All Forum Posts by: Derek B.

@Anthony Fleming welcome to bp.  Great to see more people from the area here.  Oh, looks like some of your @ tags are not working.  Try @? and a list of people will pop up beneath the reply box.

@Joseph Gibney Also try an Erie agent, in addition to an your independent that represents many carriers.  In my experience, Erie has some of the best rates in their operating footprint.

@Bill Womeldorf @Ryan Nelson Bill's post led me to think that my response may not have been clear. I was not saying that an umbrella/excess liability policy could not be obtained for your purposes (or for an s corp. Etc).  I just dont think that your personal umbrella policy will do the trick.  You can buy a commercial excess liability policy, but its different from your personal umbrella.

no legal advice.

@Ryan Nelson Not an expert on the topic, but I would think no. You as an individual are the named insured on the personal umbrella. The LLC is not a named insured.

I don't think the personal loan guarantee has any bearing - that's a bank requirement.

Talk to an insurance broker/agent who specializes in commercial properties.

no legal advice.

@William Byers That's awesome.  Congrats.  

@Cliff Harrison Correct my numbers if I have calculated anything incorrectly:

$925 - Rent

($115) - heloc

($240) - 1st mortgage

($100) - taxes

($74) - vacancy, based on your 8%

($93) - property management estimated 10% of rent.  Depending on your area, some PMs may also charge you first month's rent or 1/2 of first month's rent when a tenant moves in, so you'll need to factor that as well.

(??) - insurance - fill in your number

($95) - repairs - I'll throw in 10% for general repair and tenant turnover

($95) - capex - 10% is probably a fair estimate, pay attention to the age of your systems and the remaining life - roof, hvac, hot water, carpet, kitchen appliances, kitchen and bath age, etc.

I come up to $812 but don't know insurance in your area.  You have to decide the cashflow you are willing to accept, given that once you tie up the $$ from your heloc, it will not be available to deploy on a future deal.

As has been mentioned, assume that landscaping, snow, utilities, etc are tenant responsibilities.

Do get an umbrella insurance policy.  For the money, everyone should have one.

Are you buying the property at a discount?

Be sure to get recommendations from local investors on property managers.  The first property manager I ever used had a provision in their contract that they could make repairs up to $500 without pre-approval.  They reasoned that an emergency may occur and they can not wait to get in touch with me.  Not knowing any better, I went along with it.  Tenant moved in and I received my first monthly statement.  They did about $400 in useless repairs - replacing carpet transitions, etc.  I later found out that they owned the repair company.  It was a long year, so learn from my mistake on the property management.

Good luck to you.

 Congrats. Excited to follow along.

@Dawn Brenengen I have seen some single offense midemeanors without time served , including dui, come up through this database.  That said, its probably still best as an initial screening tool since it mostly* covers one state.  Given that its free, it is a good place to start.

I was mistaken.  @Chris Martin is correct.  The offender search will include crimes where there was no incarceration (like dui).  Also good to know that some out of state information will feed into that database.  Thanks Chris.

@Bridget Smith-Osbourne if the offense and incarceration are in nc, then try searching their name at  http://webapps6.doc.state.nc.us/opi/offendersearch...

It will not have every offense like dui, but if they are or have been incarcerated, they should be there.  It is however just for nc offenses.