All Forum Posts by: Jonathan G.

If I am going to be eventually doing a little bit of work to the house should I just turn it on in my name or should I wait till after closing to turn it back on.  

Not worried, this is just my first time buying a rental property so I am just asking any questions that come up.  I guess this is normal so I really have nothing to worry about.  Thanks for your help.

I just got a call from my realtor letting me know that the listing agent is asking if we need the utilities on anymore.  They would like to shut down the utilities since inspection is done and she is saying that they do not have any reason to keep it on.  

We are closing on September 12th and all inspections have been done and we are definitely buying the home.  

This is our first rental home and not to sure if this is a problem or if this is normal.  Just looking for any advice regarding this process.  Is this normal?  Should I push for it to be left on or is it fine to have them shut it all off?  

Thank you BP!

This is our first single family home and we are getting quotes for insurance.  Here is what an agent came back with.  At first glance, I am concerned about it not being replacement cost, should I be?  We think it will appraise between $60,000-$67,000.  We will of course extend liability from our personal home and get an umbrella.  Do you think the below is a good quote?  And is their any other insurances we should be thinking about other then mentioned above?  This is our only property.  Thank you for your help.

Agent.

"Here is the deal with Rental Properties with Farm Bureau. Our policies insure for the Actual Cash Value of the property and not Replacement Cost. Farm Bureau also does not cover Sudden and Accidental Water Damage. Many people like our rental property coverage because it is not very expensive and still covers the major perils that could happen to a home.

We have our own database that we put in features of a home and it comes back with a value of insurability meaning it is not always the price you pay for the home. Our value to insure was $88,500 value on the home and that came up to only be $545 per year."

My wife and I are about to close on our first rental in a couple of weeks.  A second opportunity is in the works quickly and I wanted to get your advice.  I have a 4-plex listed at $242k.  Gross annual income is $38,400.  Taxes are about $5k/yr.  What other info would you want to know before going to look at the property or are the numbers good enough to just tie it up in a contract before it is gone?  (This would be my first multi-plex, so advice on that would be helpful too!) Thank you for your help!  

Ok. We have just signed our first contract on a SFH! We are so excited.

Here is a decision we have to make and really need your advice. Since we started this our plan was to open an LLC and put our rental properties in there. As we started doing research on financing, we are finding it is VERY difficult if not impossible to find a lender that will finance to an LLC (even if we are the guarantors). We have gotten a lot of conflicting info. Obviously our lawyers want us to have an LLC and that would give us the most peace. We know many of you have LLCs. How did you do it? We have heard that some people that run into this issue close the deal and then move the property into their LLC. But we have heard that doing this puts you at risk for your loan to be called.

Another option is purchase a $1 million umbrella policy that they use to cover liability risks.

We do not want our family, our home, our cars, etc to be at risk. We want to be smart. But we are about 5 weeks from closing and need to lock in a lender. After meeting with many bankers it looks like we can get loans but getting them into an LLC seems to be the issue. Any advice?

@Terry Hershberger  sorry I need to repost.  I am only going to put down 20% and the asking price is around $65,000 but I am in the process of negotiating.

I am looking at this deal and wanted to get feedback from the BP community as to their thoughts on this deal.  

This would be my first deal.

@Bryan N. I really appreciate your input. I know that I want to try and get as close to 2% as possible.  I have heard people even getting 3%, which is hard for me to understand in the market where I am.  I always thought that if you clear $100 over all your expenses and you are buying and holding that you are in a really good place.  However I am new and I want to figure out the best and not get in over my head.  Don't get me wrong if I find a better deal I would go for it but it seems very hard to find 1% around the area where I live.  Great advice, thank you!

@Mike M. the purchase price is $125,000 not $160K does that make you feel differently?