All Forum Posts by: Lisa Yang

Thanks for your input guys I ended up getting a replacement cost policy :)

Thanks for your responses everyone! Your insights are very helpful! I think I will go with a replacement policy, I was able to get an agent that found me a rate only $10 a month more than the ACV. I agree with @Terrell Garren on the multiple properties thing but since I only have the 1 rental here replacement will probably be smarter. I am going to go with a 105K dwelling limit so a little less than what I will be in the house for but since a complete loss is rare I think Its enough coverage. 

What do you guys usually look for in liability coverage? I have seen anywhere from 100K-500K and was not sure how much I would need. Any thoughts?

Hi BP,

I am purchasing my first rental home in Madison Heights, MI and was hoping to gain some knowledge on insurance policies.

The purchase price of the house is 115K and I will owe 75% (86K) to the mortgage company. The appraisal came back at 120K. I currently have an ACV insurance quote for about $56 per month for 115K Dwelling. Do you think this is sufficient or do you think it would be smarter to go with a replacement policy that costs about $200-300 more per year?

Thanks in advance for your insights!

Josh,

I bought my first house at 16 and am currently on my 3rd house at 23. There are a few things that can give you a huge advantage.

1. A Salaried Job: Banks love salaried jobs and having one makes financing more accessible for you. Especially if you are a college graduate you don't need any history of income to obtain a mortgage only your employment contract or offer letter.

2. Solid credit history: you will need to prove that you are worthy of paying back a loan so start by financing a cheap vehicle that you can pay off and get some credit cards that you only spend small amounts on and pay off monthly.

These were the 2 ways I was able to start a portfolio at such a young age. Looking at your situation I would suggest decreasing your monthly obligations as much as possible and finding a solid co-signer to get you started. You can start with as little as 5% down for some mortgages.

Best of luck to you!

@Alex T. Thanks for the advice! I think I will start looking for a multiplex instead of a SFR.

@Alex T. Thank you! I am concerned about lending as well so my plan for that was to split the mortgages between my spouse and I (were not married). We have similar income so splitting it should protect our debt to income. I would prefer to find a multiplex property but from what I have experienced those are hard to come by. Do you have any recommendations on how to find these deals?

Thanks for your responses everyone! @Jabari Long how do I join the REIA?

@Account Closed thanks for the tip! Is there a good strategy to find mulitplex properties? I typically have not seen any when looking through MLA listings.

Hi Everyone!

I have been heavily researching starting a real estate portfolio and was hoping to get some advice/feedback on my plan.

I am 23 years old, have a salaried job in corporate finance, 750 Credit and recently moved to Michigan. I am originally from Seattle and don't know a lot about midwest markets so I was hoping to get some advice on which areas to focus on. I purchased a home here in Michigan which I am living in but I would like to start purchasing property to use as rentals. My goal is to make $500 a month on each property and get to 4 properties within the next 5 years. When I ran numbers it looked like I am able to come up with about 20K in personal savings annually (only including my salary). Is this a realistic goal? Thank you in advance for your responses!