Radio Broadcast August 28, 2010

With so many foreclosures, now may be the perfect time to follow your dream of investing in rental property.

INVESTING IN RENTAL PROPERTY: Who should consider this and how is it done? First of All, before entering into this risky but profitable business, it's important to review your finances. You can find yourself in serious trouble if you do not have the funds to handle a rental property. Consider the cash flow required if you have no occupant or a non paying tennant for a period of time, and consider the amount needed for upkeep, repairs, taxes and insurance. If you do not have extra funds set aside, you could be taking too much risk.

If you determine that you are ready, consider the properties available. In this environment, many homeowners are hungry to sell. This situation could prove beneficial for investors who want an awesome deal, but value may be hard to determine because the sell of so many distressed properties may have had a negative impact on these areas. Consider price versus cash flow and potential rental proceeds. Location is very important also, and the quality of the neighborhood. It is advisable to avoid properties in areas with obvious signs of a "bad neighborhood". Also, homes that are less than 10 years old are more favorable because they are likely in need of less repairs. Older homes can be a good value if they have been updated and kept in good condition.

After sharing some general tips on Rental Properties and the advantages of owning them and on foreclosures as a possible investment opportunity, Dena wanted to share some information for tennants who find themselves occupants of a foreclosured property. If you are renting a home that is in foreclosure, you could be asked to leave by the new owner.

Although the tennant is notified by mail of this impending occurance, the right of the tennant is almost always inferior, or subject, to the lien of the mortgage. It is possible that a tennant can continue to rent the property from the new owner, but not always.

LEASE PURCHASE AGREEMENTS: This option of home financing is an opportunity for sellers to open up more possibilty of sale by including buyers who can not qualify for a bank loan on the property. These contracts are negotiated on an individual basis between the buyer and seller, and the contract will usually stipulate the price, down payment, terms and rate of the agreement. This can be a good opportunity for a buyer who can afford the home, but it does not always protect the buyer from liens against the seller.

Also, It was announced that the new Open House with Dena Radio Show website www.openhousewithdena.com is up and ready for view and comments. This is a new kind of site with current information and community events posted daily. Plus, the live chat forum was opened during the show so listeners could chat and ask questions during the show. To participate go to the site now and become a fan on facebook to participate in live chat on WCRK 1150 Saturday morning at 10:30AM.

The next two shows are full of more information you may want to know before buying rental property. Also, if you are thinking of renting, are currently a rental tennant or are looking at buying a house on a lease purchase contract, you will want to get informed about your options and rights as well.

Dena Helms Real Estate Broker Re/Max Real Estate Ten 525 West Morris Blvd. Morristown TN 37813 423-581-8881 423-312-1247 www.openhousewithdena.com