Can anyone provide feedback whether to escrow payments or not to escrow.
I have a pretty fair amount of rentals with half being escrowed. I’m constantly getting escrow shortgage letters or reimburesments. It’s a bookeeping nightmare.
Any feedback would be appreciated!
It really depends how disciplined you are at saving enough when the bills come due. If you are good at saving then, it’s much better to have the money liquid and not worry about the shortage letters.
If you are going to be a successful landlord then you should be able to handle paying your own taxes and insurance rather than relying upon the lender’s escrow department. Consider you are making a tax free loan to your lender every month you write that escrow check and for what, just so they can screw up your escrow analysis and demand higher payments next year?
It also sounds as if your escrow company (companies?) are having trouble with 4th grade mathematics…establishing an escrow amount isn’t exactly rocket science. Shortages should be somewhat rare and not a ‘constant’…
Keith