All Forum Posts by: Jordan Liles

I am purchasing my first rental property and closing on it within the next 30 days. It is an older single family home that currently has a content 4-year tenant living there. The question I have regarding landlord insurance is what coverage you would suggest I get quotes on? I have heard from different sources that just fire and wind coverage should be all that is covered on a rental property but then I have seen other coverage options such as loss of income, emergency repair service, umbrella policies, etc. I know like any other kind of insurance, it is very easy to go completely broke paying all of the different premiums that life requires/suggests especially considering it is only good if you actually use it. I wanted to see if you could fill me in on what you use for your single family rental properties. 

@Anna Buffkin That definitely makes sense, I will be sure to consider the HOA dues when looking at an applicable property. I really appreciate the post and the help! If you have anymore suggestions on how to recognize and find good deals, by all means go for it.

@Kyle J. Great suggestion Kyle, thanks! I looked at the article and there are quite a few different options to be able to reference for the comparable pricing. I really appreciate the post!

@Michael Garofalo Great advice, exactly what I was looking! I most definitely will take that into account and run some numbers based on that data. I also appreciate the website a lot, already getting some great comps in the area I was looking. Thanks!

@Dennis M. Yes, I just used a theoretical percentage for the example. What else would you suggest that I take into account in looking at more of the whole picture? Again, I am really new to REI.

I figured that this metric was just one of many to look at. So when you say dollar per door, do you mean dollar per bedroom after expenses?

Thanks for the info!

Jordan

@Dennis M. Yes, I just used a theoretical percentage for the example. What else would you suggest that I take into account in looking at more of the whole picture? 

I figured that this metric was just one of many to look at. So when you say dollar per door, do you mean dollar per bedroom after expenses?

Thanks for the info!

Jordan

I am just starting out and doing research on to hopefully become more familiar with the ins and outs of rental property in my area in eastern NC. One question I did have that I find very relevant and a big determinant in choosing what property to purchase and that would be what to charge for rent and how to determine whether or not a particular property is worth purchasing based on its income. 

I am primarily wondering how to best determine whether a particular single/multi family home would be a good candidate for being self-sufficient each month (outside of unforeseen maintenance & repairs) based on what rent is collected. I am not sure if I need to be shooting for a ratio or percentage of the total price of the home that would be a typical rule of thumb or not. But for example, if I am looking to buy a duplex for $130,000 and say the percentage of the total price that I need to be aiming for is 10%, I would need to be able to collect a monthly income of $1,300 from that property to make that property a good investment. Ten percent may not be close to the correct percentage, but has anyone had success in finding a ratio/percentage that works for them and that they would typically go by before considering a property to purchase?