I'm new to the industry and looking to invest in small multifamily homes in Miami (2-4 units) with the goal of renting out the units long terms. Curious what people's experiences are in regards to insurance for these types of properties. Homeowners insurance is notoriously high in Miami given the hurricane premiums especially, but do you take a different approach for investment properties? How are you estimating insurance costs in your models? Any advice is appreciated!
Julie, it really depends on the type of coverage you will be wanting/needing. If you have a mortgage they will require full replacement cost which is the most expensive. If you can settle for actual cash value and insure to a number that works for you it can lower the cost. In my experience I am seeing about 4K/year for what you are wanting if covered at full rebuild.