Rental Properties?

[odin]

 

 

Flood insurance is NOT cheap here.  We looked at a $270k house about 250ft from a little stream.  It was going to be $300/mo for flood insurance at the old rates, and $500/mo at the new rates.  I don't remember what year the rates changed, 2014, 2015?  It was a deal breaker.  RE agents said it's almost impossible to sell a house in a flood plain.

 

So we purchased a house five houses up on the same street.  We're about 100ft higher and out of the flood plain.

 

That's interesting.  Sounds like your area is mountainous if you moved up 100 feet in 5 houses (or at least very hilly).  I'm guessing the flash flood risk of the lower homes makes the insurance so expensive.  My area is close to the ocean and river but is completely flat.  We are probably being priced off of 100 year or more event risk. 

[BG2008]

Who are the common flood insurance purveyors?  Is there a short list? 

[chrispy]

FEMA

[HWWProject]

I'm exploring the idea of buying homes to rent. My initial thought is to use a property manager for many reasons including my lack of expertise and time. I'll be satisfied with approximately breaking even month to month with the payoff being when the loan is extinguished. To cover my risks, I'll get an umbrella insurance policy. Before I jump in to the business, would any rental home owners care to share if this is an attractive place to invest?

 

Work thru your numbers and assumptions before investing.  Buying cash-flow positive or even break-even is difficult these days in some markets.  If you buy stocks you're familiar with performing your own due diligence, so spend enough energy and time before you commit to a rental property, which is likely a longer-term investment than a stock.  I probably wouldn't hire a property manager until reached 5 rental properties, then only if it's worth my time.  Few years ago I created a spreadsheet to calculate rental property investment returns, offered here:    http://healthywealthywiseproject.com/research-offers/rental-real-estate-analysis-excel-spreadsheet/