All Forum Posts by: Lin Ding

The insurance told me the highest deductible is $2500. $5000 is not feasible for this house. Even though the seller told me when they renovated the house, it's treated as a new construction because it's gutted to the bone. All 4 points are new. But the quote is still high. I'll plan to get a new quote after I install security system and placing new roof down the road.

Thank you @John Verduzco. I'm planning on house hacking this SFH by living in one and rent our the other rooms. I'll manage the property for now to learn first-hand tenant & property management. When I move out and hold this as a rental, then I'll factor prop. management in. This house is not in a flood zone so I don't need the flood insurance. And yes the insurance is more expensive than I expected. The house is about 1400 sqft living space. And I think the main reason is the roof was last replaced or updated in the year of 2000 and was not replaced during this renovation so I didn't receive any wind miti credits or discounts. I do plan to put a new roof if I end up holding it long-term. Good to know the premium is going to be lower with a new roof. Where can you find about the building code info potentially affecting the insurance?

I got about 7 quotes. The lowest is around $1700-1800. Yes, I agree it's expensive.

What's a reasonable range for homeowner's insurance for a fully remodeled older home? This is my first time buying a house and getting an insurance. The house is built 1920. New electrical, plumbing, HVAC, water & heater in year 2016. Metal roof replaced in 2000. The quotes I got so far the highs in $3000, but lowest below $2000. What's a good range for a 1-story single family house like this?

Thanks!

Did you form a LLC for buy-hold strategy? I was confused about how to file taxes and separate tax deductibles from personal and business filing, as a H1B holder. Can you have tax write offs even when the business is not generating income yet?

@Shaun Patterson I'm on the same boat. I was also offered the down payment assistance by my mortgage broker. My offer is $15k dpa like a second mortgage (with no interest) to cover down payment and closing cost. But the trick is I have to have it for 5 years. But 20% is forgiven each year. For example, if I sell it 1 year after, $3k is forgiven and have to pay the $12k back; in 2 years, $6k is forgiven and $9k has to be paid back. For an owner-occupied property, it may be a good deal. But for a quick fix-and-flip, it may not matter. Do you have to pay back the $10k for dpa?

Congratulations on the purchase. I'm also working on the same strategy, looking for a house now and going to rent by room to cover my living expense or get paid living there, then save down payment for more properties. I think if the younger brother at age of 23 is understandable enough should get what he pays for. This could be a good education for him also that no such a thing as free lunch. You get what you pay for sometimes less. Or he can help you out around the house, such as being the "property manager" for it, finding and screening tenants for you, taking care of repairs and maintenance, cutting grass, paying some bills, etc to fill the gap. Set the rules up front otherwise he's out like everybody else. Even though this is your primary residence, treat it like a business. It could be a good learning experience how to be a landlord. One of the things to learn is how to say NO. I hope it makes sense and you find helpful. Let us know.

Lin

Thanks @Adam Harrison for sharing! I'm on my curve of learning in becoming the relative expert. It's RELATIVE! Knowing a little sets someone apart from relatively ignorant mass. Never stop learning and be honest with yourself what you truly know!

p.s. I just recently (2 days ago) became Jack's customer/student. And I met him in person. He's inspirational and has earned his title being a subject mater expert. I can come back to share my experience after 6 months (after its 180-day satisfaction period) if anyone's interested in knowing. Again, happiness is a choice; learning is a choice; subject is a choice; commitment level is a choice. 

Lin

 Don't you forget time is money too. Be financially intelligent and avoid opportunity cost! 

Thank you @Josh Carr. When I searched on county clerk office, this property was not listed in the sale list. I just checked again and it turns out the owner has just paid all property taxes current. I plan on yellow mailing him on potential selling this property. Wish me luck he wants to sell!

Thanks everyone!