All Forum Posts by: Vinod Dasani

I usually pay the insurance in full but many insurance companies including the ones I deal with offer quarterly payment option with 30% upfront.

@Rob Tossberg - I usually dont Escrow.  By not including the taxes and insurance to my mortgage it gives me more cash flow through out the year.  I would suggest including taxes and insurance for those who arent good at managing money so that at the end of the year they dont have to scramble.

Every city and county have different regulations so you may want to check locally.  If you got an inspection done prior to purchasing and it wasnt pointed out by the inspector then its probably not needed.  Additionally, the insurance company usually sends out an inspector (in Texas) who will point out things like this if they feel it is necessary.

@Chase A.  - Traditionally, interest rates for investments properties are slightly higher than rates for primary residence.

Absolutely, for $240 ($20\month) I would definitely get the umbrella coverage.

@Josh Caldwell -I think what you are asking is how you can make money from your tenants by providing them services that is mutually beneficial.  Have you considered installing a Drinking Water\ice machine on the property?  This provides convenience to the tenants as well as generates additional income with some upfront investment on your part.  Depending on where you place the machine you can also generate income from not only your tenants but from others in the neighborhood by making it publicly available.  

@Fred Johnson - The first thing you need to consider is the tenant type and the leases.  How many of these tenants have been there for over a year?  How strong are the tenants?  Moreover, at 76% occupancy does the property have a positive cash flow.  Will the rents pay for the mortgage?  The current seller may not have a mortgage or may have a smaller loan than you so consider all these factors when doing your calculations.  Also, retail tenants usually get 1-3 months FREE rent when they start due to build up time\cost etc.

@Derek Persuit - Yes, many business have shut down but then at the same time many new ones have started as well.  As we now hear Amazon is also considering opening actual stores.  There are still several businesses that cannot go online only e.g Dentist, Physicians, SPA, Beauty Salons, small mom & pop retailers, neighborhood convenience stores etc.  With every Kmart goes out of business there came a Sprouts.  I know that banks are typically not as willing to loan to strip centers as they used to in the past but if the area is desirable the occupancy rate for retail will be decent. I look to make sure that the property is cash flow positive at 75% occupancy because retail spaces take longer to lease compared to residential.

@Dong Yan - If you have something else (another property) where you can invest and get better returns then sell this one.  Selling the property that is giving you positive cash flow (even if its small) is still better than the money (equity) sitting in the bank in my opinion

@Account Closed Paying the mortgage is the easy part.  This can be automated either from your bank account by setting up reoccurring payments or then by going into the Mortgage companies website and automating the monthly payment there.  Once its done you dont have to worry about it.  And since its so simply and needs to be setup only once I would not hire anyone to do this task