All Forum Posts by: Luca Giani

@Luca Giani It really depends on the market value and cost of construction. We recently remodeled a single family 2/1, detached 2 car garage. Our coverage for the structure is $736, which covers $185K. The market value is something around $130K so worse case it should be covered. $1000 deductible. Insurance companies love roofs. If you replace a roof you can lower the premium. Our premium including commercial general liability is $1070 per year. 

Don't max out the coverages. You'll be wasting money on insurance. Some investors buy umbrella insurance once they own lots of units. This type of insurance blankets other policies. You can get like $1M coverage for $14 month. It's totally worth it. It's another layer of protect and another reason LLC's don't mean jack (when starting out). Good insurance and good leases are 2X more important than holding property under an LLC. You could add a lease clause stating tenants are required to hold renters insurance. If any personal items get damaged/destroyed due to ____ the landlord (you) can't be held responsible. 

Luca - When it comes to rental property insurance some key questions on coverage are:

Actual Cash Value / Replacement Cost - Replacement Cost is what is costs to rebuild the home and is generally more expensive and has better coverage (more $$). I typically use that as it's a "worst case scenario" coverage for me in case the house burns down because I know I have the money to rebuild. 

Deductible - I started out at $1,000 or 1% of value, but recently have increase that to something higher 2% to keep my premiums more reasonable lately as rates have gone up.

Rental Income Loss - I usually have this on my policy as if their is a major loss I know I can obtain coverage for income loss during the repair/renovation if I didn't collect rent.

Sewer Line Coverage - I don't have that on my policy, but more recently I wish I did. I've had two homes with sewer lines that needed to be replaced and wish I would have obtained that coverage.

Lastly, I'll state that obviously depending upon your area you may also need flood, wind, etc.. coverage. I don't have them because I don't need them, but I know those are big variables as it relates to the premium.

At the current moment, most of my home values are between $150-200k and I pay about $1,000-1,200 per property per year. That's my sweet spot that I've comfortable with. Hope this helps!

 @Drew Sygit would be the 1st guy I talked to in Detroit.

@Luca Giani

Hey Luca, I know you aren't looking in Cincinnati, Oh. But I can tell you, I have what you need and more at that price range (SFH and maybe a duplex). Let me know if you're interested in Cincinnati, another cash flow market!

Hello Luca! The midwest has been great for OOS investors over the years. Markets such as Columbus, OH where there is job and population growth continue to rise the market has and will continue to pay strong dividends for investors. Along with Toledo, which is a strong cashflow market and has a very affordable entry point. I can share my Columbus and Toledo investor packages with you.

@Luca Giani

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/...
(links also available @ our website)

Toledo is a great market that you’d be able to find cash flowing properties in that price range. Let me know if you’d like to connect and I can share my resources with you!