All Forum Posts by: Brian Beers

@Henry Lazerow we have 3 SFH under owned by one LLC covered by a 2-part commercial policy. One part is a general liability that covers each house for $100k (low value homes) and a $1M/$2M liability. Second part is a $1M umbrella coverage just in case. For us the it costs around $400/year to add another $100k property to the policy.

The alternative is having a $1M/$2M (or whatever you desire) plus rebuild on each property which costs around $1,100 year for us. The umbrella is definitely the way to go if you’re okay if multiple properties sharing the liability risk.

@Nathan Shankles too early for me to say. The plan is to have 12 houses by end of 2020. We’ll have a mix of Sec8 and regular to test it. Long term goal is scale to 50-100 houses within a few years if our projections are consistent with reality.

I can tell you that we’ve been through a ton of houses both regular and Sec8 in the target area. Some of the most disgusting places are non Sec8.

It’s amazing how much stuff people can buy on a limited budget and never throw anything out.

We’re focused on Section 8 properties in C area outside Philly. Our formula is rent / (purchase price + renovations). This evens out the turn key properties vs the higher rehab ones.

We can get $1,150 for 2 bed room which means our budget is $57k at 2%. We try to acquire for $45k and leaves $12k for renovations. Most of the time we’re out for around $8k giving us over 2%.

Could not achieve those returns if not Section 8.

@Steven Hellinger thanks for the info. Would you mind sending me the phone numbers or emails for your contacts at those banks?

We are primarily in the Norristown area.

Who are you using for property insurance?

@Bill Rich I’ll message you so we can connect and discuss more

We looking for a bank that lends on Section 8 occupied properties. From my initial calls very few lenders want to touch it.

We are in the Philadelphia area

Any recommendations?