Goblins are things that ruin your real estate cash flow with nothing to show for it. Goblins can be things like landscaping and alarm systems. In my experience these "extras" do not offer more value. Contrary to popular opinion, landscaping, alarm systems, and HOA fees are not passed onto the tenant, they are actually cash flow goblins. More often than not, they add no extra value yet they cost you more money. 3 Goblins that Reduce Your … [Read more...]
Multi-Year Leases: The Good, the Bad, and the Ugly
Multi-Year leases: the gold standard or leaving money on the table while locking you into a long term lease? Let's discuss the pros and cons of multi-year leases. The Good Reduced Turnover - Loss of rent between tenants is expensive and advertising costs (flying out or hiring a manager if you are not local) Reduced Move in Wear and Tear - Housing is damaged more often during moves. The Bad Undermarket Rents - Rents … [Read more...]
8 Tips to Establishing Rental Price
8 Tips to Establishing Rental Price Establish the Number of Houses Available - Look on Zillow, Craigslist, and Trulia to see what other house are currently available. # of Houses Available to Rent - Look at all the houses available, the highest for rent and the lowest. Determine your Comps (Comparables) - Look at houses with similar numbers of bedrooms, bathrooms, and square footage. It is important to note that single family houses … [Read more...]
The VA Loan: How are You Using it?
Did you know that the VA loan is a great tool? It can be used for multiple loans at the same time as long as you don't exceed the guarantee. There are many other uses for the VA Loan, make sure you are using it right with these tips! Pros and Cons of the VA Loan Pros No downpayment required. The funding fee is rolled into the loan. It currently has lower interest rates. Cons Funding Fee (Rates vary based on if it is your … [Read more...]
Why a Rent Increase is a GOOD Thing!
It's Official: I am that horrible landlord that does a rent increase on great, long-term tenants at renewal time. Contrary to public opinion, it's not because I am a money-grabbing landlord. The market is very fickle and it's always planning for your demise through expenses and market caps. Landlord's Expenses: 1. Increased Mortgage Payment While the actual mortgage that a landlord pays (principle/interest) never changes. The escrow fees, … [Read more...]
A Simple Guide to Understanding Mortgages
The first time we met with a mortgage broker it made my head hurt. Mortgages should not be this hard! Use this post as a guideline to understanding mortgages. This way when you go into a meeting with your mortgage broker, you can feel more prepared and able to understand what is being discussed. Understanding Mortgages: Loan Qualifiers Debt to Income. Your debt (Monthly fixed debt payments: car, boat, new house, loan, etc) to income … [Read more...]
Landlords: 5 Ways to Simplify Your Rental Paperwork
I don't know about you, but I am all about the simple, easy path that doesn't come back to bite you in the butt later! Since my rental books tend to be some of the most complicated things since my day job as a Financial Analyst, I like to make things as easy as possible for myself. How to Simplify Your Rental Paperwork 1. Collect Receipts. Put all of your receipts in a folder. I make a folder on my computer and I have one in my office. I … [Read more...]
Why Your Neighborhood’s School Ratings Are Important
I don't know about you, but when I'm looking at houses, the school ratings are number one my priority list! The funny thing about that is that kids aren't even part of our life yet! No matter where you are in life, looking at the school ratings are important for two reasons: 1. Market Appreciation The areas with the best schools appreciate the best as this is the area people want to live. Most districts have a limited amount of space … [Read more...]
How Wall Paint Color Almost Made Me Cry
Our first house had amazing structure, was in a fabulous neighborhood and it was zoned for the second best elementary school in Virginia Beach. It was located 15 minutes from NAS Oceania with an awesome location out of the landing pattern. What could be wrong right? Wrong! The inside of the house was just awful. The House had: No closet systems. A non-functioning master bathtub and shower. Missing cabinets in the guest … [Read more...]
How to Prepare Your Home to Become a Rental
Are you looking to turn your home into rental? Preparing your home to become a rental is easy as long as you are trying to sell your house in its current state. I have had a lot of people tell me about all these "projects" they want to get done before their home can become a rental. The key is not to upgrade your home, but to make it a nice, livable house. Not sure what needs to be done before your home is ready? Below is a list of things to … [Read more...]