All Forum Posts by: Soup Nikk

Hello BP Colleagues,

I am buying my first SFH rental (4bed, 2150 sqft) and wanted to run the insurance policy quote and details by the community as I am not fully aware of things that I should be opting for in a landlord insurance. My insurance quote is $795 for the year. House price is 250k

Coverage Details

1: Dwelling - 222k
2: Other Structures - 22l
3: Household Furnishing - 2k
4: Loss of use - 22k
5: Premises Liability (per occurrence)  - 300k
6: Medical Payments each person - 1k
7: Peril Deductible
   7a: Windstorm or Hail - 2200
   7b: Property Coverage deductible (all other perils) - 1k
8: Additional Replacement Cost - $55,500

Is there any room for improvement or this is good enough?

Looking forward to hear your thoughts.

Hello BP experts,

I have a cousin who is facing the following situation and I wanted to put this out to the experts and see if folks can shed some light on options available.

Situation

My cousin is moving states and changing employers as well. He has a primary home that he will be renting out. However he is lacking funds to purchase a new home at his new destination. He explored HELOC on his current property, however he was informed by a mortgage broker that it would be hard to get one since it involves employment verification and the lender would know that he plans to rent this primary home out (since employers would give that information out). Apparently heloc on a rental property is very rare. So getting a heloc after his primary home is rented out may not be an option too.

We looked into 401k too, but that's also not working out since he is changing employers.

What are some of the other ways to fund his secondary home? Any thoughts or options are greatly appreciated. Thanks in advance!

Regards,

Soup

@Stephanie Irto thanks a lot for the guidance and initial research Stephanie.

Yeah, that makes sense. I'll have to evaluate the numbers as to how much that mortgage payment would be vs. a 20% down mortgage payment.

I also need to figure out how to find those kind of lenders in an out of state market. I am looking at Texas around Austin area.

@Anthony Gayden thanks a lot for that information. Sorry to hear that the deal didn't work out in the numbers section.

I'll definitely evaluate if PMI + mortgage would help, if not putting down cash would be the only option for me.

@Nik Moushon thanks for the guidance. I'll definitely look into those options. Partnering with someone could be an option for me.

Hello BP experts,

I am just getting started with my real estate investing and I wanted to know if lenders would allow putting down less than 20-25% down on a rental single family home, knowing the following

- The person has excellent credit (FICO > 780)

- No outstanding debt

- Has a good salary and a history of stable full-time job. 

If yes, how much down is possible and are we looking at same rates as a traditional 25% down? Also, is this method recommended?

I had read somewhere that smaller/local credit unions can be flexible on their lending terms if the buyer doesn't have enough cash reserves but they feel confident as a repaying client and don't associate a lot of risk.

Regards,

Soup

@Darius Tracy and everyone else involved. Has anyone looked at Vanguard California Long-Term Tax-Exempt Fund Investor Shares (VCITX) or similar funds? Here's more details https://investor.vanguard.com/mutual-funds/profile/overview/VCITX I'm sure there are similar vanguard funds that offer tax exempt nature where one could park their money. Regards, Swarup

@Shane Gaboury thanks Shane for your insight. Do you have a spreadsheet that you use to calculate the value proposition for any property? ROI etc? Specifically for the DC metro area If you do, would you be comfortable sharing it through a private message. Thanks in advance!

@Russell Brazil specifically what areas would you recommend? I looked at some cities around Arlington and it's pretty expensive. I did an Airbnb in Ballston and really liked that neighborhood. But there's only 1-2Bedroom condos available that are under 200k. Any pointers on cities/neighborhood?

@Chris Seveney thank you for your insight. O have been looking at some other parts of the country too. In your experience, what cities would you recommend if I were to look for 100-150k properties either TH or SFH, from cash for perspective, appreciation being a bonus.