If you're new here, you may want to subscribe to my RSS feed. Want more frequent updates follow me on Twitter. Thanks for visiting!

Almost every property manager or landlord has run across discarded possessions after a tenant has moved. Quite often these possessions are obviously just garbage that the tenant didn’t feel like taking out to the trash. Sometimes these are “upgrades” they have made to the unit (like a microwave) that they intended to leave behind for the next tenants. And other times the stuff left behind is obviously valuable and may or may not have been left behind intentionally.

Continue Reading The Tenant is Gone but the Stuff Remains »

photo credit: AMagill

Are you thinking about buying an investment property? If so, you need money to pay for this. After all, property costs money no matter if you are going to live in it or if you are going to rent it out. Some people take huge risks with investment properties, and end up cashing in big time. Of course, there are others who are more conservative with their money and move forward cautiously. It is impossible to predict the future, but buying an investment property that suits you from a financial standpoint will help to increase your chances of success.

When buying an investment property you should always have a down payment. While rules are made to be broken, this is one that you should try to follow. And if you can come up with a down payment of at least 20 percent, you will be much better off. When you put money down on a home you will be in a position of equity from day one. This helps to protect against owing more on your home than what it is worth, which is commonly known as being ?underwater.?

One of the most common mistakes made by new investors is thinking that the rent they collect will pay for the mortgage on the investment property. Can this happen? Most definitely. But you should never rely on this. If you cannot afford to pay the mortgage each month without the rent you bring in, you should avoid the property. Remember, you never know when something will happen and your home will sit vacant.

If you are going to invest in an investment property you need money. First and foremost, you should have enough cash on hand to make a down payment. After this, you need to make sure that you can cover the mortgage even if the property is bringing in no income. When your finances are in line you will find that investing in property is much easier.

photo credit: amishsteve

The first step in performing a credit check on a prospective tenant is getting their permission. The easiest way to do this is to include it on the application or as an addendum to the application form. This way you can have a written statement that explains to them that you are going to check into their credit history and then collect the necessary information as well as a signature.

You can check with the credit bureaus on your own or, if you have a large number of tenants, you may want to hire a company that specializes in credit checks so you don’t have to do all the leg work.

When you check their credit history look for any claims made against them by previous landlords or if a creditor has had to take them to court in the past. This should immediately set off alarm bells and most likely send you looking for another tenant. A couple late payments to credit cards may give you a little pause, but unless there?s a history of this activity its probably not a big deal.

?

If you’re confused by credit scores, remember that the national average is 678, which is considered only fair. If you’re looking for a tenant with “Good” credit look for a score between 720 and 749, anything above 750 is considered “Excellent”. On the other end of the spectrum, anything between 620 and 659 is considered “Uncertain” and “Poor” credit risks fall below 619.

photo credit: pingnews.com

Want to live high on the hog but not buy into the lifestyle? Consider renting one of world?s most expensive rental properties instead.

Necker Island

How about spending a week on Richard Branson’s Necker Island? a mere $300,000 will get you a week of lavish treatment on the island? or you could go the thrifty route and spend $46,000 for one night on Necker. Sure, it?s a lot of cash but you’ve got an entire island all to yourself.

Waldorf Towers

Maybe the isolated island life isn’t for you, you want something happening, maybe a rental in New York City. If you?d like to follow in the footsteps of Frank Sinatra and Cole Porter, then unit 33A of the Waldorf Towers is the perfect home for you, fetching a mere $120,000 a month. Quite a bargain compared to Necker Island.

Nygard Cay

If you like the idea of big city amenities but the privacy of an island toyourself, then do like Oprah does, and escape to Nygard Cay in the Bahamas. As the world?s second most expensive rental, boasting a $40,000 a night price tag during high season, this tropical oasis gives you everything you could desire. A staff of 20 will see to your whims and treat you like the big spender you are.

?

It may only be temporary but even a night in one of these prestigious rentals is more than the average person can afford.

photo credit: salimfadhley

Do you remember a few years back when investing in foreclosures was almost a sure thing? While those days are long gone, many investors are still wondering if foreclosures have anything to offer. In other words, can you still profit by purchasing a foreclosure, fixing it up, and selling? This is a difficult question to answer due in large part to the many variables that are involved.

Here are three basic, yet useful tips to keep in mind if you are thinking about investing in a foreclosure:

1. You must exercise caution. You can no longer expect that every investment will turn into something huge. Instead, you need to be cautious with what you buy. Consider the price, location, comparables, and anything else that may affect your chance of success. Of course, if you are thinking about investing in your first foreclosure, you need to take even more caution as you move forward.

2. How are you going to pay? This is perhaps the most important detail to consider. Again, in the past you may have been able to get away with paying more for a foreclosure than you should have. But in today?s world, you need to earn every possible penny. Simply put, if a foreclosure does not fit into your budget, keep looking.

3. Find a mentor. If you are new to investing in foreclosures or just want some help, find a mentor that has been around this game for a while. The knowledge and advice that they can offer is invaluable.?

There is no denying that you can still make a nice profit through foreclosure investing. Does this mean that you are guaranteed to make out in the long run? Definitely not. With so many variables, including the ever fluctuating real estate market, you never know what is going to happen. At the very least, use the three tips above to get in the right frame of mind. From there, deciding whether or not to invest is up to you.

A world record has been broken in home sales as a mysterious Russian billionaire forked over EUR500 million (over $700 million U.S.) for the French property, Villa Leopolda. The property had previously been owned by King Leopold II of Belgium and more recently by Lily Safra. The Belle Epoque mansion rests on the Cote d?Azur between Nice and Monaco. Continue Reading World’s Most Expensive Home Sale »

photo credit: striatic

If you’re thinking about heading into the rental business then consider what renter’s want before you make a purchase. It goes without saying that they want a good price and a fair landlord, which are things you control once you own the property. But before you buy, look at what the property has to offer and determine if you think that renters will find your rental property appealing.

Location
Just like a home purchase, location is the most important consideration for prospective renters. Look to pick up property that is close to parks, schools, downtown districts, or popular areas of town.

Size
Renters want more and more space. It may be because of the McMansion boom of a few years ago, but people are putting more and more value on space. Look for rental properties that are larger or that feature an open concept floor plan that gives the appearance of more space.

Amenities
With the competition for renters, the more you can offer the better. More and more renters are asking for in-house gyms, swimming pools, garage parking, storage space and more security.

Floor Plan
People are looking for more bathroom and spacious kitchens. Look for floor plans that highlight these two important areas of the home.

Basically, when you?re looking to purchase a rental property, think about what you?d want in an apartment, look at what your local market has to offer, and pick something that has appeal.

photo credit: juhansonin

Buying a rental property is a great way to bring in additional income. But just like any type of real estate investing, there are risks involved. If you are not careful, you may end up buying a rental property that is not what you thought. In turn, you could end up paying the mortgage out of your pocket with no rental income coming in. Is this a situation that you want to deal with?

To increase your chances of success when buying a rental property, you will want to hire the right real estate agent. The question is: what does the right agent look like? Here are three tips for hiring an agent when buying a rental property.

1. Your agent should have experience in the area that you are buying. If you want to buy a rental property in Miami, you should find an agent that is familiar with that particular area. In other words, an agent from Palm Beach is probably not going to do you any good.

2. Is the agent knowledgeable? This is very important no matter who you are. That being said, new rental property investors need this even more. A knowledgeable agent will be able to answer your questions, and if you allow them, they can even steer you down the right path.

3. An agent that can tell you about past trends and future expectations is worth a lot of money. Once again, this goes along with an agent that has experience in the area which you are buying. By looking at the past and talking about the future, you will be able to conclude which rental properties are best for you.

All in all, if you are buying a rental property a real estate agent is not going to cost you a dime. But remember, an experienced, knowledgeable agent is what you are looking for.

photo credit: colinrego

Are you in the market for an investment property? Just like you would with a home that you purchase for yourself, you need to hire a qualified home inspector. Skipping this step could lead to major problems. Instead of taking a huge risk, you should spend the few hundred dollars to have an inspection. In the long run it will give you the peace of mind you need to move forward with the purchase, or the knowledge to turn the deal down.

An inspection will turn up any possible issues with the property that you are thinking about buying. For instance, if the air conditioner is broke or there is a leak in the basement, you will find out about it. As you can imagine, it is better to learn about these problems before you buy. This way, you can pass on the home altogether or you can negotiate with the seller for a lower price or to have the issues fixed before moving forward.

Continue Reading Buying an Investment Property? Don’t Forget the Home Inspection »

photo credit: 60secs

If you’re filing a property insurance claim then there are a few things to keep in mind to make the process go more smoothly and in your favor. The first thing is that your insurance company will rely upon a claims adjuster to meet with you and negotiate a deal. The thing to remember here is that the claims adjuster is working for the insurance company and not for you, they’re trying to get a deal for the insurance company and this goes for anyone that they may hire to evaluate or repair your property. The way to get the best deal from your insurance company on a property insurance claim is by negotiating yourself and finding your own contractors.

Once the claims adjuster has given you an estimate of the damage, seek your own estimate from other contractors that you trust. Go ahead and get more than one estimate and present your insurance company with this information. Don’t blindly accept the bid given by their contractors as they may do a sub par renovation. You also shouldn’t feel pressured to accept everything the insurance company says, they’re not experts in every field and although they may hire so-called experts, you may not agree with their findings. By standing up for yourself and doing a bit of the leg work on your own you?re more apt to get a fair shake from your insurance company.