All Forum Posts by: John Daley

I would be curious to know how many landlords actually have 'landlord insurance'.  In my experience, not many, nor have I seen the need for it.  Just my .02

I would carry at least $1M  in liability.  Umbrella insurance is always a good idea and is fairly cheap, but I don't think I would carry it unless you had a larger portfolio of properties that it could cover.  The chances of you needing that $1M are slim if you keep your properties in good condition, and I've never heard of anyone actually needing more than that...so it's really up to you.  But the name of the game in rentals is maximize rents and minimize overhead and expenses.  It's all up to you how far you take that mentality, though...

I will echo what most here have said.  You can find a simple appraisal for ~$350 but it can go as high as $600 or as low as $250 if it's a simple 'drive by' appraisal.  It really depends on what your lender and lending program require.  But anything up to $600 is fairly common.  You may be paying on the high side, but doesn't sound like a 'rip off' to me.

You're in the right place, Rob.  Happy hunting!

In general, you will see more cash flow investing in multi-family units but more appreciation investing in several single family houses.  There is also the logistics of managing multiple properties in different locations or one property with multiple units together.  I always encourage investors to know *exactly* what they want and how they want their money working for them so they can be strategic and specific in their investing criteria. 

Overall, I look to my multi family buildings to generate cash flow and my single family houses to build equity I can take out and reinvest at the appropriate time.  But part of that strategy has to do with how I initially bought the properties and recognizing how they can best give you a return on your investment.  There is no one size fits all plan...

Welcome, Jared.  KC sure is a hotspot for real estate.  Have you figured out your niche yet?

When buying and rehabbing a property, the tax rates can change for a variety of different reasons.  I have purchased properties that were county appraised at $70k, rehabbed them, then appealed the taxes based on my purchase price, repairs, and area comps to reduce their appraised value to $45k.  This is great as I plan to hold it long term.  On the other hand, the county can also increase the taxes based on the improvements you've made...it all has to do with whether the previously assessed value was accurate and what the market values are in that neighborhood.  In Jackson County MO you can appeal the tax assessment within 45 days of purchase (or similar time frame, please double check me on this) and have your taxes adjusted accordingly.  It's safest to estimate taxes based on the market value of the property after rehab and use that as your ballpark.  If your numbers are so tight that there is not enough margin to absorb $100-$400/yr in additional expenses it's probably not worth getting into in the first place.

The Belvidere Heights area does have a significantly higher crime rate than average in Grandview, and almost every single house there has serious foundation issues because the builder who developed that neighborhood removed the rebar from the foundation before the concrete was poured.  This is a major issue if it hasn't been addressed already, so be sure to check it or have someone you trust inspect the foundation.  I've been in houses there that were in otherwise decent shape that didn't sell on the market at $20k because the foundation was so bad....

I also have a good contract that I would recommend to anyone.  He does good work, honest and reliable, and investor friendly pricing.  Feel free to contact me if you're still looking.

I have had the best results working with the commercial lending department of my local bank.  They tend to be more flexible on terms and should be able to give you some options.  That being said, I purchase my properties in cash, then immediately refinance them with a commercial loan (sometimes a portfolio loan if you have multiple properties).  They can lend a percentage of the appraisal value without any waiting period so, if you bought it right, you get your cash back to put into the next deal and have just acquired an asset with no money down.  Just make sure it cash flows and, as was mentioned, don't over leverage and keep cash reserves for unexpected expenses.  I've seen too many bank owned properties for sale that were a result of an investor who didn't have cash reserves to ride out a bad turn and wound up losing the whole property...

This is a well cared for home with two living areas, two car detached garage w/ workshop, nice back yard, and good curb appeal. Great for your own home or as a rental! Updated windows, and good condition inside & out. Advertising here for a short time before listing with realtor, so let me know if you're interested ASAP!

The house shows great. Nice living room with wood stove insert in fireplace. Full partially finished basement is dry with half bath, fenced back yard for kids or pets, lovely 3 season porch on front & back!

Should rent for $700-750/mo and is ready to rent now.

Contact me with any interest or questions and I will be happy to set up a showing.