All Forum Posts by: Derek Daun

I'm in escrow on a duplex, and plan on increasing my umbrella coverage. The question is how much do I increase it to? After adding the duplex my total portfolio will be:

• 1 duplex
• 3 SFH
• Primary Residence house hack (which includes a basement apartment)

Total resale value on real estate will be about 1.7M. Net worth = 800k. (RE equity + other investments)

How much coverage should I be looking for? I'm thinking at least 3 million.

Disclaimer: I haven't had to do a full AC install yet.

10k seems on target for a full Heat/AC replacement. If all the ducting is still usable, then not needing to replace the ducting should lower the cost a bit. Inspectors will usually pad an estimate on purchases though.

As far as asking for credit, sure, go ahead and ask. It doesn't hurt you especially if you've been a reasonable buyer throughout the process. In general things like this are already priced in, but it will depend on how much the seller wants to get rid of it.

On the plus side, we're right in the season envelope where you don't need Heat or AC, so the contractors should be a little less busy.

2 months cash reserves, not 6.

Yeah, limit is 10, but with the cost of property in CA that is plenty for me, and I won't hit the limit for a while. And if I do, then I'll have enough equity in my early properties to sell one pay off two. This is due to investing in a transitioning neighborhood.

I purchase with conventional financing (30yr, 20% down), and then get my money back out with a conventional cashout refinance (30yr, 25% down). 

Sacramento and Memphis are completely different markets. It sounds like you're more interested in typical cash flow markets, of which Sacramento is not, and Memphis is. Keep in mind the more cash flow markets will be in the midwest.

@Account Closed
Is that the county assessors office portal (That's where I saw the zoning was R-1), or is there an additional site you're referring too?

@Account Closed

It's in the city. Not on corner.

It's older construction so it's possible it was given a variance.

I'm going to take a trip to the city service desk and see if I can get pointed in the right direction to find out if anything was filed in the past. There are two electrical meters, so it's possible it was done above board, although that's any sort of guarantee.

I'm in the process of putting in an offer on a Duplex in Sacramento. I check the county assessor online, and see that it's zoned R-1. What problems could I run into as a future owner? 

Can anyone with a duplex in Sacramento (city) give a ballpark on the sewer water bill. Units are a 3/2 and 2/1. Is it going to be similar to 2X the cost of a single family, or somewhere between that and one single family? I usually ballpark $150.

If you're living in one the units it shouldn't be hard to find something that works for your numbers. Even with inflated prices on multi-units from the all the dumb money coming from the Bay area, you'll be able subsidize you're living costs while earning equity in principle. 

Keep in mind your wife will likely take a salary hit moving to Sacramento. The most successful transplants are working remotely from the SF offices to keep pulling the SF salaries. 

FYI: That oak park duplex listed above is way overpriced.