All Forum Posts by: Vernon Bond

Hello BP Family,

I just purchased my first rental home last week and I am currently looking to switch my home insurance from geico to a more competitive priced company. Geico is charging me 120$/m on a $100k Single family home.  When i spoke with them about why i was paying so much they informed me that they could lower it but I would have to go through a lengthy process to do so. I know that 120$/month is very steep. the property is completely rehabbed and in great condition (new appliances, new roof, new HVAC etc..) I payed 100 grand for the home and it was appraised for 140K.

I was wondering if anyone has any recommendations on who i should go with in regards to Home Insurance on this rental property. Thanks!

Thank you everyone for the advise!

Hello BP Fam,

I am an investor in MD and I have a question about a different strategy that I would like to try. I currently own 3 rental homes in MD but i purchased them with conventional financing. My new strategy would to be purchase a home that needs repairs with cash(lets say for 30K) and invest 30K in repairs (60K total into the property). Then I would rent the property for cashflow and cash out refinance.

 My question is: What terms, rates and seasoning should I expect from a local/private portfolio lender? I am already aware of fannie mae's requirements for a cash out refinance so im looking for other options outside of a major bank. Also, if anyone is aware of a good portfolio lender in Maryland that i can reach out to, then please chime in as well. 

Also, my credit score is 700+ if that helps. 

Hi @Steve Cavanaugh what time is your meet up?

I do not understand why you would buy a property that does not cash flow (especially as your first investment property). But i DO understand why you would NOT buy a property Solely on Cash Flow alone. It seems like you are focused on appreciation, which is "ok". If I were you, I would target those properties that have a large opportunity of appreciation (which is harder than it sounds) and only move forward with the properties that put money in your pocket today (even if its 50 bucks). 

Only in rare cases would i consider buying a negative cash flow property and I would never recommend a rookie investing in that strategy to begin with. Just remember: a problem could arise and make your "cash flow" property become non profitable for a month or 2 but the same problem could arise that makes a "negative cash flow" property become a VERY BIG HEADACHE. 

Good luck!

Hello All,

I am expecting to close on my first rental property in 2 weeks and I am extremely excited but i do have a question for you all that are more experienced with buying rentals. I am currently buying my rental through a conventional loan. The bank that i am using has been requiring me to submit "So Much" information. examples:

1. copies of all my bank accounts and explanations of every large deposit

2. Tax returns and explanations of any tax extensions

3. Credit Card statements

4. HOA statements on my primary home

5. Copies of checks that i have written in 60 days

6. explanations of all recent credit inquiries

and the list is much longer than this.. it seems like they need to know everything but my blood type..

Should I go with another bank for my future rentals? or is this customary among all conventional loans??

If i should go with another bank, then please provide some recommendations. I understand that there are many other strategies to acquiring rentals but i like to buy homes that are "turn key" and most of those properties are advertised at a price that I cannot buy with cash. 

Welcome to BP @Kelcy,

I began my REI journey by house hacking as well. i then bought a fix and flip property, then a rental and i have been building a portfolio ever since! I think the route you are going is an excellent one. I am also in the DMV area as well. Feel free to reach out to me for help/advise.

Welcome to the BP team Marc. Good Luck!

thanks so much!

Thanks for the advise!  

@Ned Careyyes, the property is vacant but it is rent ready. i have not had the property lead certified because i close on the property in 3 weeks. i will begin that process then. I have already spoken with a few PM companies and i'll be narrowing my decision once i get closer to closing. 

@Nicole A. l am aware of the lead certification requirement but i am not aware of receiving a rental license? can you explain further?