All Forum Posts by: Matt Wells

@Andrew Postell This just caught my attention. "Delayed Financing Exception allows you to get your initial money back - period. Again, no listing of properties, DTI, etc." When you mentioned DTI here, are you saying the lenders don't look at DTI for delayed financing? Or am I reading this wrong and just hoping that's the case?

@Randy Rodenhouse I'm going with RCV. Thanks for the insight.

My air conditioner was stolen from my property. Here is the language in the estimate. I do want to add the security cage.

"This estimate is to replace the air conditioner, lineset, acoil, and to install a security cage. New Lineset will be ran through attic and new coil will sit on existing furnace. Equipment will have 10 year parts labor and 1 year labor warranty. Security cage will be concreted into the
ground."

I can order the air conditioner myself and save some money. Also, do I really need to replace the lineset and the acoil? That is inside my rental and obviously wasn't stolen. Please let me know your thoughts. 

I often hear people say they pick ACV over RCV insurance when the cost to rebuild would be more than the market value. I don't really understand that. Here is an example. I paid $173k for a duplex, but I have to have it insured for $300k for RCV at a $5k deductible. It's about $30 more a month for RCV insured at $300K than ACV insured at $188K. Why does it matter if it costs more to rebuild than market value if the insurance company is paying for it? Am I missing something here?  Please let me know your thoughts. I am in the process of making some insurance changes.

I should be good with liability. Each property has 2 million aggregate coverage. What deductible do you usually go with? I'll either choose $5 or $10k.

I'm re-evaluating my insurance on my properties. I am going to insure for purchase price + rehab cost, not the appraised value. I am getting proposals on ACV and RCV policies and $5k, and $10k deductibles. If there isn't much of a price difference I will opt for RCV and $5k deductibles insured for purchase price + rehab cost. I am aware of how ACV and RCV pay out claims and my insurance does not have a coinsurance penalty.

Please share how you insure your properties. The community's experience and insights would be helpful. 

@Carlos Ptriawan I don't understand. Why would the insurance give me RCV if I have ACV? RCV is more expensive.

@Ryan Ingram Your post helped me a lot. I think I will go with the RCV purchase price plus $25k. How much of a deductible do you put on your properties? I currently have most of my properties at $5k, but I am considering switching them all to $10k to save on premiums. Thoughts?

@Tyler D. How much are your deductibles?

Thanks all for the information. I'm not sure what I want to do. How do you insure your rental properties? ACV or RCV and what deductible? How many doors do you have? (if you are comfortable sharing) @Randy Rodenhouse @Bo Bond @Bill B.

I'm just not sure what I should do. 

@Randy Rodenhouse Thanks for the information. I am aware of the difference between ACV and RCV. Do you have any insight on my specific question?