All Forum Posts by: David S.

Good Luck and let us know the result!

As of January 1st this year, Liberty Mutual has lifted the moratorium on issuing new policies for investment property in Louisiana (in place since Katrina).  They are very competitive and should write you for up to 4 units. That includes replacement costs and liability.  I do not know if they can help you with the larger ones.....

Access does singles and doubles, no larger.  They are very reasonable.

I got a good quote from Centari, but they stopped writing in my zip code the very next day.

I agree that you need to shop around like crazy.  A company that writes today will literally not write tomorrow and vice versa.  Therefore, some of the quotes you got from the previous day are worthless the next day.

I once tried to do a commercial policy for several properties, but the price was even higher.

All LA landlords feel your pain as only a few companies insure rentals in SE LA and the ones who do are either overpriced or have extreme conditions in order to obtain the policy, such as you must rewire the entire building, or install a firewall between units.

Shellac seals in the odors on wood.  I have used it in a fire building as per the insurance plan and it worked well.

Ozone machines also help remove odors.  It may need more than one treatment.  I have used this as a "final step" after all other remediation was done.

Someone once recommended "thermal fogging" but I have never tried it.

One suggestion. You may state you have a 3 strikes policy.  That is, you already gave them 2 warnings and you chose not to continue the business relationship.

Do you have a clause prohibiting illegal activities?  If so, a police report may help you evict them.

Are they ever late on the rent?  Non-payment of rent is always easier than these type violations.

The reason why many may like multi-family is the higher ROI, or in some cases the perceived potential ROI than Single Family Homes. If in a decent area, this may be the case. However, projections often prove to be wrong and income may be less and expenses higher, especially in Class C and D areas. Further, upon comparing with SFHs, there is more of a "headache factor" involved in multi family.

Many investors put up with this headache factor early on to get cash flow, then start transitioning to SFH's later to reduce workload.

It all depends on what your goals are.  Cash flow?  Appreciation? Flipping for a quick profit?

Multi-Family properties are often more difficult to sell as you are selling to investors only, whereas SFH's can be marketed to both.

The FAIR Plan assessment is a CREDIT, which means you are reimbursed dollar for dollar.  make sure you have the Declaration Page in hand when you file for reimbursement via one of the 3 ways:

1.  Via you personal income tax return for the State of Louisiana.  Policy number is needed.

2.  By filing form R-540INS  for a single policy, or if you have a 2nd or more policies, form R-INS.  They are found at: 

http://revenue.louisiana.gov/NewsAndPublications/CitizensInsuranceTaxCredit#Form540

3.  Have your accountant or tax preparer file for you.  The Declaration Page of the Insurance Policy is needed for hem to do so.