Houston Insurance INSANE!

[Jared Vidales]

Hi All,

I just entered the Houston market with the goal of buying long term rentals. I closed something in Missouri City the other day, and the insurance was $3,000! The home was worth about 145k. 

Im now underwriting a 1996 brick build that I currently have in contract for 148k, its worth about $225k, and only needs carpet and paint. My basis is at 77% of Market value and my net yield is only 5.65% before debt! I know property taxes are insane, but the insurance kills it. 

Any help??

[Tony Castronovo]

A house like that should be closer to $1000...maybe as high as $1300 depending on coverage, deductibles, etc. PM me and I can give you a couple of referrals.