All Forum Posts by: Bob M.

Congrats Andrew- who are you using for property management?  

Hi-

I just put my third SFH rental under contract and when speaking to an insurance broker he mentioned I may do better switching from individual policies to one commercial policy, especially as I continue to add any other properties to my portfolio. After running the numbers it made sense, he quoted a replacement cost of $90 a square foot on each SFH, (which would cover more than my purchase price on each). The premium Would Be about $3200 total with $2500 deductible. He mentioned some investors go as low as $70 a square foot for lower premiums.

My questions is what do most of you have for coverage or recommend to your clients?  Two properties are in Michigan, one is in Oklahoma.  They range from 1300-1900 sq feet and avg purchase price is about $110k with conventional financing in place. 

Also. For liabiality, they would each be covered for $1M. He said I would not need more than this since my net worth is less than $1M, however, I am having him look at quotes for an excess liability umbrella policy for these as well. Is this going overboard? How much liability overage do I need on multiple SFH,s with a net worth less than $1M?

I will not be able to cover them under my existing Allstate Umbrella policy anymore since they would now be covered under another companies commercial policy which is why I am looking at this. 

Thank you everyone!  

Bob

Hi Everyone-

Just wanted to survey some local STL single family investors for your favorite neighborhoods and why.  Where are you finding the best returns, demand, lowest turnover etc.? City vs. County?  I am looking at some properties in Hazelwood/Florissant area, but also comparing to areas like U City, Delmar, and South City.  

Thanks!

West community credit union has some good options. 

I have been watching a lot of the Re-Performing 2nds PPR offers up each week and noticed that the interest rate on many of them is only 5%.  I guess I am a little confused why so low when I myself (with excellent credit), have a hard time finding a second mortgage for myself for only 5% these days.

I could see if they were selling at a significant discount to UPB, but many are selling at close to par, especially if they have any kind of equity behind them, so there is not even the chance for a higher rate of return or early payoff from purchasing at a discounted rate.

Lastly, they describe many of the notes as having an IRR of 12% but how is this possible if the note rate is only 5% and it is being sold for 90-100% of the UPB? What am I missing here? Why are people buying these?

Sorry if this has been asked already...

Will the pass through changes affect Real estate Note investment income (interest) earned through an LLC? I.E. hard money loan interest earned by a LLC vs. owning the note in your personal name? Or does the deduction only apply to other types of income?

Thanks for starting this thread!

Bob

Hi @Donald S.

Any update on finding a lender?  How did the offers go?

Thanks,

Bob

Thanks @Peter MacKercher, I do understand that strong benefit to multifamily, I have looked at some multifamiles in the south city area, and may go that way down the road, but for now I am primarily interested in starting with a SFH.

@Donald S., I will reach out to you for that realtor name. Thank you!

Hi Saint Louis,

I have been a note and crowdfunding investor for a number of years and now and am looking to make my first rental investment here in St. Louis where I live.  I am primarily interested in starting with a single family house and utilizing a good property manager.  I have been looking at some small homes in the U City area in the 80-100k range that look like they would rent for about $1100. 

Just wanted to introduce myself to other more experienced area investors and get any feedback from you all as to what is working or not working for you with single families in St. Louis.  Any insight you have into what areas work best, which to avoid, if I'm way off with my numbers above, and any recommendations for realators and property managers that specialize in single family nvestments would be most appreciated as well!

Thank you all!

Bob

You could look into "recasting" the loan vs refinancing if you have the right type of mortgage to begin with and your lender will allow it.  From what I understand it involves making a lump sum principle payment and then having the loan reamortized for the remaining balance (starting over for 15, 30 years etc) at the original interest rate without going through a full refi closing.  Thus bringing your monthly P&I down.