All Forum Posts by: Maxwell Fontaine

Hey I am not sure if I can be of any assistance for you, but if you have any interested future agents that need more info about insurance for your buyers or even their own E&O coverage please feel free to reach out to me. I would love to help out.

Yes there are in certain pockets, I would do some market analysis around the Charlotte area. If you need any help on the insurance side of your investing please reach out I am here to help if possible.

If you do make that move let me know need any help with insurance for your sellers or E&O for yourself.

The way I would go about it is small list of this. The order is important because they play into each other.

1. Get the coverage amount of the house, the amount you cover is the building itself NOT THE LISTING PRICE, there is a difference because you cannot insure the land it sits on (estimate 80% of the tax assessment the 20% is just a round number to assume land price)

1.a Sometimes you would need a BOP policy which simply a policy that allows you to be covered for you and your tenant on the other side. A regular Homeowners policy likely wouldn't cover your tenant. (this is not renters’ insurance).

2. Check out any local CA special insurance companies before you go to a commercial national company (they can work with you a bit more and could walk you through your policy a bit better) check to see what kind of policy you will need for a duplex you will live in and also will you need to change it if you leave and have be a full time LONG TERM RENTAL.

3. Look up an INDEPENDENT AGENT the offers home and auto insurance. The reason why I say to check with an Independent is they work specifically for you and do the leg work for you by getting you prices from the other companies (which often are better if they do it for you) instead of you going to the companies and them just giving you a price.

PLEASE LET ME KNOW IF YOU NEED ME TO CLARIFY ANYTHING. Insurance is sometimes a foreign language so if you need help clarifying anything reach out to me.

If you locate a buyer make sure you let them know to get a builders risk insurance policy. Just in case something happens while they are working on the house or even if its been vacant for a little bit normal home owners wont cover a loss above 2 month consecutive vacancy. Feel free to reach out if I can help if at all possible.

Sounds like a good deal. It on the surface looks like a delayed home run. $355 in Southern California living expense sounds amazing. The end result is positive because you are saving in bigger percentages by doing that. Fight for that 20% LTV and you will create more room for yourself by dropping that PMI and pushing your income above the break even point not even including rental increases.

If you have any questions about your insurance throughout this process please let me know. Sometimes insurance prices creep up over some time.

Just a quick tip. Depending on your house hack style. You may need a bigger insurance policy. Since you will be renting out the same property that you reside in (duplex and up). Just a tip to remember. If you have any question let me know. I am here to help if possible.

I did use a 203k and I do not regret it at all. I did the same process you are speaking about and its the fastest way to 1 get your foot in the door into investing, 2 learn the process of a rehab, 3 learn how to manage a tenant and setting expectations, 4 minimize your living expenses. 

There are too many positives than the potential negatives (higher mortgage payment) but if you have any questions feel free to reach out. I am here to help. 

CONGRATULATIONS on looking into Real Estate Investing its a great decision.

Make sure you guys have Builders Risk on the property and the contractors General Liability coverage is current. If its almost up just make sure 1 your project is completed by the time it runs out 2 have them get it handled before you work with them. It can slow down your project by a week or 2 otherwise. Its extremely frustrating to have your project and no work is being done through no fault of your own.

Make sure you have your insurance calculated out, If you live in the property also or pure rental it might be higher than you calculated but if you get the right combination it;ll be worth it. Outside of that, great deal it looks like if you are looking for a cash flow.