All Forum Posts by: Jonathan Jordan

@Steve B. - Yea, I had been surprised I didn't see more threads on this, I will attempt to come up with other search options.

@Mike McCarthy - Yea, that was my main thought, and especially combining it with financial independence thinking tend to go with little insurance, but wanted to make sure I wasn't missing a component that more experienced investors would know about. 

@Tracy Streich - Thank you!!

Hello BP Community,

My family and I are fairly new to investing, nearing the one year mark on our first rental property and are evaluating our expenses and such. Currently, we have a home warranty that cost us around $575 this year, but only saved us $225. Wondering about the communities thoughts on having a home warranty on a rental? Searching the forums I only found one other post that was a year old, so hoping to get some fresh viewpoints. Thanks so much!!

@Tyler Vinsand - I don't see either of those being an issue as long as the due diligence has been done on your p.m. Our p.m. gives us a detailed account of their thoughts on applicants for our rental that allow us to make informed decisions without ever meeting the applicant. They also preform a bi-annual walk through of the property to check on its condition. It definitely would not hurt though to try to find a friend in the area, or even a member of BP, to ask to occasionally drive past the property to check it out. 

Hello Tyler,

We use a property manager to manage our rental in Virginia Beach and I could easily see us relocating and having no trouble keeping the rental property as the property manager handles all issues with the rental. While they do take 10% of your rent, we feel this is worth not having the hassle of being a landlord, and we found a place with good cashflow even after the 10% fee. I would encourage you to look up FHA loan rules, as you cannot use an FHA loan for strictly a rental property unless you are house hacking a multi-unit property. Likewise, with most conventional mortgages on strictly rental properties you will be required to put down a 20% down payment.

Hello @Christopher Bauge!! Welcome to BP!! 

Hello all,

Looking for ideas for financing a condo where the complex has a greater than 50% rental rate. We were originally going to do a conventional mortgage, but were told that, "When purchasing a condo, one of the requirements to qualify for a conventional loan is that the % of units in the total condo complex that are rental units has to be 49% or less. This is a Freddie Mac requirement..."

The bank looked into doing a portfolio loan, but that particular bank was not able to do so. We have found one company willing to do a conventional loan, but at 2-3% points higher than we were originally quoted before they knew it had a greater than 50% rental rate. 

We are also currently investigating owner financing, but wondering if anyone had encountered this before and came up with a creative solution. This property is in the Hampton Roads area of Virginia.

@Kevin Harris - I personally have not been to any TRIG meetings as I am on the road about 11 months out of the year, but my mom, with whom I do real estate investing, is a member. Let us know if you have any questions! We are fairly new ourselves, buying our third buy and hold now, and almost finished with our first flip, but would be glad to answer any questions that we can!!

Welcome @Kevin Harris!! 

Welcome @Julian P.!!