All Forum Posts by: Amie D.

Yeah this is something different. You can actually put an existing umbrella policy under this one, too. I'm with Metlife right now. It's available in some states already. There is one version called GrandProtect and another that is a combo plan, but they both start May 15 in Washington.

Just got off the phone with my agent. They do this. It combines the policies into one and then they also have just one deductible - so if anything happens at either properties the deductible is paid and applies to either property. You can also put other policies under this including any auto insurance or umbrella policies you may have.

I could not get a quote on it until May 15, since that's when it goes into effect in my state. He said about 80% of the time it ends up saving you money, so, sounds like what I had been reading about.

Not really pooling, combining policies. I guess an umbrella policy would do it, but not sure if there are specifics to homeowners/landlord policies that an umbrella would not cover.

Instead of having two LL policies with 500K limits, having one with a 1 mil limit for example, or similar.

I had read that you can get better rates by pooling or grouping landlord insurance as an aggregate policy on your properties. Is this true?

I don't even know if this would be possible for me - I have two single family rentals located in two different states. I will probably be getting a third, which may or may not be located near one of the other properties (I am an out of state landlord).

Thanks!

How long do you keep leasing documents, and how long do you keep rental applications from both accepted tenants and denied?

I thought I read the denied applications depends on your state, if that is true, what is the best way to look up the information on that? (KY and IN...)

Thanks!

That is true, there are probably several in this neighborhood who bought the houses long ago for a lot less money and perhaps have them paid off right now. Just as a buyer, I wouldn't see a reason to enter into that neighborhood as an investor, but I wanted to check if there wasn't some aspect I was missing out on.

K. Marie Poe, yes, I can't realize what the current owners reason must be, I was just trying to see if there was a reason a new buyer might want to buy into that situation.

Adam Stelmaszynski, yeah, I know.... I already have a management company in place in Cincinnati, too, so if I bought more investment property it would be out there, here in Seattle the market is too competitive, inventory is too low, and too expensive for my taste. I can see getting something better for appreciation value, but it seems like the hold time would eat away at that value because you'd have negative cashflow each month.

I think like what K mentioned, this neighborhood is better for people looking for a home for themselves, it is in demand and though the ratios don't work for rentals, it is one of the lowest priced properties now available. That's why I thought possibly good for a flip (would have to see the other numbers on it, just a thought right now).

Aaron Mazzrillo, LOL...

Adam Stelmaszynski, thanks, but yes I know there are other areas that have better cashflow, I own a rental property in Indiana and another in Kentucky outside of Cincinnati.

I am just wondering what the strategies or theories would be as to why someone would buy a property in an expensive area but the rents are lower, in case there was something I was missing outside of what I already knew.

I'm kind of not interested in it because it looks like the ratios don't work and frankly it's out of my price range - I was just curious as to if this is an oddity or some neighborhoods/areas just have a low rent to property value ratio or ?

My sister's husband would probably go in it with me if it seemed like it would work, so I might look into it for a flip, though.

Jack Bobeck, even with lease/purchase it still seems like the rent or monthly payment to the owner in this case would be too low compared to the purchase price. Is it hard to find people for lease/purchase deals, esp in a higher end neighborhood? It would seem like around here people wouldn't have that much trouble qualifying for a traditional mortgage.

Jack Bobeck, LOL, but this is actually my sister's neighborhood, and so I know there are several rentals around here with similarly priced rents yet the property values are all high relative to the rents (this is an expensive area). The other thing is property taxes are very high here, too, so that would be another expense. I just don't get why someone would buy or keep a rental here with those ratios?

Just wanted to say thanks again to everyone who contributed to this thread. I wanted to update on the decision I made on it.

I considered that I would already have almost $17K in the house (due to having inherited part of it) and then give my sister and brother $5K down each on their portions. That would mean that I would have about $27K into the house, and then the notes I would owe above that to get to 50K.

I did some more research. One of my existing rentals is in a college town - no way I could get anything in a similar price range. However my other rental is in the SW Ohio area, where there is a selection of houses I could pick up and have rented for under $30K with a similar cash flow - but no other notes/mortgages. As well, I already have a management team in place there.

Around the area in which the inherited house sits, there are also less expensive houses that could provide similar cash flow, but I would have to set up another management company in that town and I don't think the area will come up in value as much, as it's a smaller town.

I considered other things to improve the cashflow on it, such as developing or renting out the oversized garage separately, but I don't think that would work.

So, while I don't think this would be a bad deal, and it is tempting because it would be fairly uncomplicated, since it would just basically involve a transfer of title and then renting it out, I think there are probably better deals to be had.