Property Insurance on BRRRR

[Nick Wilson]

I'm purchasing my first Investment property and will be using the BRRRR Strategy. I'll be buying it with Cash, and then Refinancing it later. Because, there is no mortgage on the property initially, my Insurance Rep said that the premium couldn't be taken out through escrow each month and had to be paid in full for the year. Is that true?

Thanks,

Nick

[Casey J Burkhead]

Hey Nick,

It's true that it can't be escrowed because there will be no escrow account without a mortgage.  And the billing options are determined by the individual insurance companies.  Most will allow property insurance to be set up on 1-pay, 2-pay, 4-pay or automatic monthly payments.  I'm sure there are some that will only take pay in full though.  It just depends on the company.

- Casey