All Forum Posts by: William Lemmon

Hi there, 

We've probably done somewhere in the realm of 10 renovations that would practically count as flips (if we didn't hold all of them) just this year so far in 2023. We wanted to be able to share this portfolio of before and afters, as well as the data of ROI, etc., and whatever else we could put together that might make this more aesthetically pleasing. Maybe we want to include more about what we do and how we do it, our current vacant listings, and our journey. However, I've been running into a predicament... There aren't really any cookie cutter website's or have I been able to find a niche website developer/designer for something like this.

Does anyone have any suggestions for a website developer or website design service that could make something like this come to life? 

Sounds sort of silly, but, we're constantly looking at properties in the Akron, OH area, and many of the properties that will yield the highest rents are in the range of $80K to $120K... I have no problem getting document loans in the 7.125 range for these properties, but, can't seem to find any DSCR lenders for properties like this. Are there any out there? —I know it's probably not an ideal size to lend on, but, without question can say we typically get them in volume... 10 to 15 year.

Anyway, any takers?

So, an update on this one and some answers to the above questions! (Also want to say thank you for the responses.)

So, the court made a continuation due to Cares Act (Apparently you can't discriminate on how rent is paid) and we're required to accept, so we just filed with the CARES act for all of the back rent, fee's, attorney fee's, etc... Which Cares is claiming to reimburse everything (hopefully.)

Now, we're canceling the month-to-month tenancy at the end of July, already have the 30-day notice of cancellation of MTM, and if they remain, it's the same process over (3-day notice, court, etc) but, can't be held up by CARES this time. Hoping the tenant just leaves amicably... The lawyer recommended this is the route with the least amount of friction. 

Whoa! Let's not twist my words... I don’t not recommend Proper generally speaking? It just seems there could be a product (also designed for STRs) that could work better for him, accomplish a lower premium, and be suited for his specific situation. Obviously, I don't know exactly what he's renting short-term or whether it comes with tennis courts and a boat for guests, but, based on his question of just keeping his homeowners in place and the premium down, in Los Angeles??? 

• Travelers/Guard are admitted markets
• They're more competitive outright than any non-admitted syndicate (Proper, Lloyds, CBIZ, Other Lloyds, Great Lakes RE...)
• The Broadened Home-Sharing Endorsement Is INDEED designed for short-term rentals, especially that of an owner-occupied home. 
• You have the ability to combine other product lines (auto, home, umbrella, inland marine, yacht, traditional landlord, condo...)
• Coverages are familiar, there aren't any unanticipated gaps in coverage.
• Based on experience, service it’s way easier.
• You’re not financing your premium on a third-party payment plan.

Do we write policies with Proper or Lloyds when it makes sense? 100% yes. In David’s case (assumption made when he said he’d keep his HO3 in place), it would appear as IDEAL that he try Guard or Travelers (regular homeowners policies) given he’s concerned about American Modern being competitive. Proper, Lloyds, & CBIZ, these carriers have a place in the market that makes sense for certain types of risks (not going into it), and sometimes is the only option (eligibility) AND sometimes isn’t an option (also eligibility). But if you’re renting out a room, are renting out your primary residence, or an attached unit via Airbnb... An admitted HO3 policy that’s endorsed with the broadened home-sharing host activities endorsement is very likely going to make more sense by premium and practicality. 

Hey David,

—I own an insurance agency here in Los Angeles, and we predominately deal in home-sharing/STRs and other hotels/vacation rentals, etc.

Your best bet is going to be Guard/Berkshire Hathaway or Travelers Insurance if you qualify since this sounds like it's your owner-occupied residence? —Ideally, you could also set up an umbrella with them as well (and possibly auto with Travelers, they're pretty competitive all around.) Both Guard and Travelers write owner-occupied HO3 with the broadened home-sharing host activities endorsement, so you're not really making a big change. 

Ideally, you don't want a commercial form policy like Proper/CBIZ... and Foremost, American Modern, and Aegis all are standard markets and do much better with tenant-only occupancies  

Obviously, if none of these work, there are a handful of other non-admitted markets Llyods/Great Lakes RE, but, it's not the ideal placement.

Hope this helps! Let me know how it goes! 

-William Lemmon

Hey there! My brother and I purchased a property in Akron recently on March 18th, through a portfolio sale. For this single-family home, we found out right before closing that this tenant was a section 8 tenant, so just had to keep the property in the deal as is.

After the deal closed, all went well! HUD paid their portion of rent on time, (all of the other tenants on time no hassle!) but, this particular section 8 tenant has been nothing but problems for us right out of the gate.

The first issue is: Of course, in the very first month of April, the tenant does not pay their portion of the rent, or return phone calls... To the point that we posted a 3-day notice to quit that very first month.

Second: HUD did an inspection in April and it failed... (All of the problems, appear to be damaged by the tenant ((Broken cabinets, toilet seats, missing smoke detectors, etc.))

Third: So the tenant ended up paying their portion of the rent for April, which was received on April 29th... We haven't cashed it, and they have yet to pay their portion of May's rent.

So, we go through the process again of posting a 3 day notice to quit, this time going to evict for real, for real. Not funny anymore and no room given due to the damage seen on the property and that this tenant has been nothing but problematic over the phone, on top of not paying rent. So we get all of the documents together to file the eviction and send it to the attorney to file, and a few days later after filing (I think?), get a call and email from the Summit County Cares act, stating that the tenant has filed for emergency Covid rent assistance. 

Does anyone know what this entails and how best to approach this??? (If you've read this far, thank you!)

Any questions, just let me know! Now we're in this weird predicament... Not sure really where to go with this. I think the tenant filed when they received the court date for the eviction/lawful detainment. 

Hi Jacob, 

I could probably help you with the insurance side of things for rentals, that's not a problem whether it be multi-families or single-family homes. Might possibly have an attorney recommendation as well? But, most of our properties are in Akron so I'm probably not the best for recommendations locally. 

I think these questions you're asking result in more questions? —What type of rentals? What kind of legal work? —Are you talking about the future, for ex., evictions or drawing up a lease/sending letters? If that's the case the management company may have all of that in one go. 

I guess it would help if I had more clarity on your intentions. I might be able to help. Or at least tell you what hasn't worked for us! ;)

-William 

**Out of state and now currently in state investor/own an insurance agency.