Most “as-is” properties are either forecloser’s or properties that have been vacant/abandoned.
You are almost always going to spend more money than you think. Unless you have money to burn, stay away. Many people buy properties in low income areas, with hopes of re-painting the walls every 5 years and making some rent money. The problem is, that’s the exact type of property that insurance companies don’t want to take a risk on.īe very careful with the “as-is” property too. The problem with that is, the property is cheap for a reason. I get it–you want to buy the cheapest property possible so you can turn the biggest profit. They are in such a rush to make money, they don’t pay enough attention to the property. This is undoubtedly the biggest mistake I see landlords make. However, several of my friends/family/clients/co-workers own rentals, and because I insure a bunch of their properties, I’ve had a first hand account of the process, and I’ve learned what to do, and what not to do.ġ.) Do your due diligence on the rental property I’m not a real estate agent, and I don’t own a rental property. What do you know about real estate or rental properties? Why should I take advice from you?” So you’re probably thinking, “Well Chris, you are an insurance agent. I certainly don’t mean to be a “Debbie Downer”, and I know that if it’s done right it can be lucrative, but from an insurance agent’s perspective, I don’t see a lot of people doing it right. In fact, owning a rental property can be a major pain, and end up costing you a ton of money! I’m pretty confident that if you asked anyone who has ever owned a rental property you would get an overwhelming response that it’s not as lucrative or easy as they thought it would be.
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