All Forum Posts by: David Boroughes

United States Liability Insurance Company

I went through an agent for a personal umbrella policy, just had to list all my owned properties (in any names) and they wanted to make sure I had insurance on them, this would cover above and beyond the $500K I have on each property, I got a few Mil policy, expensive, but nice to have POM

 When you put it that way, it sounds so simple. The process is not simple and the timing is difficult to work out. It has its place, one process in an investment strategy, over time ( 2+ years you have to hold before you can use), and can benefit your portfolio,  but, a path to riches..., I don't think so.  I applaud the enthusiasm and confidence, and wish Raeshelle much success, I hope her plan does for her what she wants it to. 

I know what it is, I have done it. It can save you a few $ on taxes, but it can be complex to work out with the timing and all. Besides counting on properties to appreciate, how do you see the 1031 as a path to 'get rich'? 

so for $35k you could rent it for $800/mo? That seems like the deal of a lifetime. I'd be curious about your expenses. I've had experience with section 8 and it can go either way depending on the tenant. Some will screw you and cause you nothing but problems, others will be just like any other tenant and your rent always shows up on the 4th like clockwork. There should not be any hidden expenses if your property meets code and passes inspection.  

@Raeshelle C.

What do you mean by:

The 1031 Exchange I don't believe is bizarre at all. I giggled at that one. I want to one day retire and buy a portfolio of property that is worth 200K+ to 1M and the 1031 Exchange is a great way to get rich and do that. 

I have done 1031 exchanges and I'm not sure what you are getting at? I used it to sell commercial property and role the money into more investment properties without having to get taxed on the profit, but it certainly isn't a path to get rich, at least that I know of...

Sounds like a great deal to me. $15K to make $500/month in cash flow??? That's a no brainer, you'll have money saved back up in no time! Go for it!

Depends on the bank, some local banks may deal with the same appraisers all the time, the appraisers always see to want to know the loan value to for some reason... kind of like when they get to see the contract price or P&S on a sale property before completing the appraisal. All I am saying is it could influence the value they arrive at if they know before hand the loan value...

Figure out how long it would take you to make the potential profit from the sale now, that should help you decide. I have similar issue here, the property is in a great area for a rental and income would generate good, but it would take 10 years to make what I can make selling right away in this great Real Estate market. I taught myself to think I could make more with the cash now, do another flip deal, or wait until another buy and hold comes along that makes more sense to keep.  

They will usually complete the 3 approaches to value;

sales comparison (what similar properties have sold for)

income approach (Cap rate and other investment calculations using market rents and typical expenses)

cost approach (how much to build the same from scratch)

Be careful when refinancing as the appraiser will typically be told the number ($ amount) the bank needs to see, this can distort them from doing an actual market value appraisal.

Run the hot water for several minutes to flush out the tank. The water sits in the tank and with the interaction between the elements in the water and the metal in the tank and rod it can give off that sulphur smell. Usually goes away after running the water for awhile