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Message
4-Plex Property Insurance is Crazy
Posted on 3/2/23 at 5:33 pm
Posted on 3/2/23 at 5:33 pm
It seems like I'm the only one NOT making money on my investment property.
There's little left after the property manager takes their cut for fees and expenses and I have to pay over $8500 for insurance.
Each unit is a 2BD/2BA and about 1100 square feet. My premium has been going up in the neighborhood of $2000/year for the last few years. That's with NO claims. What the hell!
There's little left after the property manager takes their cut for fees and expenses and I have to pay over $8500 for insurance.
Each unit is a 2BD/2BA and about 1100 square feet. My premium has been going up in the neighborhood of $2000/year for the last few years. That's with NO claims. What the hell!
12
Posted on 3/2/23 at 6:48 pm to JoieDeVivre
How much you charging a month?
Posted on 3/2/23 at 7:05 pm to JoieDeVivre
I’ll take it off your hands brother! Haha
Posted on 3/2/23 at 7:06 pm to JoieDeVivre
quote:
There's little left after the property manager takes their cut for fees and expenses and I have to pay over $8500 for insurance.
You are not alone in this issue. Way too many people have been lured into Real Estate as an easy money maker without being properly warned about the risks.
You aren't underwater until you get a tenant fighting eviction (refusing to pay) or the wrong management resulting in high turnover and vacancies
Posted on 3/2/23 at 7:08 pm to JoieDeVivre
Welcome to the new norm in Louisiana
Posted on 3/2/23 at 7:22 pm to JoieDeVivre
Had UPC for two of my rentals, was paying 1k/year in premiums on each. UPC is dead now and we had to get citizens. 3k each. Br area. These are SFH
This post was edited on 3/2/23 at 7:36 pm
Posted on 3/3/23 at 7:40 am to JoieDeVivre
quote:
There's little left after the property manager takes their cut for fees and expenses
How much is this? Any chance you could cut them out and handle it yourself?
Posted on 3/3/23 at 9:36 am to JoieDeVivre
I’ll buy it off you cash if it’s in Baton Rouge
Posted on 3/3/23 at 9:43 am to JoieDeVivre
Big reason Nola metro is seeing an uptick in these kind of sales. Long time owners are ready to get out. Insurance is going up from claims - normal claims, storm claims, and even because of personal liability claims (crime). The big, big boys don't feel it as much because the insurance companies don't want to run them off so they hedge by passing increases to the smaller policies.
Insurance is a damn shame in south LA.
Insurance is a damn shame in south LA.
This post was edited on 3/3/23 at 9:44 am
Posted on 3/3/23 at 9:43 am to JoieDeVivre
quote:
There's little left after the property manager takes their cut for fees and expenses and I have to pay over $8500 for insurance.
You are getting your equity, of course, plus the tax benefits. Frankly, I have to ask - are you charging market rates? Are you adjusting your rents when your costs go up?
If you are not doing that on a periodic basis, then why not?
Posted on 3/3/23 at 12:13 pm to JoieDeVivre
quote:
JoieDeVivre
Just did the math.
$8500/4 units=$2125 per unit
$2125/12 months=$175 or so per month
Include the cost of insurance increase to your renter if you choose.
What do I win for solving your “issue”?
Posted on 3/3/23 at 12:26 pm to JoieDeVivre
quote:
It seems like I'm the only one NOT making money on my investment property.
There's little left after the property manager takes their cut for fees and expenses
maybe you bought wrong. all should have been priced into your PCF numbers. expenses? you mean maintenance? there is no avoiding that. old saying is always account for vacancies and maintenance. i have been lucky and never had a vacancy problem. maintenance? absolutely. have i had some evictions? absolutely. it happens to all of us over time.
quote:
My premium has been going up in the neighborhood of $2000/year for the last few years. That's with NO claims. What the hell!
yikes. this looks like it could be your issue and killing your cash flow. that is ridiculous. one of my duplexes is 850.00 a year. You are getting raped. are you charging market value rents? bumping up the rents to MAYBE cover that crazy insurance is not worth your time to pay that crazy premium. it will keep going up and you won't be able to keep raising rent to that level to cover it. You are constantly exposed. 1031 it and get something else somewhere else. Or just sell it and pay your depreciation recapture and capital gains taxes.
quote:
I have to pay over $8500 for insurance.
This post was edited on 3/3/23 at 12:34 pm
Posted on 3/3/23 at 1:45 pm to JoieDeVivre
I've owned it for many years and managed it myself up until a few years ago. It's been a great investment.
It just happened that about the time I hired a property manager is when the insurance cost started escalating rapidly. So my income has taken a hit. I'm sure they have it priced correctly. I need cheaper insurance.
It just happened that about the time I hired a property manager is when the insurance cost started escalating rapidly. So my income has taken a hit. I'm sure they have it priced correctly. I need cheaper insurance.
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