All Forum Posts by: Adam Roberts

What will the unit you will occupy rent for when you are gone?

Jake Ferguson - agree with Ben L here. Your assumptions create a tight financial outcome.

What is the list price of the tri? Am I reading correctly that you are going to occupy one of the units?

Thx for the replies guys....

Tim Norris - quick clarification: 1) Is the co-insurance requirement something that would be lender-required?... I see this term elsewhere on the forums just not sure what it is. And 2) Is replacement cost coverage basically insurance against the replacement cost being higher than insured?

...Want to make sure I have this straight! Thanks again for your input.

Adam

A lot of it depends on your overall financial goals and strategy... Besides the obvious rate differences and time-value of money concept, the loan term decision will also hinge on what cash-flow result you want after expenses as well. I personally do the 30 yr amortization to simply use OPM to the maximum, while others may want to pay down their debts quicker.

Daren H.

Yes the DFW biggerpockets contingent is strong and connected. Everyone got together at a restaurant in Dallas back when I moved here (3 months or so ago) - I wouldn't be surprised if another event was planned in the near future.

As for clubs.... A collegue of my girlfriends' (she's an agent) has recommended the DFW REI club that meets in Haltom City. We haven't been yet but once we get more settled will likely check it out.

Hi folks - I'm in the middle of closing on my first quad in Fort Worth, TX and have a question regarding insurance policy. From a bit of research I understand that they take on a few different forms such as umbrella with other props, coverage for lost rent & damaged property, etc.

Can anyone shed any light on the most typical, or best path for insuring a 4-plex in good condition? Is it typical to cover lost rents, the appliances, etc?

The property is 1983 build in good condition, all four apartments have been recently renovated (within 5 years). Replacement cost between $200-350k depending on which insurance co. I'm talking to.

Samara - congrats on getting the contract -

I have used Tony Estes from 'First Look Home Inspection', he is a one-man crew out of Fort Worth, and has some great knowledge. He recently inspected a quad I'm investing in. Great guy. If you would like his contact info message me.

Adam

Looks like it may be slightly better than a break-even property according to my assumptions (I did 8% vacancy, I put an extra $250/mo maintenance which may be steep for SF home). If the appreciation in the area is decent it may not be bad from an investment standpoint, compared to other vehicles, but it doesn't appear to cashflow much. May need to shop at lower price points. My 2 cents.

From my research a lot of conventional lenders will require higher down payments for real estate that you're not going to occupy... the lowest I've seen is around 20%. You can work with the seller to see if they will perform seller financing with less down payment than the bank will require? Private money also an option but typically will be higher rate.

From speaking with other landlords, I can see that all-inclusive rent has a somewhat negative connotation as there is little room for positive CF. There is also the risk that tenants abuse utilities knowing they will not be financially liable.

I am currently looking at investing in a tri-plex that has 2 meters, so the current landlord pays all utilities but his rents are a "bit" higher than market (i.e. not enough to recover costs unfortunately for him).

Does anyone have a positive experience to share with a landlord-paid utility situation?

Conversely, has anyone invested knowing they were going to immediately pay to re-wire with 1 meter per unit, and what was the general cost of this work?