All Forum Posts by: Mike R.

The best insurance company is one that you know will be there when you need it.  It doesn't pay to buy the low cost insurance provider, only to find out they won't pay when you have a claim.  

One other thing to watch for is a company offering low initial rates that increase the next year.  Unfortunately you won't know that at the time of purchase, but if your rates increase next year, you will know what type of company you are dealing with--i suspect the kind of company that won't be there when you need them

 Fwiw, we use state farm for our home, umbrella, and all rentals. We  have filed 3 claims over the years and they paid without a problem.  Yes, our rates did increase but not significantly.  They aren't the cheapest but I sleep better knowing they will pay without a fight when I need them

Good luck.

I had two issues with appliances that wrer covered by the extended so I think its worth it.  

looking for a freebie?  

Move out if you have a problem with the landlord but I suspect the was no difference in the way the property was managed the day before vs. the day after the license expired.  

Personally I would get out of the war zone property...is your life worth the cash flow?    Otherwise, I 2nd the 2nd amendment comment made earlier

Read lots of books (search books at bigger pockets)

Read as many of the posts on this website

Use real estate listing services to review postings every day from the areas you want to invest

Caluclate want you think the value is of each of those properties

Keep track of the props and calculations in a spreadsheet so you have a historical record

my wife and i have been doing the RE thing for a while now and have done well, but over the last 12 months i have noticed that prices are getting crazy.  To me, it is hard to justify buying property (we only focus on multi family) at this time so it makes me uneasy to see the posts from folks saying they are ready to start investing/just bought their first place, etc.  While i appreciate there is a region/local aspect to investing that may make one market a bargain while another is over valued, i would like all the new investors to read this story (see link at end of this post) and consider the following:

• if you don't know how to calculate cash on cash or cap rate, don't buy anything yet--you have homework to do AND remember cash on cash and cap rates are helpful tools but not the sole valuation tool/consideration on whether to buy a property not--read lots of books BEFORE you buy
• if you dont know how to find out what rents should be in the area you are considering, don't buy anything yet--you have homework to do
• if you dont have a lease to use and understand why each section is in the lease--dont buy anything yet--you have homework to do
• if you dont know what happens to tenant deposits after you acquire a property--dont buy anything yet--you have homework to do  AND get a different real estate agent--one that actually deals with income property and can walk you though the details of income property buying
• DO manage the first property or two that you purchase.  You will learn ALOT of invaluable lessons!!!!! outsource the management after you have managed through several tenant turnovers and understand what it takes to manage a property.  that way you will know what you want out of a property management company.  
• if you dont have at LEAST 6-months of reserves (or sufficient non-RE related income source) to cover surprises (which will happen on every property) dont buy anything yet
• use the SEARCH function on biggerpockets BEFORE you post your question--your question has probably been asked before and seasoned investors might not answer your post because they have answered it before.
• if you dont have a business plan, dont buy anything yet--you have homework to do.  A business plan doesnt need to be formal, but it does need to include WHY are you investing in RE, what is your strategy (i.e. flipper, buy and hold, etc), when do you expect that strategy to work and NOT work (e.g. what market conditions are better for flipping vs buy & hold, what has to go right for a deal to work, what could go wrong to make it an epic fail), what type of properties are you interested in and WHY, what types of markets/areas are you interested in and why (i.e. war zones may be good cash flow but you have management issues, high end areas my have low management headaches but smaller cash flow), be honest with yourself about what you can/cannot do (e.g. if you are handy, can you do repairs yourself?  Do you have the time?  if you need to be liked by other people do you really have the personality to be a landlord?
• Do NOT let doubters talk you out of RE investing.  their limitations and fears are not yours

http://www.bloomberg.com/news/articles/2016-07-14/...

we used Wells Fargo commercial ....Debbie gurganious 3608741270.  Knows her stuff easy to work with

yes it sounds like they don't want to be held responsible for poor work or materials.....I wish I could tell my boss not to hold me responsible for my work.  But I am not a lawyer so I might be missing something

I agree about redfin's est market value but I like the data they provide in their listings and they seem more timely than others

i say price appreciation in Bremerton is better than tacoma because tacoma has already seen a significant increase in pricing.  longer term I also think the potential in Bremerton is greater given the proximity to seattle (i.e. bremerton ferry to seattle and the chance to add a high speed ferry option that will cut the commute in half!!).  also, where else in Puget Sound can you buy a home (yes, small and simple home but its a home nonetheless) for less than $200K, be near the Sound, stress free commute to Seattle, etc.  Yes, Bremerton has some work to do. i.e. there remain some rough areas and it can feel run down in others, but the bones are there and with Puget Sound becoming a hot place to live, the most affordable area is Kitsap County.  Do a drive around some of the neighborhoods near the ship yard and notice how many of the homes are being/have been rehabbed, notice how many people are maintaining their homes, etc.  its turning around but it will take time (i bet you won't recognize Bremerton in 10-yrs)