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All Forum Posts by: Josephine Breign

Josephine Breign has started 6 posts and replied 17 times.

Post: Does Umbrella Insurance require max coverage on car insurance?

Josephine BreignPosted
  • Investor
  • New Jersey
  • Posts 17
  • Votes 7

Hi John, 

Thanks for your reply. I'm working with an insurance agent on getting the best policies and so far she hasn't been able to find anything better. Now our auto policy is up for renewal and it's $2200 for 6 months. Am I crazy or is this just a ridiculously high amount to pay for auto insurance? Our car is not even worth that much (seriously).

I need some help to see if structuring things differently would make a difference. We have Homeowner's with personal liability on our 4plex in NJ. Max on personal liability is 500k. I was told by my CPA that I should have at least 2M liability on it. So I purchased the Umbrella. The house is in our name, and so is the car. The Umbrella covers everything that is in our name. If I put the house in an LLC, I would still only have 500k liability and would have to carry extra Umbrella. Can I put the car in a separate LLC?

Post: Under contract. Is this house worth buying?

Josephine BreignPosted
  • Investor
  • New Jersey
  • Posts 17
  • Votes 7

Yikes, I purchased an older property in Florida recently and here's what I wish I knew before:

Termites: especially if the property was a rental, there could be years of termite damage hiding in the walls. Tenting is around $1600, prepare for damaged studs, roof, crawlspace.

Crawlspace, or slab: Slab is much better, less likely to have issues. Crawlspace, means it could have structural damage. Check if floors are out of level or soft spots. 

Roof: if there are any roof leaks, it's usually a sign that the roof needs to be replaced. Patching leaks doesn't work at all in the long term. 

If you're flipping it and your timeline is short, your decisions are different than if you are holding and renting out. I'm planning on holding mine long term, so it made sense to invest in longer term solutions. I also bought in an upcoming area, so appreciation is a consideration. Guess it depends on what "worth it" means to you. 

Post: Looking for a knowledgable CPA, just moved to the area from NJ

Josephine BreignPosted
  • Investor
  • New Jersey
  • Posts 17
  • Votes 7

Hi Bp, 

Can anyone recommend a great CPA for the Fort Lauderdale area? Thanks!

Post: Does Umbrella Insurance require max coverage on car insurance?

Josephine BreignPosted
  • Investor
  • New Jersey
  • Posts 17
  • Votes 7

Hi BP! This question is for landlords who chose Umbrella Insurance instead of putting their properties in LLCs. Seems like the UI only comes into play after all other insurance limits are reached. We're having trouble getting cheaper car insurance because the UI we have for our property (which is under our name) requires the max limits for our car insurance. Hope I'm explaining this correctly. Is this the norm? 

Post: Getting Second property with fha

Josephine BreignPosted
  • Investor
  • New Jersey
  • Posts 17
  • Votes 7

Hi @Raymond J. Rodrigues

I'm from NJ looking to owner occupy a multi in Florida, looking at the moment at miami, lake worth, west palm beach, as well as bradenton/sarasota. My current lender only offers FHA for multis, no 5% or 10% conventional. Is that something your company offers?

@Jason Wray 

Hi Jason, NJ investor here looking to purchase in Florida. Looking for a duplex or a single w a back house/efficiency to house hack. Have you seen much of these types of houses, going for reasonable prices? 

Post: $100,000 Cash Out on first deal, is it worth it?

Josephine BreignPosted
  • Investor
  • New Jersey
  • Posts 17
  • Votes 7

@Terri Wyzkoski 

That's a really valuable perspective, thank you. Sometimes you just need someone to tell you how great you have it to know what it's worth. I really appreciate it!

Post: $100,000 Cash Out on first deal, is it worth it?

Josephine BreignPosted
  • Investor
  • New Jersey
  • Posts 17
  • Votes 7

@Kaiser J. 

Thank you for your insight! Is this a calculation you often use to determine if a deal is worth it? I haven't heard of it before and curious to know just how it works with my investment for example. 

Post: $100,000 Cash Out on first deal, is it worth it?

Josephine BreignPosted
  • Investor
  • New Jersey
  • Posts 17
  • Votes 7

Hi BP!

I have a deal to share with you that's not as obvious as it seems, I'm hoping to get some thoughts on it. This is a multi-family property that currently has a mortgage of 500k, with an interest free hud partial claim of 150k. This means that 150k doesn't have to be paid until the property is either sold or refinanced, after which it will need to be paid in full. The current mortgage terms are really great, allowing 50k per year of cash flow after all expenses and pm fees are paid. 

The property has appraised at 1M, allowing for a cash out refi of 100k at the new terms (see below). This ends up costing about 10k of cash flow per year. What it also does is effectively wrap that interest free partial claim into the new mortgage at a higher interest rate. Over the life of the loan, that's over 90k more interest on what could have been an interest free loan. 

It seems to only make sense if the 100k cash out could be invested to return that 10k back and then some. And even then it seems a shame to lose a 150k interest free loan from the hud gods. What's an investor to do?  What would you do, BP?

Current Terms:

Loan: $500,000
Interest Free Partial Claim: $150,000
Total to Refi: $650,000

Terms: 3.15%, 30 yr fixed
Current monthly mortgage: $3800

Cash Flow: $50,000 per year

After Cash Out Refi:

Loan: $750,000
Terms: 3.5%, 30 year fixed
Cash out: $100,000
Mortgage payment: $4700

Cash Flow: $40,000 per year

Post: Loan modification or refinance?

Josephine BreignPosted
  • Investor
  • New Jersey
  • Posts 17
  • Votes 7

Update, I went with the Loan Mod because the terms were really good (low interest rate, low monthly payments). I'm also free to refinance after 3 mortgage payments, which is what I'm looking into doing right now because rates are still low. 

@David Ginn To your point, my original post didn't mention buying anything, but I appreciate the perspective. I'm looking to cash-out refinance to buy another property, maybe to airbnb. NC has some promising areas, but it does seem like things are really expensive at the moment.