Insurance for home

Hi All :smile

This is my very first post. I did a search and didnt find the answers to my questions so I need a little help.

  • I am currently buying a home from the bank at a pretty decent price considering the. I am buying this house all cash to fix it up (some) and then rent it out.
    Now here are my questions:
    -Homeowner’s insurance: Do I need any ‘special’ insurance since I am not going to be living in this home?
    -Do you guys think its a good investment? I mean to buy an all cash home to fix it up and rent it or Am I better off keeping my $$ in the bank?
    -Is 207k a good price for a 3 bedroom, 1 bath in PJS, NY?

Thanks guys…

You need a dwelling-only policy and a liability policy.

What is the return relative to other choices? It could be a wise or foolish investment.

What are the comps? What are recent sales?

Thanks, BLL

To answer your questions (so you can help me with mine) the recent sales in that area are in the highs 200k. I did a search through the MLSListings and I saw two houses of the same size for about 25-40k higher, but of course, i dont know what the condition is…

The other thing is I just dont feel that my money is working as hard as it could be. I have two money market accts and I get about $250 a month, and I also have a CD which gets me about $95 a month. So I thought ‘if I can get a house all cash, i can make money on the rent PLUS get money when i decide to sell’ or if in the future I need a place to live, i will have this little house to go back to. But I am not sure if dealing with tenants is an easy thing…

The price seems a little high given this new information.

There are investments that will exceed those returns without the risk and work of real estate. Hard money loans is the first thing that comes to my mind.