All Forum Posts by: Ben Durtschi

Thanks for the replies. Motivation is tough to maintain, especially after the holidays and a new baby. It's nice to read the forums and blogs to keep the fire alive.

Did the tenant show any signs of trouble during the interview process? I'm about to rent a house out, and I'm relatively green, so I'm nervous about recognizing and weeding out the complainers.

Ya, but do they charge you anything to sit down and talk to them? It seems like that wouldn't be worth their time. Especially if I don't end up using them.

Welcome! I'm relatively new myself.

Love this forum. My wife has been giving me grief for spending so much time on it, but I've already received answers to so many questions. i just can't get enough.

"At first, you may want to look into just using your personal name with high liability insurance ($1m) for asset protection. It's more difficult to obtain long term financing in an LLC."

I've read this a couple other places. What do you mean "more difficult." Is it because the bank is worried that I won't honor the debt because it's in an LLC? I don't want to use my name from the start because I want to separate myself from the company. I want to act as the PM to the tenants rather than then owner, but I guess if I can't get financing I won't have very many homes to rent???

What about with 20% down or if I have some cash reserves/equity in other properties? Is it still difficult?

I live in Springfield, and my personal residence is 0.4%, but it really depends largely on your policy. Different amounts of liability coverage will change your premium, but not by much. The biggest thing that will decrease your premium is your deductible. Ours is $5000. Pretty steep, but it saves us a lot in premium. Insurance companies will give you a great price when your deductible is high because this means that you're not going to make claims frequently. The size of a claim is not what alarms them it's the frequency of claims. And depending on how frequently a particular company is having claims determines their rates. If insurance company "A" is having twice as many claims as company "B" in a particular area then their rates will be higher. My cost for insurance in Las Vegas was about 0.25%, but that's because they don't have the hail/thunderstorms/tornado's that we have here in the show-me state.

Call around to the major companies in KC and compare identical coverage, and you'll quickly see who has been having more claims. Then ask them to play around with the coverage: Liability up/down, deductible up/down to get an idea how they play on the rate. Ask the agent for his/her advice, but don't skimp on liability - it's better to have the coverage and not need it, than need it and not have it. Deductible is up to you, but remember, insurance is for catastrophic loss, not for maintenance. However, it's ultimately up to you.

Ben

As others have said, the tool I've used the most is a screw gun and drill. It might be tempting to get a cheap set. Don't. You'll come to regret it. The nicer tools last longer and perform far better than the cheaper ones. I would recommend getting an impact driver and drill set. Makita and DeWalt make great ones, but they need to feel comfortable in your hand. Get the one that fits. Along with it you'll need a good set of drill bits and screw tips. Once again you get what you pay for. Nicer bits will last longer a drill smoother. A wood-worker friend- of-mine, who makes stunning projects, said it right, "I don't have any special skills, I just buy the right tools." A good set of hand tools comes in close behind, but just buy them as you need them. Don't feel like you have to run right out and buy every tool you'll ever need. Good luck, Ben

Good advice. I'm getting antsy to buy another house, and I don't quite have enough for a 3 bed down-payment, so I started thinking about a 2 bed just to get another house under my belt. My focus is 3 bed houses. I just need to have some patience and wait until I can get a 3 bed. Thanks for keeping me on my course! Ben

Thinking about buying some 2 bedroom houses. Are they a headache? Easy to rent? Same quality tenants as 3 bedroom houses? I realize it depends on where you live. Just looking to get a general idea.

Thanks. Great ideas. I guess I'm trying to get into investing without making any mistakes, but it sounds like I just need to learn as much as possible and then just dig in. I appreciate your responses. Ben