All Forum Posts by: Tyler D.

 I plan on keeping it for the long term, at least 10 years. I'm putting aside money for repairs anyway, so I don't see the need to pay this much for insurance to say, fix a roof when I could've paid for that myself. Unless the house is totally destroyed, I don't think it would be worth it.

And even IF the house is totally destroyed, I don't see why I should be paying insurance for a $140k rebuild when I can buy the same for $40k down the street.

I'm in the process of buying my first house, which is a $42k SFH that is in great condition.

I called USAA and they quoted me a $140k rebuild cost, which I thought was extreme.

Their rates were $910 for 1k deductible and $503 for $10k deductible. These don't seem worth it for a $40k house, though a $1M liability coverage is included in both.

So, your thoughts? Which of the two would you get, if either? Should I shop around for rates, or is this fairly normal and to be expected?

Local investors or local contractors, agents, etc? I have a property manager who will be managing it after the purchase, yes.

My question is how do I let the contractor in and supervise the work when I am not physically there. Will a property manager do this? For 10% of rent/ month, I doubt it, but I'd love to be proven wrong. 

I am in the process of buying a SFH that needs some minor rehab. I need to have the flooring redone.

However, I am out of state. I have a contractor that already gave me a quote and is willing to do the work, but how will I let him in/ verify the work is done from out of state?

Thanks Joe. Based on this I will go with the fixed rate mortgage.

Okay, thank you.

For the 50k to 500k comparison, we're not talking about risk profiles and appreciation. We are talking about loans. The payment on 10 50k loans @ 4.5% are exactly the same as one 500k loan at 4.5%. 

When you say it is "just $50", you're forgetting scale. $50 when we're talking about $100 cashflow is a big deal, and has a huge impact on CoC when you're looking at multiple properties.

I agree, but I am looking at a large scale. Think 10 homes @ 50k each. Look at it like a 500k home. What would you do in that situation?

I'm thinking the fixed would be the smarter option, though. Am I understanding how term/amortization works correctly?

For the same reason I'd want to pay interest on a $500k house. Leverage. 

I am looking to refinance $50k investment property and was offered a loan with 5 year term/25 year amortization. The rate is better than anything I can get with a normal loan (4% vs 5.5% for a 20yr fixed refi). 

As I understand it, my loan would be paid at a 25-year amortization rate and I would need to refinance it after 5 years. Does it make sense to do this, or am I better off taking a worse rate for a normal fixed-rate mortgage?

I think I will, I want to get at least 1.2%, I think that's pretty reasonable. 

I've been looking on loopnet and MLS and 90% of the offers on there are 1% or below. I'm sure there are better properties out there though.