All Forum Posts by: Samantha Soto

We have a 4plex under contract right now. We will be using an FHA loan and moving into one of the units. The property is actually two duplexes on the same lot. I am being told by insurance companies that we will need two separate policies for each building. Is that accurate?

We have two SFR rentals in Alabama right now, one duplex rental here in Indy, and we will soon be renting out our primary residence, which will be our 4th rental property. The new fourplex will put us at 5 landlord policies, and many insurance companies are telling me they will not ensure over 4.

What's the trick here?  Time for a different type of insurance?  Commercial? 

@Jorge Ruiz , a lot of people want to buy deals from wholesalers, who do not represent the buyer.  Oftentimes they are having to buy blind, without being able to see the property themselves and just trusting the wholesaler who sells it to them.  And although all people, not just realtors, should behave ethically, I have known my fair share of shady salespeople, real estate agents included, who just want to close a deal, regardless of the best interest of the buyer.  When I was buying as an out of state investor, I felt the need to have various people on my team who didn't know each other in order to ensure I was getting an honest assessment of the property I was buying.  But ya, I was just asking around if this service is needed.  It seems like there isn't a great need for it.  Also, in this capacity, I would not be working as a real estate agent.  

I am wanting to ascertain if there is a market for a service I am thinking about offering.  I am a real estate agent in Indianapolis and have a history of working primarily with investors.  I was thinking about starting a side job where I would act as an unbiased third party for out of state investors.  Having been an out of state investor myself, I know it can be hard to trust the people you are working with when you know they have a motivation to be selling you certain properties.  Many people worry about buying a property from out of state.  What is the neighborhood really like? Is the house in decent condition? etc.  

I was thinking of offering a service where for a fee I can go out to properties that people are interested in and do a walkthrough and preliminary inspection in addition to taking video or photographs. Although I am an agent, I would not be working with these investors as their agent, and therefore could solely be in charge of giving them an honest and unbiased assessment of the property and area. Also, since I am an agent I can get into MLS properties easily.

Is this a service you would be interested in?  If so, what would you be willing to pay for such a service (per property)?  

Please let me know your thoughts and feedback.  

@Aaron Gourdouze

I believe Eagle Land Title does them as well.  

I'm getting way too caught up on the details here I'm sure.  I didn't imagine choosing smoke and carbon monoxide detectors would be so hard!  I wanted to get dual detectors that have sealed 10 year batteries, and also would love a reasonable price.  What brands do you guys use?  Are you happy with them?  I want something that won't go off randomly all the time and drive tenants crazy.  Also want something that won't break the bank.  Anyone know where I could order in bulk instead of having to buy one by one? 

If you do end up getting your license, our brokerage in Castleton is looking for agents.  We primarily work with investors, and also have a PM company and a construction management company.  It's a great place to learn the ropes of how to use your license as an investor, and also help other investors.  PM me if you want more info.  I've been here since mid October and have learned a TON.  

Feel free to PM me if you want some property manager recommendations.  I have been in Indy since August and am very involved with CIRERIA (the investor meetups) and have heard the good the bad and the ugly about certain companies.  I am happy to share.  

Different opinion, if you are already cashflowing sufficiently at current rent, I wouldn't up the rent to market right away.  Tenant turn and vacancy can KILL cashflow for quite a while.  If they are good, paying tenants, I would keep them in place for the first year and save up the cashflow so that when I do increase the rents, if turnover happens I have some money stored up to put towards the turn and have less come out of my own pocket.  I would rather have long term, good tenants paying under market rents than have to deal with rehabing units and screening new tenants.  Low rents give tenants an incentive to stay long term.  

I know I'm late to the part here, but in case others are wondering in the future, we always write this into our purchase agreement if we are offering on a tenant occupied property:

1.Within 7 days after acceptance of purchase agreement, seller shall provide copies to Buyer of any leases, tenant applications,12 month rent roll & security deposit info. 2.Security deposits shall be credited to Buyer at closing. 3.All rents shall be prorated between Buyer & Seller to the date of closing. 4.This purchase agreement is contingent upon walk through & inspection of the property to be completed within 14 days of acceptance. Buyer shall have the right, at Buyer's sole discretion, to terminate this agreement based on the property & lease inspections & will receive earnest money in full.