All Forum Posts by: Joshua Kohl

I do not know what the book states but I do not know how it can provide an estimate of the insurance cost because there are many variables that affect the price.

There are decisions that the LL can make on type of coverage that affects the price.  In cheaper areas you may want to determine if replacement costs are much higher than your actual damages could be (i.e. the structure costs more to replace than it would cost to purchase another similar property). In this case you need to be sure that the insurance is enough to cover any mortgage.

The structure cost is much bigger factor (at least for if insured for replacement cost) than the fair market value.  Another way to look at it is there is only so much costs associated with the land but in some areas the land cost is much higher than the structure costs.

There is also location risks that factors into the price.  Is the property in a flood plane?  Hurricane zone.

My property insurance is running between 0.08% to close to 0.2%.  So 1.5% would seem high but as indicated there are many variables that go into determining the insurance costs.

10 years ago I had a property that had insurance cost of ~1% of value (on the ocean in Gulf Shores, Alabama).  We collected twice from hurricane damage so the high cost insurance was appropriate.

MAGI below of $100,000 you can deduct up to $25,000 of passive (rental) losses against other income.

MAGI above $150,000 and all passive losses are suspended - meaning you carry them forward to future years.

MAGI between $100,000 and $150,000 you are pro-rated on a straight line. For every $2 of income over $100,000 you lose $1 off the amount (up to $25,000) of passive losses that can be deducted against other income. 

Hi Joshua! Welcome to BP! Starting out can be incredibly daunting, but luckily, there are a ton of people here, and likely in your local area that are willing to help if you are willing to help provide value! 

First, what type of investments are you interested in? Buy and Hold/Flip/wholesale? 

For trying to identify areas, it is good to understand a few basics: 

• Median home value to income ratio
• Population growth trends
• Industries that your local area's economy is dependant on?
• Crime statistics

Find a real estate agent that is investor friendly that will help you understand the market, and even more important, find investors that you want to emulate, and find a way to add value to their operation in return for them teaching you the ropes in your unique market.

I will leave tax liens for someone who is in your local area and knows how Georgia handles things.