All Forum Posts by: Tasha Thomas

Oh and make sure you are getting a DF-3 form policy....

As an insurance agent - I only put vacant and sub-par properties with Foremost, as they are expensive.. but also one of only a few companies that will take vacant or properties that may have issues getting insured elsewhere.

If the property is in good condition rates with many companies could be competitve. Pekin is VERY competitive, but you must have your primary home & auto with them also. I do write a lot of business with Auto-Owners Insurance and you can check Celina Insurance too (but they are hit or miss).

There will not be a one straight answer to your question, as each company has a "target customer" and some offer deeper discounts or higher surcharges based on a ton of different things (credit score, multi-policy, age, loss history, location, etc.) Not all companies rate the same!

Ali,

I have had a few people suggest similar things. They will just give you that advice for free? Seems too good to be true!!! lol

@jason - I tried looking on Craig's List for some rental info for New Carlisle (one of the places I'm interested in around here) and there was very few to look at and nothing comparable.. It's hard to tell. I will keep my eye out though!

@Chuck - Thank you that is very encouraging!!! I am very new to this and I don't want to be in the worst area of town or one with high taxes. Looking for a middle of the road place to start (who isn't? lol) The realtor that sold us our first home back in June is great and owns a lot of properties in my area. I feel like he would be willing to help when we're really ready to start looking seriously, but I am hesitant to bug him months ahead of a planned purchase like this. Maybe I'm overthinking that? Thank you so much for your advice.

@Aaron - wow! thank you for posting those. Seeing that first property scares the HELL out of me.. lol. I have looked at a lot of properties on Trulia and the ones in the price range I am looking for to make much of a profit are similar to that first one...some better than others. I guess that is what i need to start expecting, but I wouldn't even know where to start!

On the 55k property... according to the 2% rule, I should be looking to collect $1100 rent total from all units. Am I correct in that? If I am reading the listing correctly there are 2 two bedroom units and one 1 bedroom unit. I could charge 400/400/300 and come up with the $1100. Seems like I could even go higher according to the rentometer website. It says the median rent for a 2 bedroom in that area is $613.. not sure how accurate that is though. I could look into it more.

It looks like I would have ~550/mo mortgage payment inc taxes & insurance.

Using $1100 in estimated rent and using the 50% rule, I would only have enough to make the mortgage payment.. this is of course being conservative in the numbers, but it doesn't seem to me like there would be enough of a profit... Am I doing this right?

This is where I seem to be getting stuck in the process. Any advice is appreciated.

As for property #3, I am looking for something a bit cheaper if possible!

@Corey - Thank you for the link! I will be using it. Do you find it to be generally reliable?

Hello,

Probably not looking to buy until 2014, but I want to get an idea of where I need to look to buy my first rental property.

I am in the Dayton, OH area. I live in Montgomery county which seems to have high-ish taxes all around. I was considering something in Miami or Clark county. Is anyone familiar with some good places to start around here? How do I find comparable properties on my own that are actually renting to know what I should charge for rent? Also, How can I tell which areas are in higher demand for more rental properties?

Thanks!!!

Hi Therese,

I am a licensed insurance agent in Ohio.

The type of policy you need is a dwelling fire policy (this is the type of policy all landlords need for their properties with 1-4 units). As Ali & Kevin said a form 3 is the route you will want to go, which covers most perils (minus flood & earthquake) for replacement cost. Many companies won't do an actual cash policy and the ones that do usually charge you more than what a replacement cost policy would be.

Dwelling fire policies are usually slightly more expensive than regular homeowner's policies, as they are seen as a greater risk to the company. Shop around for quotes and I always recommend an independent agent.

Dwelling fire policies are similar to homeowner's policies in most aspects except that they do not cover (much) personal property - for this your tenant should get renter's insurance and I usually recommend writing that in the lease.

Also, make sure you have a minimum of 300,000 liability and an umbrella policy is also a great idea.

If the house will be vacant for a while you will be looking at a much more expensive and less inclusive policy. Let me know if that's the case and I can go into more detail about that.

If you have any more specific questions I would be happy to help or review any quotes that you get!

Hey Dustan,

I am an insurance agent here in Ohio and I can answer some of your questions about possible vacancy. When you start out if you will not have tenants right away, you will need vacant home insurance (and yes it can be expensive). Vacant homes are insured to actual cash value instead of replacement cost. You would probably want to insure it for what you paid for it. There is an endorsement you can add to the vacant home insurance for theft and vandalism. I recommend this 100% of the time!!!! Get a quote and factor the vacant insurance in. As soon as you have a tenant you will need to change the insurance to dwelling fire insurance, where the home will be insured to 100% replacement cost.

If you would like me to run some quotes for you, I would be happy to. Just contact me on here and I can give you my info. Not all companies will accept vacant homes so keep that in mind if you are going to use your regular insurer.

Thanks and best of luck!

Thank you Holly. We started amping up our savings effective yesterday! And I am visiting that link right now! I do listen to a LOT of Clark Howard, and have learned so much from him over the past few years... I guess I just haven't gotten the savings part down pat.

We still are going to have a goal of trying to do this in 2014, but we're going to make sure we have a good emergency fund in place.

Thank you all! I really appreciate your advice and insight. I think it would be possible to put more money aside than we are now.

What do you think is a good amount to have in an emergency fund?

Unfortunately, daycare is a set expense. Both of our parents still work full-time and are unable to help with childcare during the day. The way the daycare is set up, 4 days a week costs the same amount as 5 days a week. (anything over 3 days, you pay for full-time daycare).

I do see places where we could cut down on food expenses and entertainment expenses. This is something I really want to do and realize there will be sacrafices. I am excited to be here and learn more and more. I have already been talking to my friend at the bank about any ideas he has and any advice he has.

We will be keeping a 30 day diary starting on Friday (first of the month)

Thank you all again.

Hello, I just joined this website after reading a really motivating article from this website's creator.

Let me give you a rundown of my current situation.

My boyfriend and I just bought our first place in June of this year. $110,000, had no clue what we were doing. We used the FHA loan... still no clue about anything. We would like to stay in our current house and buy our first investment property in 2014.

We pay 857$ a month including taxes and insurance. Insurance is cheap, taxes EXPENSIVE. I am an insurance agent so I am an expert on the insurance side of things, just not the investment side.

I am going to get a bonus at work at the beginning of 2014 probably around $4000. My boyfriend and I will be getting tax returns back probably (I am low-balling) around $7000 total. That gives us around $10,000 to start out with.

Unfortunately right now we are living paycheck to paycheck. My boyfriend is a (new) electrician. He just graduated school and is starting out with a company not making much to speak of. I have a pretty reliable income, but we make ends meet with not much extra.. as in I have a total of $250 in savings right now.

We are also parents to a 4 year old and pay $800+ in daycare a month.. so you know where the money goes.. lol

Advice??? Where do we start??? I am good friends with the guy who did our loan am also friendly with the real estate agent that helped us get our home.

I know investing the money we are coming into next year may not sound like the smartest idea when we are hardly making ends meet, but I am a risk-taker and am also slightly impatient. I want to do this soon and get started.

We are thinking more along the lines of buying a property to rent out to a tenant if we can find a good deal. What do you guys think? I would love to talk more about this.. teach me your ways!

Thanks ahead to anyone that is willing to help.