All Forum Posts by: David Hines

Welcome to Bigger Pockets! You'll find a ton of great info here!

Welcome to Bigger Pockets! You'll find a ton of great info here.

Welcome to Bigger Pockets! You'll find a ton of great info here.

Also be aware that your spectacular ROI numbers are heavily influenced by a no money down loan. If it turns out that you have to put 10-20% down, your ROI numbers will drop but remember that cash flow is king.

You may want to check your insurance number, it seems pretty low. Make sure your agent is including liability coverage and loss of rent coverage.

$1650 seems high to me. Here are some examples of the policies on some of my properties:

$1068- 169k replacement cost, 34k loss of rent, 300k liability, 1% deductible across the board

$1135- 169k replacement, 33k loss of rent, 300k liability, 1% deductible

$1093- 151k replacement,  30k loss of rent, 300k liability, 1% deductible

You may want to shop around for a new agent, make sure they get you a quote from insurance company UPC.

Zillow is a notoriously inaccurate source of information. Find a local realtor to pull comps for you. Ask for both sales and rental comps.

It seems like most of the responders are saying either don't let them do it at all or go 50/50. Would it be so wrong to say they are allowed to do the upgrade if they hire a licensed contractor, pay for 100% of the cost and it becomes a permanent fixture of the property and must stay when they move out. That's the route I would take.

Also, if a tenant failing to pay rent puts you in the situation that you can't make a mortgage payment, you may be in the wrong line of work. Having an adequate reserve amount of savings is necessary for situations like this as well as being prepared for unexpected repairs.

Be careful when dealing with military issues. In Texas we are required to allow military tenants to break the lease in a situation like this where they are transferred, that is out of their control. It may be worth being understanding and supportive just so it doesn't come back to bite you later.