All Forum Posts by: Nicole W.

@carlos Paz @Matt Morgan 

Thanks!

@Matt Morgan, @Owen Dashner 

Do you know if your bank will do out of state HELOCs on rentals? I have tried everywhere as well for my rentals in Az, Fl and NC and couldn't find any. Did this occur recently or before Covid19? If during/after Covid19 what rates do you get on the HELOC if you don't mind me asking. Thanks!

@Leigh Whiting Sorry...1000 a yr/not a mo.

@Leigh Whiting 

I agree with @Evan Polaski's info. 

I use 5.5% vacancy and 1000 mo reserves (repairs/utilities/pest control/appliances), 8% management (I negotiated this with no lease up fees as I have a few with 1 property mgr/otherwise I figure 10%/you must shop for the best person/company & rates), taxes, insurance and interest. I also make sure it cash flows at the highest and lowest rents in the area. I bought a few in Phx metro which work for me. Just figure in these #s. 

I haven't found the 1 or 2% rules helpful as I have found properties in bad weather/hurricane area or in areas where taxes can really jack up with values going up, and they end up not cash flowing at all. In other areas I found I can go below the 1% and it works out just fine due to low fixed costs. It is relative and involves many factors. I had to go to my own little formula and it works for me.

I just purchased a few SFRs in Az and the closings were spread between three Title Companies. All did a great job but one was almost 1/2 the price in closing costs which was First American Title. I see they are in Ohio as well. 

I have 11 rentals and State Farm handles all the policies (300,000 business liability each) in a 1mm Commercial policy (no limit to # of rentals in it). 

I used to use Markel Insurance as they also have a no limit for rentals for their umbrella. They were the most economical when my house was considered in a fire zone and I needed a non conforming type insurance co.

But now my primary home is no longer considered in a fire zone per State Farm, so by bundling my home, my vehicles, a personal umbrella and the commercial umbrella with them, believe it or not they came out the lowest and I did call quite a few others.

I talked to some roofers who advised me to go with State Farm as they are the fastest and best at replacements as well. I have used State Farm for underlying for a little under 20 yrs and they also came out with the lowest quotes. I have had to use them twice in natural catastrophes and had zero problems, fast service with good results.

I do not work for either of these places.

@ Sean Lee

I messaged you all the info.

I am in So Cal. I just invested in central Az and it is cash flowing well. 215,000 is the average house price that I paid in Nov/Dec. 1500-1550 rents for 3bd/2ba. Low insur and taxes. Great weather. Houses are nice. Some with and some without HOAs. Good rental market now.

From my experience as an investor it can be so different depending on a lot of factors. I always just call State Farm nearby and let them know I am looking to purchase this property and they will happily give you an exact quote on it.

I haven't been able to find any decent loans for my rental SFRs since Covid. My %s are lower than I could get. 

Navy Federal Credit Union was willing to do a cash out refi but my interest is so low now with only 1/3rd of my loan left it didn't make sense but they were willing.