It is NOT a substitute for insurance.

It's a low crime area already but it's extra insurance we like anyway.

Insurance?

When you have insurance/liability questions about your personal portfolio pre/post investment property purchase, I would be happy to help you!

I’m an insurance broker who works in all 50 states and I see far too often people, and RE investors especially, do not have their liability separated out correctly to mitigate their personal risk..Over and over I get the same types of questions when insuring a portfolio (of any size) from people who do notnfIlly understand the lIabIlIty they are exposed to..What questIons do you often have about where your liability extends to or what you’re exposed to?

They need to call the police and their insurance company.

Someone bought it from the bank for $65k, put on a new roof, new siding, gutted everything inside to the studs, new plumbing and electric.

A contractor’s insurance doesn’t pay for any of this. 

what happens if the buyer destroys or contaminates the property or uses it as collateral or doesn't pay the insurance etcCan I ask for other collateral?

So the numbers (so far) are:Purchase price: 62kARV: 105,000Buying costs: 961.00Rehab: 7-15kUnsure of what the holding costs will be until its rented but I'm estimating 4 months.Utilities: 650Taxes: 300Insurance: 500Interest: 2400So I'll be in it for about 70% ARV.Projected rent: 12000Costs: prop mgt: 1080Maint: 600Capex: 360Utilities: 0 (tenant pays)Vacancy: 1200Tax: 800 (this will go up in october but maybe only 300)Insurance:  still getting numbers but no more than 1200NOI: 6760Debt service will be accounted for after rehab and when I find a good refi option, but I figure I'll pay about 5.5pct and have lending costs (unsure of what those will be) associated with it.