[surveyor]

don’t

I don’t recommend it – too many hassles (and this is coming from someone who can handle hassles). You will need to basically write up a partnership agreement to make sure that everyone does their fair share, when you can buy each other out, etc. What if the other person loses their job, and then can’t make up their mortgage payment, you will have to pick up the slack, etc. Too many what if’s when you are by yourself and it gets worse when you involve other people, particularly friends and family (a good way to ruin relationships is to involve friends and family in money).

As for qualifying for it, it’s not too difficult if the property is less than 5 units. That will make it residential and the LTV ratios, income requirements, and other documentation are not that severe.

Honestly, I would recommend just trying to qualify for the property on your own and see where that gets you. Do the math, see what you can afford, etc.

Oh, and by the way, if you are thinking of buying anywhere in California, I doubt there are any four plexes or less that will work as good income properties right now (I’ve been seeing four plexes for around $650k and more. It needs to get around $500k before it starts working).

[surveyor]

don’t

I don’t recommend it – too many hassles (and this is coming from someone who can handle hassles). You will need to basically write up a partnership agreement to make sure that everyone does their fair share, when you can buy each other out, etc. What if the other person loses their job, and then can’t make up their mortgage payment, you will have to pick up the slack, etc. Too many what if’s when you are by yourself and it gets worse when you involve other people, particularly friends and family (a good way to ruin relationships is to involve friends and family in money).

As for qualifying for it, it’s not too difficult if the property is less than 5 units. That will make it residential and the LTV ratios, income requirements, and other documentation are not that severe.

Honestly, I would recommend just trying to qualify for the property on your own and see where that gets you. Do the math, see what you can afford, etc.

Oh, and by the way, if you are thinking of buying anywhere in California, I doubt there are any four plexes or less that will work as good income properties right now (I’ve been seeing four plexes for around $650k and more. It needs to get around $500k before it starts working).

[surveyor]

don’t

I don’t recommend it – too many hassles (and this is coming from someone who can handle hassles). You will need to basically write up a partnership agreement to make sure that everyone does their fair share, when you can buy each other out, etc. What if the other person loses their job, and then can’t make up their mortgage payment, you will have to pick up the slack, etc. Too many what if’s when you are by yourself and it gets worse when you involve other people, particularly friends and family (a good way to ruin relationships is to involve friends and family in money).

As for qualifying for it, it’s not too difficult if the property is less than 5 units. That will make it residential and the LTV ratios, income requirements, and other documentation are not that severe.

Honestly, I would recommend just trying to qualify for the property on your own and see where that gets you. Do the math, see what you can afford, etc.

Oh, and by the way, if you are thinking of buying anywhere in California, I doubt there are any four plexes or less that will work as good income properties right now (I’ve been seeing four plexes for around $650k and more. It needs to get around $500k before it starts working).

[surveyor]

lost income and insurance

I’m wondering how insurance deals with rental income lost from a firestorm. I know that insurance companies were paying homeowners loss of use compensation from the fires, but wondering how rental properties were compensated (if at all).

It depends on whether a lender will require rental income protection (and I can only speak to my own situation, as that I am not an authority on insurance and its intricacies). I was only required to have income protection on my commercial/residential property. From my understanding of the policy, yes, the insurance would cover certain expenses if a disaster (such as a fire) destroyed the property.

My SFRs do not have income protection, but the insurance does cover the lender in case of a fire…

(I’d have to re-read the insurance policy that I have, I dont’ have all the details in mind).

[surveyor]

lost income and insurance

I’m wondering how insurance deals with rental income lost from a firestorm. I know that insurance companies were paying homeowners loss of use compensation from the fires, but wondering how rental properties were compensated (if at all).

It depends on whether a lender will require rental income protection (and I can only speak to my own situation, as that I am not an authority on insurance and its intricacies). I was only required to have income protection on my commercial/residential property. From my understanding of the policy, yes, the insurance would cover certain expenses if a disaster (such as a fire) destroyed the property.

My SFRs do not have income protection, but the insurance does cover the lender in case of a fire…

(I’d have to re-read the insurance policy that I have, I dont’ have all the details in mind).

[surveyor]

lost income and insurance

I’m wondering how insurance deals with rental income lost from a firestorm. I know that insurance companies were paying homeowners loss of use compensation from the fires, but wondering how rental properties were compensated (if at all).

It depends on whether a lender will require rental income protection (and I can only speak to my own situation, as that I am not an authority on insurance and its intricacies). I was only required to have income protection on my commercial/residential property. From my understanding of the policy, yes, the insurance would cover certain expenses if a disaster (such as a fire) destroyed the property.

My SFRs do not have income protection, but the insurance does cover the lender in case of a fire…

(I’d have to re-read the insurance policy that I have, I dont’ have all the details in mind).

[surveyor]

lost income and insurance

I’m wondering how insurance deals with rental income lost from a firestorm. I know that insurance companies were paying homeowners loss of use compensation from the fires, but wondering how rental properties were compensated (if at all).

It depends on whether a lender will require rental income protection (and I can only speak to my own situation, as that I am not an authority on insurance and its intricacies). I was only required to have income protection on my commercial/residential property. From my understanding of the policy, yes, the insurance would cover certain expenses if a disaster (such as a fire) destroyed the property.

My SFRs do not have income protection, but the insurance does cover the lender in case of a fire…

(I’d have to re-read the insurance policy that I have, I dont’ have all the details in mind).

[surveyor]

lost income and insurance

I’m wondering how insurance deals with rental income lost from a firestorm. I know that insurance companies were paying homeowners loss of use compensation from the fires, but wondering how rental properties were compensated (if at all).

It depends on whether a lender will require rental income protection (and I can only speak to my own situation, as that I am not an authority on insurance and its intricacies). I was only required to have income protection on my commercial/residential property. From my understanding of the policy, yes, the insurance would cover certain expenses if a disaster (such as a fire) destroyed the property.

My SFRs do not have income protection, but the insurance does cover the lender in case of a fire…

(I’d have to re-read the insurance policy that I have, I dont’ have all the details in mind).

[surveyor]

Time

A house in Texas costs less because Texas does not have stringent land requirements like California. A subdivision in Texas will take a year from conception to finished construction. The same process in California not only costs more in fees and requirements and environmental studies, but it also takes FOUR to FIVE years.

I hope that answers your question.

edit: although I should note that this fact does not in any way justify current prices of houses…

[surveyor]

Time

A house in Texas costs less because Texas does not have stringent land requirements like California. A subdivision in Texas will take a year from conception to finished construction. The same process in California not only costs more in fees and requirements and environmental studies, but it also takes FOUR to FIVE years.

I hope that answers your question.

edit: although I should note that this fact does not in any way justify current prices of houses…

[surveyor]

Time

A house in Texas costs less because Texas does not have stringent land requirements like California. A subdivision in Texas will take a year from conception to finished construction. The same process in California not only costs more in fees and requirements and environmental studies, but it also takes FOUR to FIVE years.

I hope that answers your question.

edit: although I should note that this fact does not in any way justify current prices of houses…

[surveyor]

Time

A house in Texas costs less because Texas does not have stringent land requirements like California. A subdivision in Texas will take a year from conception to finished construction. The same process in California not only costs more in fees and requirements and environmental studies, but it also takes FOUR to FIVE years.

I hope that answers your question.

edit: although I should note that this fact does not in any way justify current prices of houses…

[surveyor]

Time

A house in Texas costs less because Texas does not have stringent land requirements like California. A subdivision in Texas will take a year from conception to finished construction. The same process in California not only costs more in fees and requirements and environmental studies, but it also takes FOUR to FIVE years.

I hope that answers your question.

edit: although I should note that this fact does not in any way justify current prices of houses…

[surveyor]

Feeling you!!!

My outer circle has been feeling it since Christmas – my wife and I are notorious cheapskates, but we did notice the other members of our families being pretty modest with their choice of Christmas presents.

For my family, our finances are actually in pretty good shape. Our employers are doing well, all things considered. With the start of the new year, I was looking to see what expenses we can lower (not much, but it was worth a look – I’m planning to bring my lunches to work, but it’s more because I’m trying to get more work done as opposed to trying to save money). There are things that the wife would definitely like to eliminate (like my monthly comic book run and cable TV), but that’s not going to happen unless we’re in dire straits I told her. Lakers are going deep into the playoffs and there’s just no way I’m missing that this year. 🙂

I do feel that things are really bad out there, but that’s because I read blogs like this and then I start worrying. I have to actually step outside of this blog and look at my situation and realize that at least for me, things are good and that my long range plans are proceeding as planned.

Still, I will admit that I am seeing signs of stress in other people.

[surveyor]

Feeling you!!!

My outer circle has been feeling it since Christmas – my wife and I are notorious cheapskates, but we did notice the other members of our families being pretty modest with their choice of Christmas presents.

For my family, our finances are actually in pretty good shape. Our employers are doing well, all things considered. With the start of the new year, I was looking to see what expenses we can lower (not much, but it was worth a look – I’m planning to bring my lunches to work, but it’s more because I’m trying to get more work done as opposed to trying to save money). There are things that the wife would definitely like to eliminate (like my monthly comic book run and cable TV), but that’s not going to happen unless we’re in dire straits I told her. Lakers are going deep into the playoffs and there’s just no way I’m missing that this year. 🙂

I do feel that things are really bad out there, but that’s because I read blogs like this and then I start worrying. I have to actually step outside of this blog and look at my situation and realize that at least for me, things are good and that my long range plans are proceeding as planned.

Still, I will admit that I am seeing signs of stress in other people.

[Author]

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