All Forum Posts by: Jeff L.

So from Michael and Mark's replies, am I correct in saying that rehabbing is a required element for refinancing to benefit you at all?

As a new investor, I'm reading a lot about lending but I don't fully understand the concept of refis. I often hear people here say something like "...then I'll refinance to keep my investments rolling."

1) When people say that are they typically talking about cash out refis?

2) Do refis count as one of your "4" mortgages that banks will let you have at once?

3) Does a refi benefit me at all if there's no rehab or appreciation involved, or is it only relevant if there is a rehab or appreciation? Say I purchase a move-in ready house for $100k putting 20% down, and there isn't any appreciation for the foreseeable future. How does refinancing at any point help "keep my investments rolling"?

@Rob Beland @BreAnn Stephenson Thank you for the insight! Really helpful information and opinions. BreAnn, those are all really good points about having your renter's get renter's insurance. I do agree that renters who opt for that will overall be "stickier" tenants.

I'm going for an Actual Cash Value policy instead of Replacement Cost.

1) Should I get the loss of rent option? Not sure how valuable this is.

2) The basic policy doesn't cover water damage. Is water damage coverage a must? It'll cost more.

3) How much liability coverage do you prefer to get?

4) Do you require your tenants to get renter's insurance?

I'm a first time investor looking at SFRs, and I'm noticing that the rates I get for "investment properties" (rates in the high 4%s) are higher than rates I would get if I were buying a primary residence that I'd live in (rates in the 3%s).

Is this normal?

Thank you Mike and Blair!

Yea, I totally understand and will do that. I'm just wondering if there's anything else on top of that I have to do as a landlord relating to lead, that's unique to Indiana.

I read that in Maryland you have to get some sort of annual certification or something?

I'm under contract for my first property in Indy. I'm wondering if I should skip the lead inspection.

The seller marked "unknown" in the sellers disclosure:

• Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
• Seller has no reports or records pertaining to lead-baed paint and/or lead-based paint hazards in the housing.

Is it enough that I provide the tenant with:

• Lead paint disclosure (have them sign/initial): http://www2.epa.gov/sites/production/files/documen...
• Pamphlet: http://www2.epa.gov/lead/protect-your-family-lead-...

Are there any other special laws or certifications I need to get before leasing? Do I have to get an inspection?

I'm under contract for my first property in Indy. I'm wondering if I should skip the lead inspection.

The seller marked "unknown" in the sellers disclosure:

• Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
• Seller has no reports or records pertaining to lead-baed paint and/or lead-based paint hazards in the housing.

Is it enough that I provide the tenant with:

• Lead paint disclosure (have them sign/initial): http://www2.epa.gov/sites/production/files/documen...
• Pamphlet: http://www2.epa.gov/lead/protect-your-family-lead-...

Are there any other special laws or certifications I need to get before leasing? Do I have to get an inspection?

Let's say you're looking at a property and the roof (or furnace, or whatever) has 7 years left on it. A new roof will cost $3000.

What formula do you use to calculate that expense into your property analysis or cash on cash return?

Do you add the full $3000 to your rehab costs? Is it $3000 divided over some time period?