All Forum Posts by: Elton John

@Elton John

How did you get the 10k estimate for cosmetic upgrades?

When was the home built?

This is a good place to start and your plan will be overall successful, although there will be some stressful moments where you'll have to add cash to the equation. A year from now when you're ready to move and do it again the numbers will have improved slightly. In five years you'll wish you bought three or four in 2023. I recommend identifying yourself to your attached neighbors as the landlord's son or friend, do not be the landlord and the neighbor.

Full disclosure I have never house hacked (I wish I was educated on the concept when younger) but being as you were previously paying $1,600 rent your PITI is just 1k higher and you getting the advantages of property appreciation, rent appreciation, built equity and tax write offs... sounds like better than renting. Congrats on landing the unit off market. Singles are valuable in the baseball game... sounds like you just started the game with a solid single, that may turn into a double/triple over time. It's a positive step so I see no reason to beat yourself up at all.

- Congrats

@Elton John did you purchase this property with a loan?  If so, what did the property appraise at?

@Elton John that does look like a good first deal. Don't beat yourself up over the $15k that you think you could have negotiated down, you will look back in 5 years and that $15k will be insignificant. Over time rents will increase and you will be able to refinance also. When looking at a deal there will always be something you wish was better and there will always be a reason not to do the deal, but if you do your due diligence and the numbers make sense, pull the trigger.

It total insurance is still expensive but the $400k for $60 is about right. Again, you are 10x more likely to be sued personally than your property is, in which case this won’t protect you. Make sure your primary home also has 500k as that may extend out to protect you. 

The “fear” is a car accident where you hurt or kill someone. Or an unqualified person is doing repairs for you and gets hurt/killed. It’s basically a success tax. 

If you are worth more than $100k, that’s not enough. If this is all you have and you have less than $100k in equity you’re fine. 

It does seem like VERY expensive insurance. My average property is worth $500k give or take, and with 300/300k limits it costs under $800/yr. Maybe check your deductibles? I usually run $2,500 as you shouldn’t make a claim under $7,500-$10k anyway. 

Yes, that is the part that’s covered by an umbrella which should also be very cheap. It’s advantage is is covers you, the person who’s much more likely to get sued than your property. 

Ps. Many/most umbrellas require your base insurance to be $300k these days.