All Forum Posts by: Jeff Aponik

@Luke M.

I have not used the rental calculator either, but if I am not mistaken, the 50% rule does not include debt service. Therefore, the $121 figure you are getting would be the amount leftover for debt service & profit. The numbers don't seem to work on this one.

Keep in mind that the cost can vary greatly depending on the location of the property. If feasible, you should include vandalism & malicious mischief coverage. Also, ask your broker if the policy provides coverage for theft or if it can be added. Despite falling under the generic label of a "vacant" policy or "builder's risk" policy, there can be major differences in coverage from one policy to the next. Do your homework.

Very interesting idea for flooring. What do you use to paint the grid lines on and how do you adhere the sheets to the subfloor? Construction adhesive, screws, nails? Thanks!

@Christian Morency

@THOMAS MEELEY

Welcome to BP! Be sure to also check out Diversified Investors Group (DIG)which is a local REIA in the Philly suburbs. They offer quality educational opportunities and have sub-group meetings that are location and niche specific. I invest primarily in the Phoenixville area, so I am right around the corner from you. Feel free to reach out. I am happy to help!

Hi Amber,

Welcome to BP! Be sure to also check out Diversified Investors Group (DIG)which is a local REIA. They offer quality educational opportunities and have sub-group meetings that are location and niche specific. Best of luck and see you around the site.

You have the correct type of policy if you purchased a vacant policy. It is most likely providing basic perils coverage (think fire) but can be endorsed to include other perils (theft, vandalism & malicious mischief are 2 I recommend). It's hard to say if the premium is high or not. The area, size/value of the property, and coverage can each have a major impact on the premium. Some things you should find out about your policy: -Does it provide coverage for your renovations? -Does it provide any extended perils coverage? -Is there a minimum earned premium that you will be charged if you cancel the policy early? -Are you able to endorse the policy once the property is occupied or does it need to be moved. We write most of our clients on vacant policies with 3, 6, or 12 month terms and then rewrite onto a landlord type policy if they hold the property. Your broker should be able to answer the above questions or you need to look around for a new outfit.

Hello & Welcome! This is a great place to both gain & share knowledge. My office is right around the corner from you in King of Prussia. In addition to BiggerPockets, you should also check out Diversified Investor Group (DIG). They are a local REIA out of Willow Grove. They also have several locale or strategy specific sub-groups. I try to attend the commercial sub-group in KoP as often as I can. I look forward to seeing you around the site!

I recently used 2 bagsters on a smaller project. I agree with the other posters that a dumpster is the more cost effective option in most cases. We decided to use bagsters because a dumpster would not fit in the off-street parking area at the property without removing fencing and the borough would only allow us to keep it on the street for a few days. We were doing the demo work ourselves on weekends, so it made more sense to go with the bagster that did not have any time constraints.

This is good information for less experienced investors. It's sometimes hard to admit our mistakes, so thanks for sharing. Very good reminders when dealing with buyers/sellers/contractors. I hope it appraises for ya!

Hi Dustan,

Congrats on your first purchase and great question! We are in a similar situation having just wrapped up our second deal and now ready to look for the next. Our plan is to refi our most recent property after our lender's 6 month seasoning period and pull most of our investment back out. We have enough equity in the property to allow us to pull the funds out and it will still meet our cash flow goals after the refi. Is this a possibility with your property?

Best of luck and keep an open mind to creative ways to structure the next deal.

Jeff