All Forum Posts by: Ericka G.

@Casey J Burkhead

@John Mocker

@Account Closed

Thanks for the input.  I will call and try to get a copy of the report from USI.  Looking back at my purchase inspection report, he did indicate that there may be asbestos siding UNDER the vinyl siding as the house was built in the 1950s and that was common siding back then.  I have another property with that same situation that had no problem getting insured, however.

For Traveler's/GEICO, I met the inspector at the house myself so I know she was in the right place and that is what is so odd about the assertion that I live there...I feel like they just decided to dump me for whatever reason.  They also sent a letter canceling a policy on an immaculate triplex I own due to branches overhanging the roof.  Sucks because we have 2 cars, an umbrella policy, and multiple properties insured with them and I was really happy with them until now. 

Time to shop for another partner, I guess.  I just hope the properties haven't been black-balled for some reason.  No previous claims on either property that I'm aware of.

One property in my portfolio is about to be dropped from insurance for the 2nd time in about 3 months - with no chance given for appeal or remedy.   First from Travelers/GEICO and now from US Standard Insurance Company.  Has anyone else dealt with this? 

I purchased the property for $56k in April.  It is in good shape, rented to pilots, but is in a marginal area (East Point) on a good block - one block from MARTA and 1-2 blocks from Tyler Perry's new studio.  The first time, Traveler's sent an inspector who submitted a list of  ridiculousness such as claiming I was living in the property though it is on a landlord policy (this is ridiculous b/c they insure my primary residence).  They sent me a notice of cancellation and I found new coverage through US Standard Insurance at the recommendation of my realtor.

Fast forward a couple of months and I get a letter saying USI is terminating my policy in September due to "unauthorized" siding material...but the house has standard vinyl siding??  Are they seeing a risk with my property that I'm missing? 

I'm now debating finding yet another insurance provider or self-insuring since we have the reserves to do that.  I will probably just find another insurer but am really annoyed with this process and wonder if I have any recourse if a company drops me for what appears to be unfair reasons?  

Any input, advice, or recos on landlord friendly insurers in GA would be greatly appreciated.

@Lee Pittman Ok, that makes complete sense.  If the goal is to live almost free in an awesome area while building equity, I think you have found a really great deal.  That is a great location, so I think you should be able to find a good tenant at the price point you seek.  Good luck and enjoy it! I loved living in that part of Atlanta and I'm sure you will too.  

@Lee Pittman I know this area well as I used to live right off of Lindbergh. I loved living in this area and think it has a ton of potential due to Buckhead location, proximity to MARTA and midtown - that seems to be a good price for a duplex over there. The one concern with that area is over-building.  There are 4-5 brand new apartment complexes going up in that Lindbergh MARTA pocket along Piedmont.  That will be your competition so I'd call around and see what new 2bdrms are going for in that area. 2011-2014 I paid  $1300-$1450 (rent went up over 3 year period) for a brand new 2 story, 2 bdrm loft and had a gym. pool, business center, etc - those bldgs also offer low deposits/move-in incentives since competition is high for good tenants.  

You may want to place a dummy ad on craigslist and see what kind of response you get at $1600 and $1700, using exterior pics of your location and interior pics that are closest to how you will renovate.  Even at the $1700, doesn't seem like you will meet the 1% rule.  Not trying to rain on your parade, just wanted to play devil's advocate.  If the goal is to live mortgage free and bank appreciation, that could be a good bet.  From a rental cash flow perspective, however, it seems like less of a slam dunk.

David Song ironically, very near the area you dismissed. There are some awesome deals to be had in SUBURBAN Detroit. The areas we focus on have good housing stock for ~$50k, solid schools (5 and above for elementary, middle, and high school), and the areas are safe with plenty to do: malls, airport, movie theaters, and restaurants within 5-10 mins. I won't mess with the city of Detroit as an out of state investor. Also note I said solid schools, not good schools. I've found that as long as the schools aren't red/below 4s or 5s, good renters will still consider an area. Our latest addition was a short sale- 3/1 for $53k, all appliances included, needed $1k of minor cosmetic work to be move in ready. we had 5 applications at $1,050 within 2 weeks. 100% of our tenants in this area are airline employees. The downsides of this area: insurance is very high in MI and because it is cheap to buy, most renters with good incomes have lackluster credit. If they didn't, they would be buyers. Our niche has allowed us to mostly avoid bad credit folks but it is definitely a concern in these less expensive markets. We'll see how it goes. Our focus has recently shifted closer to home but the MI properties have been good investments thus far.

Cynthia Craft since you live in Detroit, look for areas you know you can afford, have potential, and can attract solid tenants. I've had good luck getting deals in the suburbs of Detroit near the airport and have found excellent tenants - 100% airline employees. I've avoided Detroit proper because I don't know the neighborhoods well enough BUT if you are local and do feel confident in an area's potential - go for it! The beauty of the Detroit metro right now is that prices are still low enough that the risk of jumping in (after doing your due diligence) isn't huge because the cost of entry is quite low

This is a good debate; ultimately, I think it boils down to individual preference. There are a lot of ways to make money in this game. I have five ~$50k and under SFR in my portfolio, and they each rent for more than $1000/mos. All but one of these properties have appreciated nicely as well. Further, I have found the maintenance expenses similar to my $100k+ investments. I'm one of those who invested in Harlem when you could buy for nothing and saw my investment quadruple - that was my first real estate purchase. That early lesson taught me that just because a place is "cheap" or deemed bad by others, doesn't mean that it doesn't have value. It's a combination of gut feel and data analysis. If you go to an area and see a ton of great attributes, dirt cheap prices, solid schools, solid rents/tenant stock, close to public transit/desirable areas, whatever...why wouldn't you jump on that? But that's just me. If I had millions to work with, perhaps my strategy would shift to the stuff the OP is talking about.

Aaron L. You're correct, if you don't own any other properties, you can still qualify for NACA. I interpreted as a program for those new to the home buying process but now that you mentioned it I do recall them saying you can use their services if you've owned before as long as you don't own anything currently.

Jay Hinrichs what is an OREO property? Aaron L. I went to a NACA training/mtg 2 years ago in Detroit. I didn't qualify bc I wasn't a first time home buyer but went on behalf of a family member - a veteran and first time homebuyer with good credit/income. Based on the questions asked in the mtg, most of the folks in the room wouldn't normally be able to buy a home due to lack of credit or downpayment. NACA is an amazing opportunity for any buyer - prob the best thing out there other than a VA loan: no downpayment, super low interest rates, no PMI BUT you have to have the patience of a saint and superior organizational skills to navigate their process. If you don't mind waiting 3 mos to get into a house, give it a try. In my situation, the follow up call from NACA to BEGIN processing the file to enter their program came the week he was moving into a property purchased with a VA loan - just way too slow for someone who has a set timeline for when they have to move. If you have the time, patience, and flexibility, though, I think NACA could be great

Mike V. This is a tricky one. I had an almost identical situation with a med school tenant who had bad credit so offered to pay 6 months up front and then another 6 months when his next set of housing allowance came thru. Even with that, he was a bit of a nightmare...was late with the next 6 mos payment and then only had 3 mos rather than the 6 agreed. Always chasing him down. Have you met her? What is your gut feeling? If her credit is solid and you know you can rent the place in 6 mos, you will likely be ok. You may also consider charging a bit more per mos to offset the shorter lease. Good luck with it!