First Investment Property

[Robert Vigil]

Investment Info:

Small multi-family (2-4 units) private money loan investment in Mayfield.

Purchase price: $175,000
Cash invested: $60,000

May 2021 - I am finding out that insurance is much more expensive than I thought. The lender is requiring we purchase replacement cost insurance. This quote I received was in excess of $2700. It also includes a 1 million umbrella.

We have also run into a snag regarding our heloc. Our home was recently downgraded to a flood zone. The bank wanted us to increase the coverage to the amount of the heloc, but wasn't satisfied with the paperwork because the flood company still had us zoned B. Insurance company explained they update their policies once a year and it will be updated June 2021. We are waiting to see if the bank will accept that from the flood company.

In the meantime, we had an unexpected vacancy and the owners gave us permission to act as managers on their behalf and have us fill the vacancy. It took less than a day to find someone we trust. We are now preparing a property that isn't quite ours for the next tenant.