All Forum Posts by: William R.

It looks fantastic! Best of luck to you.  

I have received a few quotes for Builders Risk. It look like it is going to be about $600 for a six month policy.  Is that in the ballpark of what you'd expect to pay?  I thought it was fairly reasonable. Thanks

I am closing on a Fannie Mae foreclosure (BRRR) in Louisville Kentucky on Monday. I anticipate it to take approximately 3 months to be rent ready. I have contacted my insurance company and a few others, and am having a hard time getting it insured. With a former foreclosure I purchased a few years ago I insured it thru the Kentucky FAIR Plan. It does not seem that anyone is currently providing that type of coverage. Any recommendations on insurance providers in Louisville for this type of property?

A bat got into one of my units. The tenant wants me to have the bat tested for rabies. I plan to go remove the bat and seal up any possible points of entry. Is the testing of the bat something that could be covered by renters insurance? Anyone who's had this issue have any advice?

I'd recommend a small multifamily (2-4 units) with an FHA loan.

This is a question from a friend,so I don't have all the details. Their tenant claimed the apartment was unbearably loud from other tenants, so the owner tried adding carpet in the unit above, enforced quiet hours etc. The tenant insisted on moving out, so the owner agreed to let them out of their lease without having them sign anything. They moved out a few days late and caused a bit of damage. A new lease has been signed for 15 days after the move out. Can the owner subtract the lost rent for those 15 days from the deposit? Or, are they obligated to return the deposit at all? The tenant is threatening small claims court unless the full deposit is returned minus the damage.

Thanks for the input everyone. I passed along the information.  They are going to try to try to reconcile the situation and have them sign a lease.  If they are unsuccessful at resolving the situation, they will send a "termination of tenancy" and proceed with eviction.

A friend explained a situation to me the other day,that I didn't know what advice to give.

They have a relative that they have allowed to live in a property rent free for several years with no lease.  They cut the grass and take care of a few things in exchange for rent. As you'd expect... now things are not going so well and they'd like them to move.  

My advice was that first and foremost they need to sign a lease.  Can they force them to sign a lease?  

I also considered doing this. I ultimately decided against it based on my states laws. In Kentucky you must be a licensed agent to manage property that you do not own. The fees associated with the process of getting licensed made me a bit reluctant as I did not plan to be an active agent. And you would have to hang your license with a broker, and I'm sure they would want something from your business to make it worth their while. One way that I have gotten around this is by master-leasing a multifamily property and subleasing the individual units. I self manage my properties with an LLC and have additional umbrella insurance.

My wife ran a DUNS report at work, and guess what???  The business was no more credit worth than the owner.  I guess that was to be expected.  They were denied again based on credit.  They must really like this apartment as they have another cosigner they would like to submit...  This makes $90 in application fees.