Just getting started...

[Zachary Dosch]

Im in the process of buying my first investment property - a single family house.

What do I need to do to limit my liability outside of normal home owners insurance? I don't think I need to form an LLC yet - should I get an additional umbrella policy?

Also, Im guessing I should open a seperate business checking account for this property to better track income and expenses for tax purposes?

What I am buying is a single family home in Bismarck, North Dakota for $165,000 - the mortgage is going to be for $154,448 (30 yr, 4.375%) monthly payments of $1,085/mo for PITI. Its a 5 bedroom 2.5 bath with a double stall garage. The market is dictating a rent of $1250/mo. Thoughts, comments, concerns?

[Steve Babiak]

Originally posted by Zachary Dosch:

Im in the process of buying my first investment property - a single family house.

What do I need to do to limit my liability outside of normal home owners insurance? ...

With an investment property, you won't have a "normal home owners insurance" policy. Those "normal home owners insurance" policies are intended for properties that are occupied by the owner.

So you'll need a landlord's insurance policy - liability coverage, fire insurance, loss of rents coverage, etc.

As far as rents and how much to pay for a property, in the landlording forum you should be able to find plenty of references to the 50% rule of thumb / guideline. Essentially, in the long run, expenses will run about 50% of market rent - but find one of the threads that go into this in more depth.