All Forum Posts by: Jose Corbera

Hi All,

I am in the process of purchasing my first investment home. As far as insurance, what do you normally see? I have the option of higher liability and some personal coverage for a higher fee and a stripped down quote with lower liability and no personal coverage. I can always modify it up or down later on.

As an investment property, what do you see used more often? The property is located in south Florida located near a canal. The likelihood of a flood is limited but it may happen. 

Thank you!

Jose Corbera

Appreciate it the prompt reply @Levi T.

Thanks @Levi T. The seller is not willing to provide a credit for the work that needs to be done as it was currently updated to "pass" code. I just can't add anyhting or update anyhting as the panel won't give if I do. 

She is willing to work with me if the appraisal comes back less than the negotiated price. Crossing my figures it does; if so, I may be able to work in the cost of replacing the panel.

Hi All,

I'm under contract for my first property that should close within the next couple of weeks. It's in a fantastic location, perfect for the type of tenants I'd like to attract. it seems the electrical panel is a mess.

The current problem: the electrical panel is a mess. In its defense, the system is over 30+ years in age and can be replaced but it is not necessary according to the electrician. In replacing the panel, the entire service entrance (meaning the meter can outside the room) will have to be replaced as well. A job of this sort would require pulling a permit involving FPL (power and light company) to disconnect the main feed. In pulling a permit to replace such a system it would raise a red flag for a city official to inspect the entire home when the job is to be inspected for approval and can open a can of worms for further work to be done for code purposes. Not a complete rewiring of the home but adding specific circuits that are not in place and can be used for future use which do not deem necessary now. Estimated value of the workd can be $3,000 or more.

Aside from the elctrical panel, the house is in pristine condition, it's old but in great shape. It's a corner unit with a very large backyard compared to its neightbors.

My idea was to buy the house, update the kitchen as it's a bit dated and then rent it out within a couple of months. Now that the inspector and electrician have told me that just updating the panel will run me about 3k to 4k, and knowing the kitchen will run me about 8k to 10k, I'm confused of whether I should move on to another property or just bite the bullet and close on it. After searching for properties for 5 months now, having a deal fall threw the cracks due to an out of whack appraisal, and my limited budget, I am concerned that the next property will be the same or worse. The silver lining to this property is the location, I can always fix the panel immediately and wait on updatng the kitchen.

Any advice would be great. Thanks in advance.

Jose Corbera

Thanks  I'd like to learn as much as possible but there is just so much info out there, I sometime just don't have the time. Will def keep learning though! 

Thanks @Russell Brazil. 

@Natalie Kolodij I understand that the payment is fairly high but the comps for surrounding townhomes are in the 275k range. My current strategy is to buy and hold this particular property, rehab it, have my tenant pay my mortgage payments, and sometime down the road, either decide to sell it or keep holding on to it as rents are quickly skyrocketing in this neighborhood. Any further advice is surely still appreciated. 

Previosuly it was renting for $1800 per month. With the upgrades I'd like to do, I can rent it our for either $2000 per month or a bit more. That is what similar properties with slightly less upgrades are asking for. Why do you ask? 

Absolutely, I am paying $157 per month. $215 in hazard insurance, $185 in taxes, and $284 in hoa fees. I know it's a sound deal, I've ran the numbers, just getting cold feet as this is my first property. Thanks!

Hi All,

I'm about to purchase my first home with the intent to rent it out in due time. The cost of the home is 225k with 3.5% down. My monthly principal and interest is 1054.72, but when including hoa fees and the other misc. fees it will come close to $1895 per month. My loan is locked in at a 4% interest rate over 30 years. 

Are mortgages this expensive? Essentially, I will be paying almost $379700.99 for a home that costs 225k. So the true cost of the loan will be about 158k when all is said and done?! Is it just me or does anyone else find this ludicrous? Maybe because it's my first time buying and I feel that I am getting buyer's remorse I may be overreacting. 

Lastly, would it be better to buy a cheaper place or is all just relative to what is being bought?

Any advice would be much obliged? 

Thank you ,

Jose

Thank you all! I appreciate the advice. Seems establishing a LLC is my best bet.

Thank you Marc!