All Forum Posts by: Shain Ismailovski

Really comes down to cash flow and potential appreciation. I use the 1% rule as a generic baseline not a make or break, but it gives me an idea. I won't invest in flood plains or areas with septic tanks or well water. The liability and extra charges aren't worth it.

Welcome to BP!

NRT Title is who I normally use. Some agents may be able to also do searches for you.

As mentioned you would most likely have to go through an insurance broker who can shop around for you. The trade off is that your payments may be slightly higher depending on who is the policy issuer is. Most insurance companies figure homes that are over 100 years old will have more issues and equate to less money in their pockets. A lot of investors I know will stay away from older properties due to issues you like this as well as structural issues that come with the problem that they end up being stuck with.

First, check local laws and regulations about any restrictions on rent increases. I would give them an incremental increase first and give them a bit more time. I would see if he is willing to switch to a yearly lease and let him know rent will be going up . A $100 increase can shock a lot of people and may cause you to lose the tenant. If the area is tough to rent in vacancy can be a killer. Start with a small increase first and give him 60-90 days notice even if you don't have to as a curtesy. You do want to be at market value, but you also don't want to lose monthly income due to vacancy. 3%-5% increase is pretty common and you can repeat it yearly. It's a slow drip, but is easier to swallow from the tenant side. 

@Vaughn Smith Those were my thoughts and hesitations exactly. A shame too because on paper a lot of the numbers make sense initially. 

There are copies on here that I believe are available for each state for a charge. You can also consult a real estate agent or an attorney as well. 

It all comes down to who will offer you the most support as you start out, the best commission split (not as important, but still important), and the tools in their toolbox. Focus more on who you believe is most supportive especially when starting out. Take multiple meetings with multiple brokers and go from there. 

It's all about properly screening tenants and doing your due diligence on everyone. You never want to face eviction, it's a lose lose situation. Screen everyone and you will decrease your chances of this happening. 

Hi Sean -- Welcome to BP! There are a lot of resources here you can use. The BP podcast is great and has a lot on buy and hold strategies. Brandon Turner has a book on real estate investing that is a solid and easy read for new investors.