All Forum Posts by: Mrinal Parashar

@Shane Short -- I looked at the attached pdf. I noticed few things- based on what I see in Georgia.

The closing cost you considered is just 1%. I Georgia, I pay close to 4%. even if I can make my agent or seller pay part of closing cost - only 2% can go towards closing cost for investment property. So in any scenario, closing cost is higher than 1%.

The insurance seems too low. What I see on my properties is that I pay somewhere between 1200-1500 for the price you have used(in GA).

Also, you should stress test your property by changing numbers like 20% vacancy, 30% maintenance.

Hello, 

I have been using Allstate for the landlord insurance policies so far, but I reached their limit and cannot get any more policies from them. (Location- Atlanta)

What is the best insurance company for landlord policies?

Another question I have liability coverage in all my landlord policies. Should I also get a separate umbrella policy? 

If I get umbrella policy, should I remove liability coverage from the landlord policies? 

@Cliff H. I think some of their plans are really good. The issue that I mentioned in this post was resolved by their finance team, but it took a while. I did not use it after this incident. 

The maintenance part is automated and is transparent. I do not remember, but i think they showed the price upfront for the job. They did not have a good network in small towns in south of GA. 

let me know about your experience. 

@Jessica Brennan

I am closing a similar property this week ( similar issue and some others).

The first thing that I did was get inspection done.

Then I called the lender and the lawyer, and explained the issue.

This was off market deal, so we added financing contingency and a condition that the son would be out of the house before a date(the second one was verbal - but the date decided was before the due diligence date)

So, if the son was not out- I could have walked away.

The lender added the son as a tenant for the time being and required a lease submission for the son living in property.

Before the due diligence, I went in again to make sure that the son was out. My inspector does a free second review if I ask him to on the same property.

Any additional damage would have come out as a reduction in selling price.

I had other issues, as this was an ancestral house few names were missing here and there- so every living person who had claim on the property had to sign off and we had to file a probate.

@Cody Campbell thanks. This helps a lot.

Is it possible to get a single loan for multiple properties on a single parcel?

I am looking into a single family and a duplex. They are on the same parcel and are being sold together. I checked the county website and they are on the same parcel. Is there any bank in Atlanta which would give a long for this property? Or do I have to get two loans?

@Kunal Domakonda

I started early last year. This is what I think worked for me

1. Real estate agent- found two amazing real estate agents in the two cities I have invested in. One of the agents is an investor himself and does out of state investing as well. He helped a lot with the locations to focus on and helped me network with good lenders and reached out to other investors if he could not answer a question himself.

2. Property manager- This was critical in my first purchase because I didn't visit the property. She knew everything about the location from schools to crime rate to rents and any info that is needed to make a decision. The second agent I use is also a property manager.

The above two were very important. I interviewed a lot of agents and property managers before finalizing. Handyman, lawyer (in case I need help with code violations ) came from agent's network.

3. Home inspector- I found him by accident but he has been crucial in price negotiations.I make sure I look at the property when he is on site and about to finish his inspection.

A team can save you time and money.

I wanted to test NestEgg, so i setup one of my properties for rent collection on NestEgg. The features on the app are really good.The nest egg support team was quite helpful and were quick to respond to any issues initially; but I started having issues recently.

Its been two weeks since the tenant paid the rent, but I have not received it in my bank yet. I reached out to NestEgg couple days after the rent was paid and they said it will take 5-7 days for transaction to show up on the app(the app does not show if the payment is in processing). The app did update the income after about 7 days.

Although the app says that the tenant has paid, but it does not show if it has transferred to my account. 

I wanted to see if people here have used NestEgg and  what was their experience? (should have asked this question before I started using it)

And if they use NestEgg, how does it fare in comparison to other platforms? 

Issue was resolved. Got hold of the listing agent and explained the situation. She asked the seller, he said he didnt know he was not supposed to sell the items; but he agreed to pay for new appliances(or a portion of it).

Bought a house in Cumming, Ga. After closing when I went to the house, there was no refrigerator,washer and dryer. The seller disclosure said that they will leave these items. What should be the correct course of action here?