Perhaps you have coverage for the replacement value BUT the insurance company when calculating the replacement property uses modern building materials like drywall but your original house had plaster which is much more expensive.

Like any financing strategy, due diligence and proper financial planning are key to making it a successful solution for both parties. 

It could save you thousands of dollars of expense and time in the long run avoiding testing every two years.

I’ve learned that it is a very expensive ordeal but having a good lease helps remove the tenants faster.

Our biggest expense was replacement vinyl siding, which costed around $40K.

I would be planning to do some things before actually making an investment.

Hoping for a resurrection with deregulation & any yet to be announced plans for DC….

In some cases you will find grossly mismanaged deals with bloated expenses which can easily be fixed to boost NOI or in other cases it could be that some units were offline for several months because of a fire perhaps which hurt revenues.

At $2450, it will cover those expenses.

I plan to utilize some cash, margin loan, 401k loan, and a HELOC as a down payment.My first house hack (now an out of state investment) has a Zestimate of $530K, and I have $266K left on the loan.