All Forum Posts by: David Edwards

Thanks for the info @Keith Smith and @John Mocker Ill take a look into those umbrella policies to see if that a good fit as well. If not for this property it might make more sense once I've got a couple properties. 

Nothing says thoroughness louder than a spelling error in the last line...

Morning BP, 

Shopping around for insurance for our first rental property and wondering what the typical coverage you all go in for? It looks like the difference in 300k and 1mil liability coverage is a difference if around $5. The rebuild costs will end up higher that what we are planning on purchasing the property for in our current quote but in this market rebuilding for that would be tough.

Just looking for some pointers on whats important vs extra for someone who has never bought homeowners insurance (there was a question about the property being a rental in the quote generator so i think this covers me in an investment property)

Thanks fir the help,

Dave 

Happy Friday BP,

Quick question regarding rehab timelines.

When / how do you go about starting the renovation on a project? I'm assuming you need to wait out the existing leases on a property if it is occupied. How do you factor the tenant hangovers into your calculations when looking at BRRRR or rental calcs?

Thanks for the input,

-Dave  

@Robert LeonardOk that makes sense, as far as the local laws dictating what can be done with the lease. does it make sense to say that typically the lease agreement is transferred from the previous owner to the new one?

Regardless, you are right, I'll need to learn more about local laws to avoid issues.

I had just read somewhere to make sure that you receive the security deposit from the previous owner for the exact reason you mentioned above.

Thanks for the help!

Hey BP,

Going through the Pre-approval process at the moment and hoping to move on a property in the Tacoma area in the near future. I'm looking to house hack this property and get my feet wet with tenant interaction while managing costs internally to meet the cashflow goals I'm seeing in my models. 

In reading a few books on buying rental properties I've heard mention of acquiring leases from the previous owners and what to look into to make sure you are getting the whole picture from the seller. My question is wouldn't you want to have a new lease with tenants after the sale so you can make sure the terms are what you intend? Seems like it would remove the question of deposits as well and make the whole thing more straight forward. 

Any thoughts or experience from folks would be appreciated.

Thanks,

Dave 

@Christian Wathne Sounds great! PM me next time you are in town.

@Rob Terpilowski I'm looking to get involved in the Tacoma / Seattle market and would love to help / partner on a deal. Let me know if you are still looking.

@Christian Wathne great post, good to see some local examples with this market feeling so tight for newcomers. What was the overall timeline on this renovation? (math would say 4 months but not sure what the delay from finishing the renovation and this post is) and did your contractor partner do the work at cost? I'm in the building industry (architect) in the area and have been trying to get my head around actual renovation costs vs what I'm getting out of "cost vs value" charts and the like. 

I'd love to connect next time you find yourself this way to see if you'd be interested in doing something together / sharing some insight.

@Andrew Johnson Lots of good stuff in that response, It sounds like I've been approaching the non-commercial multifamily with more of a commercial approach. Since I am intending to be an owner-occupant there may be a little wiggle room in the numbers but not to the extent that I've been seeing in the properties. The disadvantage of this is that Spokane isn't local so the owner-occupant thing goes out the window in that situation. Something for sure to chew on. 

Ill have to keep watching the properties that have been looking high for the next few days to see how long they take to sell, if they are up there for too long then they may have gotten  bit ambitious with their asking price and could have flexibility in the actual selling price but if my expectations aren't aligning with the market then I guess either they or the market will need to be adjusted to move forward with anything. Or as you said there's the waiting for the 1 in 1,000 option.

Thanks again for the response.