Typically, when you think rural, the smell of cow dung and the sugar factory come to mind. But when it comes to the USDA Rural Loan, the first thing that comes to my mind is, "Do I qualify"? Throughout my business week, I usually hear the question, "Can you still find anybody to give you a loan"? The answer of course is a resounding YES! Not only is there financing available, there is 100% Financing. The loan is through the USDAand it is available only in certain areas that are considered ‘rural' according the USDA eligability guidelines.
The 3 areas where you might be eligible for getting one of these loans are Kuna, Middleton and Star. Because it's rural, doesn't mean that you will be living on a farm (unless that's what you want); there are plenty of homes that are offering nice community amenities like pools, walking paths close to the Boise River, neighborhood parks and good freeway access. One such neighborhood that defies the term rural is Heron River in Star.
But as I always caution, make sure you make your decision wisely because there are costs associated with buying in an area away from the center of town - some are financial and some are psychological. If you work in Downtown Boise, moving to Kuna may not save you money especially if you are gobbling up 5 gallons of gas just to get there on a daily basis! Not to mention dealing with the daily commute or being stuck in traffic. On the otherhand, don't let those things stop you because the Treasure Valley Commuteride and Ridesharing Program offers an opportunity to park your car and pool your way to work.
If you are looking to buy a newer, more affordable home or know of someone who is and living in Kuna, Middleton or Star is within your liking, this may be just the perfect opportunity for you. Save your down payment in a reserve account for mortgage payments in the future, for unexpected repairs or maybe even some upgrades!
If you need more information please contact me!
To read this article and others from thier source: 3 Areas in Treasure Valley You Can Buy With No Money Down
I have been working on putting together some numbers for distressed properties in Meridian, specifically North Meridian and am pretty shocked at what I found. Homes in the ‘less than $250k’ range are terribly burdened by the overwhelming amount of distressed inventory (homes either facing short sale, in foreclosure, or Bank Owned).
55% of North Meridian Homes on the MLS (Multiple Listing Service) are in some way financially distressed! As you climb the price ladder, the number of distressed single family homes diminishes, but what is important to note here, is that 70% of what sold in 2008 was in the more affordable price ranges below $250k.
This isn’t all bad news, especially if you are a buyer, but if you own a home in the area within this price range, hold on to your hat!
If you or someone you know is in the North Meridian area, tell us how many homes are on your street that are for sale. If you’d like more specific market data for any area, just give me a shout!
To read this article and others from the source: Homes For Sale in Meridian: Good News For Buyers
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If you haven’t heard, the government is handing out $8000 dollars to first time home buyers this year in the form of a tax credit. In the past, this type of stimulus had a pretty immediate impact on the first time buyer market and I expect that this spring we are going to seem some long awaited activity in the market. The timing couldn’t be better, spring usually offers a nice kick start to the market as buyers crawl out of winter hibernation and start shopping for homes. With good incentives for buyers and a strong buyers market, don’t get caught up in the frenzy that could easily ensue.
Everyone has heard the three most important rules of buying real estate; “Location, location, location”. Which begs the question, “What’s a good location?” Everyone everywhere has different needs and wants and what may be an attractive location to you just may not be an attractive location to buyers when it’s your turn to sell. Keep in mind the big picture and that unique real estate (riverfront, city views, etc.) is limited and will typically hold it’s value over time. As a first time home buyer, don’t trouble yourself by looking for waterfront property, but employ the same thought and analysis within your price range. And remember, buy today what someone will want to buy or rent from you tomorrow!
As an example, buying a home in a large subdivision with many vacant, buildable lots that is surrounded by more large subdivisions is a purchase that could take many more years to recoup and make a profit (which by the way, you aren’t guaranteed). Which brings me to my next point.
Don’t assume that you are entitled to a profit. Over the long haul, real estate has proved to be a great investment, but if you expect that your home is going to be a cash building machine, think again. Good consultation that includes an analysis of you goals can help you determine if buying is even a good idea for you personally.
Don’t get caught up in Granite, Tile, Fixtures and Appliances. Far too many homes bought and sold boast all of these nice glamourous touches, but fail to deliver where it counts — Location. Instead, get caught up in the important details like, lot size and orientation, proximity to major thoroughfares (noise), schools and natural amenities. Before you know it, a Stainless Steel Refrigerator will have the same appeal as an Avocado Oven/Range (which happens to be coming back in style I hear). You can replace amenities, but you cannot replace a floor-plan or otherwise poorly located piece of real estate.
Don’t wait for lower interest rates. Interest rates are still at historical lows and waiting for them to go lower could be the kiss of death for you and your family. If you are looking in the 200k price range, a 1% increase in interest rates can drive your monthly payment UP nearly $150 bucks a month OR, it could drive your affordability down into the $180,000 price range — nearly $20,000 less! Low interest rates are nice to have so lock in now, if a lower rate is what you need, have your agent negotiate for you and have the seller buy your rate down.
Don’t low ball an already good deal. This is probably the #1 rookie mistake. Believe it or not, there are homes listed on the market at a good asking price. Just because a home is listed for $180,000 doesn’t mean it will sell for $160,000. If you’ve done your homework as some sellers have, you’ll notice a good value when you see one. Low balling a seller just to low ball a seller is a waste of your time and you’re more likely to lose out on a good deal. Don’t get me wrong, I am all about negotiating , but if it’s done without strategy to help you achieve your goals, then you are only hurting yourself.
Don’t buy a home without a buyers agent. OK, this is the number two #1 mistake. As the real estate industry becomes more transparent, buyers of today can educate themselves using very powerful tools and can find listings just about everywhere on the web. But don’t be fooled, just because you can surf the search engines and look up tax assessed values doesn’t mean that you can negotiate face to face with a seasoned home builder (who by the way is in the business of building homes to make money for his family not yours) or negotiate face to face with the owner of a home whos children took their first steps there and said their first words. Negotiating is difficult and I have done it hundreds of times for my clients. You agent should be looking out for you and your interests, period!
There are many reasons to get out this spring and summer to buy a home and I hope you see the benefits. With some good consultation and thoughtful calculated decision making you are sure to wind up happy as ever with a good deal at a great interest rate. If you’ve already made the decision to buy, start talking to your loan originator and get the ball rolling. On average the process takes about 60-90 days from start to finish — from that standpoint, summer will be long gone and so will many already good deals.
If you don’t have a trusted lender/loan originator that you can call, give me a shout and I will send you some referrals. I work with only the best that the industry has to offer, and have used them personally to buy my own real estate. I can be reached anytime at 208-724-7602.
To read this and other articles from their source: 5 Pitfalls to avoid in 2009: Buyer Advice
For me, property management is an integral part of my real estate business. It keeps me connected with the housing market at large, not just the buying and selling part. Property management allows me to make contact with investor buyers/owners who are in the business of providing rental units to the rental market. It's also a great opportunity for me to stay active in the residential real estate market even when I am not working with a buyer or seller; I get to meet people who are relocating, people who have sold their primary residence and are looking to buy another and even college students among many others.
What does a Property Manager do?
As the name implies, I manage the day to day operation of a residential building from single family homes, duplex or multi-family dwellings for the owner. Essentially, we take over the tasks that all landlords are responsible for, but we handle them in a professional, legal manner. Here are just a few typical tasks or responsibilities we find ourselves doing as property managers:
Again, these are just a few of the responsibilities that we handle on a day to day basis as property managers. Recently I wrote a list of important things that a property owner should be doing with their own rentals if they don't currently have someone managing for them. These responsibilities shouldn't be taken lightly.
How much does a property management company charge?
I cant speak for every company, but I charge a percentage of gross rents received and that percentage is usually between 8% and 10% depending upon the property, location and other circumstances. The fee I charge on a typical rental is usually $70-$90 per month; Less than the monthly utilities.
Why would someone need a property manager?
There are many reasons that someone would want a property manager, but here are some of the reasons that my current clients have:
Most owners call us because they aren't familiar with how to convert a home into a rental. While it sounds simple, there are complex housing laws that are always changing. In addition to the legal aspect, there are ‘tricks of the trade' and knowledge that I have over someone who has never managed a rental unit. The cost of hiring a manager is well worth it when you consider the liability and the time associated with properly managing a home.
What is the current rental market look like?
At the time of writing this letter, the outlook for property owners is mixed as well as it is for tenants. As with the re-sale real estate market, the outlook is based on location, time of year and type of home. But, with the re-sale market continuing to slip, the opportunity for owners to purchase quality real estate is quite good! For tenants however, be weary! There are a lot of good rentals available, but many are in some sort of financial distress where owners have stopped or are going to stop making payments to the bank which means you are likely to get evicted once the home has been auctioned.
In the coming months, expect there to be fewer quality rentals available and prices to trend upward with the warmer weather. Here is a list of my average rents throughout the valley:
Kuna- 3 bed 2 bath (and a bit larger) 1500-2000 square feet- $850-$1000 (for whatever reason, homes are renting quick)
Do I need to hire property manager if I own a rental?
In one word, yes! Certainly, you are capable of managing your own rental, and perhaps you've been doing so just fine, but, there will come a time sooner than later that the scope of your knowledge and understanding will not cover a certain scenario, usually by that time much is lost. If you aren't updating yourself on the changes in law, the changes in marketing and protecting your rental like a professional company would, then its time to give us a call. We can diagnose your situation or even give you insight into how to get started in acquiring rental properties and start building a solid rental portfolio.
To read this and other exciting articles from their author: What is Property Management?
Being a landlord isn’t easy but given the Resale Real Estate Market, many homeowners are turning their home into rentals. It can be a great idea, but, few of the owners with for rent signs are actually operating their rental in professional manner and in some cases illegally. Managing your own rental can be done, but there are many pitfalls and dangers if its not taken seriously or with care. The consequences are great and it’s your home at the end of the day that you are putting out there to be treated either with care, or vandalism. Hiring a professional Property Manager is great idea because of the experience and professional care involved.
The statement that gets me the most from wannabe landlords is, “I can’t afford a Property Manager”. Little do they know that my fee is usually less less than the gas bill and with the services that we provide, we can actually save them money - in some cases, thousands of dollars per year.
In either case, what are the things that most rental owners aren’t doing that they should be? Here’s a list in no particular order:
To catch fish, you have to go where the fish are, simple, right? Well not exactly. You can still see that most owners still advertise in print media. Why? I estimate that at least 25-50% of all calls we get on our ads are from people who are relocating to the Boise Area. So, again, why would they be looking in a printed paper? They aren’t!
Good Bait:
Don’t think that just because you are putting your listing on Craigs List that you won’t be on page 3 by the end of the hour. Most people are listing their properties there and so should you, but realize, that it’s not Maximum Exposure. Do you want a couple of applications or a bunch of them?
Most landlords don’t even do this step! Why, because its complicated. Most screening companies have requirements that the average Joe can’t even meet.
Credit reports turn up current and past financial history and gives you a current idea of the prospects debt to income ratio which helps you determine if your applicant makes enough to comfortably pay you rent each mont. It also turns up any legal items like leins from past landlords and property managers or any outstanding collection items from utility companies.
It is what it says. We run an eviction search on every applicant to see if they have ever broken a lease and were legally evicted. An eviction is a big red flag that should not be overlooked. If your applicant got evicted from a previous residence, why would you want them to be living in your place?
While it’s illegal and unethical to discriminate against a tenant for their Age, Sex, Race, Color, Religion, National Origin, Familial Status, Pregnant Women and Handicap, it is not illegal to discriminate against a felon. We run a Criminal Background on every applicant and have found some applicants who have been charged with Vandalism, Grand Theft and even writing bad checks (probably rent checks).
We interview past landlords about the residency of the applicant in question. This turns up valuble information of you know the right questions to ask. Contacting more than the current landlord is obvious for many reasons, but more importantly, if you go back a ways, you might be lucky to find a past landlord who remembers how great the were.
Before we even SHOW a property to a prospective renter, we verify income. There is no reason to rent to someone who will be getting laid off or getting hours cut back after the Holidays. We contact past and current employers to verify their income so that when you go to cash the checks, they don’t bounce.
If your home was build in 1978 and prior, you had better be doing this! Failure to do so will result in at least a $10,000 fine. There are Federally Required disclosures that you need to use and a Federally Approved Pamphlet that must be delivered to the tenant prior to signing the lease. Forgetting this one could have paid my management fee for years and years to come!
When a tenant moves in, you should have a comprehensive property checklist that you and the tenant fill out to note any pre-existing damages prior to them moving in. They need to sign this! When they move out, there will be no question as to which damages are new and which ones were existing. It will also serve as evidence should you wind up in small claims court.
One of the most overlooked aspects of property management. Stopping by the rental on a scheduled periodic basis helps prevent damages before they occur or get out of hand. I’ve seen tenants do over $7500 in damage in less than 30 days…Imagine what would have happened if it was 1 year! (Fortunately, these tenants weren’t associated with our rentals)
What are you going to do when a tenant lets the lawn and flowerbeds go to weeds? What happens if you have a tenant late on rent? There are a TON of things that qualify for breach of lease, but how you enforce the lease is just as important as how you identify the violation itself. Most owners get caught up in being “Mr. Guy” and letting violations happen. This reason alone is enough to pay a management company a small fee to take care of the property. Property managers are a shield between your tenants excuses and your easygoing charitable nature.
Keeping the books organized and itemized is just as important as collecting good rents. At the end of the year or at any given moment you should be able to print out an accounting of your income and expenses so that you can claim any gains or losses on your taxes.
With all of the time, the potential pitfalls, legal implications and information associated with managing a rental, you’ll be far better off having a Property Management Company in your corner. While they aren’t the ones to blame if things get bumpy, they are there to prevent hitting the bumps in the first place. Southern Idaho Management was started by me and my wife out of a necessity to manage the rentals that we owned. Our real estate clients liked our real estate work and nearly demanded that we manage their rentals too. We do far more than the items on this list and take pride in our work. Our fee is cheap in comparison to you stepping on one small legal landmine and with all of the time necessary, you could be out focusing on your career, small business or time off with family.
If you or someone you know has a rental property get in touch with us to see how we can help relieve the headaches and help you avoid a serious costly disaster. Our council has saved our property owners Thousands of Dollars. We can be reached at 208-724-7602 or go to our website www.ileaseboise.com
To Read more Good Articles from this Author: 12 Things that You aren’t Doing for Your Rental But Should
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