All Forum Posts by: Steve Maye

I am working with my property manager to buy my second rental property. This is a new home. I think it compares favorably with existing homes with rental rates without the potential repairs.

I have attached a filled in deal analysis form and would appreciate thought pro and con on going this route. FYI- I uploaded this incorrectly to the audio files area. Could not figure out how to delete and move.

I need to make a decision to buy or not to buy today, so I would appreciate any guidance you may offer.

http://www.biggerpockets.com/files/user/smaye/file/creekside-deal-analysis

Great Spreadsheet. Thanks!

I am new to this stuff and evaluating a purchase. Below is what I am getting from the spreadsheet. Is this a good or bad deal? What is the rule of thumb?

Ratio Information
Loan to Value 80%
Cashflow / Initial Investment 13%
Cashflow / Assets 3%
CAP Rate 7%

Thanks everyone. I will get some more quotes

Thanks, I will shop around. Can you recommend reputable companies for Landlord Insurance?

I have moved and bought a new home. I am going to be renting my previous home out. I need insurance. I have homeowners on my new home, so I called them about insuring the rental property. They are offering something that appears to be an extension of my homeowners policy to cover the rental. A Dwelling Fire Quote. The price seems high to me. It is about 25% higher than what I paid for homeowners on it when I lived in it.

In trying to find the best solution I have read on the internet about other ways to insure rentals and have come up with a Landlord Policy. Now I am really confused.

I just want to cover the home and cover my liability in the event someone gets hurt and tries to sue me. Does anyone have some pointers for a first time landlord?

I am moving out of state. The state I will move to has a 6.5% income tax. I will have a rental unit in my home state of Tennessee. Can I assume the rental income I receive will be taxable in my new state of residence?

Do I just pay the taxes and move along? or is there a smarter way?

Hi Jamie,

What I have done for the last 30 years is just save. After poor returns on the 401K for over a decade and what appears to be trouble on the horizon I am concerned.

I am haunted by a photo in my elementary school history book. It was just after WWII. A photo of a woman with a wheel burrow full of German marks going to the grocery store. Their currency was worthless. I know emotion should not drive decision making, but I realize that regardless of my diligent saving what happens with our economy can render all the work pointless. Thus, I know I need to change course.

What I have gotten from responses here has helped. I have wanted to get in to rental homes for a while. Now, my needs for a stable retirement and my interest in real estate have converged. I believe this is just what was needed for me to take the plunge.

Hello,

Thank you all for your responses. I did not intend at all for this to become political. Purely, I worked hard all my life and saved along the way so I could retire. Just want to protect myself. I appreciate your thoughts.

Thanks again and I appreciate your forum.

I see several replies that the answer may be in real estate. I wondered about that. I know the housing market has already taken a beating. Won't it just get worse if the whole debt thing goes South?

I bought the house about 1.5 years ago at $367,500 and have put about $20K in it since. I have also have a HELOC on it that was used during the purchase of the property, but have no money borrowed against it. As part of the relocation I have had 3 property appraisals. None showing me breaking even. At best I could maybe get the $367,500 back out. The $20K lost. I took enough of a beating on my previous home sale. Not too interested in losing all over again.

As far as rent, I asked the property management group to give me a very conservative estimate of what it would rent for. They said $1,600/mo. Seems to be inline with what i am seeing on Craigslist and other.