All Forum Posts by: Mark Douglas

Right, definitely not a big fan of PMI :/

Is it possible to get residential home insurance on a small multi??  These commercial insurance quotes are through the roof.   $3,000+ annual premiums.

Any recommendations for insurance agents in TN?

Thanks

Maybe a couple hundred bucks long term.  I see your point, I'm kind of short sighted sometimes haha

I've been evaluating my first potential deal for about a week now. Owner-occ FHA 4plex. Pretty good location, steady tenants, etc.

I run it through the BP rental calculator..it cash flows $28.  Not enough to retire, but certainly better than forking over $700 each month for rent.  

Today, while window shopping for insurance, I realized I grossly underestimated the cost of investment insurance ....$221/mo is now making this seem impossible to work...  Maybe it's just this property, but for these numbers to really work, I'd have to lowball the seller. Like knock off $40k.  

Is that the secret?? Just paying super low prices for the properties??  By the time you add in every cost, I just don't see how anyone does it...

Sincerely,

- A newbie losing hope! (but my friends call me Mark)

Ok. Everything was great...the numbers cash flowed, it's in great location, probably a "B" property, the financing came through, etc.  On to home insurance quotes..  Apparently, since I'm only occupying 1/4th of the 4plex, the insurance companies (I'd gotten a couple quotes before noticing a trend..) see the property as 3/4 investment property, which outweighs my puny 1/4 occupancy.   ---->>>> which turns this "would be" deal into a negative cash flowing situation :(   

I got quotes for $219 and $271 per month. Every property will vary of course, but are these in the ballpark of what you all are seeing for 4plexes???   On the $271/mo quote, the estimated replacement cost was $417,000 ......it's only appraised at $200,000 ..

In case it comes up, I ran the initial insurance numbers as if I were a homeowner (as opposed to an investment property owner), probably a mistake looking back.  On the plus side, nothing has happened yet, just put in the first offer today, so I'm not locked into anything yet.

I iust want my deal back haha

Thanks !

 Thanks everyone!!  I like the idea of one checking account splitting into multiple savings accounts ..

 Thanks everyone!!  I like the idea of one checking account splitting into multiple savings accounts ..

The financing would be for investment property.   Seller financing seems to work well for a lot of people..  Thanks!

Great advice guys!!  Definitely will incorporate those contingencies into the proposal.    If he's motivated enough, he'll go for it.