Your home owners insurance will change to landlord insurance, which may reduce your premium cost.  

And you need at least 20% equity as conventional loans are usually 80% LTV.The benefits are getting a lower interest rate, at least with the rates we have right not, and getting rid of Private Mortgage Insurance, PMI, which is about $220 a month for me.

Insurance will also be higher (I own a 5 unit).The deal itself isn't the best, IMO.  

If you have a well-maintained unit in a decent area, your tenants will want to stay, even if the increase is substantial and it is within market rent.BTW, prior to purchasing, ask the owner for copies of the most recent utility bills, tenant estoppel certificates (signed paper from tenant stating financial terms of the lease) and CLUE report ( A report that lists if any insurance claims have been filed against the property in the last 7 years) to ensure property is insurable.

Someone who does insurance for rental properties, who understands our true best interest.

Phillip Thatcher, PresidentLandlords Association of Eastern Jackson County (LAEJC)PS: Don't forget to encourage people to contact their bankers, insurance agents, accountants, real estate agents, contractors and other landlords.

That is what wakes them up and it can cost $500 to $5,000, so thats why its good to have a reserve.Then we attempt to get them repaying or settle for a lump sum and the debt is out of their life, otherwise we foreclose.

It's hard enough to hold a job and take care of all the things in life but trying to manage a rental long distance with experience is hard enough without adding a lack of experience to it.

Too much of a time drain on my life with the drama and they are low producers compared to what I can close on my own spending time directly with clients.

@Kyle Pare I use USAA for my banking, insurance, and car buying services.