All Forum Posts by: Brian Bower

Hello everyone, 

I am at a loss at guessing the proper about of insurance coverage for my properties. Does anyone have a metric or advice on how to arrive at a proper number? 

Any studies/reports on what the average property related lawsuit settlement is? 

My wife and I have 2 properties with 4 units(one is our primary residence... ). 2 units are long term rentals and one is an Airbnb. We are having to change our coverage due to the short-term rental not being covered by my current insurer. 

We had normal homeowners and an umbrella policy for 2 million and are re-evaluating what the appropriate coverage amounts are. 

Both properties are under our name and we don't have any LLC's set up. We would appreciate any help!

I figured. Thanks Steve! 

I Own and live in a SFR with an ADU(auxiliary dwelling unit) in portland or.

the Adu I rent out and have been using a 70/30 breakdown for the valuation of the property for depreciation & tax purposes( based on sq ft.)

this year I replaced the siding on the main house and Adu and painted as well (paid a contractor). 

My question is for the siding bill can I claim the whole expense because it improved the ascetic of the rental, or should I only deduct 30% to keep consistent with the depreciation %?

Thanks!

Thanks for everyone who showed up! Nice to see some real faces. It was interesting that everyone had their own twist on real estate investing...

@Vance Petersen thanks for the breakdown, a couple of those scenarios I didn't think of.

@Corey Davis I am hoping the meet up isn't after 5 pm and there is a good chance I'll be in attendance.

Im in on most fridays before 4

Fascinating thread here guys, thanks! I have always assumed hard money lenders have pretty steep interest rates. Is that the case? I would gather that if so hard money lenders are for flip properties and not really for the buy and hold investor. Is this the case? Excuse the naivete.

Thanks @Jay Hinrichs

@Bill Jacobsen

nice to see some locals weighing in. I was looking at investing out of state like near Dallas. The thought of having (potential)consistent problems far away is scary, but the prices are so much more attractive...

Taxes 2600currently; (will probably go to 2800 after purchase)

not sure what the insurance will be quite yet...

I know you guys are gonna shoot me down but appreciate the feedback anyway...

SE portland Triplex

250k purchase price 5.1% interest with 20% down

rents currently $695 $675 $675

newer construction for the area. estimate rents are 10-15% below market

almost 0 vacancy rate(really.)

There is NO yard so the landscaping below is fairly bs.

I would continue paying water,sewer, garbage.

would raise rents by 50$ per unit within a year.

2 tenants have been there over 2 years. 1 for a year. Currently MTM.

2 dogs currently in 2 of the units :(

Operating Income & Expense
Income
RENT INCOME
Rent 24,690.00
Prepaid Rent -675.00
Total RENT INCOME
OTHER INCOME
Deposit Forfeit 470.90
Lease Penalty 285.80
Total OTHER INCOME
Total Operating Income
Expense
DIRECT EXPENSES
House Cleaning 140.00
Roofing / Gutters 225.00
Painting 1,600.00
General Repairs 282.97
Landscaping 1,585.00
Management Fee 1,850.00
Electricity 9.94
Water & Sewer 1,973.91
Trash Disposal 1,195.20
Total DIRECT EXPENSES
Total Operating Expense
NOI - Net Operating Income 15,909.68
Total Income 24,771.70
Total Expense 8,862.02
Net Income
Other Items
Owner Contribution 1,585.81
Payment to Owner -18,170.49
Net Other Items
Cash Flow
Beginning Cash 975.00
Beginning Cash + Cash Flow 300.00
Actual Ending Cash 300.00

provided by property manager.

Thanks in advance!

Fascinating stuff thanks for the post!