All Forum Posts by: Trina P.

@Anton Ivanov thanks!  What I did was take my monthly rent at $1200 and divided got into a monthly payment. Just so I can get it in the calculator  got into a monthly payment. Just so I can get it in the Calculator. Did I Miss something?

Thank you so much for all your responses! 

I'm embarrassed I didn't see this leasing fee until now. It is really screwing up my numbers on the bigger pockets calculator. How is everyone calculating this fee? This is how I am calculating it: I am adding an extra $84 (or 7%) to my monthly expenses. 

I have just closed on my first property in Huntsville, AL and am in the process of setting up a property management company. 

The turnkey company I purchased the home from (ROIPGM) have partnered with a property management company called Yellow Hammer. They have done this to have part control over the management company and make sure everything runs how it should. 

So, am I purchasing the property with a tenant already in place that has been renting since January. 

Now that I am starting to talk with the property manager I have all these fees popping up that were not discussed with me in prior conversations. Maybe I am just new to the game, but these fees seem crazy. What are your thoughts?

- Activation fee $150

- Leasing fee equal to one month's rent ($1,200) (is it typically a one time fee or everytime a new tenant is established?)

- Keeps 10% of months rents (not too worried about this)

- charges 10% of all repairs

- charges 10% of all materials purchased

- Charges $65 fee upon renewal of tenant lease

- Charges a 7 day "quit or Pay" notice to tenant for $35

@P.J. Bremner Thanks for sharing!

As for the LLC in a particular state I have no idea. I will ask my CPA next time I speak with him. I have never even heard of that so I'm glad you brought it up.

Seriously, @Samantha Soto!

Thank you all so much for your responses. 

@Chris Le Thanks for the call!

@Mayank S. I have not checked with Geico but I will. It might be a good idea for our next property. I am confident that we will for sure use an umbrella policy for our 2nd and Geico might be the way to go. 

@Christy Harris Hey! That is a good question, I hadn't thought of that scenario. I will ask my lender. I actually called Ron Evans office and got a quote from his office. I think I picked it up on another forum post from you. 

@Jason Bott That makes sense, I will most likely go with a commercial policy when I decide to purchase my next property. 

My husband and I just made our first property purchase. We are buying in Alabama and live in California.

We are going to postpone getting an LLC until we get a few more properties.

Being out of state a lot of the insurance agencies will not offer an umbrella policy that covers our assets outside of the Alabama. On top of that, a lot won't offer an umbrella policy unless my personal auto and home insurance is under their name as well.

I use AAA for my personal home and auto coverage. They told me in order to qualify for an umbrella policy I would need to increase my personal auto and home insurance policies.

Here are the numbers:

My home and auto policy would be increased by an additional $180 per year

The umbrella policy would be an additional $263 per year

Here is my question: Because this is our first property, we are considering just increasing the liability on the property to $1M instead of using an umbrella policy. Thoughts? Good idea/bad idea, any tips would be greatly appreciated. 

@Samantha Soto are you still liking USAA? 

Okay, I learned a few things. Looks like the attorney that's working with the turnkey is a closing attorney which means that will be handling the title documents. So that is being handled. 

On the financing side, however, I am still debating whether I should hire my own attorney to look over the contracts I am signing with my mortgage lender. 

I just made my first purchase on a property in Alabama. I am now at the point where I am reading through the contract with my mortgage lender. 

So my question is about the attorney. So far in the loan, both the turnkey company (I am purchasing the property through) and the mortgage lender have their own attorney. I have sent earnest money the turnkey's attorney.

in the contract with my mortgage lender, it says, "(mortgage lender's) attorney represents only (mortgage lender's) interests and does not represent your interest. In states and locations that require that an attorney search the title of the subject real estate, (mortgage lender) permits the perspective Mortgagor to select a qualified attorney of his own choice to search the title of the subject real estate and certify that title to the creditor or land title insurance company."

Should I hire my own attorney? Or is it standard for the attorney of the mortgage lender to handel it?

Property details: 106k purchase price, single family, Huntsville,