We’ve all come across that property—the one with the irresistibly low price in the bad area of town. The numbers make it look like a home-run real estate deal, but are there too many red flags to ignore? We’ll show you exactly what to do when analyzing this type of rental property!
Welcome back to another Rookie Reply! We’ve pulled three new questions from the BiggerPockets Forums, and first up, an investor wants to know whether or not they need an umbrella policy for their property. Tune in as Ashley and Tony share their thoughts on insurance, LLCs, and a range of asset protection strategies you can use to safeguard what’s yours. Then, we weigh the pros and cons of FHA and conventional loans. One of these options gives you a clear advantage when it comes to seller negotiations!
Our final question comes from an investor who’s considering a “great” deal in a less desirable part of town. It looks good on paper, but are other investors steering clear for good reason? We break down when it makes sense to buy this type of deal, and conversely, when it’s more trouble than it’s worth!
Looking to invest? Need answers? Ask your question here!
In This Episode We Cover
What to know before buying a good real estate deal in a bad neighborhood
How to protect your assets with umbrella policies, LLCs, and other strategies
Whether you should get an FHA loan or conventional loan for your rental property
How to create “stable” rental income through Section 8 investing
Why you always need to have cash reserves for your investment property
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-655
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