All Forum Posts by: Justin H.

Are you sure your insurance company has an issue with it being without tenant for a short remodel period and a normal rental policy with rent loss coverage won't suffice? Or are you planning to take more than a couple months to get it ready?

Because the loss of use coverage doesn't cover lost rent while renovating or vacancy between tenants.

Sounds like you are misunderstanding what they are asking you to have. It's loss of rents or "loss of use" coverage, for example, next year it's rented and a tornado rips the roof and a wall and it takes 2 months to fix. Your tenant will not pay for the 2 months they can't live there, but your insurance can cover that loss. Typically I see "up to 12 month loss of use" in rental policies. Check with other insurance companies if for some reason yours doesn't already cover it and won't offer it.

I'll disagree with Andrew Portnoy 's last statement. Always have your emergency fund and/or plan. Banks, credit card companies, etc can and will reduce or eliminate your credit lines as your situation changes. You may find that credit line inaccessible when you need it most!

@Gary Freidman how did you come up with your numbers for capex and repairs? For capex, a simple spreadsheet will get you to a better number knowing the details of the property. One of the BP blogs was recently written on this so there's a reference. I think the numbers there are high for TN but maybe not if you are out of town. The monthly capex number is the same, renovated or not. The current condition should just affect how much you set aside at the beginning. All this assuming you want to have cash available when the replacement is required. Offhand I'd say probably $150mo is reasonable for the 1700 sq ft home and little less for the smaller over the long term. Do a little math and let us know what you calculate.

Your repairs and capex allocation seems pretty optimistic to me...

Mike Haikin ask your insurance company. I've seen an optional sewer/septic backup coverage. I think it was $50 to $80 per year extra on the policy for $5k coverage.

As George said, read the fine print. Some say their liability is limited to the amount you paid, so maybe you can argue for a refund at least. Good luck.

I've bid on one that went fairly smooth until a title issue was discovered. Several months later and extensions by Hubzu I finally just walked. Most listed here are trashed properties worth a fraction of what they are asking. Make sure you read the contract also, it is very one sided.

Kevin E. Welcome to Jackson. You'll find a range of investment opportunities so you'll have to decide what works for you. David Cook Good luck on the new property. I always wonder how the owners over there fare along there with those 4-plexes. Seems like a dozen landlords competing side by side. I grew up not far from there when it was a little nicer.