money from the rent I collect would go back into my 403b after increasing my contribution amount.

Ok, flame away.......go

Liquidate (I assume the money is invested) in when the market is down and take the tax slap in the face- I am not seeing this as a good idea in general.

 

[Chadstroma]

I decided to rent out our primary residence in Baltimore when we moved the Geneva. Vacated in late July and turned over keys to the property manager. He didn't communicate much until it was listed for rent in the middle of Sept. Then he hit me with an invoice for painting and cleaning that I didn't authorize. He never spoken to me about that work, which is what is stipulated in the management agreement. The invoice was already paid (to the tune of $1600+) of my money that he held in a contingency fund. Anyway, I disputed those charges and asked for compensation, which he refused.

Tenants moved in middle of Oct. without issue. I even went and met them last week to introduce myself since I was in town. Things seem smooth on that front, thankfully.

So I had to fire him this week because I had lost faith in his decision making and communication. He still thinks he did no wrong despite admitting he didn't adhere to the signed agreement. I hope he will cough up the money he has in the contingency fund + tenant security deposit. TBD if he will negotiate on the $1675 or if we'll have to go to arbitration. He know I live overseas so maybe he'll be willing to call my bluff of the legal dispute.

I lined up another property manager to take over and signed a new agreement with him. He's a friend and guy I have known for years. I didn't want to go with him initially as I didn't want to mix biz and friends. We'll ar least this guy I know won't actively try to screw me.

If the old property manager has a brokers license, threaten to file a compliant with the Maryland real estate commission.

He agreed (verbally) to pay half of the $1675 back in Nov. Hasn't sent me any money other than the security deposits and the balance on the contingency fund.

That sucks bud. Are you going to bring up the legal dispute on this to get movement? Bass brings up a very good point. If he has a license, you can threaten more damage to that than any legal action.

 

[The Z Machine]

I decided to rent out our primary residence in Baltimore when we moved the Geneva. Vacated in late July and turned over keys to the property manager. He didn't communicate much until it was listed for rent in the middle of Sept. Then he hit me with an invoice for painting and cleaning that I didn't authorize. He never spoken to me about that work, which is what is stipulated in the management agreement. The invoice was already paid (to the tune of $1600+) of my money that he held in a contingency fund. Anyway, I disputed those charges and asked for compensation, which he refused.

Tenants moved in middle of Oct. without issue. I even went and met them last week to introduce myself since I was in town. Things seem smooth on that front, thankfully.

So I had to fire him this week because I had lost faith in his decision making and communication. He still thinks he did no wrong despite admitting he didn't adhere to the signed agreement. I hope he will cough up the money he has in the contingency fund + tenant security deposit. TBD if he will negotiate on the $1675 or if we'll have to go to arbitration. He know I live overseas so maybe he'll be willing to call my bluff of the legal dispute.

I lined up another property manager to take over and signed a new agreement with him. He's a friend and guy I have known for years. I didn't want to go with him initially as I didn't want to mix biz and friends. We'll ar least this guy I know won't actively try to screw me.

If the old property manager has a brokers license, threaten to file a compliant with the Maryland real estate commission.

He agreed (verbally) to pay half of the $1675 back in Nov. Hasn't sent me any money other than the security deposits and the balance on the contingency fund.

Makes me sick that people do stuff like this. I see it all the time.

Check here and tell me if they have a brokers license https://www.dllr.state.md.us/cgi-bi...arch/OP_search.cgi?calling_app=RE::RE_qselect

Property mgmt may not be covered in Maryland which would be ironic that my Red state has better consumer protections.

Nope, couldn't find the guy by name or by company name.

 

[The Z Machine]

I decided to rent out our primary residence in Baltimore when we moved the Geneva. Vacated in late July and turned over keys to the property manager. He didn't communicate much until it was listed for rent in the middle of Sept. Then he hit me with an invoice for painting and cleaning that I didn't authorize. He never spoken to me about that work, which is what is stipulated in the management agreement. The invoice was already paid (to the tune of $1600+) of my money that he held in a contingency fund. Anyway, I disputed those charges and asked for compensation, which he refused.

Tenants moved in middle of Oct. without issue. I even went and met them last week to introduce myself since I was in town. Things seem smooth on that front, thankfully.

So I had to fire him this week because I had lost faith in his decision making and communication. He still thinks he did no wrong despite admitting he didn't adhere to the signed agreement. I hope he will cough up the money he has in the contingency fund + tenant security deposit. TBD if he will negotiate on the $1675 or if we'll have to go to arbitration. He know I live overseas so maybe he'll be willing to call my bluff of the legal dispute.

I lined up another property manager to take over and signed a new agreement with him. He's a friend and guy I have known for years. I didn't want to go with him initially as I didn't want to mix biz and friends. We'll ar least this guy I know won't actively try to screw me.

If the old property manager has a brokers license, threaten to file a compliant with the Maryland real estate commission.

He agreed (verbally) to pay half of the $1675 back in Nov. Hasn't sent me any money other than the security deposits and the balance on the contingency fund.

That sucks bud. Are you going to bring up the legal dispute on this to get movement? Bass brings up a very good point. If he has a license, you can threaten more damage to that than any legal action.

Not sure there's anything more I can do. At least I get to carry forward the loss on my taxes for 2025...