We have an investor running a special next month on 10% down second homes where the cost is 3-4 points cheaper than it would be, on a normal Fannie/Freddie loan. 

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

I came across some critical information today that I think is important to share with you:In the aftermath of the LA fires, it has become evident that some homeowners’ insurance claims have been denied or disputed because the property title was held in a trust, but the insurance policy was under the individual homeowner’s name.This serves as a valuable reminder to review your insurance policies and ensure that the ownership structure on your property title matches the named insured on their policy.

The mobile home insurance market is unfortunately becoming more challenging for insurance companies year after year it seems.2.

If so, were permits pulled & were they installed by a professional5.Are any of the homes rented to students6.Is there a flat roof7.are there asbestos shingles8.

So I’ve read that unbrella insurance providers require you to use them for car and home.

Lots of loan options can close in an LLC, helocs usually need to close in your personal name.

For VA loans, here are some solid options:Veterans United (veteransunited.com)Navy Federal Credit Union (navyfederal.org)Caliber Home Loans (caliberhomeloans.com)USAA (usaa.com)Not sure if I can post a link here in the forum. 

I did a search on the forums and insurance seems like it could be a major problem.I have houses in two different LLC’s in Texas and insurance is not an issue at all.

Insurance-  replacement costs.