All Forum Posts by: Stephen Patel

Our first property we flipped had just a shower and we tried to decide if we should put a new tub or shower in at that point. We decided on shower and still got it sold but it did turn away young couples and families when they saw that. The assessed value wasn't quite as good either because it didn't have a full bath. Tenants may not care but someone buying that house eventually will. Good luck on your decision.

Appreciate the detailed help everyone. My agent did mention to me that as the portfolio grows, we can get better rates. It's a little bit of the chicken/egg issue though as the cash flow helps to purchase more properties. After more digging, I found out that their deductible was extremely high (in my opinion) which also helped drop the premium. That's probably ok when you have a large portfolio and can cover the expense.  As @Jason Bott mentioned, there's lots of levers to pull on this, so I will have to figure out what's right for me.

Thanks again for the responses!

Hey BP Members - I've been analyzing a lot of apartment and multi-family deals and I have started to notice that the biggest disconnect I have with my numbers vs. what is shared with me from current owners is their insurance on the properties. They are spending $1500-2000 a year, while my quotes are around $6000-8000 a year. I have a great track record and credit history, so that's not hurting me. I have mine as replacement cost value instead of actual cash value, which I know can save me some money, but there's still a big disconnect. Besides the property insurance, there was also a $150/unit per year charge for liability. Any good tips or ways to structure insurance so you get good protection but it doesn't kill cash flow? Thanks in advance for the help!