All Forum Posts by: Josh Mitchell

Yes, that is just a basic insurance estimation. Obviously with other factors needed for certain areas (ex: fires in California)

@Darren Sager is right, it is all about your current cash positon and ROI. If you are good on both and feel comfortbale with where you are at, I would tell you to roll them in and have your tenants pay the difference.....

I don't know how most people calculate their estimated insurance, but I recently posted a response and got a lot of feedback from it, so I figured I would share with anyone who might have questions. For estimating homeowners insurance I take (Purchase Price/1000*3.5) and this usually gives you a pretty good idea of what to expect. Again, this is for estimating purposes only. Just a simple way to get an idea when crunching numbers!

2% rule is just the rule of thumb. 1.5% may work for you. Just have to write out what you are trying to accomplish. Ofcourse, if you can meet the 2% rule it would be great, but if you stay above 1% you usually can CF something.

If you are estimating, I have always used purchase price/1000*3.5 to get a rough idea. It usually is pretty close to what price will be. 600,000/1000*3.5=2100. Its def not 100% but usually gives a rough calculation.

Not typically. Only items that are shown on the credit report are taken into the DTI ratio.

@Malome Taylor Welcome to BP! Great place to start and network with people. I am in Naperville, so not far from you. If there is any questions I can answer just message me!

@Steve Thomas Welcome to BP neighbor! Hope to connect and network with you being in the same area.

Good luck with your new place!

@Gita Faust 

Better safe than sorry I suppose. Also, if they plan on staying at property, could you just do a 2 year lease so you don't run into this each year? Just a thought.

@Elizabeth Colegrove make sure to call bank when you get to 80% to request that come off. You should be able to have it off of there based on request, and that could say you a couple months of paying the PMI on your loan.