Many investors look to graduate from single-family/duplexes to multi-family buildings.
Insurance is becoming a real issue. Its availability, coverage and cost are becoming increasingly important factors, particularly in multi-family. Premiums are skyrocketing, deductibles are following along, and coverages are diminishing.
The number of companies prepared to write policies on multi-family buildings, especially wood frame and older multi-family buildings, is also dwindling. I have had clients comment that their insurance agent could only find one insurance company ready to write a policy with premiums way higher than expected after scouring the market.
So, insurance has been a big issue for many of my multi-family clients and is something you need to be aware of as you help your clients with multi-family purchases.
Cheers,
Barry
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