All Forum Posts by: Brian Roberts

@Theresa Harris

Didnt say it would be more than your primary home. A home you live in will have cheaper insurance than the same house used as a rental.

@Hobart King

You will always pay more for non owner occupied insurance than if it was occupied by yourself. More risk for the insurance company. Having it in the LLC can put you into a business rate for insurance. That's why you are getting seemingly high quotes.

@Rachel H.

If they were perfect with their money they wouldn't be renters. As long as they pay all their bills and have been according to their credit check I'd rent to those people every day.

@Salim Katach

If you put the location in the title you are more likely to get more responses. Good luck!

@Kelli Standekar

Just some thoughts. I was in a similar situation as you when I bought my first duplex. Tenants that had been there almost 10 yrs and rent that was around $100 under market value. Both smoke and one has a dog. The reason I bought this property vs. Others was because of how well the tenants take care of the property. My thought was that if in 10 yrs they haven't cluttered or damaged the unit then those are exactly the kind of tenants I would want. Money is always lost in the turnover of tenants. If they have been there that long, chances are that they consider it their home and will care for it as such, as you already mentioned it's in good shape now. I would slowly raise the rents to current market rates and keep the tenants you have.

@Nathan G.

Your points system for tenant screening is something that I would like to pick your brain about if you would be willing to share more information.

@Austin Fry

I would be careful if I was in your situation. Being that it is your first flip the Coronavirus just adds another hurdle in your journey. I would guess that if you ask any flipper,their first project didnt go exactly as planned. Budgets go over, holding time increases.

The biggest thing that you should consider is how much cash reserve you have. Can you survive if your reno costs 20% more than anticipated? Can you hold the property for an extra 6 months and still make enough money to make it worth your while?

People who have a track record,systems in place and large cash reserves can continue without to much hesitation. For a first timer you would be foolish to not take extra precautions. Not saying that it's the wrong time or right time for you. Be sure of your numbers and know that it will probably cost you more time and money than you anticipate.

@Nicole Heasley

Hi Nicole. I invest a little farther north in the Warren area. Is this meetup at the Boardman BWW ? Very interested to meet some fellow area investors. Hopefully all of this Coronavirus issue is sorted out by then.

@Jesse Unrath

It depends on the specifics . You didnt really say anything other than some vague generalities. What return % are you looking at? Location? I generally cant come close to CoC % of small mulits with single families.

@John Sherwood

I invest in small multi because of the CoC returns. Being in Ohio I depend on cash flow in order to make money. I will never see the appreciation rates that you will in California. For me any appreciation is a bonus not a goal. I personally won't consider investing in my area for less than 15% CoC. I know people will disagree but everyones investing strategy and goals will drastically differ.

As far as prices being set by rents/cap rate, I'd say at least in my area I'd say they dont... like everywhere right now it seems like the crazies are out there that will buy old houses in C neighborhoods for a 5 CAP. To me that's insanity, but it happens every day. In my experience small multi can be tough to gauge cost. 5+ units and it seems like commercial agents will get sellers more in line with what area cap rates are dictating. I run quick CoC numbers when properties become available and quickly eliminate ones that dont fit my goals. I dive deeper on ones that look as if they will. Only you will be able to figure out what you are comfortable with and that will depend on your goals.