All Forum Posts by: Sean Hou

@John Mocker Thank you John! Appreciate the suggestions!

@John Mocker Thank you, John. I do have the dwelling coverage. Some quotes I got include personal liability & some other quotes include premises liability coverage. This is for a single family house that is 100% rental.  Would you suggest getting personal liability or premises liability or both? 

Hey BP friends,

If you have a rental property that is being managed by a property manager, do you need premises liability coverage or personal liability coverage or both?

Based on my research, premises liability claims are about unsafe conditions on the property (focus is on location) while personal liability is about someone’s own actions (focus is on the at-fault party). Imagine a visitor is injured due to negligence of the owner (i.e. landlord's failure to fix unstable stairways), then both of these coverage would be useful, right?   But if the visitor’s injury is due to the tenant’s fault (i.e. tenant's failure to clear the slippery floor), then premises liability coverage would help but not personal liability, right?   So premises liability coverage is a winner for landlord insurance?

Thanks!

@Andrew Postell I see. Thanks again Andrew!

@Andrew Postell  Thank you, Andrew! What about a second home? Would that have the same treatment as the primary home? 

Besides the 4 SFHs (conventional investment loans), I also have my primary home and one second home both financed through conventional loans. How many more conventional loans can I get? 4 (counting primary & 2nd home against quota) or 5 (counting 2nd home against quota) or 6 (not counting primary & 2nd home against quota)?  Thank you!

@Joe Splitrock  Gotcha. Thanks for sharing your experience & the great advice!

@Sid Shankar Thank you, Sid. Would you mind elaborating on "with Fannie you can actually do 15"? I thought 10 is the loan limit for Freddie and Fannie loans. 

@Andrew Postell Really appreciate your guidance! Thanks again! 

@Andrew Postell Thanks a lot for your response! Great point on the cost and benefit analysis on refinancing just to free up a loan. For my case, besides freeing up 4 loans, I could also lower the monthly interest payments. That’s another drive to refinance these loans.

Yes- the plan is to place these properties under the SMLLC’s name. But I would have to personal guarantee on the new portfolio loan for the SMLLC though (I guess no lender would lend money to a newly formed SMLLC without requiring the single member to personal guarantee the loan). Would that make me "obligated on the loan"? Then the new portfolio loan would count against the 10 loan limit?    I thought as long as the portfolio loan is not Freddie and Fannie related, it would not count against the 10 loan limit. Thanks!

@Andrew Postell Thank you, Andrew. I do know the limit for conventional loan is 10/ person. My question is - if I transfer 4 properties (currently financed through conventional loans and under my personal name) to my single member LLC (to be re-financed through portfolio loans), would doing that free up 4 conventional loans within my quota of 10? In other words, would I be eligible for applying for 4 additional conventional loans in the future by doing so? Thanks!