Browse Category by Investments

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

Our Airbnb Rental. Sort of.

After years of considering and trying to find a way to have a full time airbnb rental. We have one! Kind of. As you probably already know by now, we are big Airbnb fans. We use it to find places to stay when we travel, and we also use it to rent out our home when we are gone. We. Love. It.

We initially thought about renting out our basement bedroom several months back, after we added a door in the laundry room. Having a second entrance made it feel like, why wouldn’t we do this? After a lot of excitement we ultimately decided that a few extra dollars wasn’t worth the hassle.

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Airbnb, Investments, 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

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

The power of starting small.

When purchasing your first home, or even subsequent homes, it’s tempting to buy the nicest, biggest house your budget can afford. A house you can grow into and raise your kids in for years to come. However, if you want to invest in real estate, the most affordable way to do that is buying a home as a primary residence (more on this in a later post). So when you purchase a home, making sure the home fits your current needs, along with the needs of the near future (1-2 years) is important, but being cautious of A. Your spending B. rentability and C. being motivated to move into another house sooner than later, is important.

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Buying houses, First time homebuyer, Investments, Small living, Smart money