All Forum Posts by: Richard Bader

Can anyone recommend a good company for Landlord Insurance?

I would like to get some opinions from experienced investors with rentals. When you run a credit check and criminal background check, what is acceptable? Am I correct in assuming that the majority of people renting are going to have some type of bad credit. If I have an applicant that has a verifiable job but has some type of bad credit. What are the warning signs? What do you feel is acceptable as far as credit and criminal checks? Also it is ok to call and verify an applicants employment, right?
Thank You,
Richard

The last house I worked on had a popcorn ceiling in the living room, and it was already peeling in spots. So instead of trying to repair it and risk have a noticeable uneven pattern, I removed it all. I sprayed it with a little water and just scraped it off into a box. I didn’t have any carpet in yet so I did not have to worry about it making too mush of a mess on the flooring. I personally do not like popcorn ceilings, but if its not in bad shape I would probably leave it.
Richard

Everyone has different strategies in real estate investing. That’s why the forum is here to get different opinions. A good deal to you may not be a good deal to someone else. A good deal where you live might not be so good somewhere else. I respect your opinions but to say it’s either your philosophy or failure is ridiculous. To say “if this” and “if that” is not real world to me. Sure you got to look for the unexpected, but “if” is a big word. If your home falls in to a sink hole it doesn’t matter if you get $15 a month cash flow or $500.00. I was just looking for some kind, experienced folks to share their thoughts, not for someone to tell me and everyone else that responded that we are all wrong and they are right. I may be frustrating and hard headed but I am a fighter and not in fear. If I was in fear I would have never bought any property and just talked about it. I don’t know anyone in my area that can buy a home for $40,000 and rent it for $800, and I want to purchase only in my area. If I can pull 10 thousand out of a property and still cash flow anything it seems good to me. Or maybe I will just learn the hard way.

I wanted to respond but why bother ugh
Signed,
Newbie that is in fear and is destine to screw his whole life up in bad real estate deals.

Ryan, Charles, Mike and All, Thanks for your comments. Sorry if I came across as rude. I am just learning about real estate. I bought 2 homes in the last couple years and realized how much I really enjoyed it. All I ever talk about is real estate. So much my friends get tired of hearing me telling them about property I saw and prices. I get told all the time if you buy a house and rent it you will be sorry. Or people that aren’t even buying any property will tell me, you took to long to flip that house and you need to do this next time." I also have talked too many realtors that rent homes and they have told me don’t ever rent, yet they are renting homes. I found this site and there is so much information and people listen to your experiences and want to help you succeed. It is also so interesting learning about others experiences and what they have done and what they wish they didn’t do. I set a goal to have 3 rental homes before the end of the year. I close tomorrow so hopefully I am on my way. I also started coaching soccer a couple weeks ago and it turns out the other coach with me is a real estate attorney and he has 5 homes that he does lease/purchases on. So I am going to be talking to him to learn from some of his experiences. Again the site and everyone on it has been a great help, and I wish everyone the best. Thanks so much,
Richard

No, I think you are just trying to get your post numbers up. Again you say "I thought expenses were only taxes and insurance". I never said I thought that was the only expenses in a rental house. You make things up. And I believe it does matter if its a good looking house in a good neighborhood, I am going for the long term appreciation. Would you prefer I want to buy a house in a crummy neighborhood just because I could get it cheaper and on paper it cash flowed for more? I am not so sure you do this for a living. And all that call the lawyer and stop the closing when I am not even getting that loan to purchase the house. Then after I say I am getting landlord insurance, you say if I have homeowner it will not cover a loss if I am renting. I was asking the mortgage question because I was wondering why it mattered. I didn’t need a lecture on how I committed Mortgage Fraud, and I should go turn myself into the nearest police station. Please move on and help someone else. Thanks

That’s why I am asking questions on this forum because I am a new investor starting out. But if you have read my previous post, I have a landlord policy for Insurance not a home owner’s policy. I haven’t even applied for the loan yet, that’s why I was asking advice. Also if you read my previous posts, you would have read, I am using a line of credit to purchase the home. For a seasoned investor trying to help new investors, you seem negative for a teacher.

Well I close Tuesday. If I can get all the repairs done in my 10,000 amount I am estimating and then refi for like $45,000, that will leave me paying about 340 per month and pulling 5,000 out. I am looking long term and for my first rental, I feel like I am making a good deal. I can afford to pay this payment myself if I dont have it rented plus I have the cash I pulled out. Its in a good neighborhood, and its a good looking house. It as a full unfinished basement. Thats one feature that really sold me on it for the price. No crawling under the house to fix anything on this baby.

I do have another question though. The mortgage broker I have used in my last two flips, always gets me the loan saying its a second home. If I am really going to rent the house but I say its a second home when getting the mortgage loan where there be a problem?
Thanks Again
Richard

I decided to go for it. The house needs painted inside and out. I have a good friend that owns a painting business and he said we could do the whole house for around $700. It needs carpet in the whole house. I am still working on that one. Central heat and air and all the duct. My other friend owns a heat and air company, and he gave me a price for $2000 for the unit and $400 - $500 for all the duct work, and he owes me a favor so we are going to do all of it ourselves. There are some other things, pvc drain pipe from kitchen is broken from the sink to the sewer line, replace the gas water heater with a electric, a couple broke windows, storm door. I have no professional experience myself, but have access to allot of people that do. Wish me luck… I close on the 20th.. So I plan to have around $39,000 in it when it’s ready to be rented. My taxes are $340.00 a year and my landlord policy will be $450 a year. I want to refinance when its complete. Should I pull a few extra thousand out of the refinance and hold it to cover like the mortgage when its not rented or any unforeseen repairs? Rentals rates look to be around $550 a month in this area. Thanks again to everyone for your advice.. I am learning more everyday from all the comments and help.