Advice on Home Warranty Insurance?

Question

Dear my fellow BiggerPockets,

I purchased a rental house 2 years ago, and it was built in 2007. It has required fair amount of repairs and maintenance cost to me, resulting in reducing my monthly cash flow significantly. Last year it costs about $10K and this year so far has costed me $2K. My question: is it advisable to get Home Warranty Insurance? To reduce my repair costs?  Or if this is not advisable, what are my options?

I appreciate in advance for your help

RT

Kiera Underwood · Answer

@Rudolph T. I've only had one on two properties for two years and I've probably broken even. The best PM I know doesn't suggest it unless you have major mechanicals on the way out!

Rudolph T. · Answer

Thank you @Charles Carillo and @Kiera Underwood for the response. Kiera, do you find it saves you money in the long run? I haven’t done my research on the cost of Home Warranty. If it only costs $500 per year, it certainly would save me money since I already spent $2K. I certainly hear what Charles recommends to not get the home warranty. Trying to be very careful.

Kiera Underwood · Answer

@Rudolph T. I've found that they're helpful if any of your major mechanicals are much older and on their way out. Many times for smaller repairs you end up paying a trip fee for them to tell you that the item you're wanting to be corrected isn't covered. Happy to answer any questions around this!

Charles Carillo · Answer

@Rudolph T.

Check out this article: https://www.daveramsey.com/ask...