All Forum Posts by: Xu Weng

I am also just starting out. I found that the insurance for my primary residence is different from commercial rental properties. The quote I got from my primary residence insurance provider is quite high. I contacted a local insurance agency where the rental is located and got a reasonable price. 

I am just starting out in a duplex unit near Cleveland Ohio. one of the unit needs work and that got me some trouble getting property insurance. In general, what kind of things should landlord be looking for when buying landlord insurance to protect our interest. 

I am also concerned about potential vandalism for one of the tenants. 

Can proper insurance replace LLC ?

Quote from @Stuart Udis:

I urge you not to rely on the 1% rule. It is honestly the most illogical qualifier you can use. How does a rental income of 1% of the purchase price equate to the property being a good investment? There is no emphasis placed on expenses which disproportionatly impacts NOI in lower tier assets and pays zero attention to the useful life on major systems which may be barely hanging on and in need of replacement. You are also going to pass over assets that have below market rents solely because they are poorly managed. You are more likely to make the 1% rule pencil in "C" neighborhoods but is not at all indicative of performance. You can take an "A" neighborhood asset in most locations and fail the 1% rule but these assets will outperform on a cap rate basis a "C" location asset that "passes" the 1% test if the analysis is not so narrow minded and includes actual expenses, cap ex and vacancy. 

 thanks @Stuart Udis for your insightful response. I agree with you. there are many things such as CAPEX, neighborhood class, and vacancy etc play into investment decision

I am just starting out and looking for 1% rule in my area. I found it already difficult to find. With interest rate so high - 7.2% in my case. Can 1% rule still cash flow anymore ? 

Quote from @Jack Nazarian:

@Xu Weng that is good! All i can really say is be prepared to mess something up. What strategy will you be pursuing?

Agree. I have always see the success people are building but did not notice the failure they have faced along the way. We learn from our failures. I am thinking about BRRR. Still trying to understand how to estimate repair cost 

Thanks for sharing @Jack Nazarian. I am just starting out. I will try to make sure to have decent tenant screening as well as have dual diligence on contractors