All Forum Posts by: Tim Puffer

@Ray Li - Do great in-depth research on a few markets and then start to assemble a team in that market. Definitely a great idea to look outside of California for an apartment building so that you get a better return - your future self will thank you!

A great book that goes decently in depth about assembling a team is - The ABCs of Real Estate Investing by Ken McElroy. 

If you want to chat, or need help analyzing anything please reach out to me - I would be more than happy to help you!

There is digital nomad travel insurance. Google them. There are others like it - I'l try to find their names. 

As far as the umbrella goes - find an independent agent and they will be able to access what's called an insurance wholesaler and possibly find a company that provides coverage for your unique situation.

@Jay J. - Find an independent agent. They will have many different options for you. Also, make sure you are keenly aware of the coverage differences between ACV and Replacement Cost. Make sure the agent explains that to you. Purchase what makes sense for your situation, but make sure you are adequately covered either way. 

Feel free to post your quotes and we can take a look at them for you!

@Kevin Coleman - You are able to obtain a standard homeowners policy for the home as you are living in it. You are able to go up to 4 units on a standard homeowners policy as long as you live in one unit. A commercial policy isn't going to properly cover you personally. Definitely make sure that your tenants have their own renters insurance and list you as an additional insured. 

@Lance Robinson - Definitely find a good independent agent - they will have options. Keep in mind to not try and save a little premium and forsake good coverage. You definitely don't want to be penny wise and pound foolish when it comes to properly covering your assets. 

@Kurt Stein - most insurance policies give you 60 from the time you left the property that they will possibly provide coverage. You definitely need to get a rental property policy so that you will have proper coverage if you have to file a claim. You will want to try your best to get a replacement cost policy, on either Special Form or Broad Form. Also you will want to have $1 million for liability. 

Let me know if you have any questions!

Side note from the insurance - Are you renting the rooms out induvidually, or the house as a whole? We could have got a 25 unit for that price here in Michigan that cash flows!

Now the insurance - Assuming that you finances this the mortgage company will not accept you insuring for less than what you purchased it for. Neither option is very good. You want to at least get broad form. Also, you would want to insure for at least 80% of the insurance deemed replacement cost so that you receive the benefit of replacement cost and will not have to have an Actual Cash Value settlement basis. 

Make sense?

Did you pay $968k for the place? (This question will determine the answer I give)

@BreAnn Stephenson - Solid job!

I'll add in a few things - option 2 sounds like it is a Foremost Insurance Quote, or a commercial quote. @Jen Hoang you definitely want to make the distinction between a personal policy and commercial - there may be some coverage restrictions on the commercial. You also want to really think about insuring all your properties separate, not only for the liability issue mentioned, but if you were to file too many claims on the policy you may be canceled. Even if you were to have claim on say only one house and 10 houses had none! 

I would still include some personal property coverage - most policies have $5,000 built in. What if you are doing some work at the property and you have a bunch of tools stolen? You probably wouldn't want to claim those on you primary insurance from the home you live in. Additionally, there could be coverage restrictions  in that situation.

PMI does attach for the life of an FHA loan. And does require a formal refi. You would definitely want to find a lender who is doing a refi special so that you keep the closing costs to a minimum to do it.