All Forum Posts by: Zachary Ware

The best market to invest in 2-4 units is the market you live in. Doing a househack with FHA is a great entry point and in my opinion one of the safest options you have. You are there at the property and know what is going on with the neighborhood. The second best is a city with a growing population and diversity on the economic side as well such as having multiple big employers who are in different industries. I think the southeast is still a great area to focus on.

Does your lease state who is responsible for pest control? 

 Great breakdown and overview! Make sure you are not just taking the GPs numbers but running your numbers as well. Stress test the deal and especially the assumptions. 

I would add to this lack of diversification. I recently heard of a fire that was started in an apartment complex and burned down the entire building with the owner losing 10+ units. Concentration can have its advantages such as economies of scale and market knowledge but there is also the inverse.

I agree with Richard on this one. Your tenants signed legally binding contracts (Leases). If there truly are people living there who did not sign leases it could get complicated if anything went wrong (damage, leaving early, not leaving after the lease ends, etc.) I would not think they take on the same legal responsibility as the tenants. 

I have to agree with Cameron. Getting a broker will help you out a lot in the long term as you grow. I have had a great experience with Kin Insurance, Fortress Insurance, and Texas Independent Insurance. 

Send me a DM and I'd be happy to review it with you. 

For a duplex, you can get a rental/landlord policy with liability. Highly encourage you to get at least 6 months of rental loss coverage as well. I believe it will really depend on the carrier used if the house being in an LLC will have a dramatic effect on the insurance.

I do not remember the details but I have heard a BP podcast with an investor who did this exact thing. If you can find the episode and reach out, might be great to connect with someone who has experience here.  

I would select duplex on the tool as this is pulling data from comps in the area. You should also look at other sites such as Zillow for comparable properties that are currently for rent. Talked to a good property manager in the area who works with duplexes will likely provide you the most accurate rates.