All Forum Posts by: Account Closed

Yesterday I received an email from NREIG that they have decided to increase my monthly premium by 20% per month. I own 4 rental properties in the Tampa bay area with a coverage amount of ±$70,000 each. I also have name storm insurance on each and every property. All of my properties do not have a mortgage on them yet.

I just feel like 20% increase after a year is a bad trend, especially when I have not had any claims. I would love to get recommendations for agents.

Additionally, I've been trying to understand how much coverage should I put on each property. Most of the times I put what I paid for the property or what I paid + renovations. I feel like thats also costing me on the monthly premium. How do you guys calculate and decide the amount of coverage ?

Thanks!

@Tyler Rowland I do not regret the purchase because some income is better than no income. Ideally I would negotiate the deal better if I could.

So to answer your question, assuming all information was handed to me upfront as I have it laid out today, I'd probably pass.

I'm gonna make lemonade out of this property as much as I can :)

@Mark Fries I did get one from him in the past, it was in good condition. I had small repairs on it and it's already rented out.

Thanks for checking up on me. Appreciate it. 

Also thanks for all of the responders to the thread. I don't feel as bad as I felt a few days ago :)

Haha Mark! No I have not. Our mutual friend leaves his properties in pretty good condition. This one was pretty bad.

@Tchaka Owen I already called a few AC service providers. They are offering a range of $4000-6000 for the AC.

I might have a guy do it for $3000 but he hasn't looked into the house yet to give me a final quote.

Thank you so much guys. I've been beating myself about this for the last couple days and 8-9% is still better than a 3% 5 year CD.

I think my mis-calculations were marginal but in several place. I did not account for the AC, I missed out on my repair costs.

 Thanks Jay. I feel pretty bad about this deal but I'm trying to get over it. I mean 8-9% is not terrible, assuming I'm getting a new AC I'll be enjoying it for the next few years. I just have no idea how I could of done this better.

Seller was pretty firm about his price, he wasn't willing to move lower than $64k. The repairs I feel like I got a pretty good deal on them and AC was a surprise. Without the AC I would have been around the 10% which sounds much better to me. 

I bought a property in Lakeland recently (3/1 925 sqft) . Asking was $85k, after inspection we agreed to $64k.

The house was in rough condition but seemed manageable. The AC was working during the inspection but was old. After the purchase seems like my AC died and I'm in for another $3000-$4000 for a new AC.

The repairs are about to cost me aprox $17,000 including the new AC and my total is about to be roughly $81k for a rental property that will make around $850/m before management services, taxes and insurance.

My calculations put me in about 8-9% annual return on investment. Did I get a really bad deal or should I just learn from this and not eat myself so much and just be happy with my 8-9% ?

Thanks for the response Tim! The house is 925 sqft 3/1