All Forum Posts by: Tim Puffer

@Oren H. - Here are the important factors - Is the agent you're working with knowledgeable? What is their claims handling process? 

The big differences between companies are going to be specifically in the language of the policy (devil is in the details). You may want to ask specifically what the policy DOES NOT cover. 

Generally insurance companies receive low ratings because people can get slimy, arrogant, don't know what they are doing insurance agents. Or, they get upset when the insurance company didn't fully replace their 30 year old roof with a brand new one... Insurance is there to indemnify you to the position you were in PRIOR to the loss occurring. Depreciation, condition of the property pre-loss, and other factors are part of the equation in determining what to pay on a loss. Much like you are not going to pay market value for a home that needs a complete re-hab done on it - I would hope you wouldn't anyway! :)

Hope that helps!

@Austin Irwin - Great reasons to invest! How did you come up with 1 property per year?

Definitely need to cashflow. Would you be able to handle it financially if the cash flow went negative on a property where you were cashflow positive?

Even if a property is projected to appreciate doesn’t mean it will. Trump wasn’t projected to win the presidency and well...You need to make sure the fundamentals are sound. This doesn’t mean don’t pay attention to appreciation  and whatnot as that does factor in to the analysis, but don’t let that be the determining factor especially very early into investing. 

I think every investor has different goals. If you’re wholesaling you’re not necessarily going to have many tax advantages, nor long term cashflow. Whereas if you buy an apartment building or other buy and hold you get cashflow, tax benefits, and generally get appreciation as well. 

@Austin Irwin - let’s run this down - what are your goals - money wise and cashflow wise? From your current knowledge of real estate what aspects are the ones that draw you in?

Let’s dive into this because you aren’t the only one who has this thought. I think we can help others out by having a good in depth discussion! 

@Andrew Jambor - what about marketing your units as “smart apartments”. Install a Nest or Ecobee thermostat along with Bluetooth keyless deadbolt locks. 

@Jared Baker - finding a mentor isn’t as simple as asking for one. What is something of value you could add to someone in return for them taking the time to show you what they do? Could you paint, lay flooring, do some social media marketing, etc. Have you been to any real estate investment groups in the area?

@Angelica Rose - you can definitely break even or better househacking. On my current duplex I'm house hacking I was actually getting $100 more than PITI until insurance renewal and a tax increase. I'm now breaking even.

I have something for you to think about though - could you get a job doing what you’re doing in another state making the same amount of $$ or more where the cost of entry into real estate would be lower for you?

@Austin Irwin - cashflow for sure. Any appreciation is a nice cherry on top!

Are you trying to get an idea with what route you should go for investing?

@Jerry Hill - find more property if you can. Money is still cheap. Definitely build up the portfolio and increase the cashflow. Now - if you don’t want more properties then that is a different story. You could always invest in other people’s deals!

I would say that would more or less be data analysis. Not sure you need a license for that. 

@Andrew Jambor - definitely doing the right things. 

A question - how are your units better than the competition?