Rule of Thumb to estimate insurance in a rental property

[Hector Perez]

I have a rental lead and I am doing a cash flow analysis and would like to know if there is a quick way to estimate the insurance cost

I was going to estimate the annual insurance cost roughly 1% of the purchase price

I appreciate your feedback

[Tom Goans]

Hector,

It is easier to estimate repair and property enhancement costs. The varibles are the hardware and labor costs.

Yet, there are so many varible that influence insurance costs, giving a quick call to an insurance agent, who is really your business partner, can be worth the time. Just make one bad estimate and ...