Browse Category by Buying houses

Treat your tenants like customers.

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We’ve all heard the horror stories of tenants ruining properties by putting holes in walls, staining the carpets, refusing to leave a property at the end of their lease etc. This concern is what I would assume is the leading cause of people not being interested in owning rental properties.  Sometimes there’s nothing you can do to prevent this kind of behavior, but you can put the odds in your favor by treating your tenants like customers. Having rentals is a business, and with any good business comes great customer service.

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Business planning, Buying houses, Investments, Planning

Easiest way to save money.

Zach has been out of college and in the workforce for 8 years now. For the past 8 years he can count on one hand how many times he has paid to go out for lunch, impressive! Going out to eat for lunch is such the norm and most people don’t think twice about how much money they are spending. Based on the idea of paying $10 a day (which I wouldn’t be surprised if this number was actually higher) 5 days a week… you are looking at $200 a month. Now, what if you are a double income family, and both of you are eating out every day? That’s $400 a month!! Four. Hundred. Dollars!

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Buying houses, Move forward, Planning, Small living, Smart money

Offer accepted… now what?

The house was listed at 218k, we were able to get it under contract at $203,029 which we felt was super awesome. However, there was no inspection contingency with this property. Meaning that we could do any inspection we wanted but we would not be able to get our earnest money back in the event we decided to back away from the house. (Earnest money is held by the title company and used towards your downpayment-usually 1-2% of the house price- but this can be lost if you walk away from the property.)

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Be decisive, Buying houses, Fixer Upper, Investments

On the hunt for our first investment property.

We finally went out to look for our first investment property. We had all 4 kids with us, and Jane and Michael were taking turns being in charge of  holding the new microphone. Sound quality is off, but we will work on that for next time! Watch and see what changes we would make to this house and why we think it would make a good investment. Leave a comment with any questions and we will do our best to answer!

This house:

3 bed/2 bath 1,356sf single family home listed at 239k.

After pulling comps (comparable home sales within the last 6 months) we felt like this home was overpriced. A goal offer price would be 210k leaving our payments around $1200 a month (with a 20% down payment). Based on what’s currently on the market for rent, we feel we could rent it for approx. $1550 once all the updates were made. Which would leave us at a cash flow of $350 a month.

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Buying houses, Fixer Upper, Investments

Could we live here forever?

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Zach and I bought our first house during the big housing crash of 08′. During 08′ a lot of people were not buying homes in fear of housing prices continuing to plummet and with major lack of trust in the housing industry. Because we came out of college at one of the worst economic downturns our country has ever seen, when we bought our first house, and subsequent houses, we had this question in mind “Could we live here forever?”

History has shown time and time again that after a housing crash, with enough time, the housing market will recover. This gave us confidence that buying would be ok. But of course, like others, we were concerned that we hadn’t seen the worst of it. So, each time we purchased a house, even though we weren’t planning on any of these houses being our “forever home” we wanted to make sure that if Zach lost his job or the market worsened, we would be able to stay in the house as long as needed.

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Be decisive, Buying houses, First time homebuyer, Planning, Small living

How to control your pre-approval process, and come out ahead.

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When you are a part of a gift exchange at work, or with your extended family, and there is a max budget for the amount to be spent on the gift, what happens? Most people feel like the max budget is how much they have to spend. If the budget is $30, most likely everyone spent the full $30. Even if that budget is simply to make sure people don’t over spend, it somehow becomes the minimum budget for most people.

This is what can happen when you get pre-approved for a home loan. You fill out your application, give all the information and documents needed to get pre-approved and you are told the maximum amount you can borrow for your home purchase. I can tell you from first hand experience that a lot of the time, this amount becomes the homebuyer’s budget. But, when getting pre-approved, does the bank take into account how much you want to save towards retirement or  how much you need to save to go on the awesome trip you’ve been planning to Brazil? Nope, they only look at your debt to income ratio, and your credit score (of course there’s more to it, but these are the big ones).

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Be decisive, Buying houses, First time homebuyer, Investments, Planning, Smart money

How to do a real life fixer upper.

After watching season after season, and loving, HGTV’s Fixer Upper I couldn’t help but be critical of the fact that the buyers budgets were just not realistic for the average American. Of course, it’s a show, and I shouldn’t expect full transparency. But after having multiple buyers ask me if they can just “take out an extra loan for repairs on a fixer” I thought it would be good to set the record straight. In this video I go over the most commonly used methods of financing the repairs on a house as well as share a realistic approach that anyone can do, even you!

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Buying houses, First time homebuyer, Fixer Upper, Investments, Smart money