All Forum Posts by: Bill B.

I’m sure they aren’t the cheapest. But I’ve had good experiences with Allstate in Vegas. I get “20% off” for multiple policies. I’ve made two $30,000 water claims that they paid instantly. (Two different houses the toilet supply lines failed. REPLACE all stainless supply lines that aren’t braided but rather look like snake scales. NOW!!!). Ps. They even sued a manufacturer and got $7k of which they gave me the first $2500 I paid as a deductible, even though they still lost money.) My only 2 MN properties (one rental one 2nd home) are insured with State Farm as they were insanely cheaper on waterfront properties than anyone else.  I’ve made claims on the 2nd home from storm damages there and they paid fast and paid contractors directly.)

Ps. If you can afford it $2500 deductibles will save you money every few years. You don’t want to make $10k claims. You want to make claims of at least $30k. 

LMK what you find. 

In Las Vegas and in MN that property woulda been active but contingent. I've bought many houses that were contingent. I just have my agent call the selling agent and ask how the sales going and if they think they'll close "on time" (expected close is usually listed in the MLS). Ps. Would they like a backup offer from a guy who's going to close if he gets his offer accepted.

In this case buyer woulda have put in a a written addendum saying we want this fixed or the deals off. Selling agent would call us, we’d say yes. And they’d tell previous buyers to get lost. I would never respond to buyers requests for repairs that aren’t on an official addendum that says do this or the deals off. 

Glad you got it sold in the long run, but in this market you shouldn’t have had to jump through so many hoops. 

My brother in law owns 4 “quarters” (120acres) that are worth about $1mil each along with a couple million in equipment. He also “rents” 4 more quarters for $32k per year each. (Talk about a bad return for those landlords on a $million.) So with 3 million invested he MIGHT have made money last year. He does 1/2 and 1/2 corn/soybeans. Unfortunately corn’s gone from $7/bushel to less than $3. I spend 4-6 weeks 7 days a week in late September and early October cause I enjoy it. But my easy going salt of the earth friendly brother in law is a swearing screaming worried as hell guy the entire time. It’s kinda sad.

Guy, Please check your modern American policy. I seriously just bailed on 3 properties insured by them last month. They inserted a maximum water damage coverage of $18,500. I don’t have any multi family insurance but I have 12 sfr between 1800-3400sf worth $250-$400k each. I have $2500 deductibles with $300k insurance limits. (Where Umbrella kicks in.) they cost a total of $6494. So less than $550 each. That does work out to $2200 for a $1.2mi fourplex but that’s with an “expensive but dependable” company. Main reason for post was to warn about American modern. They switched the water limits on me a year ago after using them for 3 years with no claims. (At the time Allstate had a 6 policy maximum but my agent wrote for an exception.)

The renters insurance should pay the renters for damage to their property although they may turn around and sue landlords insurance company. This sounds like a solid claim against landlord insurance company assuming it was done legally. Otherwise the landlord should probably pay out of pocket fast, and be happy no one was hurt.

@ola Danits Am I missing something with your loan math? You have an ending balance higher than the starting balance? $184k minus 20% equals $147,200 loan. But an ending balance over $150k? I didn’t notice the City but a fourplex for $184k sounds great before commercial space. Any chance of moving in to a space for low down house hack? Even not living there a bank should accept 20-25% down investment. Under 7% for sure.

Sorry @Jeffrey Leung,

I thought you were comparing us to the posters home state of california. 

To the best of my knowledge it’s 3-5 day pay or quit, 24 hours after 3-5 days you got to judge, he gives you paperwork for Constable and next business day they lock them out. Start to finish might not be done in a week but 2 weeks should be easy barring any screwups by landlord. Plus there are “100’s” of companies here that will do it for almost nothing either to tack on their fees to Tennant or get your future business. The constables end up being the most expensive part. $24 plus $2/mile. 

@Jeffrey Leung 

Las Vegas isn’t landlord friendly to you? It MIGHT not be the most friendly but I put it in the top 10%. 5 day pay or quit and then the constables if they aren’t gone. In almost 20 years with 12 properties I’ve had to post two pay or quits. One paid, one vanished so maybe someone will say they’ve had horrible experiences but I doubt it would be government caused. What made you think it wasn’t landlord friendly? In many ways It is slowly following horrible California examples, but it’s resisted most of its real estate ideas. 

Las Vegas is way more expensive than 5-10 years ago but if you live in California you’re choices are vegas, Phoenix or far far away.

@terry Lao

sorry terry, figured you’d be able to sell them for at least $100k per unit. 5% 30 year loan on $95k is $510/mo. Could you seller finance them for $100k with $5k down? (If they are paying over $550/mo rent they could afford utilities.) you could play with interest and sales price to make purchase less than current rent. 

I did my bulk refinancing right. I have 2 x 4% 30 year loans, some 3.75% 30 years and a couple 3% 15 year loans. 

Are the utilities higher because it’s a 4plex? My water is $30, sewer is $20, garbage is $15. (2400sf single story with a pool but just two adults in it.)

$150 per unit seems like a lot of HOA. Do you charge your tenants for any of those utilities or just charge higher rent and advertise that it's all inclusive?

Have you looked in to/is it possible to take one of your fourplexes and separate it in to four condos and sell the units separately?

I get what you’re saying about the commercial loans. I ran in to the same thing when I was offered a commercial portfolio loan wrapping 10 mortgages in to 1. They just glossed over how it was 30 amortization but callable every five years.

I kept asking about what if there isn’t any affordable financing when they called it due? What if I had paid off 80%. They’d just take all the properties. 

I didn’t see a way in to those 12-50 unit multis that didn’t put all my money at risk when the loan was called except doing a 1031 with enough paid off sfr to pay for it in full. I have heard lately about Fannie and Freddy Mac small balance loans. Supposedly non-recourse, fixed rate, 10+ year loans.