All Forum Posts by: Jason C.

Congratulations!

@Iani Piha I don’t know about the purchase strategy your referring to but I do know that the younger you get into rentals they better. I started at 25, and now at 37 have a nice portfolio that’s been making my pockets bigger for years. What markets are you looking into for your first purchase and how are you evaluating your deals?

@Matthew R Mcnulty I recently started creating my own site using Wordpress. There are tons of design templates and the business account only set me back $300. It’s going to require some work on your end and there are plenty of tutorials available to help.

@BreAnn Stephenson that was very well stated and much appreciated thank you very much. I’ve never heard my agents explain any of that, I feel more informed now to make my decisions. 

I wanted to see if anyone can provide feedback on Rental Dwelling insurance. 

I currently use Statefarm and my premium just went up from $450 a year to $500 for the year. Now I know this isn't a big jump in cost on a dollar basis but it close to 11% on a percentage basis. This always happens with Statefarm (every year) and I am looking into other companies for a quote, but my question is how much Dwelling coverage do you really need? 

I purchased this home for $191,000 last year and the first policy covered it for $185,000 and the renewal policy has been bumped up to $199,500. Also, there is additional Dwelling extension coverage for the detached garage that went from $20,000 to $21,700. I feel like this is too high and too much coverage for a home that cost $191,000 and I don't know how they come up with these amounts, is it regulated? ... any thoughts? 

Lastly, the business Liability coverage on an occurrence basis is $300,000 and on an annual basis is $600,000. I really think this is way too much and I have no idea what it even covers or protects. My medical payments to others is set at $1000 and that's honestly the only thing I can ever see myself needing to use. If the medical costs go over that $1000 does the business liability kick in to cover additional costs? 

I really can't stand insurance agents because they stab you in the back while they are messaging your feet. Any feedback would be greatly appreciated! I love this community and BiggerPockets! 

@Mo Hass it’s not that tough honestly. But I put out a very nice product, very clean, safe, gIId location. There are alot If variables that go into answering that Question

I’m using cash on cash for my return analysis and my turnovers aren’t that often. I’m not including random expenses but that could lower it by 1% maybe 2%. I’m operating in the south east. Rental growth has been strong so that keeps me buying so I guess it’s offsetting the higher prices and rates but I feel like I’m pushing the rents in my market. I haven’t felt that feeling before.

@Caleb Heimsoth I don’t include the appreciation either. Are you noticing lower returns in newer purchase?

I just went under contract for rental property number 7 and I’m projecting my return on invest to be 11.7% on a yearly basis. While I’m happy with this return it was below my average return of 17% on my previous 6 rentals. Number 6 returns me 15% and was purchsed only 10 months ago. It’s obvious that we are in a difficult market, but deals can still be found, even though the returns are less and less. What are your average returns and do you see them lowering on newer purchases?

I’m looking for some help here on what you’re getting for current rates. I just went into contract on a SFR and I’ve been using with the same broker for the past 12 years and we’ve closed 8 deals and I’ve referred 2 other loans that they closed in the past. I noticed on bankrate.com that the current 30 year fixed for a personal home is at 4.40%. Now in the past this broker I work with would always be .5% above the current rate for an investment property. Today he quoted me a 5.25% and I’m outraged. I’ve given them plenty of business and intend to give them more but I don’t appreciate the extra .25% they are tacking on. My question to the community is do other investors here usually get a rate like I have in the past, .5% above the going rate on a 30 year fixed, or do you get something different? Looking forward to your answers, thank you! Not sure if I should ditch my broker.