All Forum Posts by: Nam Trang

I would only cover utilities for a short-term rental. Even with a limit, you are exposed because utilities are paid the following month so if it's a large bill you may be stuck with it.

The other option could be increasing rents and/or having a 'utility deposit' that would cover excess bills.

Like most everyone else in this thread, I stick to the 3x rent as well. The management company that I use insures tenants that they place that meet this criterion (also a minimum credit score, etc.). The income, plus the guarantee from the property management company reduces my risk greatly.

I would recommend keeping your dwelling policies as-is and buying a personal umbrella policy to increase your liability coverage. It should only cost a few hundred dollars per year and also benefits your family in other ways. I would suggest contacting an independent agent if you're not already working with one. They will have many options for you.

@TJ McDonald A lot of the problem comes from the auto-send buttons. Just scrolling through and pausing your finger too long can click on them and send the message. This especially happens when you click to see the comments and it registers your finger there. Just reply with a "Yes, it is" and move on. If they were interested they will reply, if they weren't you're only out 5 seconds.

One thing you can do is call the Health Department. Ask what type of systems are approved for the area. There are different "Brand Names". Then call an installer and get a typical install price. This will give you an idea what the worst case scenario will be.

You can get a single family home or duplex for 5% down with an FHA loan if you qualify. Triplex and fourplex you're looking at 10-15%, and once you hit 5 units and up it's a minimum of 25% down. Everything depends largely on your personal financial situation, the bank or agency you're borrowing from, and the income you'll be getting from the property. However with smaller properties that income often isn't considered from a lending perspective.

This is highly abused and becoming more common place in the rental market ..sadly I have not read where a landlord has much they can do to stop this insanity without risk if serious fines and lawsuits

I currently self manage but as I scale will be hiring a property manager. When I do it is because I would want to be hands off and that is something I expect they take care of for me. I would however expect to know what guidelines they use up front and would be upset if they lowered them without my knowledge.

There is no doubt the hardest part of RE investing is getting started but at some point you have to make the leap. I speak from experience when I bought my first SFH and now my first Multifamily. I am a perfectionist which makes it harder to commit but if the numbers work and it feels right that's what counts.

I don't think doing this for a tax deduction is worth it. It is a good business idea and something I have been working toward for some time now. You are splitting hairs just to save a few bucks off for tax deductions in my opinion. If you want to really get extra tax deduction on your rental property. Just remodel one of your rentals. Save all your remodel expense and write it off. you could possible increase the value and increase rent as well as a huge write off that year. As for starting a property management company. Be aware you open yourself up for a totally different legal responsibility with fair housing and other legal responsibilities.