All Forum Posts by: Bruce M.

Edita, Did you look over the contract you have signed with the current management company? They often have clauses about cancellations and penalties for doing so. If they try to pull anything on you, I would let them know you are cancelling for performance issues. I only bring this up so you are prepared if this should occur. I always like to be one step ahead of everyone when I can.

@L Gale I am much newer to BP than most that have responded to your post. I have only been a member a few months. The conference was beyond my expectations. As others have mentioned there were close to 400 people there. The speakers were very good. The networking among attendees was incredible. I learned a ton that I did not know and am looking forward to learing a ton more on the next one. Simply said, Josh did one incredible job.

I have spent quite a bit of time on insurance issues and pricing for my rentals and have several observations. The price of insurance is all dependent on the location (mostly by state) of the property. For example, I have properties in TX, FL, AZ and NV. NV is the cheapest, then AZ, then TX and FL is by far the most expensive. It is all based on risk. There are more risks in certain places than others. I pay $500 per year for the same type property that costs me $1,500 per year in FL. And in FL it is very hard to get over 300K in liability limits. There is where you really want an umbrella policy. Most umbrellas require you to have a minimum of 300K primary liablity limits.

You can try to have tenants carry renters insurance too but many will just cancel it and never tell you. It may be in the lease agreement, but good luck. It is like collecting rent from a deadbeat who leaves. Who is the one the ends up being held responsible? You the landlord, always.

In some cases you can also get a commercial policy and that usually comes with higher premiums. The advantage to that is that you can list your LLC as the primary insured. However many personal lines policies for rental properties allow you to add the LLC as an additonal insured. It can get complicated so make sure you use a good agent above and beyond the price. When you need insurance, trust me you need it. I had a tenant sexually assaulted in a rental unit I owned several years ago by someone she had dated. I won't go into all the details but I was held liable and my insurance company had to pay a six figure settlement. This is the society we live in today.....its always someone elses fault. Be smart, insure for as much as you can including an umbrella. If you really think an LLC will protect you from an aggressive lawyer, you have not researched the subject enough.

Farmers evidently has a commercial umbrella you can try to get if you put your rentals in a primary commercial policy too. It is available in certain western states. I had a Farmers agent in AZ tell me about it and quoted me on it. I am not sure WA is one of the states it covers or not. I know it did cover rentals in CA, TX, NV and AZ. If you have a Farmers agent, you may want to ask about this. A commercial policy for rentals will be more expensive though.

Rich, I don't know what to tell you about where to get a good deal in Las Vegas right now. I was buying at the trustee sale but the prices are getting to be at retail levels now and that inventory is way down. Plus you need all cash there. I am concerned that the market is being manipulated by state government intervention in NV. Google AB 284 if you want to know more about it. Its not a full moratorium but it has stopped the flood of foreclosures dead in its tracks. The key question is whether there will be a glut of foreclosures and shadow inventory in the next twelve months, or whether there will be an effort to stop the flood of foreclosures in Las Vegas tightening the supply/demand model. A lot of us are watching that market very closely right now. Most people I know investing in Las Vegas are making multiple offers on the MLS and hoping some get accepted.

Agree on the other comment that the 2% rule does not work in many areas, yet it does in others. In many markets investors are willing to pay much more for properties. I have bought both using the 2% rule and not using it, and in many instances my properties that I bought under the 2% rule cash flowed better then the 2% properties, so I have found there are many variables involved here.

Richard,
I buy in Las Vegas and the market is very tough right now to find inventory because of the moratorium on foreclosures by NV. Many of the short sale sellers took their houses off the market as they were no longer afraid of immediate foreclosure. They are just living in them for free. It has created an artificial market do to govenment intervention which is scary, as we all know what usually happens when the government intervenes in the real estate market. There is little inventory in Las Vegas right now and what will happen later in the year is an unknown.

Buying at the trustee sale is just as bad now so I don't know that option will get you anything either.

Edita, I invest in Las Vegas and if you want to PM me, I would be happy to share with you who I use for management and my experiences. I don't feel comfortable to endorse them on the forum.

Albert, I am very active in the Las Vegas market and think its a great time to buy and hold there.

I am on board with the Las Vegas venue. If anyone can do it, you can Josh!

The best $200 bucks I ever spent!