By utilizing section 8 income we will turn it into a property that is insured beyond belief and make over $ 418,000 gross $320,268 net.

I made the mistake of letting someone get in one of my first units that was a bit off the 3 times, they were great tenants very kind and enjoyed their stay and experience with me, but could not afford it when I increased the rent on them, which is something you will have to do because of rising insurance/tax costs.5.)

As a side note, FDIC insurance protects depositor money, not debt.

I’d love your input on whether this deal could appeal to investors and how best to structure it.Property Details:Worth: ~$300,000HOA: $273/month, Taxes/Insurance: ~$170/monthCurrent Rent: $1,880/month (long-term); next tenant advertised at $1,950/month.Mid-term rental potential: ~$2,400/month (I haven’t tried this, but it’s my estimate).My Financing Idea:Large down payment: ~$125,000 (This is my priority to reinvest elsewhere).Seller-financed balance: ~$175,000 at 4.25% for 30 years.Buyers take over taxes, insurance, and HOA.Questions:1.

Here is my two cents: When hiring a contractor for substantial renovations, start by researching local licensed and insured contractors with solid reviews.

They also have blanket insurance coverage which is much lower then policies in Philadelphia.

One requirement for this loan product is that the rehab must be completed by a licensed and insured contractor approved by the lender.

We also recently got notice from our home Insurance that they are cancelling our policy because of exposed wires discovered by their inspector.

A conventional renovation loans will allow you to use preferred contractors, requirements are they must be simply licensed and insured.  

The only purpose of the account would be to collect payments and pay bills like taxes and insurance on assets held by the LLC.