All Forum Posts by: Derek Persuit

@Guy Gimenez

Are your premiums 100% tax-deductible or deductible at all?

Happy Quarantine Everyone,

I hope you all are able to do what you can in these hard times. 

Im ready to take the leap sometime in the near future. The leap is quitting the corporate job and pursuing real estate full time, leaving the rat race.

One BIG obstacle Im seeing now is health insurance.

For any of you who have taken the same leap, what did you do for health insurance? Ive done so much research, reading books, looking at online FIRE forums, looked on biggerpockets. I havent seen anything that really is consistent or makes sense on what people do for private or independent health insurance.

Who has taken the leap and is content with their current healh insurance situation?

What did you do to find the right insurance for you?

Has anyone not gotten insurance at all? Maybe just something catastrophic?

My wife and I are both in our 20s and healthy. We have 1 child and plan to have more. Im considering getting some high deductible health plan (HDHP), and maybe getting the kids under CHIP (Childrens Health Insurance Program).

Please let me what youve done that you found worth pursuing.

Take care!

 Thanks so much man. Didnt realize all my options.

 I did try to use local Banks and credit unions. They made it clear that they wanted to be the primary lien holder (maybe I didnt explain well enough, also its in PA so no matter what, by law, taxes are primary lien on properties). 

I'm not too privy to portfolio loans but I'd like to learn more. It could be my best option here.

@Timothy Hero there's a way to get a conventional loan on the property rather than use Refinance?

@Timothy Hero so because the value is under that amount, it's an undesirable lending? Am I understanding or am I misreading?

*valued

@Theresa Harris Thank you. The rental income isn't included. The other properties are called at 213,000 & 395,000

Hey everyone!

I am currently in the "Refinance" phase of a BRRRR. This is my first one and Im really just feeling out how everything goes. I currently have 3 rental Properties. 2 are leveraged with mortgages and the one that I am refinancing, I own free and clear. The property isnt much. It appraised at $67,000. I have cash funds that will cover the entire 75% LTV cash out. Im also locking down another duplex that I will do another BRRRR on. This is the "Repeat" phase. The bank is telling me that because of this, it will add more layers to whether I will be approved or not.

Here is my current situation:

No housing costs

3 positive cashflowing assets

Current income is roughly 7800/mo.

Family monthly expenses <1000

I have spent cash flow from these assets on improvements and continuing my business of real estate. This is reflected on my tax returns as taking small losses and write-offs from my properties. The bank says this is what they're going by and that I may not get approved. I am having trouble comprehending this. My expenses are low. Work income is decent. All properties are long-term leased. It would be only my third mortgage. Surely someone has come across gaining a third mortgage in their journey and this wasnt the case. Can anyone tell me a similar scenario and how you handled it? Does this sound accurate to anyone? I have been trying to secure this loan for maybe 5 months. I have good credit. I have cash reserves. Im just at a loss for why im seen as such a liability for them at this level of cashout.

Thanks in advance for your help everyone!

I'm going through a situation where I will have to hire a Property Manager as I will be long-distance landlording. My home warranty is up for renewal and I am weighing the options.

Is it overkill to have both a Property Manager with an in-house maintenance department and a home warranty?

Do I need both for sure?

I have vetted several managers and am going with one that just takes a flat percentage of the rent, charges for maintenance repairs either from within or picks up a vendor, and there are no upcharges or service fees.

The warranty is a standard one and will cost me less than $100 per month on a fourplex and about $95 per call out and repair.

Just seeing if anyone has had a similar situation. What did you do? Do you think I will never have to use the warranty if I have the management company?

Thanks In Advance,

Derek