It's not uncommon for Class A rentals to negative cashflow for the first 3-5 years, until rents increase at a higher rate than taxes & insurance increase.While this can be an unpleasant situation, Class A properties tend to appreciate the most and attract the best/easiest tenants.

The actual insurance premiums in PA are regulated by the state with some exceptions (most notably approved attorneys).

Do you maintain the correct types of insurance and adequate amounts of  insurance? 

Electrical or plumbing need moved? 

Did you hire a public insurance adjuster?

Hello fellow homebuyers,I recently made an offer on a house with an inspection contingency covering the roof, foundation, electrical, plumbing, backyard fencing, and pest infestation.

Rent collected way under fees paid lease, extra utility charges to me, management fees, taxes, insurance,  do not even come close. 

I feel a bit stuck in this scenario, and I could use some advice.I'm raising some money from private investors and wanted to run some options by more experienced posters, because I'm a bit unclear as to what the best way is to structure my deals with private investors, or if there are better options that I'm not considering.Here are some rough numbers to capture a deal that is on my radar:Loan amount from investor: $110kYearly Interest Paid to Investor: 7%Monthly Rent from Property: $1300Monthly Interest-Only Payment to Investor: $642Monthly Property Taxes: $71Monthly Insurance Payment: $71Property Management fees: $104Net Cashflow: $412Now, this is not a bad outcome, and I am fine with it, but I am wondering what someone else might do differently if you were in my position - Should I charge an upfront fee to my investor (maybe $5k or so for this deal and also keep the cashflow as my monthly management fee), or would you instead use the $110k from the investor to BRRRR a bunch of deals, or would you try to just use the capital for one deal at a time?

I contacted a title agent, and used her expertise to find an investor friendly agent, a lender who could close, insurance etc.

Most insurance companies are leaving state by state and stopping to offer landlord insurance all together.