All Forum Posts by: Justin Park

Hi everyone,

I am closing on a Northeast Philadelphia triplex by the end of the month.
It currently has 5 beds and 2.5 baths, with 3 units that have their own separate entrances.
The first ground unit is a small studio space that I plan to live in, that rents for approximately $750 a month.
The second ground unit is a open concept 1 bed 1 bath that could rent for 950 a month, but currently rents for $860 a month with the existing tenant.
The 3rd unit is an upstairs 2 bed 1 bath unit with an unfinished roof patio access, and an unfinished attic space that could potentially be renovated into another room.
There is also an unfinished basement space, and a 1 car garage with a fenced in driveway.

I am trying to maximize the space once owned, and was wondering how I should get to the highest and best use of the property.
I have gotten some suggestions ranging from creating sectioned off storage space in the basement to rent out, to finishing the basement to make into another livable space as it has it's own egress. Should I finish the attic space to add another room to raise rent for the upstairs unit or just leave it as storage space?

Any and all suggestions and advice would be helpful, and thank you for your time in assisting me through my owning and operating my first multifamily property.

Sincerely,

Justin Park

@Jason Bott
Thank you for clarifying that the homeowner's policy is what I will need.
I guess landlord insurance will be necessary in the future, once I am able to purchase a second property and have the triplex fully rented strictly as an investment vehicle.


@Ryan Letzeiser
I wIll definitely look into GNY or BH Guard as I have never heard of these companies previously.
Hopefully they will be able to provide a product that caters to what I am looking for.

Thank you!

Justin Park

Thank you! @Zachary Paul,

2) "What I have done in the past for my properties is talk with an insurance professional and purchase additional liability insurance (not that much more annually) as well as Loss of Income or Business Insurance to protect if I have a elongated period of no rent."

Am I right to assume that you have added these 2 provisions to an existing homeowner's insurance policy?

For personal protection, I am going to shop around and compare rates for landlord insurance or homeowner's insurance with the mentioned additional liability insurance & loss of income or business insurance built in.
Thank you for that much needed advice! If you know of any reputable insurance companies that cover properties in the NE Philly area, please let me know~

I have heard that getting a general umbrella policy to protect myself in the case of lawsuits & exorbitant legal fees would be a good idea, if you have any input on that.

I also plan to make renter's insurance a necessary item in future leases with new tenants as a way to further reduce personal liability, and to protect the tenant's personal assets with insurance coverage. 

Best Regards,

Justin Park

Hi Everyone,

I am a new investor looking to purchase a triplex in the Northeast Philadelphia area to live in as my primary residence, while also renting the additional 2 units out to tenants.

When purchasing a multi-unit property, what are the best types of insurance policies to go with, 

and what other preparations should I make in order to reduce my liabilities?

Any sort of advice would be useful, & thank you in advance!

Sincerely,

Justin Park
Hopeful New Investor