OT- Buying a home

So... DH and I have decided to go ahead with buying a home. I am a nervous wreck because I KNOW in 3 years we are moving and it seems like so much added stress to have to deal with. I have been to see a few houses already, and DH and I are going to see a few more.

I found one that I LOVE!! It is 5 bedrooms and has a full in-law suite with kitchen. The problem is... there is an in-ground pool. While we are cool with it, I can't imagine renting a house with a pool for tenants to f*** up. It could cost thousands! Plus I don't even know what the liability insurance would be.

Does anyone have an experience with something like this??

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A house with a pool doesn't

A house with a pool doesn't normally cost more for insurance, it can cause a house to not be accepted. Normally, as long as it's fenced in and doesn't have a water slide it should be fine just let whoever is quoting you know.

I'd visit a property management company and see what their cost are so you have real numbers to work with when you start renting out the home. Good luck!

A pool, much like a fireplace

A pool, much like a fireplace, does add to your premiums. It is a safety concern. And if it doesn't pass inspection, it can cost a fortune.

Not really as much as you

Not really as much as you would think, I say this from a decade of working in that world. She specifically mentioned liability cost. It won't affect the liability cost at all, as I said it affects overall eligibility.

I have some experience in

I have some experience in insurance as well.

Your average in ground pool costs $20,000 to replace. That adds at least $50 a month to your premiums. Unless you don't buy adequate coverage, and then you're screwed if it's damaged by a weather event.

The liability portion is insane because you can be liable for any injury, even if people didnt have permission to use the pool. In a rental situation, there is no way I would take on those risks.

Are you by chance in the

Are you by chance in the captive world? I've never see rates do that across the board with various carriers. I've seen I go up maybe $100 a year when a pool is added but never $50 per a month. Most homeowners quotes in my region are still in the $1,000 to 2,000, if you have decent credit.

Regardless, I agree with renting it in mind I'd forgo a house with a pool.

In my region, no one puts an

In my region, no one puts an in ground pool on a property valued at $200,000 or less (which would be your $2,000 insurance premiums). Once the value of the home is $400,000 to $500,000, you start to see more pools, but now we are talking $4K to $5K in premiums, and yes and extra $50 a month for pool coverage is average.

I can't speak to the

I can't speak to the specifics of the inground pool as a landlord but we have several, what the insurance company calls attractive nuisance, features on our property.

As the homeowner, the liability premiums are significantly higher with these features. Not so crazy high that we decided against them, but it does impact our entire policy. I do also carry a separate specific liability policy as our homeowner's offering isn't quite a large enough umbrella for me.

We also have to follow some zoning and ordinance rules for these specific items, those requirements also have some impact because they are what would be considered out of the norm. We are not within city limits or within an association but those might also be considerations.

@ OP, talk to a couple different agents about your immediate and future needs and see where they can help you out. You'll still need to carry liability and coverage on the structure(s) as a landlord, just not the contents/tenants personal property. What the zoning board or association may require could be an issue for your chosen insurer and vice versa. Underwriting similar for a landlord will be different than as a resident owner.

So will property taxes - homestead vs non. Also double check with your lender. Stipulations re: primary residence/possession are typically just the first 60 days but make sure you read the fine print to make sure you're not setting yourself up for a potential battle with your lender.

That's not to say it can't be, or shouldn't be, done. Just a few extra items to account for in your research.

All excellent points. If your

All excellent points. If your underwriter through a VA loan, I dont think they even allow you to rent the property.

So you plan to keep this home

So you plan to keep this home as a rental property when you move in three years? I would not go with one with a pool. Not only would the insurance be more expensive, but the maintenance and weather proofing would still all be on you. You could always pay to remove it, but that won't be cheap.

I am not sure about the pool

I am not sure about the pool liability... I do know that in some areas it can be more of a liability than an asset as there will be certain buyers/renters who won't want the extra responsibility or risk. However, there are also markets where NOT having one might be a detriment if it is a very common feature in local homes.

I might think about discussing the current and future rental liability issues with your insurance agent (or AN insurance agent) to get a handle on that aspect.

What I have a little more familiarity with is the potential rental issue and/or short time purchase idea.

Generally, it is advised that buying isn't a great option if you will only be in a home for a short time.. paying realtor fees and other closing costs in such a short period of time can erase any gains (or widen losses). I would probably advise someone to try to rent a home if it were only for a 3 year time period.

However, if this is a home that you would plan to return to within a reasonable period of time.. then it may be "more" worth it. But.. you would need to keep in mind that it could impact your ability to purchase another home in the mean time in another location if you had to do that.. or other credit decisions.

Then there is the question of renters. My parents rented our home in Northern VA when my dad was on a tour in Germany for 4 years. in that time, we had a representative and their family rent our home. My parents came back to a home that had not been well taken care of... the renters had allowed drains to stay clogged in the basement causing water damage.. they let landscaping become very unkempt.. simply threw sticks in bushes until they were clogged and dying.. Not to mention the condition of the floors and walls..

So.. that is the first risk.. renters not caring for your property.

I have also rented a home we own and you have issues with the tenants not caring properly for things.. so you have plumbing issues that they want "fixed" in the middle of the night.. or like our latest tenant.. they left 2 months before their lease was up.. and they were not really the kind of people that it would have been worth suing over the small amount of rent...

So.. you can end up with time "unrented".. so you are paying housing in 2 places.. you can end up with neglected property..like they don't tell you when something is "starting" to be a problem.. until it is much more costly.

I hate to be so negative.. but most people I know that have rented have not had great experiences.

Ugh... I think I have talked

Ugh... I think I have talked myself out of the pool house this morning. I talked to our insurance agent and I just don't think it would be worth it. The pool just seems like too much to deal with.

It was the whole in-law suite that made the house desirable. We will need something like that for SS in a few more years. I wouldn't even move him into it right now, but to know that he could have that in the future would be huge. DH and I have decided that we will be likely returning here after we leave, so we will be gone for 3 years (after living here for 3 years). All of my family is local and since I work for a custom builder I have all the contacts for maintenance while we are gone. I also plan on doing inspections every 6 months with the tenant. I have rented and had that clause and plan on doing that with the house we buy.

We are on the mid-higher end for the renters in our area so at this price point we don't expect too much trashing of the property. Hopefully we can find another military family who will have similar orders as us while we are gone.

i probably need to be more

i probably need to be more clear about the people that rented our home.. it was a representative in congress.. a congresswoman and her family.. not at all bottom of the barrel renters really. (well.. maybe some might consider a congress rep bottom of the barrel lol). and homes in that area go for around 750K now.. last I checked.

So this was a home in an desired area rented to someone you would have thought would be "impeccable".. and the reality is that people who don't OWN the home.. are often likely to not care for it as an owner would...

Comments

A house with a pool doesn't

A pool, much like a fireplace

Not really as much as you

I have some experience in

Are you by chance in the

In my region, no one puts an

I can't speak to the

All excellent points. If your

So you plan to keep this home

I am not sure about the pool

Ugh... I think I have talked

i probably need to be more

Oh wow!!! Would not be

yeah.. we were a bit shocked

Are you talking the SS14 that

No, this is for my special

Oh.. good.. glad that he isn

I think she's referring to

We are on the mid-higher end

If I were in your shoes, I'd

Have you considered looking

That wouldn't be an option

Call around some insurance

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OT- Buying a home

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