All Forum Posts by: Rod Hanks

Marginal deal at best. You gone bleed yourself dry at those numbers. 

Congratulations! $1000 per door is a grand slam out the parking lot home run!

I'm in Tx and I would love to help.

Depends on carrier. Our main carrier policy converts to vacant dwelling policy at completion for duration of term and can be renewed on case by case basis if unfinished or unsold.  

Google your "county" housing authority. Most large counties have a housing authority that administers the program. It's great for a landlord if the tenant is properly screened. 

When buying sub2 you get the deed in the trust name with you as trustee. I would get the insurance in my trust name. Some carriers won't allow insured to be a trust, so in that case do it in your company name with trust as additional insured. Most mortgage companies will not call loan due if payments are current but you do run that risk and need to be prepared to payoff or refi at a moments notice.

My question would be is a 6 cap the going rate in the area for that building. I would only underwrite based on actual rents not proforma. Then I would share those numbers with dad. He may realize the offer he had was inline with the value. I would also share pros and cons of paying taxes on the windfall versus owner carry. One thing you don't want to do is to buy based on proforma and have a negative cash flow property, especially on your first deal.

Just a builders risk policy if you are doing an extensive rehab on the property and then a landlord dwelling policy when the property is rented. If the property does not require an extensive rehab and just needs cosmetic repairs then a standard landlord dwelling policy in most cases depending on the carrier.

 You are right 100% Owen, the landlord will be listed as additional interested party NOT additional insured.

@George Daly

Correct! As long as you have the insurance liability, property and flood if you are in a flood plain. But weigh the costs of insurance and taxes against the cash flow and make your decision accordingly.