Posts Tagged ‘investing’
Managing a Rental Property
It is an exciting time in Arizona for those looing for opportunities to be successful renting out an investment property. In certain East Valley cities like Gilbert and Tempe, there are numerous properties being sold for extremely low prices. These low prices mean greater potential return for those looking to invest in the rental market!
Before you rent out your property there are a few things that need to be taken into consideration. Whether you are planning on managing your property yourself or intend on hiring a property management company you need to make sure that you can handle the responsibilities. With the current state of the economy a lot of people are in no position to purchase a home. Because of this it means property owners can take advantage of the mutlitude of people turning to rentals for a place to live!
Duties of a Property Manager:
A property manager is responsible for:
- screening potential tenants
- showing and maintaining the property
- collecting rent
- handling late fees
- perform regular inspections to make sure that the property is being cared for properly.
- yard maintenance
- advertising the property
- dealing with eviction notices
Keeping track of everything as a manager can be very stressful. The owner needs to remember to keep a detailed record of all payments and expenditures so that they can avoid mistakes when it comes time to do taxes. With these responsibilities and laundry list of others, the stress of handling property management usually has first time rental owners feeling a little overwhelmed.
One also must take into consideration the price point for which they are listing their rental. A rental owner needs to research properties in the same area and compare prices to see how to best be competitive with the monthly rent. As well, the rent needs to be high enough to cover mortgage costs if you are financing the property, and you should also budget for maintenance and for emergencies.
Reduce Stress with A Property Management Company:
There is enough going on in the world to stress about without having to put more on your plate! Why take on the responsibility of managing a rental in addition to your daily job when you could hire someone to do all of the work for you? While you can make more money managing a property yourself there are many reasons why you should hire a management company to do all of the work for you. Experience is a great benefit of full-service management agencies. For example if you own a property in Gilbert AZ but have lived in Tempe your entire life you may not be familiar with any of the local school, restaurants, or businesses.
By finding a company that has several years of experience working in the valley you can rest assured that they will best know how to advertise your property. They will have knowledge of the surrounding area and what price point will be good to set your rental at. Along with the extensive knowledge or the market, comes a long list of services that can make renting your property a completely hands-off experience.
Micah Castro is a freelance writer for Real Property Management East Valley who is a property management company in Gilbert, AZ.
Cash Flow or Closed Sale?
Real estate investors make money in a lot of ways, and the most successful ones do so using a variety of techniques. But when deciding whether to sell a property or rent it out, every investor should consider the strengths and weaknesses of each option. Both have their advantages and disadvantages, both monetarily and otherwise. Here are some pros and cons to help you decide which type of transaction is best for your situation.
Rent it out for cash flow.
Pros: Renting out a property is a steady source of income. Especially if you own more than one property, renting can provide significant cash flow. It also costs less for tenants to rent than to buy, so it is often easier to find tenants than it is to find homebuyers. Renting out a property over time can also give you the means to pay off the mortgage, and when you do, you will make even more money each month.
Cons: Renting out a property is expensive and time-consuming. The costs of maintaining a property can run high, which can reduce your profits, and tenants may also damage your property. Being a landlord can take a lot of time and may be inconvenient if you have a full-time job or often go out of town. Renting also gives you less return initially, so it may be a better choice for someone who is well-established in real estate. If you’re hoping to make fast money to fund future investments, flipping properties may be a better option.
Sell properties
Pros: Earning money selling properties is a great way to make money fast. This type of real estate investing is quite popular because it can yield large amounts of money in short amounts of time. Unlike renting out a property, closed sales don’t require any additional upkeep. This makes selling property less of a commitment and less expensive in the long term.
Cons: While selling property makes you a lot of money upfront, that’s where the income stops. It’s a good way to get started in real estate investing, but if you’re looking for a more secure, long-term source of income, renting property out may be the way to go.
Investing in Foreclosures
Why should you invest in foreclosures? Because foreclosures are both profitable and plentiful. With foreclosures, you are working with motivated sellers…people going into foreclosure are motivated to avoid losing their home and getting nothing for it. Foreclosures can offer high profit margins because prepared investors can buy foreclosed properties at steep discounts. Foreclosures are a great opportunity for the investor who knows what he or she is doing. Now is a great time to start investing in real estate by purchasing foreclosed properties. Here are five great reasons to check out the foreclosures in your region:
- Many investors and people don’t understand the foreclosure process
- Good information about foreclosures and the foreclosure process is readily available
- Some properties can be purchased for little money down
- Sellers facing foreclosure are motivated
- Banks in receipt of foreclosed properties don’t want the property, or when they do hold a property they are motivated to dispose of the property quickly
Investing in Retirement Communities
The favorable buyer’s market has now extended to active retirement communities. And as prices drop, the younger demographic is considering investing in such communities. It’s not unheard of to have individuals in their mid-40s buying in. This would have definitely been unusual in the past, but this is a unique time we’re dealing with right now. If you have thought about investing in retirement community property in the past, this is the time to conduct a serious evaluation.
When choosing a retirement community, it is important to find one that fits your particular needs. Many offer high-end amenities, but if they aren’t features you will utilize, they probably aren’t worth the extra cost. Do your due diligence and find a community with the type of features that appeal to you most. If you love the beach, look for deals in beach-side communities. The prices in these sunny havens may pleasantly surprise you. If you are more into seclusion and privacy, consider a more rural or mountain-based community. Additional features to keep in mind include golf courses, tennis courts, workout rooms and swimming pools.
Active adult communities are definitely not for everyone. But if you are interested in broadening your real estate options, they can be an excellent option. Many communities are struggling to fill units and are offering deals that would have seemed impossible in recent years. Just make sure that you do your due diligence and don’t invest until you are good and ready. The deals are out there, you just need to find them.
PMI Education Foreclosure Facts
Anyone following the current real estate market knows that foreclosures have been at record numbers in many areas and offer real estate investors incredible opportunities. So what exactly is a foreclosure? According to the experts from Professional Marketing International, a foreclosure occurs when a bank or mortgage lender terminates an owner’s possession of their property in order to satisfy the debt on the property. It’s a legal process for when a borrower who is in default under a mortgage is deprived of their interest in the mortgage property. In some states, a judge is required to oversee the foreclosure process, while other states allow attorneys to finalize a foreclosure.
Foreclosures provide investors with an excellent opportunity to purchase a property for less than fair market value. Neither the seller nor the lender wants to go through the foreclosure process because of what they will lose, so it can be a positive win-win for you and them if you can prevent a foreclosure from occurring.
Working with motivated sellers is the objective of any real estate investor and foreclosures offer an unbelievable amount of options. With increased profit margins and the chance to find excellent deals, real estate investors should seriously consider the foreclosures in their area. In many cases, these properties aren’t well known by the general public, making it possible to find a lucrative niche in the market. Do your due diligence and you’ll discover the exciting opportunities many foreclosures hold.
