Conventional loan can have minimum 5% down with lower monthly mortgage insurnace premium than fha so generally it’s always better than a fha loan.

An expensive Renoir painting will cost a fortune in security and insurance premiums each month.However, we have always been taught to believe that these are great assets!

When one of them moves our we’ll fix up the unit and make the property “FHA-able” and sell it on mls at a slight premium and trade it up to a larger property.

Paying mortgage insurance up front($6500) and premiums monthly is a bitter pill to swallow.

The higher the deductible the lower your overall premium but get quotes on all the deductibles you are interested in.

If the market doesn't tank, you will lose the premium you paid like an insurance premium.  

They will play a game where the restoration company charges a ridiculous amount to clean it up, involving all kinds of bogus proprietary chemicals (bleach labeled something fancy) PPE/hazmat suits, hazardous materials removal protocols, extreme overkill, removing all the sheetrock, carpet and baseboard, etc. knowing the whole time the insurance company will beat them down to about half their original price, and the end result will be a giant hassle where you end up paying for it all through an increased insurance premium from having made the claim.

Understand that mom and pop tenants and regionals tend to PAY LESS per sq ft rents whether gross, NN, or absolute NNN.So if I can get a building really cheap then if I get a national chain it's a grand slam, a regional tenant a solid double to triple, a mom and pop a single but still in the game.If I have to pay a premium for the building then best typically to put an option on the property and try to get it to LOI and then executed lease with non-refundable tenant deposit before buying the property.

If the property will cash flow as a rental (new construction often rents for a premium), then that is a viable option.

We are about providing a ton of value at a premium price.