Tag: #localmarkets

How to Rent Your House, Part 1

Posted on | by Allison Zuck

Renting your house can seem daunting. You want to make sure you get every step right before you get tenants in there. However, renting is a great way to get a steady flow of income. In the next few blogs, we’ll go through the steps to rent your house so that you’ll be fully prepared to do it!

Why You Should Rent

First, you make your home into an asset. Instead of just being there, it’s bringing you money. Hopefully, the rental income will also pay off your mortgage, which saves you money, and then put the additional amount in your pocket. It’s an easy way to dip your toes into investing, and it’s even better if you aren’t sure if you’ll need your house again. After all, if you decide you want to move back into that house, it’s always an option.

Finding Tenants

You want to have a large selection of tenants to choose from. So, don’t just stick a sign in your yard (although that’s a great thing to do anyway). Expand your search online! Put your house on Zillow and Craigslist! For safety though, on Craigslist, don’t put your exact address. Hopefully you’ll have a lot of applicants! And then, you’ll need to narrow them down! Have a list of criteria that each tenant needs to meet, such as a base income, good references, and a good credit score. If they don’t match those specifications, don’t spend time vetting them further.

Also decide if you want to hire a property manager! Our last two blog posts talked about the pros and cons of that, and you can look through those posts to decide what would be best for you! Next week we’ll look through a few more steps of renting out your home!

 

For more information, check out the article that inspired our blog: https://www.biggerpockets.com/blog/how-to-rent-your-house

The Fall Market is the One for You

Posted on | by Allison Zuck

The real estate market doesn’t always have the best track record in the fall. However, there are a few reasons you should consider buying your house in the fall.

First, less competition. Because most people don’t have much faith in the fall market, you won’t be competing with dozens of other buyers (hopefully)! That way, you’re able to take more time to decide, making sure that you get the house of your dreams!

Second, you’re in a better spot for negotiating. If you’re looking at a house that failed to sell this summer, chances are the owner is tired of having that property still on the market. You can use that to bargain for a price that fits your needs, as well as those of the seller.

Third, all the holidays are coming up. You’re not the only one who wants to be home for the holidays! The seller will also want the stress of an unsold property off their plate. If you finalize the deal in the fall, neither of you will have to worry about it interfering with your holidays!

Fourth, buying in the fall sets you up well for furnishing at the end of the year. Not only do you get end-of-year sales to shop, you also get to have a little bit to prepare for all the Black Friday deals. After all, you can live without a dream piece of furniture or appliance for a month if it means you get a great deal!

So, if you’re still looking for a house, don’t despair! Fall will still offer you fantastic real estate deals!

Turnkey Real Estate: The Whats and Hows

Posted on | by Allison Zuck

No, not turkey real estate! Turnkey real estate isn’t that prevalent, but it can be a great option for you to dive headfirst into the world of real estate.

Definition

What is turnkey real estate? Well, it refers to buying a property that tenants are still occupying with an active lease. While this sounds scary because you’ll be responsible for tenants you did not choose, it does mean that you’ll get instant cashflow.

How Does It Happen?

Well, sometimes property owners are not equipped to hold onto their property as long as they thought they could. That is where you come in and save the day. You obviously can buy a property that has a current lease, but it can also refer to buying a property that is instantly ready for tenants. If you just buy a property that is ready for tenants to inhabit, you won’t get the instant cashflow, but it does mean you get to choose your tenants.

Should I Go With Turnkey?

Well, it depends on what you are looking for. If you’re looking for a relatively easy investment, go for it! You should probably look for already inhabited properties though. If you want a non-hassle property, but still want to choose your clients, then having a prepared property without tenants is the right choice for you. If you are new to real estate, it’s a great way to wet your appetite, as it’s relatively low stakes. Additionally, if you are really busy, or don’t want a hands on property, turnkey is a solid way to bring in income without a lot of work.

Pros of Turnkey

First off, Turnkey does sound a bit like too much guesswork. Tenants you don’t know? Easy to dismiss. However, you will have the history of the property. No one will expect you to make an uniformed decision. You will have relatively instant cashflow, and it can be as hands-off as you want. You can even get a turnkey investment in a different state. Because you already have tenants, you can hand the property over to a property manager to keep up with it, and you just reap the benefits.

Cons of Turnkey

While you will have details about the property, chances are you won’t see the property before you buy it. That’s taking a huge leap of faith. Additionally, if you aren’t careful, you may pay higher than what the property is worth, or the property may just cost you more than it makes. Bottom line: don’t jump into turnkey investing without doing your research. A little bit of digging is better than losing money.

Next blog post, we’ll dive into the steps and tips that will make turnkey rentals simple for you!

For more information about this topic, check out the article that inspired our blog: https://finance.yahoo.com/news/2021-clear-simple-guide-turnkey-181431989.html

Planning for Rent Relief Needs

Posted on | by Allison Zuck

After the COVID-19 pandemic, the need for occasional rent relief policies has become apparent. This has also meant more confusion about the binding nature of previous contracts, as the government has implemented policies for evictions and foreclosures. Rent relief is important to both tenant and landlord, as the tenant could struggle to be able to pay, while the landlord needs the rent as his livelihood. But, as a landlord, you don’t want to cause undo strain on your tenant if you can help it.

Challenges

During a recession, there are a few issues landlords face. It could be difficult to collect rent. Renters could also move out, and it could be hard to find new ones. Clear policies and procedures help mitigate these challenges. As a landlord, you must make sure you give all your tenants the necessary information up front. That way they know exactly what they are getting into.

Rent Relief Plans

Here are a few of the ways you can help a tenant in need. You must know any loopholes that could be exploited and what it means for you in regards to taxes.

  1. Defer rent. The lump sum is then due at a later date, or the tenant can pay the rent in smaller sums over time.
  2. Reduce rent. You can do this in a number of ways and could be for only some of the lease or the rest of it.
  3. Make the unpaid rent into a loan that the tenant pays over time. This is called a loan conversion and should have a promissory note.
  4. Forgiving rent. You can always forgive the rent not paid by the tenant.

Importance of Rent Relief

All these strategies are good, but why is it important to help tenants with rent relief? It can take a toll on you if your tenants are unable to pay their rent. Therefore, you should try to work with your tenants when you can to assist them with their rent. Make sure to document everything when you do this, and try to take the circumstances of the tenants into account, especially if they are already defaulting. Being gracious to your tenants will make you a more desirable landlord, and a better one overall.

 

Real Estate in Atlanta

Posted on | by Allison Zuck

Atlanta is a fast growing metropolitan area, with a cultural mix of sports, art, entertainment, and nature.

What a Healthy Real Estate Market Looks Like

First, the market needs to be in a growing population. A good indicator of a growing population is whether there are a good amount of jobs available. If jobs are available, people will relocate to them. However, with COVID, more people are working remotely, so they could be moving to their dream location. Growth is not the only scale to be aware of, though, as market affordability is very important. Comparing median house prices and median incomes nationally and in the area will show if your investments will be worth it.

Atlanta’s Market

Once you know what a general healthy market looks like, you can locate great deals in the Atlanta area. Here are a few tips to get you started:

  1. Look for a growing population. Many young people are flocking to Atlanta, and they aren’t ready to commit to owning property yet. This helps boost the rental property needs in the area. For example, by 2050, Gwinnett County will have one of the largest populations of all other counties, besides Fulton County.
  2. Look for more affordable neighborhoods. While Atlanta’s housing market is typically more affordable than other large cities, it does have more desirable areas. Instead of investing in real estate in established neighborhoods, invest in lesser known areas, near jobs that people will be moving to.
  3. Look for the jobs. Jobs are growing in Atlanta, and, therefore, it’s important to invest in property in the area. People can’t work a job without a home to come to every night, and therefore, investing in locations with jobs near by will make the renters flock to you.

Atlanta has many opportunities for investors. With the growth Atlanta is experiencing, the market could be yours!