Real estate investing comes with many benefits that you may be eager to start taking advantage of. For example, the right rental property can provide you with monthly cash flow coupled with equity appreciation, tax deductions and more, and these can have incredible effects on your overall financial situation. As a first time real estate investor, you may be excited to start searching for a property to invest in, but you may consider following a few helpful tips to make your search more successful.
Determine Your Budget
There are investment properties that range in price considerably, and you will need to know up-front what your budget is before you can begin your search. The right real estate investment will generate revenue to pay your monthly mortgage payment and expenses, but there may be months when your property is vacant. Therefore, in addition to thinking about the amount of down payment that you can afford, also think about how affordable it will be to manage property expenses when the space is vacant.
Consider Different Communities
You may consider being flexible regarding the communities that you invest in. Each community may have a different economic base and primary demographic. For example, some towns or even suburban communities may be largely comprised of college students or military professionals. Think about the benefits between the ease of finding new tenants versus the benefit of having long-term tenants.
Analyze Cash Flow
After you have found a few properties to consider, it is important to analyze cash flow. Each property will be unique with regards to the required mortgage payment, income generated, property taxes and even repair and maintenance needs. While you can estimate these expenses initially, you should request historical operating statements from the sellers early in the process. You will find that some properties can be considerably more profitable than others, so it is important to complete a thorough analysis.
Some real estate agents have considerable experience helping their clients from excellent real estate investments to consider, and they may even complete a basic review of operating statement numbers on your behalf before showing you a property. When you are new to real estate investing, the experience and guidance of a savvy and knowledgeable real estate agent can be invaluable. When you are preparing to make your investment, consider following these tips, and seek the advice of a helpful real estate agent.
Depending on where you live, selling your house in the spring could take a few weeks to a few months. Although people are in the market to buy a home all throughout the year, spring time appeals to buyers who may be planning to use an income tax refund to help with the down-payment or closing costs. If you want to sell fast make sure you pay attention to the details like curb appeal, freshening the interior, and pricing your home right.
Last week’s economic reports included the NAHB Wells Fargo Housing Market Index, Housing Starts, and Freddie Mac’s weekly survey of mortgage rates. Other news included the weekly jobless claims report and consumer sentiment for April.
Relocating to a new area can be exciting, but it can also be expensive. There are many resources to help, but most cost money. However, if you take your time and plan carefully, you can reduce the expense so you don’t start your new life with new debt. Here are three tips to controlling your moving budget.
The National Association of Home Builders (NAHB) reported that April’s Housing Market Index rose from a reading of 52 in March to 56 for April. This is in line with warmer weather and the peak home buying season in spring and summer. Readings over 50 indicate that more builders view market conditions as positive as those who do not. NAHB members cited lower mortgage rates and better labor market conditions as reasons they expect more home buyers to enter the market.
Periodically, many homeowners will receive a rather sizable amount of extra cash. This may be from a bonus from your employer, a refund on your tax return, a financial gift from a relative or something else altogether.
If your home is located in a flood zone, it’s critical that you know how to get ready for those drenching spring rains. Here are some basic steps any homeowner can take to prepare for potentially devastating floods.
Last week’s economic news included the minutes from the most recent FOMC meeting, which indicated that the Fed’s monetary policymakers are eyeing a potential increase in the target federal funds rate, but don’t expect to do so immediately.
With many types of home improvements, at least a portion of the cost that you put into the improvement can be recouped from additional value when you sell the home.
The minutes of the March meeting of the Fed’s Federal Open Market Committee (FOMC) were released Tuesday and included a staff review of current economic conditions. The minutes noted that while labor markets continued to grow, inflation to the Fed’s target rate of 2.00 percent was impeded by dropping fuel prices. The Committee noted that expectations for longer-term inflation remained stable.