All Forum Posts by: Nick Slagle

Ok, I know insurance is boring but there has to be some opinions out there.

You need to find a good mortgage broker.  Maybe lenders have changed in the last 6 years or so, but I purchased a $50k house with 25% down on a 15 year fixed conventional mortgage as an investment with no experience.  Of course 2011, was a different environment than today.  Your agent and even the lenders who are paid commission as a percentage of purchase price may just be unwilling to do a small deal if they know they could get you to do more.  Or maybe the agent is just so busy, he/she doesn't want to mess with it.  Find a new agent and a new lender because you can definitely get this deal done if you're a qualified buyer in terms of FICO and debt to income.  The lender ended up being in NJ too!  PHH Mortgage

Property Insurance on a duplex

Let me get to the point:

I've been focused on getting this deal closed and did so yesterday.  Two duplexes purchased for total price of $200,000. ($100k each in one deal)

I am going to do some repair work and expect ARV to be close to $140k each.

I'm reviewing my insurance policies and they are identical but I don't understand the amounts that my agent built the coverage around.  It seems to me every coverage is too high or unnecessary all together.  What are your thoughts BP?  Thanks in advance.

100% replacement cost

Dwelling $177,000 

Dwelling extra replacement cost $35,400

Personal Property $8,850 

Business liability $300,000 each occurrence

Business liability $600,000 annual aggregate

Premises medical payments  $1,000

Loss of Rents  $0

Why would you ever avoid your tenants?  There are only two things I expect from my tenants: pay the rent and take care of the property.  If you don't take care of the little things neither will they.  All renters want to be respected and have a comfortable home.  Ignoring tenants will eventually catch up to you in the former of damaged or unmaintained property and late rent.  If your time is too valuable to talk to the person residing in your property, it's time to hire a property manager.