All Forum Posts by: Eric Black

Hi Billy,

Home warranty's are like insurance policies. Some years you'll get your moneys worth, like it sounds like you did last year, and some years you will not. We have had a home warranty on one of our rentals since we bought it in '09. Some years it has saved us hundreds, some years thousands, some years none. 

I think a lot depends on the age of the home and of the major systems and appliances. If it's a newer home and/or newer major systems then it may not save you a whole lot. However, if the home and/or systems are more than 4 or 5 years old then it could be a good thing to have.

There's no right or wrong answer it's just a matter of personal opinion. If it's worth $790 for the piece of mind that you won't have to worry about shelling out thousands of dollars for a new A/C unit or heating system then you should do it.

Best of luck!

Eric

Hi John,

The laws vary from state to state as to how long you need to keep them. There is much debate over whether you should ever get rid of the documentation should you be sued for anything.

The solution we have started using is to scan everything and just keep an electronic copy. With as cheap as storage is these days, either locally on an external hard drive or even better in the cloud, there's not a big reason you can't keep the records for years. Once we have scanned the documents and confirmed they look good then we shred the paper copy so we don't have piles of paperwork to store.

Better safe than sorry.

Best of luck

Eric

Hi Barshay,

A "reasonable estimate" is going to vary greatly from market to market. I would suggest would be to contact numerous insurance companies with a target property type, even if it's not a true potential property, and get quotes. Rates shouldn't vary too much neighborhood by neighborhood unless there's something majorly different between the two, such as a flood zone. This should give you a good idea of insurance rates for the areas you're looking.

Best of luck!

Eric

Hi Rochelle,

Yes, it is possible but it usually very difficult. True, most banks have seasoning requirements on purchases to encourage homeowners to purchase the properties. They are probably out there but you'll have to look long and hard to find them.
Best of luck!

Eric

Hi Sean,

There are a number of markets that are performing well right now but you also have to look long-term. If you're focusing on cash flow you might want to consider markets such as Atlanta, Indianapolis, San Antonio or Little Rock. These markets, with maybe the exception of Atlanta, do not typically have large market/appreciation swings. But they typically have stable cash flow.

Just be sure to get very familiar with whichever market(s) you decide to get into. As with many cities, things can vary greatly from neighborhood to neighborhood and even street to street.

Best of luck!

Eric

I don't see where he asked about buying the property inside the IRA. I just see where he asked if he had enough for a 25% down payment in his IRA could he use it. I guess my idea of "very clear" is different from others. I'm sorry for misleading anyone.

Hi Troy,

If you're not set on having someone in your area, which doesn't always make sense, I would reach out to @Amanda Han.

Best of luck!

Eric

@Brian Eastman

I'm sorry then that you are misleading investors. If you're saying that a person cannot take a distribution from their IRA and use those funds to purchase a property then I'm happy to say I'm not a client of yours, no matter how long you have been in the business.

If he wants to purchase the property in the name of the IRA then yes, you are correct, but anyone can take an distribution from their IRA and use the funds for whatever they would like, but they'll pay the penalty.

Hi Brandon,

My first piece of advice would be, don't buy a condo! True, you can get them for less than a house but you're at the whim of the HOA as to when you'll have a (sometimes HUGE) assessment for a new roof, new parking lot, anything expensive. You can't project these into your numbers. I agree with @Joshua Dorkin when it comes to investing in condos. They can be a great investment, but they can also kill your investing career. 

If I were you I'd take that $50k and invest it in two single family residences, or a multi-family, in a good market. 

Best of luck!

Eric

Hi Albert,

There are a number of places you can purchase a list of cash buyers in your area. Do a Google search and you should find what you're looking for.

Eric