Archive for June, 2009

What to do with a Rental Property Money Pit

June 30th, 2009

Monrovia bungalowsWhen buying a rental property you are sure to be thinking about all the money you can earn. But what happens if your rental property turns into a money pit? Unfortunately, this happens way too often. If you find yourself in this situation you need to consider all your options.

What can you do to stop the bleeding? Are there any major problems that need to be addressed? It is very important to know what you are up against. You may think that the repairs will cost a lot, but until you tally them up you never know for sure. If you are lucky you may be able to fix your rental property once and for all so it can eventually make you the money you were dreaming of.

What about selling? This is an idea, but you may lose money if you do so too soon. Remember, all of the problems you are having will be seen by potential buyers. This may scare them away, or cause them to throw ?low ball? offers your way. There is nothing wrong with selling, but you need to think long and hard about doing so if you are going to take a big loss.

A rental property money pit can sour you on this industry forever. Be careful about what you buy. A smart investor can avoid properties that are going to suck them dry. If you do get stuck with this type of property you should consider all your options including making the necessary repairs and selling.

Creative Commons License photo credit: Living in Monrovia

Railcar Home for Sale

June 29th, 2009

If you’re interested in finding a unique home or a second home, there’s an interesting property for sale in Portland, Oregon. But one would assume that this particular home could be moved to just about anywhere as it’s inside a railcar.

In 1949 this train car was created to be a sleeper car but after it served its purpose it was purchase and renovated by Marc Riera. The 85 foot long car has only 807 square feet but the 10 foot ceilings make it seem roomier. Even though it’s rather small the interior is very modern and features stainless steel windows, grid connection, incinerator powered toilet and DSL.

Currently the home is located in Portland on a private lot but it still could be pulled along any existing rail line to be relocated. The lot it resides on now rents for only $150 a month. The biggest bonus of this home is its not technically real estate so there are no property taxes attached.

For a small space the price ticket is a little high, it’s currently for sale $225,000. But you will be saving in property taxes and you’ll be doing your part to save the environment with a very ingenious form of recycling. And imagine the wow factor when you show your friends.

RV Living

June 26th, 2009

El Dorado RV / Limo
Living in an RV, or recreational vehicle, isn’t the typical solution when it comes to inexpensive living but it does have its advantages and could be the solution for you. RV’s run the gamut in expense so you’ll need to decide your price range before you begin and like automobiles, they depreciate drastically the minute you take them off the lot so you may want to think about purchasing a slightly used RV.? The upside here is the interest is tax deductible.

You’ll need to find a campground that offers year round amenities and then check out what the rent will be for the space including utilities and water.

One of the great benefits of living in an RV is the people you’ll meet. Some will be long term residents like you but others will be travelers coming from all over the country, it’s a remarkable opportunity to learn more about the world around you and the people in it.

And one of the best parts about living in an RV is you’re packed and ready to go for any vacation. No matter where you go you’ll always have everything you need without the worries of what you left behind. Not to mention all you’ll save on expensive hotels and overpriced restaurants.

Creative Commons License photo credit: dave_7

Add a Bathroom, Add Value

June 25th, 2009

The number of bathrooms in your home has a lot to do with its value. Generally speaking, more bathrooms are better. If you are interested in adding a bathroom you should be aware of what goes into the process. Yes, it is a great idea and you will add value to your home. But at the same time you need to realize that this is a big undertaking.

The first thing to consider is space. Where are you going to add your new bathroom? Since every home is different there is more than one answer to this question. You may have the space to add a bathroom on the first or second floor of your home. Or maybe the only place for this is in your basement. If you are interested in adding a bathroom the first thing you must do is determine where it will be located.

Now that you know where you want to add your bathroom you have to think about how much work will go into adding plumbing. If your new bathroom will be on the other side of the wall from an existing one, things will be much easier on you and anybody you hire. Your plumber should be able to gain access to the existing pipes and use them in your new space. The placement of the pipes in your home may determine where you can and cannot add a bathroom.

What you include in your new bathroom is up to you. Do you just want a sink and toilet? Do you want to add a shower as well? A lot of these questions will be answered once you decide on a space, and of course, when you set a budget for the project.

When you add a bathroom you are adding value. Just make sure you are ready for a big job.

Do-it-yourself Repairs can be Fun

June 24th, 2009

As a property manager you should be thinking about which repairs you can complete on your own. Remember, do-it-yourself repairs can save you a lot of money. A professional will charge you quite a bit for both parts and labor. This doesn?t mean that you should handle every repair on your own, but you can definitely look into this from time to time.

Believe it or not, do-it-yourself repairs can do more than save you money. They can also be a lot of fun. There is something exciting about using your own two hands to make a repair. Of course, you need to know what you can do and what you should outsource to professionals. It is one thing to fix and paint a few walls, but another entirely to install a new furnace. How much knowledge do you have of the home repair industry?

As you learn more you will find that do-it-yourself repairs are becoming more and more fun. Who knows, you may even want to enhance your skills to the point that you can handle pretty much anything that comes along, including big jobs.

All in all, do-it-yourself repairs can be fun while also helping you save money. If you are a homeowner or landlord you should definitely learn as much as you can about making your own repairs and upgrades.

Are you tired of your Dingy Bathroom?

June 23rd, 2009

There is nothing worse in a home than a dirty, dingy bathroom. Who wants to get clean in a space that is so unappealing? Fortunately, your bathroom doesn?t have to be the downfall of your home any longer. You can make some basic changes that will have your bathroom looking better in no time at all.

One of the simplest upgrade that is sure to work is adding a fresh coat of paint. No matter what color your walls are, you can change this in a couple of hours and some hard work. All you have to do is apply a quality primer, wait for it to dry, and then roll on your new color. Don?t forget to add a fresh coat to the ceiling as well.

While fresh paint is important, there are probably other areas of your bathroom that you want to change as well. Before you think about big changes, first consider if minor upgrades will do the job. Why change out your entire vanity when you can buy a new faucet and hardware??

It is often times the smallest changes that can turn a dingy bathroom into a spa-like oasis. These minor changes will not only make your bathroom look better, but will also allow you to keep more money in your budget for other repairs throughout your property.

A dingy bathroom has no place in your home. If you are tired of this, consider making the proper upgrades today.

Living on a Houseboat

June 22nd, 2009

Dal Lake
Living on a boat may seem like a dream to you but it’s actually quite possible. The biggest concern is probably the boat and the location. Boats are generally considered a luxury but they don’t need to be outrageously expensive, look for a good used boat or a fixer upper to save money. If you’re single or a couple you can probably get by with a 40 foot boat on the low end. If you have children you’ll want to add another 10 feet at least.

Then examine the locations that work for you. Marina’s vary in size depending upon the size of your boat, the location of the marina and the amenities offered. You’ll also have to look for a marina that accepts liveaboards. Not all of them are set up for full-time residents while some of them cater to that type of lifestyle. Make sure you check with your state regulations as some do have rules regarding this type of housing.

The best part about living on a houseboat is you can pick up and go whenever you wish. If you’re interested in a little day’s cruise you can pick up your anchor and go. If you’re considering becoming a snow bird and traveling south for the winter or north for the summer it’s as easy as setting your course and taking to the sea.

Creative Commons License photo credit: shahbasharat

Vacation Rentals by Owner

June 19th, 2009

Much like FSBO or property that is For Sale by Owner, Vacation Rentals by Owner (VRBO) is a great way to find a vacation rental property without the hassle and expense of dealing with property management companies or realtors.

By searching for a vacation rental property on VRBO you not only get to save money and some additional hassle by eliminating the middleman but you also get a huge variety of properties to choose from. VRBO has properties from every state in the United States in addition to cabins and beach rental units in a huge number of beautiful and exotic locales.

You can also choose your vacation rental based on specifications other than location, look for beach front property or a vacation rental that is close to local attractions. You can find a rental based on the number of bedrooms and the style of home you’d like to stay in.

Be wary though when using VRBO, this is just a resource for finding your vacation rental property, it does not guarantee that the people renting their property are being honest or fair in their pricing. It’s up to you to do your own research to determine that you’re getting what you bargained for.

A Mortgage for your Investment Property?

June 18th, 2009

roads and railways series #1If you already own a home and are thinking about buying an investment property you need to consider your payment options. Those who already have a mortgage will find it more difficult to get another. Banks are not stupid. They know that if push comes to shove that you will save the house you live in and let your investment property slip into foreclosure. Does this mean that you have no shot at obtaining a mortgage on another home? Of course not.

A mortgage for an investment property will more than likely have a higher interest rate. This is something you should get used to if you are going to buy more and more properties in the future. Although the rate will be higher, if you have good credit you can keep it reasonable for the most part; hope for two percentage points or better above the rate you have on your primary home.

What about the down payment? Most lenders are going to want at least 10 percent down on an investment property. And in most cases, you will probably be asked for 20 percent. If you don?t have any money to put down you will find it difficult to buy an investment property.

As you can see, you can get a mortgage for an investment property. You have to be prepared for a higher rate and more of a down payment. Do you feel comfortable working with these terms?

Creative Commons License photo credit: woodleywonderworks

Is Property Management right for you? Ask yourself these Questions

June 17th, 2009

Are you interested in getting involved with real estate investing and property management? If so, you may be nervous that you are getting in over your head. It is common to be nervous. But remember, you need to look into this further. You don?t want to miss out on a great opportunity because you were scared to move forward.

Here are some questions to ask yourself if you are interested in property management:

1. Do I mind dealing with people? If you are going to rent your property to others you need to be willing to collect rent, fix problems (both personally and with the property), and communicate on a regular basis. Good communication skills are very important.

2. Do I have the money? Property management starts with buying real estate. If you don?t have the money right now, you may have to save and move forward in the future. Just remember, the chance to invest will always be available. You don?t want to do so until you are 100 percent ready financially.

3. Will I have fun? Even though you may be getting involved to make money, it is important to have fun as well. If you enjoy real estate and all that goes along with investing, you should be able to keep a smile on your face.?

If you are unsure of whether property management is right for you, ask yourself the three questions listed above. They should help you make up your mind.