All Forum Posts by: Mark Ham

Make sense that you cant get insurance on a property the management company has no equity in, but what about general business liability?

Call me a pessimist, but what happens if there is a PM oversight/negligence and resulted in a lawsuit? May be not on purpose, but stuff happens.

I see some PM has their own handyman, then those PM should have liability other than E&O, right?

@Joe Splitrock

Right. I misused the term cash flow vs profit. Profit should not include the principal portion of the mortgage. cash flow is small, but a decent profit. Insurance is high, there is HOA, and this property is in texas so i have high tax amount too. And i am considering hiring a PM. Thats why.

Yes, I mean true flood.  My question is if the house is flooded, assuming the tenant's properties' are damaged.  Since renter's insurance does not cover flood, would the owner be responsible paying for the contents?  

So I have been asked to put the PM as a co-insurer on my policy, but when I ask whether they have any liability insurance, I didnt get a clear answer.  Is this a red flag?  When will a situation when there is a lawsuit against me vs the PM or both?  

Also, how much landlord liability is generally sufficient?  Understand that's is YMMV, the property is worth between $150k to $200k.  

So i understand you can record the structure portion of the property as depreciation as a paper expense.  But do I have to?  I expect the cash flow to be so small that taking the depreciation makes no difference.  If I dont take depreciation, when I sell, I can claim the whole thing as my basis, correct?

And, if i have multiple properties, do I have to take depreciation on all of them or can i selectively choose which one to take?

What will the landlord be responsible if the property is flooded?  The renter will have rental insurance, but I dont think that covers flood.  So, if the property is flooded, what consequences/responsibilities do the landlord have?

@Jorge Vasco

Is that a dead dog?

Hi,

I found couple of listings where the MLS and HCAD have different number of bed/baths and some with different sq footage. What gives? unpermitted structural changes?

It is not listed "as-is", and seller's disclosure did not mention anything.

Thanks!

@Scott Diller

Interested here as well... pls add me. Thanks.

@Jeff Chen

Houston, texas. Only appraisal contingency because the bank requires it but i said in my offer we would cover the difference if the appraisal falls short up to 5k.

Sounds like there is nothing i can do except wait until it closes. And even then, there is virtually no reprehension. Thanks.