All Forum Posts by: Andrew S.

I'll disagree with the previous answer: to me, this is not an automatic "pass". I assume this will be buy and hold? You didn't give us a lot of numbers and I have no idea how firm they are, of course. I also don't have any idea about your market. All I'll say is that in MY market, I'd consider a 85K all-in property that rents for $1000 all day long! Plus, you say you will be a cash buyer - if so, that may give you a little bit of an edge of other bidders.

@Joseph Corlett What's the after-repair value based on comps? If that's really the cost of the renovation, you might be better off knocking it down and starting from scratch. How valuable is the land it sits on?

As a buy and hold rental the numbers don't look good unless you are speculating on a ton of appreciation (not recommended by most folks around here...)

Thanks for the input @Steven Hamilton II and @Bill Gulley

This helps me come up with a reasonable split. Good to know that I'm not missing anything obvious.

Thanks @Steven Hamilton II !

The answer is "yes, I would have it without RE as well". So do you mean allocate by value of rental RE assets vs. other assets? Or allocate by amount of coverage I WOULD have in the absence of RE investments vs WITH RE investments. Or the amount of perceived risk? Or other?

I agree that most of my RISK will likely come from the RE investments, but most of the assets I'm trying to protect are actually non-RE, as I don't own very many rental properties yet :-(

I have a quick question as to how to allocate my umbrella insurance premium to my REI expenses. As the insurance also covers my non-rental assets, do I need to split the cost of the premium for book keeping purposes? If so, how?

@Steven Hamilton II ?

@Pam R. - I just considered an offer on a townhome without HOA and I agree that it made me quite nervous too. The property went under contract before I got in a bid, so I didn't end up having to come to terms with it. I assume in the absence of HOA, you are basically left working out a deal with your neighbors if a common area is in need of maintenance or repair (roof, common walls, deck, porch, fences, driveway, etc.). According to the seller/realtor, the property I was looking at did NOT have any sort of binding agreements in place as to how to deal with this. I can see that this could turn into a nightmare under some circumstances, but apparently, people do find ways to cope.

have been getting them all day long too

@Brett Braden

- yes, so is @Samantha M. ! As @Jon Holdman already pointed out, you really need ALL of that information in order to know whether this is a deal, and how to pitch it to your buyer. The better (more solid) your numbers are, the more credibility you will have with potential buyers (and, frankly, with the seller too).

@Justin Aymer - OK, that's closer to a regular 3% buyer's agent cut but still not unreasonable. You may be able to have her convince the seller to pick up her commission. This is the arrangement I have with MY buyer's agent for when I dig up FSBOs or drive-bys, etc

You haven't told us how much the property lists for but it looks like the 1375$ might be about 1% (maybe less). That's a very fair commission for a situation like this, in my opinion. Well worth the money to maintain a business relationship and a friendship on top of it. Plus, if she spends time and resource on helping you with the process and coaching you along then consider it an investment in your education.