All Forum Posts by: Ken Maddis

Awesome Charles, good luck!!

 
This! ^^^^^^^^^

I won't get into what the banks will require since the majority that I've worked with required replacement cost, however there is a difference between 'replacement cost' and 'actual cash value' policies. Actual cash value policies are cheaper for a reason.

A good thread on it here: https://www.biggerpockets.com/forums/52/topics/697719-should-i-insure-my-rental-for-its-rebuild-cost-or-market-value

In short, yes. You can build a team without a mentor. I did for my first 2 rentals 1100 miles away. However it is risky and may take some time and perhaps a bit of luck that you don't end up with a bad one. But I started my journey with a realtor who's name I found here on BP, a PM I found on Roofstock (one of their "preferred" PM's), and an inspector I found online that had excellent reviews. Contractor turned out to be both an associate of the realtor and the repair guy for the PM.

Perhaps not the preferred method of putting a team together, especially if you are risk averse, but in the end it worked out very well for me.

Don't forget to have at least 3 to 6 months emergency reserves for your own protection from unforeseen personal expenses...medical, car repairs, unemployment, etc. 

I'm self employed as well and went through Bank of England for 2 properties I just bought in Mississippi. Of course I had to provide tax returns and a P&L but it wasn't difficult at all and still got rates under 5%.

Assuming you get a deal accepted, you're gonna be putting down some earnest money. If you don't get approved for the loan and can't close the  deal, say good bye to that money. 

Get a pre-qualified letter from a lender, know what kind of rates and terms you qualify for, and if those work for you, then start putting in some serious offers.

Man, just do it. Last July is when we decided we wanted to start real estate investing. Today we have our first two properties under our belts. I read too much on BP about analysis paralysis, so last August I decided I didn't want to get into that pattern. I set a goal to have our first property by the end of 2018. I'd say just set a goal that is more specific than "this year". If it were me starting now, I'd set my own goal for August 31st.

Set a date in the not too distant future, pick an area, find an agent and go for it. I know I just oversimplified the process, but once you've made the decision to buy a property by a certain date, you'll find yourself getting the rest of the information you'll need to land your first deal.

Good luck! 

In most standard policies the insurance company will provide an additional 10% of the dwelling amount for "other structures". So if you insure a home for $100k, there will be an additional $10k listed for other structures. You can talk to the agent about increasing that coverage so you have enough to cover the garage. As for how much is recommended, you might want to do a google for garage prices in that area to at least get a rough idea how much you should place on the garage.

Good thread on this topic here: 

https://www.biggerpockets.com/forums/95/topics/608571-choosing-insurance-coverage-for-single-family-houses