All Forum Posts by: Ethan Wilson

Check out APIA.
https://www.apiaprotects.com/

They primarily insure for investors with large portfolios, but you can get bulk rates if you plan on increasing your portfolio size. The vacancy rate for my first investment property was about $70 dollars a month. I insured it for the ACV of the property. 

Once the unit is filled the premium is reduced. They require a once a month eyes on inspection form be submitted to them.  I haven't' had a hard time finding PM's to take care of this for me.

Good luck.

The only response to some of these stories is a photo of a jaw dropping. @Brie Schmidt I hope you were able to recover your losses. 

@Shiloh Lundahl

This thread is a horror novel to read for a first time investor! Great information to keep on hand in the future.

@Brent Coombs

These deals are fairly rare but its a very stable smaller community with great schools. The original asking price is 65K but it's been on the market for some time. They only issue is smaller square footage vs comps in the area. It's around  1k sqft.

@Rob Beardsley

I went with the lowest average rental rate for a similar property.
Vacancy is 5%,
Maintenance and repairs is 8%
Cap Ex is 9%
Property Management 10%

@Rob Beardsley

Here is a snapshot of my analysis. 

@Brent Coombs

I think I got the idea from guests on TBPP who have mentioned evaluating numbers they won't budge on before offering on a deal (Ep. 226 with David Osborn 15% COC ROI, and the book on Rental Property Investing mentions Brandon Turners's numbers, which I think are close to my own).

I definitely added the term "hard metrics" and maybe that was my misinterpretation of the metrics used to analyze deals.

I think you are right about the subjectivity of the numbers and about the unknown variable in a deal. It may just be a reason for me to back away from properties. 

Do you use any specific metric to determine your willingness to offer on a deal?

Great input!

Hey Chris,

Thanks for the response! I feel like I'm being ultra conservative on my numbers as well but I think you are right. 

I'm aggressively looking for and analyzing deals and have found many that come just shy of hitting my hard metrics of $300 dollars a month cashflow and 12%COC ROI.

An example would be one that cash flows $290.55 and has a 22.83% COC ROI.

I know hard metrics are there for a reason, but I wonder if I'm going way too conservative when I'm doing my analysis?

Should I budge some numbers around to make it work or continue to stick to the line and wait till a deal hits the mark?

Kayla is this property still available?

If so please pm me some pics and details!

Thanks,