All Forum Posts by: Jiseok Kim

If they meet your criteria accept them. If they have some accessibilty or safety upgrades they may need treat them like any medically necessary requests. They are ok as long as they are 'reasonable' and made at the tenants expense. So if they want grab bars in the bathroom say yes. If they want to build an elevator in the livingroom, say no because that level of upgrade isn't 'reasonable' since it permanently changes the house's layout and function.

That's what I wondered.

What's the boundary between the 'reasonable' and 'unreasonable' by the legal perspective?

Your examples are clear to understand but there's always grey area.

For instance, do I have to replace the entire wood floor because it's slippery with cane stick?

I do understand I can't deny because of the age. I just like to have good level understandings how much should I say yes.

Thank you for your kind reply.

1 Vote

This is my first rental property and I am in search of the first ever tenant.

Currently I have one application from an old citizen who wants to move in from an assisted living facility.

The property is not prepped for senior tenants.

Is there any potential risk factors that I have to consider or modifications needed for the tenant?

0 Votes

Quote from @Bill B.:

You need the liability insurance no matter what, that’s how you lose all your money.

As a landlord policy, which is what you need, it only covers the property, the appliances, the furnishings and such, that’s why it’s cheaper than homeowners, no personal property is insured. That’s why you hear about renters losing everything in a fire, they didn’t have renters insurance to cover it.

Also, it only insures 2 things. One, from the exterior in, or the studs in, or the drywall in, as your Hoa insurance policy covers the exterior, the roof, the foundations and so on. Another reason this insurance is cheap. A big part of your Hoa fee is paying property taxes and insurance. (A reason your property taxes are lower in this situation, you don’t own land.)

The other thing it covers is the Hoa master policy deductible. This is usually between $10k and $50k, the higher it is the lower their cost. BUT, the more likely you won’t have $10-$50k laying around to pay your deductible. It looked like they were providing for a $20k deductible in your case.

If you want to save $100/yr and have $20k laying around in cash to pay the deductible, you can cancel that part of the insurance. And if you don’t make a claim for 200 years, you’ll break even. Unless you have a loan on the prowprty, they’re probably going to require it. Same thing with the liability. If you h]own nothing and are worth nothing and owe more than the property is worth, you can save another $100/yr getting rid of the liability coverage.

I pay about $320/yr for a $750k townhome in MN with a $25k master policy deductible, that’s about the going rate.

Thank you very much for your comments!

Now I have better idea what I would need to protect myself.

Then how much of the personal liability coverage typically recommended?

In my quote, it seems they would cover up to $300K.

Is this considered to be good enough or is it better to increase up to like 1M?

I have no sense of it..

By the way, I also have questions about the general scope of the personal liability.

As far as I understand, the tenant can claim against the landlord if he/she got injured within the property for some reasons.

Then under what cause of the injury or circumstances, would I be responsible for the liability?

Would 'common sense' come into play in case of the personal liability?

If the cause of the injury lies to me, then my landlord insurance pays the whatever bills up to the Personal Liability limit, correct?

Please correct me if I misunderstand about the Personal Liability.

0 Votes

Allentown, Pennsylvania

Hello Community. Newbie investor is here.

I am confused what type of insurance policy should I buy as a landlord for a condo that I am planning to rent it out.

The condo is under HOA and there is a master insurance policy by the HOA.

I got an insurance quote from my insurance agent as shown below with a yearly premium of < $200.

I am just puzzled why it's cheap as I thought it would cost me about at least $1k for a year..

Can anyone give me some idea how the condo insurance works ?

How would this quoted insurance work with the master insurance policy by HOA? Do I even need this one on top of the master insurance policy?

0 Votes

Allentown, Pennsylvania

As a first timer in the real estate investing, I wanted to start out easy.

So I have been primarily looking for easy properties nearby in a good school area, cleanly managed, good neighborhood and etc although the listing prices were way beyond the 70% or 80% rule.

Then it turned out that every properties that I considered to offer are expected to generate disappointingly small cash on cash return of around 5% at best when it's bought in full cash. (It barely breaks even when it's financed with 40~50% downpayment.)

Because of this lower than expected return (considering 4.xx% interest from saving account), I have been stepping back at the last minutes.

So what would you suggest?

Is it better to jump in for this 5% return and start out anyway or better to wait until I find a property with average return of 8~12%?

For the area where I am looking properties, it's definitely a seller market.

There's no room to negotiate or low ball the purchase offer. Nice properties are sold usually >10K listing prices now.

Please share your wisdom.

0 Votes

Allentown, Pennsylvania

All Forum Posts by: Jiseok Kim

Jiseok Kim has started 3 posts and replied 5 times.

Post: what could be potential risk factors / complications by accepting old (> 80) tenant

Post: what could be potential risk factors / complications by accepting old (> 80) tenant

Post: insurance for condo rental property?

Post: insurance for condo rental property?

Post: 5% cash on cash ROI - better to start out anyway or wait