All Forum Posts by: Cooper B.

My local power company will give me a free electric water heater if I switch over from gas. It will still cost me about $250-$300 for additional parts and for the electrician and plumber to hook it up.

The current gas water heater works, but is 8 or 9 years old. I'm wondering if anyone has any insight on if it is worth the time and expense to replace a working heater with one that is brand NEW.

The house is about $250k ARV, and will have new roof, windows, cabinets, bathrooms, in case that makes a difference.

I ended up going with a regular fire policy from ASI (American Strategic Insurance). I got plenty of coverage for the building, upped liability on the property to $500k, and all unearned premium is refundable. They are aware that the home is undergoing renovations and is vacant. I haven't had to use it so I can't comment on claims service, but I am very happy with the cost of the policy.

Welcome @Kimberly Robinson! I also would love to get into smaller multifamily properties. I have found it hard to find them in the parts of town that I really want to be in, but I'm still looking. I'd be curious what parts of town you are searching in?

I would love an answer for this (bump).

I have read a number of threads on BP stating that a Builder's Risk policy is appropriate for a flip house undergoing renovation. I have spent a good deal of time attempting to gather quotes for a policy to cover a flip house and have been somewhat underwhelmed by the response from the companies I have called as well as their offerings. The premiums and deductibles were high, and there were even higher deductibles for theft, which is one of my main concerns.

I also called one of the major national carriers and explained exactly what I am doing with the house (i.e., Recent purchase, it is vacant while undergoing renovations, afterwards it will either be rented or sold). They quoted me for a regular fire policy with more than adequate building coverage, stated that building materials on site would be included in that coverage in case of theft, and deductible is $1000 for all covered perils. And, just like any normal homeowner's policy, the prepaid premiums are refundable when the policy is canceled. The policy also carries $300k in liability coverage. The home cannot be vacant longer than 90 days, but that is not in my plan anyway and if it comes to that I will shop for a different policy.

I'm wondering if any other rehabbers have gone this route to cover their properties? Is there some great downside that I am not considering here? It seems like a much better and simpler solution than the other alternatives I have found. (The other quotes I have gotten have been from TAPCO and NREI Insurance by the way.)

Thanks everyone for the response.

@Account Closed that's a great point about giving them 48 hours. I met their 48 hour requirement 2 days ago but haven't heard anything from them since, and I'm sure I won't until after the weekend at the earliest.

Thank you for the responses @John A. & @John Moore! I am also a little uncomfortable with Hubzu as a whole. I am using my local title company.

I am wondering if either of you suggest having an attorney present on my behalf at closing?

@Michael Woodward I'd also love to know where you are getting your cabinets from!

I have a house under contract from Hubzu. I have chosen the option to use my own title provider at my expense after reading through some of the advice offered on these forums.

My question is about the actual closing. The Purchase Agreement they sent to me has a Closing Agent listed; this was not somebody that I chose and I know nothing about them but a quick web search convinced me to be wary.

How is the actual closing typically conducted on these deals? Will this be something where I am signing documents with a notary? If so, would it be a good idea to retain an attorney to be present? Or, will the closing be in a local closing attorney's office as in a normal closing here in Alabama?

Of course I tried just calling Hubzu, but couldn't get through....

Thanks!

@Justin Ferguson

Welcome to Birmingham, glad to have you! I'm also actively looking for multi-family deals in the area. Are you focusing on any specific parts of town? Feel free to give me a shout if you want to connect and discuss!