Termite contract

[Nicole Jalandoni]

Hi! This is my first time posting. We just made our first investment in Memphis by purchasing a single family home through Memphis Invest. My question is--Does one usually need a termite contract? We have one for our own home and I was thinking it would be a good idea to protect our investment. Thank you!

[Douglas Skipworth]

Hi, @Nicole Jalandoni.

Welcome to BiggerPockets.  And, congratulations on your first purchase!

Be sure to check out the blogs and podcasts as well as the forums. You can learn a ton from the real estate experts on the site.

As for your termite contract question, here's my $0.02.

The probability of a termite infestation is pretty low, but so is the cost of an annual contract ($250-ish/year).  If you've got tens of thousands of dollars invested in your property, it might be worth a small annual expense to "insure" against a major repair.

That said, once you've amassed a portfolio of 10+ houses, it might make sense to save the $2,500+ per year in termite contract costs and "self insure" against a termite problem in the future instead.

For what it's worth, my experience is that termite infestations here are very, very infrequent.

Best wishes to you on your journey to real estate investing success!