All Forum Posts by: Dan G.

Central heat isn't a requirement, but without having some sort of heating method that is controlled by a thermostat is usually a no go.  If someone is relying solely only on a woodstove or space heater, usually the underwriting guidelines will say it is ineligible.  Even our sub-standard markets like Foremost will decline.   

Give Foremost a try.  Occupancy is a huge issue with applying for coverage, so make sure you are upfront about your plans to avoid issues down the road.

Electric baseboard heat? If so, are they controlled by a thermostat?  

I own an independent agency in Harrisburg.  Does the home have any type of thermostatic controlled heat?  The concern is frozen pipes, resulting in leaks and water damage.  What is the heat source?

Hi there BP members!

I am a new member who is seriously considering building some single family home rental properties. I have a trusted client who has built several hundred throughout the years as a GC (all building subcontracted out) and is willing to help me out with his connections and logistics. All of the homes are identical in layout/design and are pretty basic, but are solidly built with quality materials and appraise for $30k - $40k above the lot & construction expenses on average upon completion. I am looking at using a HELOC to purchase a lot and get a loan to cover the building expense ($90k). Once the home is done (3 months) and tenants are in, getting a traditional mortgage to free up the HELOC funds to start again.

I am pretty conservative by nature, but studying the numbers on rental income vs. expenses and having instant equity available seems like a foolish opportunity to ignore.  I am hoping to get my "feet wet" and possibly build 1 or 2 a year for a few years and build up a nice source of revenue.   

Any thoughts, concerns? I would love any feedback or welcome any questions.  Finally, nice meet to you all and look forward to participating in the community!

Dan