All Forum Posts by: Todd Rasmussen

@Akshay Bhaskaran

Save the money, cancel the home warranties. I've never heard a good story about a home warranty company. Retain that risk in exchange for the return is something most investors would do.

@Rebecca Webbe

They are most commonly called Rental Dwelling Policies. It is similar to your homeowner's policy less a substantial amount of personal property. Having a quality agent is more important than the company, but any of the big ones typically do well on the claims side. Just understanding your coverages puts you in the 90th percentile when it comes to insurance knowledge. It will also be most effective to set up your policy to cover large losses and retain the risk of smaller losses. If you are calling your insurance company because your fence blew down, you are going to have a rough go of it. You'll lose claims free discounts and be harder to insure if you start making claims, so keep a higher deducible, realize some savings on your premiums, and self insure any loses less than the five digit numbers.

@Jennifer Gore

Are you planning on buying cash? If so, you could probably be more efficient than this route.

Same concerns as mentioned above, although our vacancy rate in Middle TN has been about 6% but I plan for 8.3%.

@Gurjot Grewal

You need to stick with it. Having a tolerance for a bigger rehab will result in a better likelihood of finding a BRRRR project, however your expense projections appear aggressive already. I would definitely not lower your cash flow requirements because of this.

Ask an experienced REI what kind of REI they are. Chances are they will not give you one answer. This is because if you are only using one template, only one type of property will fit. Bad BRRR's can be great flips; don't limit yourself to one approach.

@Sara Campbell

We'll be at meetings starting March 2023. Moving to town.

@Asa Aldridge

The chances that you NEED an LLC are probably zero. At this point it is most certainly just a distraction. Any LLC other than a single member LLC will have negative tax consequences as well. Talk to a CPA and a civil litigation attorney after you make sure you get or confirm you have a liability umbrella insurance policy.

@Moises Guerra Garcia

Sounds like you and your agent do not have compatible expectations. Have a conversation about expectations and if the arrangement isn't working for either of you, go get a different agent.

@Angie Nasrallah

Take the loss now versus a bigger one later. Sell the house for what you can and make good on your debts ASAP.

@Michael Creamer

You can write off expenses for rental property as a sole proprietor and should be filing IRS schedule E. The net of having a business entity usually is additional costs and not savings. If you have an exigent circumstance you should talk to a CPA before making any moves.

@Shella Stephens

As the borrower, you'll be in breach of contract with your lender. In the loan docs you pinkie swear not to do it. When we buy subject to, we have the seller sign a contract that they know by doing this they are breaching their contract with the lender.