All Forum Posts by: Jason G.

 I use USLI.

What is your auto policy limits? remember that your investment property is an asset that can be exposed during a lawsuit. the umbrella not only protects you from excess exposure above your policy if someone gets injured on your investment property, but also if you are sued due to a motor vehicle accident.

 If you have significant reserves you can potentially ride it out.  However, issues that may arise is the rising of unemployment which could result in delinquent rent, evictions, turnover, the need to reduce rents, and, I don't know what you do for a living, but if your regular source of income vanishes because you become unemployed, whether you can still cover the investment property mortgage and other obligations come into question.  

While you can purchase as an LLC on Roofstock, you still encounter the same issues as discussed at length here on BiggerPockets of finding financing and if you transfer the property into the LLC the lender can call the mortgage due.

So a short update on the properties. Any repairs/rehab work required on the three properties have all been completed. The first Roofstock property located in Lithonia, GA has on time paying tenants and things are moving smoothly. The first property purchased using the property management company, Excalibur Homes, located in Canton, GA, also has on time paying tenants and things are moving smoothly. After closing the law firm who handled the closing had some sort of issue with the postal pickups which caused issues w/ payments being made to the insurance carrier and HOA from the closing disbursements, but that was ultimately resolved. The leases for Villa Rica and Canton are expiring this month, so back in the beginning of November I asked my property manager what the process was. She told me that they typically review leases 90 days out and give any recommendations on rent increases. Instead of giving me any recommendations they sent a proposed lease to the Villa Rica tenants last week without discussing any rent increases with me or even sending me a copy of the lease they sent them for review. The original lease from the prior owner had a built in rent increase. I've asked several times for a copy of the lease to review and nothing. Very poor communication on this front and I conveyed that to the property manager today that it was unacceptable. Also they didn't issue any payments to me in November. I think the property manager messed up some setting on the reserve amount which I need to talk to her about. On the purchasing new properties front, Roofstock pickings for Georgia have been slim to none these last few months. They just haven't been getting properties in. We did go into contract on a property in Loganville, GA last week through our agent but walked after the inspection report and contractors came back with estimates of over 25k in repairs when the property was expected to need very little work.

I'm not quite sure I understand what you mean by buying blindly.  If you are purchasing through Roofstock you are relying on their inspection, but if you are purchasing through an agent you are relying on them, their contractors, and your own inspection.  That isn't exactly purchasing a property blind, but it does require some amount of risk and a great deal of reliance on others.  With respect to purchase price, I hope you aren't purchasing properties at 40k above what other houses are going for in the area.  There will be items that need to be repaired or replaced as time moves on with a property, but the rent should cover those future items and the property would hopefully be appreciating in value unless you are purchasing in an area where prices are expected to remain relatively flat long term.  

Saved the down payment for the first SFH and enough for half of a second down payment. Closed in June on the first SFH, then took out a HELOC on my primary in August, used the HELOC to fund the other half of the second down payment on the second SFH which closed in the beginning of October, and then used the HELOC to fund the entire down payment on the third SFH which closed at the end of October, and going to use the HELOC to fund the entire down payment on the fourth SFH, which I'm still looking for. All three properties have conventional 30 year mortgages.

You can also use investor friendly agents to purchase out of state properties so you can sidestep companies like Roofstock if the inventory on those sites aren't suitable for your investment needs.  Check with the property management companies you use to manage those properties, they may also work with investors on acquiring additional properties.