Rental & Investment Property Information

Things Every Homeowner Should Know Before Investing in a Fixer-Upper

noreply@blogger.com (Wilmington Seo) — Sat, 19 May 2012 13:22:00 +0000

The current housing market presents some unique opportunities for those interested in purchasing investment property. With low home prices, low interest rates and a large inventory of depressed property on the market, even small-time investors can come out ahead by snagging a fixer-upper.

With that being said, there are a few things you should know before plunging into a fixer-upper deal. While the thought of purchasing a dilapidated home and turning it into a valuable asset may seem like an attractive idea, it will take a lot of time and money to make this dream a reality.

The money aspect can be challenging, as lending standards have become much stricter when it comes to borrowing against equity. Homeowners used to be able to tap into their equity fairly easily if they needed to come up with the cash for a down payment or repairs. These days, it's a little trickier. In order to borrow against your current mortgage, you will likely need to have significant equity in it, and that's after taking any losses in value into account within the past several years.

Keep in mind that if you do decide to take out a second mortgage, you will need money for not just the down payment, but also enough money to cover repairs or remodeling. Additionally, you will need enough money to float you through the first several months of mortgage payments, to give you time to fix up and rent out the property. That's where the time aspect comes in. Depending on the state of the property, it could take several months or even a year or more before it's able to produce any cash-flow.

When it comes to financing a real estate investment, some people go the second mortgage route, but others may prefer alternative means of financing. Borrowing against your home to pay for your fixer-upper can be a risky choice. If the investment falls through, you could risk losing your home.

It's a good idea to speak with a mortgage professional about all the possible financing options. Most lenders offer loan programs for investment property and can advise on which ones would work best in your scenario.

Other Related Posts and Resources:
Return on Home Improvement Projects
Home Improvement Loans
Maintaining Rental Properties Long Distance
How to Value Investment Properties

4 Popular Southwest Cities For Vacation Homes

noreply@blogger.com (Wilmington Seo) — Fri, 11 May 2012 13:14:00 +0000

With its majestic mountain ranges, pristine lakes and warm, arid climate, the American southwest is a popular destination for all sorts of people. Whether you love the landscape, the lifestyle, the entertainment - these southwestern cities boast a growing popularity among vacationers and real estate investors.

1. Sedona, AZ

This fun and funky artistic town is home to approximately 10,031 residents. Its stunning red rock formations, numerous cultural and music festivals, low crime rate and high home values make Sedona a great place to live. Whether it's a cozy Sedona cabin or a high-end luxury home, investors are sure to find something that tickles their fancy.

2. Lake Tahoe, NV & CA

Home to world-renowned ski resorts, ample shopping, fine dining opportunities and a fascinating history, the Lake Tahoe region attracts about 3 million visitors each year. Lake Tahoe vacation rentals can range from beautiful lakeside cabins to luxurious timeshare condos and just about anything in between.

3. Galveston, TX

Just about an hour's drive from Houston, the scenic beach town of Galveston offers gorgeous architecture, a thriving cultural scene and an array of fabulous shopping and dining opportunities. Beachfront condos, historic downtown homes and coastal cottages are just a few of the popular investment properties one could find in Galveston!

4. Las Vegas, NV

Casinos, buffets, live shows...these are the typical things associated with "Sin City." Be that as it may, this Nevada town offers more than ever before. Once known as a strictly gambling town, Las Vegas has quickly gained a reputation for a fun destination for the whole family. Vacation properties in Las Vegas can range from condos right along the strip to quieter, upscale homes within the city.

Are you looking for low rate financing on your second home or vacation property? Contact a mortgage professional in the area who is familiar with investment property loans.

Financing Resources for These Communities:
Arizona Mortgage Companies
Nevada Mortgage Companies
Galveston Mortgage Companies
Las Vegas Mortgage Companies

Common Lease Clauses to Make Your Tenants Aware Of

noreply@blogger.com (Wilmington Seo) — Sat, 05 May 2012 19:29:00 +0000

It is not surprising that the effects of the mortgage crises have resulted in more people renting homes, condos, and apartments. For many, the concept of a lease agreement and all that it entails is unfamiliar territory. Although the clauses in most lease agreements are considered standard, as a landlord, it is your duty to make sure that your expectations as noted in the lease are clear and understood by your tenants. Encourage them to read through the entire lease and make sure they understand it before signing it. Here are a few points that you may want to go over.

-Use of premises
This item typically refers to how many people may reside at the rental property residence. If additional tenants begin occupying the property, decide whether or not they made be added to the lease and charged rent. There should also be mention of how many guests and relatives can visit and for how long. If there is a clause stating a fee for unauthorized guests or relatives, make your prospective renter aware of it.

-Acceleration of rent
If your lease agreement states that failure to pay rent, damage the property, keep a pet when it is prohibited, or basically violate the agreement in any number of ways, let your tenant know if you expect them to pay the balance for the remaining rental period. This practice protects the landlord but can be a real hardship for a tenant.

-Military clause
For those who often rent to military personnel, you may want to include a specific item that addresses what happens if they are called to serve. Other tricky situations that could occur and should be addressed are what happens when your renter is reassigned posts, relieved from active duty, retires, or is sent to military housing. To protect yourself, a clause like this should require a 30-day written notice prior to the renter’s departure.

-Maintenance fees
Although you may know what to expect from typical maintenance fees in terms of cost and frequency, your tenant may have a completely different concept. If there is a $50 landscaping fee or $30 charge to change filters or pressure wash, discuss with them how many times a year they can expect to be charged. For example, if the grass grows profusely in June, they should expect to see more landscaping charges.

-Automatic renewal clause Some tenant/landlord agreements include an automatic renewal that goes into effect after a trial period sometime during the first year. If a renter signs a lease with such an agreement, they can be automatically responsible for staying put and paying rent another year. If you have such a clause, make your tenant aware of how it works before they sign it. Some may be thrilled by the security such an item offers, and others may be intimidated by it.

-Rent is due on the first of the month In a landlord/tenant relationship, when the rent is due is something that should be clearly established. If you want it absolutely by the first, then when should they mail it? Is a postmark with the 1st day of the month acceptable? Be clear so there will be no problems later down the road.

-Residence or business?
Most leases also contain a clause that states that the property may only be used as a residence. However, local zoning laws also dictate where and how business is conducted. Just in case your prospective tenant is planning on running a small nail salon or body shop that would be permitted zone-wise, protect yourself with such a clause.

-Changes to the property
A rental agreement should also mention if approved changes to the property are allowed, such as landscaping, painting or the addition of fixtures or features. Will the renter need to return the property to its original state? If the tenant installs a chandelier or invisible pet enclosure, will it become your property when they move?

To ensure your success as a landlord, be upfront and clear in regard to your rules and expectations. Also, review all of the laws and guidelines that govern landlord tenant relationships. Be aware that they vary from state to state. Finally, educate yourself on your rights and the rights of your renter. Should a legal dispute arise, who will be responsible for attorney fees and court costs?

In this situation, “knowledge is power” and both you and your tenant should gain the knowledge for a fool proof, pleasant experience! Laws protecting landlords and tenants vary between states. Please be sure to research your rights with your state's governing body.

Related Posts and Resources:
Can I Rent to Someone if Home is in Foreclosure?
Buying a Rental Property
Cash Out Refinancing Information for Rental Properties
Unique Move in Specials to Attract Renters

Current Rental Statistics - NY, LA & Chicago

noreply@blogger.com (Wilmington Seo) — Sun, 29 Apr 2012 12:55:00 +0000

Periodically, we like to browse real estate sites that monitor rental property stats, in order to gain a better understanding of the market as it applies to investors. Below is a snapshot of the current rental price market, from Zillow.com - a popular real estate site.

Rental Statistics for the United States

Rent List Price: $1,300*
1-Year Change: +2.8%

Zillow Rent Index: $1,218**
1-Year Change: +3.0%

*reflects the median rent price for properties listed on Zillow.com
**reflects the estimated median rent price for rental properties in the US

Rent List Prices for Major US Cities

New York: $2,450
1-Year Change: +25.6%

Los Angeles: $1,800
1-Year Change: -4.2%

Chicago: $1,380
1-Year Change: +5.2%

Summary
Rent prices have appeared to increase, overall, while some US cities experienced a rent price decrease. Albuquerque saw the greatest rent increase (+29.9%) and Milwaukee had the greatest rent decrease (-21.7%) of all the major US cities listed on the site.

(Source: Zillow.com, calculated 03/01/2012)

Other Recent News:
FHA to Cut Upfront Fees for FHA Refinance
Areas with the Lowest Vacancy Rates
Rising Property Taxes?

Nationwide Property Prices On The Rise?

noreply@blogger.com (Wilmington Seo) — Mon, 23 Apr 2012 17:42:00 +0000

There may be some good news on the horizon for the U.S. property market, indicated by a rise in home prices. According to the latest Home Price Index (HPI) released by CoreLogic, U.S. residential property prices, excluding distressed sales, increased 0.7% in February compared to the previous month.

According to a recent article published on PropertyWire.com, the following five states showed the highest appreciation in home prices, excluding distressed sales.

South Dakota (up 5.9%)
West Virginia (up 5.6%)
Maine (up 4.5%)
Utah (up 3.7%)
Montana (up 3.6%)

Here are the five states with the highest appreciation in home prices, including distressed sales:

West Virginia (up 8.6%)
Michigan (up 5.8%)
Florida (up 4.7%)
Arizona (up 4.5%)
South Dakota (up 4.1%)

Rising home prices indicate appreciating home values, so anyone looking for investment property may want to consider browsing the listings in these states. For information on investment property loans and to get current rates in your area, talk to an experienced lender, broker, or banker today.

Maximize Your Bathroom's Potential

noreply@blogger.com (Wilmington Seo) — Tue, 10 Apr 2012 13:35:00 +0000

Thanks to Helen Davies from Better Bathrooms for this guest post!

Whether you are trying sell or rent your investment property it is important that every room is appealing to prospective buyers or tenants. However, sometimes a thorough clean is not enough to maximize a particular room’s potential and the bathroom is no exception.

Though it might not be the first room that comes to mind when you envision your home, the bathroom can play a role in making your property stand out or one that doesn't make it onto the short list. First, everything should be in good working order and spotlessly clean. Once your bathroom is clean and presentable there are a few extra ways you can improve the overall feel of the room to really make the most of its potential and selling power.

The best approach to making any changes is to follow the less is more rule. If you make any pricey changes by completely overhauling the entire room, you may find that the value of your home does not increase as much as you would like meaning that you do not get the desired return on the investment you put into upgrading your bathroom. You may find it's better to keep improvements small and affordable.

For a serious fixer upper a complete renovation is necessary. You might want to consider a cash out refinance to help cover the cost of the improvements to the home.

If you find your bathroom is a touch on the small size, a good inexpensive way of making the most of the space is to fit a bathroom cabinet above your basin. Bathroom cabinets or shelves will show prospective buyers how they can really utilise the space of the bathroom, making it easier for them to imagine themselves living in the home and perhaps influencing their decision to buy.

With the bathroom, as with other rooms in the house, it is advisable to give the impression of a blank canvas to potential buyers. A good way to do this is to paint or wallpaper the walls a neutral color as then buyers can project their own ideas of how they would add character and their own personal style to the room.

Many buyers appreciate a modern feel to the bathroom for the aesthetic appeal and because this implies that the home is well maintained. The best way to add that contemporary feel is to upgrade the fixtures. Consider stylish chrome taps or perhaps a heated towel rail. Again these are affordable items that can be fitted quickly to instantly add value and selling power.

When you have finished making changes and are ready to showcase your home to potential buyers, you should add those extra pieces such as decorative soap, towels, and soap dispensers as these will create a ‘lived-in’ feel to give off that homely vibe that will attract potential buyers.

Helen Davies is a senior content writer for Better Bathrooms, who sell good looking contemporary and traditional bathroom cabinets at realistic prices.

Home Prices and Rental Resources in Charlotte NC

noreply@blogger.com (Wilmington Seo) — Tue, 03 Apr 2012 13:19:00 +0000

In-State Post - We are located in Wilmington, North Carolina and occasionally we like to feature information on other communities in the Tar Heel State.

If you're interested in buying a second home or investment property in Charlotte, you'll be glad to know this city continues to rank well, economically. But where can you find information on rentals, home values and home prices when it comes to investment property in Charlotte?

It helps to begin by contacting a professional real estate agent who is familiar with the Charlotte area and comfortable handling investment property listings. He or she should be able to offer you the most recent information on vacation home values in Charlotte.

Additionally, since you are purchasing property with the intent to rent it out rather than making it your primary residence, you'll want an agent who can provide you with other helpful resources when it comes to rental regulations, rental management companies, etc.

To give you a basic knowledge of home values, prices and rental prices in the Charlotte area, take a look at some recent data from Zillow.com:

Median Home Value: $125,800
Median List Price: $157,000
Median Sale Price: $160,000
Median Rent List Price: $950

(calculated 3/1/2012)

After you've reviewed the stats and found a great real estate agent, your next step will be to find a trusted mortgage bank that offers investment property loans. Like your real estate agent, your mortgage professional should be familiar with the Charlotte area. And, because an investment property loan will carry different terms than a traditional loan, you will want to work with a mortgage professional who is experienced with this type of financing - especially if this is your first time making an investment purchase.

Additional Posts and Resources:
Documenting the Condition of a Rental Property
Charlotte Mortgage Information
Charlotte Travel and Tourism Resources

Federal Housing Administration to Cut Upfront Fees for Refinancing FHA Loans

noreply@blogger.com (Wilmington Seo) — Fri, 23 Mar 2012 16:03:00 +0000

Earlier this month the Obama administration announced that the Federal Housing Administration will lower upfront fees for refinancing loans which the FHA currently insurers. According to a Money.CNN.com report, the new fees apply to borrowers who took out their FHA loans before 6/1/2009.The administration believes that an estimated 2-3 million borrowers could participate and annual savings for many of these borrowers could be more than a thousand dollars a year. More importantly, it could keep borrowers from defaulting on their mortgages and keep the properties out of foreclosure.

FHA loan holders will pay an upfront insurance premium of .1% of the loan amount plus and annual fee of .55%. To put those fees into perspective, a person buying a home with an FHA loan right now would have to pay a 1.75% fee upfront and another 1.25% annually (as of April).

While these changes may not directly impact the investment property mortgage holders, it will certainly free up additional resources for those looking to enter into the rental property marketplace.

Read the article in its entirety at: http://money.cnn.com/2012/03/06/real_estate/obama_mortgages/index.htm

Related Posts and Resources:
Diversified REIT Options
Return on Investment for Remodeling Projects
Cash-Out Refinancing for Investment Properties

Homes of United States Presidents

noreply@blogger.com (Wilmington Seo) — Thu, 15 Mar 2012 15:10:00 +0000

Susan Galleymore of Inman News put together a really interesting article on the homes of US Presidents. Here are a few interesting tidbits:

George and Laura Bush own a 4,000 square foot environmentally sustainable ranch home. Construction includes local limestone, tin roofing, geothermal heat, and underground cisterns used to collect rainwater. Wow....who saw that coming.
The Obama's 6,199 sq/ft home in Chicago's Kenwood neighborhood is currently estimated to be worth $1.19 million dollars.
The Clinton has been reportedly looking at purchasing a home in Westchester County on 20 acres last last sold in 2011 for $5.5 million.

Click here for more on the story

Current State of Mortgage Rates

noreply@blogger.com (Wilmington Seo) — Tue, 06 Mar 2012 15:56:00 +0000

If you've been on the fence wondering about whether now is the right time to refinance, you make need to hop on down soon. Interest rates are once again approaching their 60 year lows according to Freddie Mac's most recent market survey. And with all of the positive economic news that has come out over the past month, it wouldn't be a shock to see rates start inching back up. Ask any loan officer and they'll tell you that mortgage rates typically go up a lot faster than they come down.

Below is a snapshot of current mortgage rates today on BurlingtonMortgage.biz (using South Carolina mortgage rates for the sampling). Keep in mind that interest rates are subject to change without notice. Please visit BurlingtonMortgage.biz for the criteria used in the survey. The rates below are not for investment properties.

30 Year Home Loan Rates (no points)
Quicken Loans - 4.375% Rate, $2057 Fees in APR, 4.463% APR
Envoy Mortgage - 3.875% Rate, $1385 Fees in APR, 3.392% APR
First Choice Bank - 3.875% Rate, $1050 Fees in APR, 3.918% APR

15 Year Home Loan Rates (no points)
Quicken Loans - 3.625% Rate, $2057 Fees in APR, 3.776% APR
First Choice Bank - 3.000% Rate, $1050 Fees in APR, 3.076% APR

5 Year ARM Interest Rates (no points)
Quicken Loans - 3.500% Rate, $2057 Fees in APR, 3.583% APR
First Choice Bank - 2.625% Rate, $1050 Fees in APR, 2.665% APR

Related posts and resources:
What do Renters Want in a Landlord
Allowing Pets in a Rental Property
Fannie Mae Investment Property Guidelines

Vacation Rentals Homes Give Hotels A Run For Their Money

noreply@blogger.com (Wilmington Seo) — Thu, 01 Mar 2012 18:22:00 +0000

A growing trend among travelers is to ditch the cookie-cutter hotel scene for the charm and value of vacation rental homes. Whether you like the idea of added privacy, more space for your dollar, or the ability to prepare your own home-cooked meals in a homey environment - a vacation rental home could be just the thing to make your next vacation a truly unique experience.

More for your money

While hotel rooms can vary greatly in size, the average square footage is somewhere around 400-650. The price you pay for a hotel room can vary even more, depending on location and amenities.

For illustrative purposes, let's say you book a 650 square foot room in a moderately upscale hotel for $189/night before any taxes or fees. This equals about $.29 per square foot.

Now, let's say you rent a one bedroom cottage with 1,000 square feet at $2,000/week. That translates to about $285.71/night, and - get this - about $.29 per square foot, the same as the hotel room mentioned above.

The common rebuttle to this is what rental homes offer in terms of space, they lack in amenities. Hotels depend on amenities to sell rooms, from breakfast buffets to conceirge service to complementary coffee and more. Hoteliers may argue that you won't find any of these perks with a vacation rental home, but the truth is, more and more rental homes are upping the ante with hotel-inspired amenities to attract more guests.

We did a quick web search and found a listing for a vacation home in Portland, OR that offered the following special touches - for no additional cost:

* High speed internet (secure wireless throughout), unlimited long distance calling in the continental U.S., wireless printer/fax/copier/scanner.

* State of the art kitchen, stocked with condiments, dressings and exclusive teas from T Ching.

* Energy efficient washer/dryer complete with eco-friendly detergent.

* Concierge service for dry cleaning, accepting deliveries, making reservations.

See the complete listing here: http://inhabitvacations.com/portland/pearldistrict/luxuryretreatinthepearl16261

If you're considering renting out your home to vacationers, talk to an experienced property management group about getting the most out of your rental home. If you're thinking of investing in rental property, speak with a licensed lender who is experienced with investment property loans.

Related Posts and Resources:
Most Expensive Rental Property?
Tips for Posting Your Rental Property on Craigslist
Converting Your Current Home Into a Rental Property
Financing Vacation Homes

Can I Rent To Someone If The Property Is Under Foreclosure?

noreply@blogger.com (Wilmington Seo) — Fri, 24 Feb 2012 18:05:00 +0000

If you own rental property that is facing foreclosure, you may be wondering what course of action to take. While current laws do not prohibit owners from renting property that is facing or under foreclosure, it's important to understand the process and be as ethically responsible as possible.

Notice Prior To Lease Agreement

Laws regarding foreclosure and rental properties vary by state; however, according to the National Housing Law Project, some states and a few cities are required to disclose a pending foreclosure to tenants prior to the lease being signed. Usually, this notice must be submitted in writing. Neglecting to provide adequate notice to tenants can cost landlords up to twice actual damages or monthly rent, whichever is higher. Additionally, the landlord could be held responsible for any prepaid rent or deposits.

Notice To Tenants Once Foreclosure Has Commenced

In more than a dozen states and in several cities, laws require landlords to notify tenants of a foreclosure once the process has commenced. The process of notification can vary greatly by city or state. Typically, landlords are responsible for notifying their tenants of impending and/or eminent foreclosure. In some place, however, the foreclosing lender or mortgage trustee is responsible.

Handling Deposits and Rent

All U.S. states require landlords to either return security deposits to the tenants or transfer them to the new owner. Some states allow tenants to apply their returned deposit toward rent.

Keep in mind, some mortgages may have a clause in them that allows your lender to collect the rent money generated by the property as soon as you default on the loan.

"Can I?" versus "Should I?"

The short answer to whether or not you can rent foreclosing property to someone is - yes. However, it may not be the ethically wise answer. Even if you live in a state that doesn't require notifying tenants of an impending foreclosure, put yourself in your tenants shoes. Would you want to know if your home was being foreclosed on? Use your best judgment and try to be fair. If you're struggling with the decision, speak with a mortgage professional or an attorney.

This information is intended to help homeowners make informed decisions and should not be used in place of professional, legal advice. Always check with your mortgage professional, real estate agent, or attorney before making major real estate decisions.

Related Posts and Resources:
Rental Properties and Pets
Best Places to Invest In Real Estate
Reasons Not to Become a Landlord

Guide To Documenting Rental Property Condition – For Property Owners

noreply@blogger.com (Wilmington Seo) — Wed, 15 Feb 2012 17:52:00 +0000

When it comes to dealing with investment properties, good documentation is key. Anyone who has ever been in a rental situation knows the frustration that can occur when a landlord and tenant have a dispute and many people learn the hard way that documentation could have saved them a lot of time and money.

We all know accidents happen. But any time a property is damaged beyond normal wear and tear, the person who caused the damage should be held responsible. Unfortunately, less honest people may try to avoid financial responsibility by claiming the damage was there from the time they moved in. If you did your duty by documenting the condition of the affected area beforehand, you'll be able to effectively counter their claim. If not, the dispute could go unresolved or lead to costly legal action. The best way to avoid this is by thoroughly documenting the condition of the rental property before the new tenants move in.

Here are a few tips for documenting rental property condition, for owners:

Thoroughly document every area/room in the property, including garage, attic, basement, crawlspace and utility rooms.

Take notes and lots of good photographs.

If photographing evidence of damage, make sure you photograph the subject clearly and that the property is recognizable from the photograph – i.e., if there is a stain on the carpet, take one close-up shot but take another shot that is zoomed out, so you can see the room.

Don't just document the “good” stuff. Own up to anything that is already damaged or deteriorating. Use the documentation as reminders of what needs to be fixed/repaired/cleaned.

If you do not live in the same area as your rental property, hire a professional inspection service or property management company to document the condition of your property for you. Make sure you work with a reliable company with a good reputation.

Be sure to document any damage claim as soon as possible. If a tenant breaks a window, sees water damage, etc – don't wait long to conduct an inspection or contact your insurance company.

Speaking of insurance – don't rely on the inspector your agency sends to document everything thoroughly. If at all possible, conduct your own inspection of the damage and take photos. Just make sure you are not violating the laws regarding tenant privacy in your state.

No matter which side of the rental game you're on – property owner or renter – it's a good idea to practice effective documentation before signing a lease agreement and continuing to do so throughout the lease term.

More Related Posts and Resources
Choosing a Child Friendly Rental Property
What Do Renters Want in a Landlord
Rental Property Financing Information
Understanding a Rent To Own Home Purchase

Forget Location, Location, Location and think Ugly, Ugly, Ugly

noreply@blogger.com (Wilmington Seo) — Tue, 07 Feb 2012 17:03:00 +0000

Thanks to Mark Wade of CenterCityCondos.com for this guest post on choosing a property to purchase as an investment.

When first considering a purchase of an investment property, all buyers will of course have their own individual set of priorities. How you choose to assemble those priorities will decide which avenue of real estate investing you will follow. If one of your top priorities happens to be value retention as well as growth, then I suggest you forget every axiom you have come across to date in the field of buying investment real estate, and buy the ugliest investment piece you can find. If the condo smells like dog pee- bingo.

Under the guise of “You don’t sell the Steak, You sell the Sizzle”, clearly the opposite would have to be the best advice for a buyer of real estate investment parcels. Buy the steak- one with good bones, a good location, in relatively good mechanical condition., and without an sizzle. Almost all novice buyers- whether investors or owner-occupants can not escape the basic need to have an emotional attachment with what they buy, and will often times pass up the parcels that are either smelly,dirty, or just don’t show well. The less demand, perhaps the softer the price, as a property consistently over-looked can fatigue a seller, and soften his stance on his ultimate sale price. Even tony Rittenhouse Square Condos in downtown Philadelphia can have depressed selling prices says John Herniak at Prudential Fox and Roach Realtors. “Investors here in town are visual, and will often pass up pieces based primarily on an emotional level”. Though investing in real estate is often thought of as on an unemotional level, many buyers will let emotions guide their decisions.

Going against the tide, keeping your emotions in check, and buying the cosmetically ugliest investment piece you can find might just save you a bundle. A little sweat equity can go a long way in quickly raising the value of any somewhat neglected property.

Child Safety Points Before You Rent a Property

noreply@blogger.com (Wilmington Seo) — Fri, 03 Feb 2012 14:10:00 +0000

Big thanks to Guardian Pool Fence Company and SEO Person for this guest post.

If you are renting, what do you need to take into consideration regarding the safety of your kids? Here is a list of things you should check out:

Swimming pools
Stairs
Electrical outlets
Storage areas
Decks
Traffic

Swimming Pool - Pool safety is critical for every family. If there is a community pool, make certain that there is a pool fence to protect your children from wandering into the pool area unsupervised. Check if there is a guard on duty at the pool.

Stairs - Are there stairs where you child could fall? Is there any way to install a child-proof gate at the top of the stairs? Make certain that you are allowed in the lease to install any gates that may be needed.

Electrical Outlets – Check around the residence to find all electrical outlets and purchase enough outlet covers to put into unused outlets.

Storage Areas – Determine where any dangerous materials are kept, or would be kept, to see if there are child-proof latches installed. If not, make certain in the lease that you are allowed to install those devices.

Decks – Pay attention to decks or any place where it would be possible to fall from a significant height. If there is a stair to the yard surface, make certain that a child-proof gate can be installed to prevent an accidental fall down the stairway.

Traffic – Last, review all traffic patterns and the speed of cars immediately adjacent to the home.

If you are the landlord, what do you need to be concerned about to prevent any unusual liabilities? Review all of the items above and create a child friendly environment for your tenants. You could even make your safety consciousness a marketing plus and include the safety measure's you've taken in your marketing package as you advertise the rental to families.

Property Spotlight - 4 Unit Dallas Rental Home

noreply@blogger.com (Wilmington Seo) — Thu, 02 Feb 2012 15:40:00 +0000

Photo from Realtor.com

Looking for a real estate investment in the great city of Dallas, Texas? Take a look at 5200 Victor Street, currently listed for $540,000 (as of 1/31/12.) This 4 unit home is a total of 6084 Sq Ft and according to the listing has had extensive renovations. The home looks updated and attractive, with lots of nice details to appeal to renters.

Make one of the units your primary residence and you may qualify for an owner occupied Dallas mortgage, which generally comes with a lower mortgage rate than a comparable investment property loan.

Wondering whether it's a good investment? Check out today's Texas mortgage rates (with our friend Kelly Decker) and run the numbers to see whether becoming a landlord at 5200 Victor Street would make financial sense.

What Do Renters Want In A Landlord?

noreply@blogger.com (Wilmington Seo) — Tue, 31 Jan 2012 14:29:00 +0000

In order for an investment property to become an income producing property you must find renters. Keep happy renters in the property for long periods of time and you'll see a greater return on your investment, as turnover and vacancies quickly eat into your profits.

But how can you make your home attractive to quality renters? Check out this list of items that renters want in a landlord and in a rental property (compiled based on online discussions on this topic.)

Clean, well maintained interior and exterior.
A home that is free of bugs, pets, and other uninvited guests.
Well insulated units in a multi-unit building so that tenants cannot hear each other from one apartment to the next.
Updated appliances in good working order.
A landlord who looks, speaks, and acts professionally.
A safe home. Anything that makes the property more secure is a plus.
Convenient parking.
Quick response when there is an issue, such as needed maintenance.
Reasonable handling of security deposit - renters do not appreciate being charged for "normal wear and tear."
Ample storage space.

Understanding A Rent-To-Own Home Purchase

noreply@blogger.com (Wilmington Seo) — Tue, 24 Jan 2012 21:01:00 +0000

If you're in the market for a new home but can't afford a down payment, or can't get approved for a mortgage, you may want to consider a rent-to-own option. By that same token, home owners looking to sell but who are having trouble finding a buyer or are worried about falling market prices could consider this option as well. Although a rent-to-own home purchase may not be the best choice for everyone, it can be a good solution for buyers and sellers alike – especially in a housing market downturn. Before entering into any such agreement, it's important to understand what a rent-to-own home purchase really is.

Essentially, a rent-to-own home purchase agreement is a two-part contract. The first part is where the seller agrees to rent or lease the property to an interested buyer for a set amount of time. Typically, this time period is 1-3 years. During this time period, a portion of the monthly rent goes toward a down payment for the home. Also during this time period, the home owner will usually charge what is called an option fee in exchange for not listing the home on the market. In some cases, this fee can be applied toward the home purchase.

At the end of the stated time period, the lease ends and the second part of the contract comes in. If the tenant is still interested in purchasing the home, he or she can do so; however, the tenant is never at any time obligated to purchase the home. If the tenant chooses not to purchase the home, he or she will lose the option fee and the home owner can either put the home back up on the market to sell to someone else or they can restructure or renew the lease contract.

There are different scenarios in which the seller and renter could experience benefits or drawbacks with this type of contract. As a seller, a rent-to-own plan can make it easier to initiate a sale sooner. Another advantage to sellers is that it allows them to "lock in" a set price for their home. This can be beneficial if the local market in in a downturn and prices are dropping.

As for disadvantages, sellers should be aware that there are no guarantees in this kind of agreement. At the end of the tenant's lease portion, there's no obligation for them to buy. Therefore, even if you've determined a price of $200,000 in the contract, by the time the renters leave, the house may bring in significantly less. Also, as a seller in this arrangement, you restrict the amount of marketability for your home. During the lease period, the home won't be visible in listings so you are betting on your renters to buy once the lease is up.

There are just as many pros and cons for the renters in this type of agreement. As potential home buyers, the renters may need a little more time to improve their credit or they might need a few years to save up for a down payment. A rent-to-own home purchase agreement can help, as it provides more time for the lessees to acquire a mortgage.

Some people prefer to save up for a down payment on their own, but if you've found a home you love and the seller is willing to do a rent-to-own plan, it might be your best option, since the seller will automatically take a portion of your monthly rent and put it toward your down payment. This would also be helpful to people who find it hard to put money aside every month. With this kind of agreement, it's taken care of for you - as long as you make your rent payments.

As the lessee in a rent-to-own agreement, you are also able to "try on" a home before entering into a bigger financial commitment.

The downsides to a rent-to-own home purchase for lessees are similar to those for anyone who rents a home. While in the lease period, it is still technically the owner's property. Renters would still have to ask permission from the owner before doing any remodeling or modification to the home.

Lessees will also most likely be paying a bit more than the average rent for similar properties. This is because the home owner will probably charge what's called a rent increment. This is how the owner makes up for the money that's going toward the down payment each month. The rent increments on rent-to-own homes can be as much as an additional $200-$300. Mortgage rates may also change during the rental period, which could end up making the home more or less affordable by the time of purchase depending on whether they go up or down.

One of the biggest drawbacks for lessees in a rent-to-own agreement is if they decide not to buy at the end of the rental period. If they choose not to purchase the home, whether it's because their credit still isn't good enough or they just changed your mind, they will lose the option fee as well as the rest of the money that had been going toward the down payment. On a $500,000 home, the option fee alone could come to as much as $10,000.

After learning more about rent-to-own home purchases, you may find it's the perfect solution for you. Or, you may feel it's not worth the risk. Just remember to think carefully and weigh all possible outcomes before making a decision.

Should I Allow Pets In My Rental Property?

noreply@blogger.com (Wilmington Seo) — Thu, 19 Jan 2012 20:32:00 +0000

This is a common question among landlords, and owners of both short and long term rental properties. Pet friendly rentals are in high demand as they are generally tougher to find, but there are many factors to consider before welcoming in some furry or feathered tenants. Here are a few pros and cons of pet friendly rental properties:

Pros of Animal Friendly Rentals:

Attract pet owner tenants. There are generally many fewer animal friendly apartments, rental homes, and vacation rentals available, which could put yours on the short list for any pet owners.
Higher rent prices. You can often charge a little more when you allow animals, either in the form of an additional non-refundable deposit, pet fee, or cleaning fee. This is to pay for any damage or extra wear and tear, but if there is none it's a little extra profit.

Cons of Being Pet Friendly:

Risk of damage. Pets could chew or scratch the furniture or have an accident on the rug. They could also leave behind their scent or some unwanted guests such as fleas.
Turn off non-animal lovers. Some potential renters would prefer a home that does not allow pets, particularly if they have pet allergies.
Liability. Check with your insurer to see if your homeowner's policy covers you should someone be injured by a pet staying at your property (in the event of a dog bite or cat scratch for example.) Some policies limit the species and/or breed of animals that are covered.

If you do decide to allow pets at your rental property remember that you can still limit which pets are welcome. You might dictate the size, age (to avoid young animals that may not be housebroken and are more likely to be destructive), breed, and number of pets permitted.

Consider providing some helpful information for pet owners in the property or on your website. You could include directions to nearby dog parks, nice spots for walks, pet friendly restaurants, and pet stores as well as information on any local regulations relating to pets such as leash laws and any restricted areas.

Superbowl Rentals

noreply@blogger.com (Wilmington Seo) — Thu, 12 Jan 2012 21:02:00 +0000

Indianapolis Super Bowl Rental Apartments

As we get further into the football playoffs the teams still left (and their devoted fans) have their sights set clearly on the Super Bowl! According to the Indianapolis Star as many as 100,000 to 150,000 people will descend upon the city when it hosts the big game February 5th. And where will all those people stay? Many Indianapolis property owners are hoping it will be their place.

Some are offering their personal homes for rent, and others are marketing their rental properties for a short term Super Bowl stay. There is no shortage of Indianapolis Super Bowl rentals for fans, media, and other attendees to choose from, but with prices in the thousands for a weekend rental, they'll have to pay a premium.

Would you rent out your home for a big event like the Super Bowl?

Market Your Vacation Rental Property Online

noreply@blogger.com (Wilmington Seo) — Thu, 12 Jan 2012 14:36:00 +0000

Plans for a vacation, honeymoon, family reunion, or weekend getaway often begin online. Put your investment property in front of potential renters by advertising it online. While a website for your rental property can be a great idea - it sets your property apart from the many other options, and lets vacation planners get a good feel for what the home is like (check out www.carolinabeachbreeze.com for example) it's unlikely that someone will come across the site simply by finding it through a search engine.

It would take a lot of time, money, and effort to have a single property site outrank one of the big players in the vacation rental market, and so it may be a better use to resources to have your home listed on one or more of the popular listing sites. Here are a few to consider (Prices listed are those posted on the websites at the time of this writing):

VRBO.com

Vacation Rentals by Owner(R) boasts more than 42 million visits per year. You list your property ($349.00 and up per year) and then communicate directly with potential renters and handle the booking from there.

FlipKey.com

FlipKey listings are also displayed on TripAdvisor.com, one of the most popular online travel sites. After a 60 day free trial the cost of an annual listing starts at $299.99 or $34.99 a month.

PetsWelcome.com

If your rental allows pets appeal directly to the animal lovers with a listing on PetsWelcome.com. This site costs $150 per year (after a free first month.) Other similar sites include DogFriendly.com and BringFido.com.

Here are a few tips for making the most of your online listing:

Include lots of great pictures. Images make an emotional connection with the viewer - use them to convey what a great time a vacationer will have at your property. Include pictures of each bedroom so potential renters can see exactly what they will be getting.
Provide a ton of information. Fill out every field, and use the property description to the fullest. Talk about the home, location, town, nearby attractions, restaurants, and more. Give tips to help renters enjoy their stay, and help them figure out how to get there.
Respond as soon as possible. Anyone who contacts you has likely inquired about several other properties as well, and those they hear back from first will generally get more attention.
Keep good records about where your inquiries and bookings come from. This will help you evaluate where to best spend your money in the future.

Best Places to Invest in Real Estate in 2012

noreply@blogger.com (Wilmington Seo) — Wed, 11 Jan 2012 13:24:00 +0000

Reuters recently published an article highlighting that the United States remains the top choice for most commercial real estate investors followed by Brazil according to a survey of members of the Association of Foreign Investors in Real Estate (AFIRE). The report noted that many commercial real estate investors have focused on "gateway" cities such as New York, Washington, San Francisco, Los Angeles, and Boston which has driven up prices in many of those markets. The AFIRE survey also showed that 60% of respondents plan to purchase additional commercial properties in the United States in 2012 while 42.2% noted that they believed that the US would offer the best bang for their buck. Many investors also have great confidence in Brazil with 18.6% of respondents indicating that Brazil showed the best value for their financial investment.

Real the full article here:
http://www.reuters.com/article/2012/01/01/us-commercialproperty-survey-idUSTRE80002P20120101

Other related stories and resources:
Areas with the Lowest Vacancy Rates
Cash Out Refinancing on Investment Properties
Investment Property Loans
Rental Returns / Capital Returns - Creating Positive Cash Flow

How To Choose A Term For An Investment Property Loan

noreply@blogger.com (Wilmington Seo) — Tue, 27 Dec 2011 15:16:00 +0000

When you finance an investment property you need to decide how long a loan term you would like, or how long you will take to repay the loan. Generally investment property loans can have a term of 30, 20, 15, or 10 years.

To choose between a longer term such as a 30 year fixed rate mortgage, or a shorter term such as a 10 year mortgage consider whether it's more important to have a lower payment commitment each month, or to pay less overall during the loan.

A longer term investment property loan spreads the repayment out over a longer period of time, which means the monthly payment will be lower. Shorten the loan term and you raise the monthly payment, but significantly reduce the amount of total interest paid by paying off the mortgage years sooner. In addition mortgage rates tend to be lower for shorter term programs.

Here's a quick comparison between a 30 year and 10 year loan term for a $200,000 loan amount (This is simply an example to illustrate the potential interest savings, not currently available pricing.):

30 year fixed rate mortgage:
Note Rate: 5.000%
Monthly Principal and Interest Payment: $1074
Total Interest Paid: $186511.93

15 year fixed rate mortgage:
Note Rate: 4.000%
Monthly Principal and Interest Payment: $1478
Total Interest Paid: $66287.79

In this example the potential interest savings of $120,224.14!

If you can afford the higher payment consider your other options for that money. Could you invest it somewhere else which would offer a greater return that would offset the interest savings? (In the example above would an investment of $404 a month over 30 years see a greater return than $120K?) Of course every investment has some level of risk, but it is important to weigh your options before deciding which loan term makes the most sense for your scenario.

noreply@blogger.com (Wilmington Seo) — Wed, 21 Dec 2011 15:18:00 +0000

Unique Move In Specials To Attract New Renters

noreply@blogger.com (Wilmington Seo) — Tue, 20 Dec 2011 14:41:00 +0000

Looking for a way to find new renters for your vacant investment property? Take an idea from commercial apartment complexes by offering a "move in special." Try one of these unique move in specials to set your property apart from the competition:

Free use of a moving truck. (You could even provide movers for a high end property.)
1/2 off the first month's rent.
Gift certificate to a nearby grocery store to stock the fridge.
Restaurant gift certificate - either a nice place to celebrate the new home, or pizza for moving day.
A hook up allowance - a discount equal to the cost of hooking up new utility, cable tv, and internet accounts.
Gift card for a home improvement, home decor, or furniture store to help the new tenants make the place their own.
Gift card for a gas station to fill the tank a few times.

Advertise the move in special in your rental ads and hopefully you'll be exchanging the keys for a rent check very soon!