All Forum Posts by: Justin F.

Thanks for all the help people! I did allow it to happen. I guess I was strung on my first rental property and forgot that while I was trying to be nice, any glimmer of sincerity was/is a sign of weakness in some eyes.

Well, lesson learned, I must stay firmed in my dealings. :oops:

What's up BP,

So I finally got my rental property squared away with just a few more repairs to handle.. This was a foreclosure that I completely remodled, and it's a fairly decent home.

Now here is my dilmena, I thought I had found the perfect tenants, their references checked out and they were moving to be closer to their daughters school.

Well, I should've known there was a problem given they were so anxious to move in without a lease or anything so they wanted me to let them move in on this Monday when we discussed that their move in date was sept 3. That was the planned date for the move in because it gave me and my guys a buffer to get the house move in ready. So this is strike one.

It gets even better...

Strike two is that they kind of tricked me into saying I'd take less than what I was offering for rent. They had called about a month ago stating they would move in for 100 less and I might have said yes or not, but I don't remember but they brought that up and said they would only pay the 900 a month. Uhmm, I've had about 20 apps on this house and they were all willing to offer over 1000' but whatever.

Strike three, they can't pay me when they move in on this Monday, only on sept 7 can they pay me. But they want to pay from sept 3 even though they want to move in on this Monday.

Strike 4, they gave ,e the deposit but now they want to reduce the deposit.

There isn't a lease or anything, just a check.

Can I just say no, I don't want to lease to you all. You've caused me 4 headaches and you're not even in the house yet!

Hi Don, I was in the same boat. Try contacting a firm similar to Gibraltar Insurance Services... I don't work for them but they were helpful in reducing my payment by 500... although I haven't made the switch, what they sent me was a lot cheaper than my current quote.

Thank you all super duper much.

I'll definitely just close with the higher insurance. I'm in Houston which I guess is Hurricane Alley, but whatever... any good insurance companies not previously mentioned?

Whoop! Hi Biggerpockets,

So I'm finally 2 days away from closing on my first rental. :cool: Very cool.

Anyways, am I being shafted on insurance? I feel that this premium might be expensive for what it's offering. Take a look:

Dwelling Building Protection: 110,000
Deductible: 1,100
Deductible (Wind/Hail): 2,200

Total Annual Policy Premium: 1575.37 :oops: :cry:

The house isn't even that old (build in 1986) with roof replacement and major updates in 2006.

Let me know if this is expensive..

(p.s. policy went up 200 in the last week cause the closing agent didn't have the information from the bank to close on time)

Last time I checked (Oct 2010), 751.

still a bit young to have any substantial credit history in the 800s (21).

but I did get my first cc at 16.

Well geez! thank you all mucho.

Much thanks to Bryan.

Apparently now the title company was going require that it be my homestead and the bank as an investment property so papers wouldn't track either way. Meh, the bank is willing to close on it now...

this forum is probably the greatest forums online. can spend hours on here just reading.

Thank you all very much for the helpful information. The law doesn't make sense and the person telling me is my former loan officer.

Bryan,

I sent you a follower's request for Attorney's information..

Thank you two for the replies.

Well the main point of me not purchasing as a primary is because it's a Fannie REO so a bit too shaky to actually risk that.

The law is absurd. I don't own a home because I live at home with my folks. I'm only 21 and would rather purchase investment properties until I get married to my GF and then purchase our primary residence.

Howdy,

I'm new here and have always been a long time reader, just never really had a means to posting since most here have great information.

However, in much due to this form, I decided to take the plunge into real estate investing by purchasing my first REO property. As we are now in closing, apparently Texas has a funky law that states I cannot own a property for investing unless I have a property that is my homestead before investing in the a property.

Now, I was fairly new to this law, as well as my Loan Officer, his regional VP and underwriters.

Could someone shed some light on this situation as to why this is the norm in Texas. Makes me want to run into politics to change these laws. :cry: