All Forum Posts by: Henry J.

@Handel Carter

You can contact the lawyer and ask them to show you the survey, and paperwork showing that you’re using their land. Then from there do your homework to research - hire a surveyor to find out exact boundary if you didn’t receive a survey before closing, and check with city on the exact rule / regulation, and if you purchased title insurance, find out from your RE agent for more details. It may be a while for the lawyer to bring this to court but don’t sit on it. Good luck. Henry

@Amit C.

From my understanding, a separate checking / saving account will not limit your liability in case your tenant (or anyone else) from suing you for what you've got. Either put the property under its own LLC or bunch up with other properties when you have more, or buy a big enough umbrella insurance to cover those events. Talk to a lawyer to ensure you understand the pros/cons before you form a LLC to do asset protection as you will also have estate planning to think about if you have family to pass assets to.

Talk to your PM to see if they had experience with the home warranty providers and if they recommend the home warranty.  Some area don't have good providers so there is no point to waste that money for poor coverage.  I have home warranty on some of my DFW rentals to cover my AC.  However, I have not replaced my AC on the home warranty but they fixed a few things with $75 deductible each incident.  I figure if they replace my AC in 5 years I still come out positive in my warranty spending...

Amit C. Are you buying your rentals under your personal names or under LLC or Corp? What are your concerns for the funding? If you’re buying under your personal name, and as long as you keep a good record of what goes in & out of that account for the rental, you should have good visibility of how your rental is doing. I have less than 10 units and I have all my rentals through 1 accounts and reconcile the info every year to see how my rentals are doing. I put in 6 months worth of reserve in my accounts for rainy day funds when I started and haven’t touched the money there. Henry

Vlad Bahatyrevich I do not believe Memphis Invest offers ‘rental insurance’ that if the tenant leaves, they will pay the rent. I think their rental insurance coverage is for the property (your rental house) in case of natural events or accidents (fire or hail damage) that damage your rental house. There are TK companies that offer ‘rent’ insurance/guarantee in case your renter leaves during the lease, but from what I read about MI, they do not believe in rental insurance or guarantee. It’s strange their PM hasn’t contacted you. They are usually pretty good at responding. Unfortunately I’m not a BP colleague with Chris Clothier, but perhaps someone else can ping him to respond. Good luck. Henry

Can your wife qualify by herself to buy a property (or a few) before she leaves her job? Do you know anyone who can offer you a portfolio / commercial loan to refi your 10 loans into 1 loan so you can get more Fannie loans? There are lenders out there who will offer 11+ loans but not Fannie loans. I don’t think I can post names / links so pls PM me for what I’ve read / heard about. Good luck. Henry

@Alex Craig

Sorry Alex it's a bit far to drive from LA on a Thursday night to see you.  Hopefully next time it's closer and I will try to attend!

@Katie Hanner

We pay about 1.9-2% of the county appraised value for both county and city tax at Memphis.  A $75K house we would pay about $1500/year.

@Brandon S.

Congratulations on your DFW MI purchase!

Just curious - do you have 2 year lease with automatic rent increase set up with this purchase?  What is your property value assessed at and what is your property tax rate?

Thanks.

Henry

Harvey Corsino Oops. Tag the wrong person.

Liz C. Where in Arlington? I think Mansfield is also in ‘Arlington,’ and I thought that area is pretty decent. We have the same renters there for 4 yrs now, but we also have a local PM who handles all the calls / issues. Good luck! Henry