All Forum Posts by: Ken Su

Hi Guys,

Wondering if you can help me answer a question regarding my recent purchase of a tenant occupied four-plex. The previous owner gave me a copy of his insurance policy and his premium ran about $1300/yr. 

I contacted them to see if i can continue the policy, once I gave them my information they notified me that they do not insure properties purchased under an LLC. I pressed for a reason and the agent was not able to give me an answer.

Subsequently, I contacted around 6 other companies and about half of them would also not insure the home. The few that did quoted me a premium with a bare minimum coverage between $2600 and $3000 annually.

The property is located in South Texas and multiple insurance companies have stated that this area is known as a high risk area (hail, wind, and rain) due to the proximity towards the coast. 

The apartment was built in 2003. The four-plex consists of two duplexes with 2 units per duplex on a lot size of 9000 SF and a combined living space of 4000 SF. The property has 8 carports in the back.

I am willing to pay the quoted premium however I would first like a thorough explanation as to why my premium is more than double the cost of the previous owners

Thank you,

Ken

edit - I am also currently renting a unit in a separate four-plex. I spoke with my landlord and he has also told me that he pays about $1400 for his insurance.

Thank you guys for your input. The original loan amount was, $210k. The bank bought the foreclosure for $170k. Can I be safe to assume that the bank will accept an offer somewhere in the middle?

Thank you.

I am currently looking at purchasing a REO property. I was wondering if there was a way to find out what the bank paid for the property, so that I will have an additional reference to base my offer upon?