All Forum Posts by: Tyler Battaglia

It’s my first time buying a house and I’m going 50/50 with my partner. What are some of the things I should know or look out for?

Should we get a real estate lawyer involved?

Is there anything I should expect or look into before buying?

Is it safe to create our own lease agreement?

Please help me understand some stuff that I might not be thinking of.

Rental property All Guide:

My goal here it to have a step by step reference guide for myself and other beginners.

I’ll start from the beginning as far how I think as step by steps go:

1. you’ll need homeowners insurance to get a loan from the bank. They won’t give you a mortgage on a property that is uninsured and could burn down tomorrow. Work with your insurance agent to get a low premium that has the coverage you need right around the same time you do your inspections. If you back out due to inspections, it’s no big deal bc you won’t pay until closing. It just helps the process to have it lined up for your loan underwriter.

1. Get pre approval by the bank with good rates for a conventional loan with a 30 year mortage to keep my debt to income ratio low. Consider where i’d live in the house for a year minimum.

1 1/2: set up seperate bank account for all rental property fiances. Maybe set up a second one for reserves cash.

2. Work with real estate agent to find rental property somewhere I’d like to live (for a year minimum) Preferably with vetted tentats already living in it.

Buying property with tenants already in it: https://www.avail.co/education/articles/how-to-buy-or-sell-a-rental-property-with-current-tenants

3. Do the math. Consider average cost houses in that area are selling, taxes on the house, closing costs, maintenance costs, umbrella insurance costs, PMI costs until I own 20% of the property... Run ROI scenarios. Make sure the tenants are paying my monthly payments on the house with sole profit....What elese am i missing here?

4. Purchase the property being sure to bargin 20-30% lower than asking price unless price is fair as is.

5. Get professional inspection of home after agreed upon deal. Should I use homeadvisor for this?

6. Renovate if needed. Again, should I use homeadvisor for any renovations?

7. Purchaes umbrella insurance or LLC for

home.

8. If renters arent already in home, need to find a service that completly vets potiental renters for home... Is a background check enough?

9. Rent should be established using 70% occupancy rule. So basically if the mortgage was $700 per month. You would want to try and bring in $1000 per month to cover the mortgage in case the unit is vacant for a month or 2 while search for a replacement tenant.

10.Hire property manager? Is this nescarry for just one house? I’m not sure I could get calls about fixing the house during most business hours while starting out this rental property business.

11.Write up Rental property agreement. Is a real estate lawyer neacarry here to do this? I would want this to be extremely thurough so i assume a lawyer is the safest option. I have no experience with understanding renter-landlord rules and laws. What can I do to better prepare myself?

12. Collect rent and file taxes appropriately.

Now the #1 question here is... What am I missing here? Please help as I want to understand the ins and out of this business.

Thanks,

-Tyler

My goal here it to have a step by step reference guide for myself and other beginners.

I’ll start from the beginning as far how I think step by steps should go for investing in rental property with a conventional loan:

1. you’ll need homeowners insurance to get a loan from the bank. They won’t give you a mortgage on a property that is uninsured and could burn down tomorrow. Work with your insurance agent to get a low premium that has the coverage you need right around the same time you do your inspections. If you back out due to inspections, it’s no big deal bc you won’t pay until closing. It just helps the process to have it lined up for your loan underwriter.

1a. Get pre approval by the bank with good rates for a conventional loan with a 30 year mortage to keep my debt to income ratio low.

1b: set up seperate bank account for all rental property fiances. Maybe set up a second one for reserves cash.

2. Work with real estate agent to find rental property somewhere I’d like to live (for a year minimum) Preferably with vetted tentats already living in it.

3. Do the math. Consider average cost houses in that area are selling, taxes on the house, closing costs, maintenance costs, umbrella insurance costs, PMI costs until I own 20% of the property... Run ROI scenarios. What elese am i missing here?

4. Purchase the property being sure to bargin 20-30% lower than asking price unless price is fair as is.

5. Get professional inspection of home after agreed upon deal.

6. Renovate if needed.

7. Purchaes umbrella insurance or LLC for home.

8. If renters arent already in home, need to find a service that completly vets potiental renters for home... Is a background check enough?

9. Rent should be established using 70% occupancy rule. So basically if the mortgage was $700 per month. You would want to try and bring in $1000 per month to cover the mortgage in case the unit is vacant for a month or 2 while search for a replacement tenant.

10.Hire property manager? Is this nescarry for just one house? I’m not sure I could get calls about fixing the house during most business hours while starting out this rental property business.

11.Write up Rental property agreement. Is a real estate lawyer neacarry here to do this? I would want this to be extremely thurough so i assume a lawyer is the safest option.

12. Collect rent and file taxes appropriately.

13. Have contractors and services on speed dial to be prepared for any house maintenance or damage going forward.

Now the #1 question here is... What am I missing here? Please help as I want to understand the ins and out of this business.

My goal here it to have a step by step reference guide for myself and other beginners.

I’ll start from the beginning as far how I think step by steps should go for investing in rental property with a conventional loan:

1. you’ll need homeowners insurance to get a loan from the bank. They won’t give you a mortgage on a property that is uninsured and could burn down tomorrow. Work with your insurance agent to get a low premium that has the coverage you need right around the same time you do your inspections. If you back out due to inspections, it’s no big deal bc you won’t pay until closing. It just helps the process to have it lined up for your loan underwriter.

1a. Get pre approval by the bank with good rates for a conventional loan with a 30 year mortage to keep my debt to income ratio low.

1b: set up seperate bank account for all rental property fiances. Maybe set up a second one for reserves cash.

2. Work with real estate agent to find rental property somewhere I’d like to live (for a year minimum) Preferably with vetted tentats already living in it.

3. Do the math. Consider average cost houses in that area are selling, taxes on the house, closing costs, maintenance costs, umbrella insurance costs, PMI costs until I own 20% of the property... Run ROI scenarios. What elese am i missing here?

4. Purchase the property being sure to bargin 20-30% lower than asking price unless price is fair as is.

5. Get professional inspection of home after agreed upon deal.

6. Renovate if needed.

7. Purchaes umbrella insurance or LLC for home.

8. If renters arent already in home, need to find a service that completly vets potiental renters for home... Is a background check enough?

9. Rent should be established using 70% occupancy rule. So basically if the mortgage was $700 per month. You would want to try and bring in $1000 per month to cover the mortgage in case the unit is vacant for a month or 2 while search for a replacement tenant.

10.Hire property manager? Is this nescarry for just one house? I’m not sure I could get calls about fixing the house during most business hours while starting out this rental property business.

11.Write up Rental property agreement. Is a real estate lawyer neacarry here to do this? I would want this to be extremely thurough so i assume a lawyer is the safest option.

12. Collect rent and file taxes appropriately.

13. Have contractors and services on speed dial to be prepared for any house maintenance or damage going forward.

Now the #1 question here is... What am I missing here? Please help as I want to understand the ins and out of this business.

My goal here it to have a step by step reference guide for myself and other beginners.

I’ll start from the beginning as far how I think  step by steps should go for investing in rental property with a conventional loan:

1. you’ll need homeowners insurance to get a loan from the bank. They won’t give you a mortgage on a property that is uninsured and could burn down tomorrow. Work with your insurance agent to get a low premium that has the coverage you need right around the same time you do your inspections. If you back out due to inspections, it’s no big deal bc you won’t pay until closing. It just helps the process to have it lined up for your loan underwriter.

1a. Get pre approval by the bank with good rates for a conventional loan with a 30 year mortage to keep my debt to income ratio low.

1b: set up seperate bank account for all rental property fiances. Maybe set up a second one for reserves cash.

2. Work with real estate agent to find rental property somewhere I’d like to live (for a year minimum) Preferably with vetted tentats already living in it.

3. Do the math. Consider average cost houses in that area are selling, taxes on the house, closing costs, maintenance costs, umbrella insurance costs, PMI costs until I own 20% of the property... Run ROI scenarios. What elese am i missing here?

4. Purchase the property being sure to bargin 20-30% lower than asking price unless price is fair as is.

5. Get professional inspection of home after agreed upon deal.

6. Renovate if needed.

7. Purchaes umbrella insurance or LLC for home.

8. If renters arent already in home, need to find a service that completly vets potiental renters for home... Is a background check enough?

9. Rent should be established using 70% occupancy rule. So basically if the mortgage was $700 per month. You would want to try and bring in $1000 per month to cover the mortgage in case the unit is vacant for a month or 2 while search for a replacement tenant.

10.Hire property manager? Is this nescarry for just one house? I’m not sure I could get calls about fixing the house during most business hours while starting out this rental property business.

11.Write up Rental property agreement. Is a real estate lawyer neacarry here to do this? I would want this to be extremely thurough so i assume a lawyer is the safest option.

12. Collect rent and file taxes appropriately.

13. Have contractors and services on speed dial to be prepared for any house maintenance or damage going forward.

Now the #1 question here is... What am I missing here? Please help as I want to understand the ins and out of this business.

Hi all,

I am recently getting into real estate in the form of trying to understand every aspect a home owner must consider before buying rental property.

I’m hoping someone can help fill in the blanks of things I might have missed when going through the rental property convential loan process.

My goal here it to have a step by step reference guide for myself and other beginners.

I’ll start from the beginning as far how I think as step by steps go:

1. Get pre approval by the bank with good rates for a conventional loan with a 30 year mortage to keep my debt to income ratio low.

1 1/2: set up seperate bank account for all rental property fiances. Maybe set up a second one for reserves cash.

2. Work with real estate agent to find rental property somewhere I’d like to live (for a year minimum) Preferably with vetted tentats already living in it.

3. Do the math. Consider average cost houses in that area are selling, taxes on the house, closing costs, maintenance costs, umbrella insurance costs... Run ROI scenarios. What elese am i missing here?

4. Purchase the property being sure to bargin 20-30% lower than asking price unless price is fair as is.

5. Get professional inspection of home after agreed upon deal.

6. Renovate if needed.

7. Purchaes umbrella insurance or LLC for home.

8. If renters arent already in home, need to find a service that completly vets potiental renters for home... Is a background check enough?

9. Rent should be established using 70% occupancy rule. So basically if the mortgage was $700 per month. You would want to try and bring in $1000 per month to cover the mortgage in case the unit is vacant for a month or 2 while search for a replacement tenant.

10.Hire property manager? Is this nescarry for just one house? I’m not sure I could get calls about fixing the house during most business hours while starting out this rental property business.

11.Write up Rental property agreement. Is a real estate lawyer neacarry here to do this? I would want this to be extremely thurough so i assume a lawyer is the safest option.

12. Collect rent and file taxes appropriately.

Now the #1 question here is... What am I missing here? Please help as I want to understand the ins and out of this business.

Thanks,

-Tyler

Hi all,

I am recently getting into real estate in the form of trying to understand every aspect a home owner must consider before buying rental property. 

I’m hoping someone can help fill in the blanks of things I might have missed when going through the rental property convential loan process.

 My goal here it to have a step by step reference guide for myself and other beginners. 

I’ll start from the beginning as far how I think as step by steps go: 

1. Get pre approval by the bank with good rates for a conventional loan with a 30 year mortage to keep my debt to income ratio low.

1 1/2: set up seperate bank account for all rental property fiances. Maybe set up a second one for reserves cash. 

2. Work with real estate agent to find  rental property somewhere I’d like to live (for a year minimum) Preferably with vetted tentats already living in it.

3. Do the math. Consider average cost houses in that area are selling, taxes on the house, closing costs, maintenance costs, umbrella insurance costs... Run ROI scenarios. What elese am i missing here?

4. Purchase the property being sure to bargin 20-30% lower than asking price unless price is fair as is. 

5. Get professional inspection of home after agreed upon deal.

6. Renovate if needed.

7. Purchaes umbrella insurance or LLC for home.

8. If renters arent already in home,  need to find a service that completly vets potiental renters for home... Is a background check enough?

9.  Rent should be established using 70% occupancy rule. So basically if the mortgage was $700 per month. You would want to try and bring in $1000 per month to cover the mortgage in case the unit is vacant for a month or 2 while search for a replacement tenant.

10.Hire property manager? Is this nescarry for just one house? I’m not sure I could get calls about fixing the house during most business hours while starting out this rental property business. 

11.Write up Rental property agreement. Is a real estate lawyer neacarry here to do this? I would want this to be extremely thurough so i assume a lawyer is the safest option. 

12. Collect rent and file taxes appropriately. 

Now the #1 question here is... What am I missing here? Please help as I want to understand the ins and out of this business.

Thanks,

-Tyler

1. Do you prefer getting an LLC for your property or to use an Umbrella insurance? if either other then why? Which is normally cheaper? and which is the safer easier option in your opion?

2. Do you think its smart to have seperate bank accounts for your properties? if so why?

3. I'm thinking about getting a convetional loan  and buying a multiplex unit and living there for a year. Then I will leave the property rent out my unit and then move onto the next one. Has anyone done this and if so what are your thoughts and advice?

Thanks for any help I recieve.

-Tyler

Was thinking that if I'm going to get into the rental property investment field then I need a good way to compare best prices for handymen and contractors so that if anything happens to my rental properties then im ready to compare and contrast. Does anyone have any good methods or is your methods as simple as google searching?

Thanks,

-Tyler