All Forum Posts by: Mason Keith

Wow, this blew up while I was at work. Thank you everyone for your responses, your thoughts are very much appreciated.

I'm glad I went to see if it'd work, because trying to get a contractor is killing me, but it seems prudent to return to working references from folks in the area at this time.

Thanks for the input guys, I'll have to check that out.

6:45, still no joy

Not sure if all out there are familiar with this, but J Scott suggested a great idea for finding better than standard contractors by going to your local Home Depot at opening and talking to the contractors that are there bright and early.

Based on my experience so far with contractors in middle Georgia I probably should've seen this coming, but now I'm getting breakfast because there wasn't a single one between HD and Lowes.  Oh Warner Robins I won't miss you.

We'll see if there's better luck closer to 7.

Thanks for the quick reply.  I also found something interesting in speaking to USAA again, they put a 25% "padding" in order to ensure if rebuild costs run higher you're still covered which isn't stated up front until you speak to them.  Since I don't care to rebuild and would be taking an actual value should the need arise removing this so-called safety net changed my quote significantly.

The new dwelling insured amount is $227k

Liability coverage $1M

Deductible @ 1% $2,270

Annual Premium: $727.07  

Anyone who uses USAA might want to look into this, they called the 25% extra "Home Protector".

I've been searching for a good insurance company for my rental.  So far prices have been surprising to say the least.

I saw others saying their policies covering around $150k with $1M liability paying $500ish. Are these just great rates?

What I've gotten so far:

USAA

Dwelling: $283k (USAA only does replacement)

Fair rent: $28k

Liability: 300k (Plan on making $1M)

Deductible: $2k

Total annual premium: $990

So far all other companies are insuring the property for less and charging me more.  The thing is the $283k figure is asinine.  My personal home which is bigger, nicer, in more desirable neighborhood has a lower replacement estimate.  

Are there any nation wide companies I should be looking into that offer these prices I read or have prices sharply risen recently?  I've called State Farm, Allstate, and Progressive so far.

I'm fairly frustrated at the moment with my attempts to get some solid RE deals.  Originally I really wanted to start out with multifamily properties, but I've looked at tons, and all the ones that seemed plausible on paper were really terrible once checking out further so no properties as of now, boo.  I'm striking out hard there :-/.

What I'm considering now is buying foreclosures in the $50k range cash, spending roughly another $20-25k in repairs and six months down the road doing a cash out refi and basically starting the process over buying the next property.

I currently plan on holding properties, not flipping, and renting them out.  Specifically looking for neighborhoods that are renting ~$1k/mo range.

Cliff note version:  Buy house for $50k cash, use another $25k cash to repair, rent for $1,000/month.  6 months down the road take a cash out refi, and purchase next unit.  I know there are angles I'm not thinking of, or am not even aware of and I'd love to hear why this plan will fail, or what needs to be changed to give a better chance of success.

I appreciate any and all feedback and sorry if I'm slow to respond.  I'm currently deployed so I don't always have access to the internet, thank you!

@Joel Owens Is that the standard on multifamily properties with commercial lending right now?  20-25%?  Fwiw I'm talking $600-$1M range

I live in Macon Nick.  As Joel stated, the area is very hit or miss.  As you get north of the center of Macon the area becomes quite nice in and around the Riverside area.  My wife and I are looking for multifamily properties and so far have not been very happy with what we could find in Macon and have begun focusing our efforts elsewhere.

I'd be more than willing to answer whatever questions you might have though.

Hey Joe,

I'm in the exact same spot!  My wife and I are both active duty with 3 years left going for exactly the same thing.  That's awesome to hear, and we're looking to try and have ~$3-$5,000 montly cashflow in three years time.  Looking forward to hearing your progress moving forward.