In this Q&A session, Terri Dobbs, First Cornerstone Group real estate training coach and mentor, takes on your query about how much you might need to set aside for repairs on a small apartment after getting it under contract. Terri also discusses the cost for a lost income policy.
On the question of the price of a lost income policy, Terri advises you speak with your insurance office for prices, given that price will vary based on company and market.
When considering how much you need to set aside for future repairs on a multifamily or small apartment deal, the lenders may dictate how much you need in reserve, Terri said.
“Some of them may have requirements,” she reveals. “I’ve seen figures of $200 to $250 per door. It might be more than that depending on how new the property is, how big the property is.”