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Tips for Buying a Rental Property

Tips for Buying a Rental Property Posted on December 30, 2011 by Realty Executives A college crowd can increase turnover and wear-and-tear. There are plenty of reasons to purchase rental properties. They can provide steady, passive income when the housing market is slow, allowing you to sell only when conditions are right. They can allow first-time buyers to enter the market when they’re priced out at home, and are an excellent way to build equity in a retirement or vacation home. Whatever your reason, if you’ve decided to buy a rental property, follow our five tips to make the process as smooth and economical as possible. 1. Do not expect a quick profit If you have visions of flipping your rental property in just a few years, stop now. Historically, rental properties have been an excellent source of long-term income, but their resale prices are based more on income streams than spikes in home prices. This is particularly true of multi-unit dwellings, and is even more pronounced in a depressed market. There’s little debate that you will be able to sell your rental property at a tidy profit some day, but unless your primary focus is on building equity and earning passive income over time, you’re in the wrong part of the business. 2. Know your market Generally speaking, you want to buy a rental property in the best neighborhood you can afford. An ideal neighborhood would have low crime, a population influx, and proximity to transportation, employment, and amenities. Of these, crime is the most important, as it has a direct impact on your tenants’ comfort level and potentially impacts the physical safety of your investment. Even beyond statistics, the character of your neighborhood is important, as well. A 3-bedroom duplex will have faster turnover and receive more wear-and-tear in a college town than a sleepy family community. A high-end rental home in the suburbs might be a short-term fix while a couple searches for a purchase, but the same home in an urban area could be a long-term rental for a busy businessman. 3. Play the waiting game If you price your property too high, you may lose money on an extended vacancy. If you price too low, you risk losing money over time. After you have a few years of ownership in your neighborhood under your belt, weighing the trade-offs will become easy, but when you’re starting out, you’ll want to seek the advice of an experienced professional. Start by asking your REALTOR©, who may be able to refer you to other rental property owners. 4. Know your tenants Bad tenants will damage your property, run up maintenance bills, call you (or your management company) at odd hours, and leave you holding the bag for months of rent when they abandon your property. Good tenants provide a predictable revenue stream and respect your investment. Do not cut corners with due diligence when choosing a renter. Credit checks are important, but checking references is critical. Once you find your perfect tenants, be open to working with them. Be flexible with improvements or changes they’d like to make to the property. If they’re going through hard times, a minor rent adjustment could be well worth the long-term payoff. In the end, you need the tenants as much as they need you. 5. Be prepared Rental properties require a fairly substantial cash reserve, as well as other preparations. You’ll want to be able to cover several months of mortgage payments to address vacancies and payment processing time. Rental properties require a larger downpayment (often 25-30 percent) than evidential properties, so budget accordingly. You should also line up contractors and maintenance staff as soon as you purchase a property. Again, your REALTOR© or network of other landlords can point you in the right directions. Check references, pre-negotiate rates, and ask for backup referrals for times when your primary contractors are not available. Be sure to ask your tenants for feedback on the contractors’ work and conduct, as well. This entry was posted in Buyers, Buyers, Finance and tagged contractors, hiring, home maintenance, investment properties, investment property, property management companies, rental property, rentals, renting your home. Bookmark the permalink.

10 Moving Tips

10 Moving Tips

10 Moving Tips
Posted on December 16, 2011 by Realty Executives

Buying your new home was exciting. Getting there is going to be a pain. At its best, moving is stressful and chaotic. Here are 10 tips to make sure things go as smoothly as they can, so you can enjoy your new home as soon as possible.

1. Start Early
You’ve lived in your home for years. Two to three months is not too long to spend packing. Get an early jump on your moving strategy and you’ll save time, money, and heartache.http://activerain.com/action/blogs_admin/write

2. Lose the Clutter
Moving is the perfect time to clear out the junk in your life–and your attic. If you haven’t used something in more than a year, consider posting it on eBay, selling it at a yard sale, or donating it to charity. Donations of high-value items such as boas or cars can also give you a nice tax break at a time when money will be tight.

3. Stop Buying
Don’t buy anything that isn’t absolutely necessary in the weeks leading up to your move. You can buy furniture, art, and knick-knacks when you get to your new home. This also applies to food. As you approach moving day, plan to work through as much of the food in your cupboard as you can. There’s no point getting stuck with groceries you can’t use.

4. Make an Inventory
Catalog every piece of furniture, every box of clothing, and every one of your valuables before the move. Take pictures whenever possible. This will help you identify any missing belongings after the move, and will also provide vital information for your homeowners insurance.

5. Hire a Pro
On moving day, you’ll have a full plate just getting where you need to go. If it is at all possible, hire professional movers to handle as much as you can afford. As your friends and your REALTOR© for suggestions, then check online reviews and the Better Business Bureau to narrow the list. Be sure to check the movers’ insurance, and get multiple estimates before you choose.

6. Make a Map
You don’t want to move furniture twice. Make a map of your new home, and identify the locations where you’d like your movers to place things. Carrying a sofa up a narrow flight of stairs is not the best way to celebrate your new home.

7. Measure Everything
Many a recliner has traveled across the country, only to be left on the curb because it couldn’t fit through a door. Measure each dimension of every piece of furniture and every appliance, then do the same for all the points of entry to your home and all of your internal doors.

8. Remember Autos
If you’re moving a fairly long distance, you might want to consider shipping your cars, or paying someone to drive them for you. Be sure to verify insurance coverage and references in either case.

9. Consider Pets
Some pets–particularly cats and birds–do not travel well, and the chaos of a long trip can be hard. Speak to your veterinarian about the safest way to transport your pets, and be sure to get copies of your pets’ medical records, as well. You should also look into licensing, medical requirements in your new town. This can save money and make the transition much easier on your pets. For example, Hawaii has fairly steep quarantine requirements for dogs entering the state, but proper planning and advance immunizations can bypass them altogether.

10. Keep Your Essentials
Planes get delayed. Luggage gets lost. Accidents happen. Keep emergency cash, copies of critical paperwork, and a week’s supply of medicine in readily-accessible luggage at all times during a move. You probably won’t need it, but if you wind up in a motel for a few days, you’l be glad it’s there.
This entry was posted in Buyers, Buyers, Homeowners and Sellers and tagged choosing a mover, moving, moving pets, packing, pets, shipping, shipping cars. Bookmark the permalink.

5 Tips to Prepare Your Home for Sale

5 Tips to Prepare Your Home for Sale

By: G. M. Filisko
Published 2010-02-10 11:12:47
Working to get your home ship-shape for showings will increase its value and shorten your sales time.

Many buyers today want move-in-ready homes and will quickly eliminate an otherwise great home by focusing on a few visible flaws. Unless your home shines, you may endure showing after showing and open house after open house—and end up with a lower sales price. Before the first prospect walks through your door, consider some smart options for casting your home in its best light.

1. Have a home inspection

Be proactive by arranging for a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.

2. Get replacement estimates

If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for your furnace, washer and dryer, dishwasher, and any other items you expect to remain with the house.

3. Make minor repairs

Not every repair costs a bundle. Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. These may seem trivial, but they’ll give buyers the impression your house isn’t well maintained.

4. Clear the clutter

Clear your kitchen counters of just about everything. Clean your closets by packing up little-used items like out-of-season clothes and old toys. Install closet organizers to maximize space. Put at least one-third of your furniture in storage, especially large pieces, such as entertainment centers and big televisions. Pack up family photos, knickknacks, and wall hangings to depersonalize your home. Store the items you’ve packed offsite or in boxes neatly arranged in your garage or basement.

5. Do a thorough cleaning

A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service.
If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Wash light fixtures and baseboards, mop and wax floors, and give your stove and refrigerator a thorough once-over.

Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too.

G.M. Filisko is an attorney and award-winning writer who has found happiness in a Chicago brownstone with the best curb appeal on the block. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Bad Credit and Good Income

Bad Credit and Good Income

The last few years have been rough on everyone. Bankruptcies, foreclosures, short sales, and unemployment have ravaged the savings and credit ratings of hard-working honest citizens, and their effects can linger. As our economy gets back to work, you may find yourself in an increasingly-common position: bad credit but good income.

Mountains of debt?

Is your credit score only hampered by past behavior, or are there current items weighing you down? If you have unpaid judgements or high revolving debt balances, you should almost always pay them down first. Doing so will increase your buying power and decrease your risk in the bank’s eyes, but it will also save you money right away. If you can hold off until you’ve paid off your most dangerous debt, do it.

How bad is “bad?”

Don’t assume you’re out of the running just because you were turned down for other kinds of loans in the past. A credit score as low as 580 can qualify for an FHA home loan if the borrower meets other criteria. If you’re below that cutoff, your options are limited, but in many cases, while a score in the 700s could take years, a few phone calls can bring you back toward 600 and get you where you need to be. If you’re not sure where you stand, your best bet is to visit a loan officer and ask their advice.

Commercial or residential?

If you’re looking to buy an investment property, don’t jump in too quickly. Rental properties are a hot commodity these days, but you might find yourself in over your heard in pretty short order. Commercial loans are riskier than residential loans, since the owner has less to lose, so you can expect to pay a very sizable down payment to receive any kind of reasonable interest rate. The numbers might still work out for you if you find the perfect deal or can do some restorations on your own, but you’ll be locking up a lot of capital in the short term. If you plan to live in your new home, banks may be willing to cut you a bit of a deal, particularly in slow markets.

Can you afford to wait?

Is the house for sale now the only home that will do? Are you being forced to move from your current home? Every market is different, and some are reheating faster than others, but unless you have a specific reason to act now, a few months of saving will usually yield better results in the long term. You’ll be able to take out a smaller loan for your target house, and you might be able to step up the house you want. Scrimping now will almost always pay off in the long run.

Build your dream home on River Road, La

Build your dream home on River Road, La