FL Insurance on multifamily....killing my deal
I am looking at two 4-plex's in Palm Bay which gross about $58k a year in rent. The owner is looking for $400k.
The problem is that the current owner has them free and clear and does not carry any insurance on the structure. Im going to need a mortgage and based on the Sq ft replacement cost I'm bring told by insurance agents I need to insure them for $800k combined, which will be $8-$10k a year and that really eats into my cash flow forcast from these.
Anyone have any idea of a how to get the insurance costs down to a number that would let this deal work out for me?