All Forum Posts by: Account Closed

@Chris Winterhalter

He's pretty much refusing to issue the policy until I have 3 tenants (he checked with the insurer also).  I guess I don't really have a choice but to keep my fingers crossed and hope nothing happens that wouldn't be covered while I only have one or two tenants.

I am going to make a few phone calls today to see if I get the same response from other agents.  

@Chris Winterhalter He's working with multiple insurers because he gave me several quotes.  And he does multi family quite a bit, at least according to him.  He was referred to me by someone I trust so I feel pretty confident in his abilities.

But, he is also a little upset with me because I used another agent for my vacant building policy.  But, the policy was $1000 less for 3 months with the same coverage.  This could be part of the problem... he may just not want to work with me anymore.  

@Chris Winterhalter that's what I wanted to do, but my insurance agent insists that I can't put my landlord policy in place until I have 3 units occupied.  Maybe I need to shop agents again???

My 9 unit MF is about two weeks from being ready to rent.  I have run into a bit of a snag concerning insurance.  My agent says that I can't put my landlord policy in place on the 5 unit building until I have at least 3 tenants (unit needs at least 30% occupancy before it is no longer considered vacant -- I currently have a vacant building policy on it). The 4 detached units are not an issue because I can add them to the landlord policy one at a time.

How do you usually handle a situation like this on attached units when trying to meet the occupancy rates for a landlord policy?  

Should I pre-lease until I get three tenants and have them all move in at the same time -- say July 15th or 30th?  Or just put tenants in one at a time and keep the vacant policy in place until I have enough tenants to also put the landlord policy in place?

It's been two weeks since closing and things seem to be moving right along. I do have Biggerpockets to thank for progress so far.

I hired a general contractor, thanks to a referral from a BP member and I met with another seasoned investor on BP who gave me some pointers and encouragement.

The general contractor, seems very committed to getting the units occupied as soon as possible. He wasn't the lowest bid, but he was the one I felt had the most knowledge and understanding of investment rehabs.

Hoping to have my first tenants by July 1!

I just finished my first week of owning a MF property. I have met with so many contractors that my head is spinning. So far, 2 of the 5 general contractors have called and said they can't do the job, they are too busy. That's the reality of the market today. So I am waiting to see what the other three say.

In the meantime, I have started calling my own subcontractors for bids and have had a lot better luck getting appointments and pricing.

Boy am I glad it's Friday!

@Scott Lunn PM me and I will send you my phone number so we can discuss your needs. I am sure I can help.

For all of you MF pros out there, what rents better, 2/1 or 3/1 units?

I currently have five 3/1 units that I am remodeling. They are small 950 sq. ft town homes, all attached, with one bedroom and bath downstairs and two small bedrooms upstairs... up a narrow, enclosed staircase. All bedrooms have good closet space and windows... so they are true bedrooms, just the upstairs two are tiny (9 x 15).

If I keep them as 3/1s, I would have to allow at least 7 people in the units, not including infants. That's a lot of people in such a small space. In reality, will people try to squeeze that large a family into a unit this small?

If I convert them to 2/1s or 1/1s with a loft, I lose some monthly rent, but do I save a lot more wear and tear in the long run? Or should I only be concerned about keeping my NOI as high as possible?

What size units have the highest vacancy rates in your experience?

Will large families tear up my units? Or will they be better tenants and stay longer?

Lots of questions, but looking for insight before I make a final decision on the remodel...

I knew about it in advance and I planned to go over the existing floor. But I am considering other alternatives to save money. I do think the cost of abatement may be well worth it now to save myself $ in the long run.

unfortunately, in Texas you are not allowed to remove any product with asbestos without hiring a licensed abatement consultant, unless you are an owner occupant and the property is 4 or less dwelling units. All commercial properties require notification to the governing authority and abatement. Or I can encapsulate, which seems less expensive.