All Forum Posts by: Lynne MacFarlane

Hi @Sunitha Rao,

How's your rental coming along?! What's your insurance situation, do you have tenants? Are you doing a renovation on your units? Keep in touch~

Thank you @Jason Bott,

I read what you wrote on someone else's post and now I understand there are two types of policies: 

1) Builders (for during renovation) - My renovation will be short, maybe 1month 

==> then can switch to...

2) Tenant/landlord policy

Question: What happens when one side of the duplex is still rented (not sure exactly when she'll leave...), but would like to begin renovation on the other unit. Will I have two policies? 

I just came back from Indianapolis to see the duplex, meet with the inspector (excellent), prospective contractors, a property management company, and my agent who I'm training as my "boots on the ground," its been a very hectic few days last week.

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Tangent: As a reward to myself for scheduling and accomplishing all those activities while visit Indy, I had time to try the Pacer Bike Share rentals in downtown Indy to explore the great bike trails, highly recommend it especially for long-distance investors, I had the chance to chat with locals, get their perspective and see test first-hand their infrastructure.  Trying out #Pacers #Bikeshare

Hi @Jason Bott and @Michael Pepe & BP folks,

I too am an out-of-state investor from Calif., in escrow on our first duplex rental in Indianapolis. We would like to rehab both sides (one will be occupied, while the other we'll be doing cosmetics stuff). Do we need both Rental Dwelling/landlord policy + Builder's risk policy? Sounds horribly expensive, there goes my cap rate (but is that typical and all part of the BRRRR cost?) Thanks I need quotes, any recommendations here would greatly be appreciated!

Lynne 

Hi Ryan Roesch , I recently bought a duplex, one unit has a claw foot tub, but no shower. Because the property is in a C class neighborhood (and school ratings are low) I’ve assumed my market will be young working class. I was told that claw foot tubs can easily be sold and I’ll install a shower insert but create a nicer vanity/decent lighting (ladies like good light!) Also to attract a better tenant I’m going to work on our detached garage, put drywall between the two spaces and since we have space I’m going to get a quote for an asphalt carport that way I’ll have two spaces for each unit. My area doesn’t have great mass transportation so I’m assuming tenants will appreciate the space. Tub isn’t going to nix a good rental for college kids, just spend more on good lighting/mirror and safety (for women tenants.)

Hi folks! Yes, please DM me as well, I have tried working with an agent in Ft Worth area but she hasn’t been responsive. I’m closing our first duplex shortly but would like to start researching for the next small family multi. Thank you!

I was driving to Sacramento, in SF Bay Area traffic hour, so it was a little too cheery/commercial for me at the time. I’ll go back and listen to it, I hope the podcast gives some concrete take aways besides just telling us how great this book is.

Hi BP,

So my husband & I are in escrow on our first investment property, a duplex in Indianapolis (doing the @David Greene Long Distance) and we are hoping to use the BRRR strategy (Buy, Renovate, Rent, Refi). We will be closing in a few weeks and the duplex was built 1910, No contingencies, escrow should go smoothly.

Could you help recommend us an insurance company that would insure new first time investor, who will be renovating first before renting, The current tenants will be leaving so we can renovate, but they were paying $500/mo each; we think with renovation we could get more at least $650. Any ideas on what the insurance companies are looking for? I have a general inspection (including radon and termites) and a plumber 'scope' inspection will also be performed.

Our current home owner's insurance company, Geico, will not give us a quote. I never thought that getting insurance would be difficult, but perhaps we're not asking the right company. Any recommendations for small multi-families would greatly be appreciated! 

Cheers~

Lynne  

Hi @Carrie A.

Did you ever find a good insurance company? Geico, who's our current home owner's insurance for our SFH will not give us a quote for a duplex (in Indianapolis) because either the duplex was built 1910 or because we're new investors and want to renovate. Any recommendations and advice for us?

@Bjorn Ahlblad @Axel Meierhoefer,

My brother has owned a home in West Sac for many years and I told him that he can just rent it, and live anywhere else! My parents also made most of their money selling their homes (moved out of CA to Washington St, then moved back to the Bay Area because we couldn't handle any more rainy days) I left Washington state and I'll never look back, I need the sunshine, but never thought I would mind it. Just make sure when you retire to double check the climate/weather/people. So many Californians who move to Seattle move back (and vice versa, Seattle people, move  from Bay Area (job related) back to Seattle to raise kids... it's like salmon!) I see it all the time.

Hi @Nathan Godson,

I"m going through escrow right now for our first duplex in Indianapolis and following David Greene's Long Distance BRRR (but may not be able to refi with the interest rates climbing this year.) In any case, we are committed! :) 

It's great you are living in our new duplex and qualify for a FHA since you're a first time home buyer. And concur with the statement because our lenders told us the same that rentals are 'riskier' and our duplex is an investment, hence interest is higher than originally quoted 2) we are first time investors (but we have excellent credit and w/o contingencies) Still from the first 4.8% quote to now 5.3% no points, we decided that we would go with it (McGlone Mortgage, with a strongBankrate - McGlone score)

I learned that for us, finding conventional loans first before reaching out to commercial loans, 5+units would work.  We will gain experience and show our lenders and hopefully qualify for larger loans (ie: Finance of America - I researched them, they were great, good tier programs for residental (6.1%) & commercial, but the commercial loans were for much larger amount, but we didn't need it, plus the rate was very high) 

I hope this helps. Let us know what you've decided to go with and keep us informed about your duplex journey! I'm going through this too! 

Cheers~ :-) 

Lynne 

Thanks @Peter M.

We aren't living on one side, the duplex is in Indianapolis where we will renovate both sides, we had to put 25% down since it's an investment, and we will rent...not sure if we can complete the last R (in BRRR, Refi because "Fed are raising interest rates signaling 2 more increases are coming 6/13)  so I locked it in just now! 

I wonder if others are concerned about mortgage rates increasing and hurrying? Here's an interesting article that states that just because Fed rates increase, mortgage rates will follow: https://www.forbes.com/sites/johnwake/2018/06/15/t...