All Forum Posts by: Mike Montanye

We are just starting down the RE path and have a ton of questions. Before I can find the answer I have thought of 3 other questions I need answers to. Just trying to avoid any massive mistakes that would sour this buy and hold plan that I have decided to focus on.

I am wondering about insurance for the rental property. I just heard the other day about Landlord Insurance. Didn't even know that was a thing. I'm wondering what exactly it covers that HO doesn't and how much extra I would be expected to pay for that coverage. 

Does anyone have any guidance for me on this matter?

We are looking at turnkey rentals for our first investment property.  It seems to me that the purchase contract would be sent out and expected to be returned, signed, within 48 hours or the property would be listed again for other investors.

Should this be enough time for an attorney to review or is there zero wiggle room with turnkey contracts? Sign or move on.

Just want to make sure I'm covering all my bases and not opening myself up to an issue in the future.

If you have any turnkey experience please let me know how you handled attorney review of the purchase contract.

Thanks

Total noob. Shopping for our first rental.

Some of the properties have taxes around $600/yr and others are $3000. Is there a deeper level thinking I might be missing when factoring that into our decision?

I’m just wondering if anyone has a particular strategy, when looking for a rental property, that uses the property taxes to make or break the deal. If anyone could provide me with the proper way I should be looking at property tax as it pertains to buy and holds it would be appreciated.

Thanks.

Does the 1% rule get calculated from a home’s pre-rehab price or should it be 1% of the total (purchase price + rehab costs)?

Ex. 1. I buy a house for $60k. Rent would be $800. That works.

Ex. 2. I buy a house for $75k that needs $20k in rehab. Rent would be $800. That doesn’t.

I'm looking for financing on our first rental and just the other day heard a podcast highlighting an All-In-One Mortgage. I've had a call with one loan officer about this and it sounds like a great opportunity. 

What am I missing? Anyone with experience in this loan for rental properties?

"Pros" seem pretty straight forward. What are the "Cons?"

Here is a simulation using a $150K Purchase Price with 25% Down. This is also just using our W-2 income, no rental income was added.

The HELOC is fixed at 3.75%. So yes, that will be used for DP, Closing and Reserves. We'll be using a fixed rate mortgage for the purchase.

In both instances I’m talking about the HELOC.  It is interest only for the first 5 years, so as the principal is paid down, with the extra $1000+/mo, the required payment becomes lower and our cash flow goes up.