All Forum Posts by: Dwight Rigel

I would also be interested in this.

I would ask to look at his vacancy rate. After that I would caution you that qualified labor may be hard to come by. Tenants may also be hard to come by. Stories will spread through town quickly so if someone gets mad at a situation they may turn people against you. I think if it were me I would max out my vacancy and repair rates. Completely disregard appreciation. Then if there's still good cash flow consider it.

Thanks everyone. Makes sense.

I picked up a SFR with a tenant in place. After meeting and discussing the new rent amount and late fees they asked if they could move their due date back. I agreed and told them that the first month would have and added prorated amount. My question is do you simply take the monthly rent multiply it times 12 and then divided by 365 for the daily figure or what formula do you use when prorating the rent for a specific number of days?

Would there be any other indications that we as smaller investors could cue into to see where the action will start happening or is just beginning to happen.

I've noticed that the larger investment groups seem to move throughout the country following the ramp up in banks' forclosures. For example one large investment group that came in to St. Louis had just finished buying hundreds of homes in Texas. After about a year and a half and 200 properties in St. Louis they were gone. I know from some people they work with they went elsewhere but I don't know where. So the question is: how do they know where the markets going to get hot for buyers i.e. where the banks are going to start increasing foreclosures?

in my market that would likely be acceptable though as the agent I would document that I spoke with the carrier's underwriter because there is a lot going on.   That being said New York is it's own world when it comes to insurance so you will need to call a few places.  

My suggestion would be to contact an independent agent or two and ask them. If and when you get the green light follow up by sending them the info on the property via email and review the scope in your email for documentation purposes. 

Best of luck!

Certainly would request copies of the rental income from the seller.  Certainly would NOT knock on the door of the tenants.  Good luck.

There are two distinct differences in insurance policies while home is vacant and being rehabbed.  It is important to know which you should buy as one will typically not offer liability protection if you are acting as the GC and it's nice to have in case something were to happen. 

Typically the deciding factor is whether or not there will be structural work (moving load bearing walls, etc.).  The two options are Vacant and Builders Risk.  Vacant will typically be underwritten and accepted by carriers that offer vacant policies and include premises liability.  If it's kitchen updates and flooring you will get a better price and coverage by using this type of policy.  If on the other hand the carriers listen to your project and decide you only would qualify for a Builder's Risk policy then you will need to ask if they will provide liability based on your circumstance (are you using an insured GC other than yourself or will it be you doing the work.

Once you know which see if you can get a DP3 or Special Form rather than a DP1 or basic, if not shoot for DP2 or Broad Form.  The Special and Broad cover more types of losses and are typically a replacement cost basis rather than a depreciated settlement but make sure of that as that part can be endorsed on or off.

With all of that being said markets are different and appetites from carriers are different around the country.  Be sure you have a record (email) of what you told the agent or company so if a claim occurs you have proof that you were honest and forthright in your description of your project.

Good luck and have fun.

As an insurance agent I say yes. Yes and heck yes. Now keep in mind there may be contract language that could cause issue. For instance there would be coverage if tenant has a fall that reverts back to your legal liability because the steps were in ill repair. However there may not be, likely will not be,coverage if tenant sues you for slander or breach of privacy. Umbrellas are typically bodily injury and property damage oriented and don't cover the professional liability that comes with being a landlord. There are policies (I use Foremost for mine) that will allow landlord legal liability and regular liability at $1MM within the policy without the need for an umbrella.