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Updated over 6 years ago on . Most recent reply
Owner finance tax and insurance
Looking to owner finance house to current renter after 18 months of renting. Always pay on time. Property has a loan with 65%LTV. First time Owner Financing. How does taxes and insurance work? Anything else I should think about?
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- Greer, SC
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#1 Short-Term & Vacation Rental Discussions Contributor
- Investor
- Greer, SC
@Shawn Harvey Specify that they are responsible for both. Require them to list you as a "loss payee" on the insurance policy.
That will make sure you get paid if there is a claim and you get notified if they are late on paying their insurance bill.
The other option is that you escrow it and add it to the monthly payment and then you pay both these from the proceeds.
Make sure you specify that these may go up and they owe the difference when they do go up.