Tag: #moreoptions

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

BRRRR – What is it

Posted on | by Allison Zuck

Renovation shows on HGTV are really popular right now. A home owner is living in an outdated house, and they want something more modern. In swoops a team of home renovators who fix up the home and it’s perfect for the family’s needs!

BRRRR is a little like that. BRRRR stands for “buy, rehab, rent, refinance, repeat.” A real estate investor buys a property that is outdated and undesirable, and then fixes it up! Now, the investor has a desirable property. While he or she could sell it and turn a profit, they rent it instead, creating a stream of passive income. If the investor needed a loan to fix up the property, the revenue from the rent pays for that, and once that is paid off, it’s a steady stream of income.

BRRRR is a cyclical process. First, buying a home and fixing it up (making it more valuable). Next, finding a tenant (which should be easy if the renovations went well). Then, a loan to cover costs (if you don’t have enough cash to cover it). Then, finally, a stream of income from the tenants, and you’re off to find a new property to revitalize.

Here are some things to know while considering BRRRR:

  1. Consider getting a short term loan to purchase the property and fix it up, but then refinance the property at the bank to build equity and pay back the loan
  2. Banks typically only refinance up to 75%, so make sure that you are fixing the property up to be worth more than what you paid for it

BRRRR can be a confusing topic, so we’ll jump into more details in the next few blog posts!

 

Check out this article that inspired this post to learn more: https://www.biggerpockets.com/blog/brrrr-pros-and-cons

Turnkey Real Estate: The Steps and Tips

Posted on | by Allison Zuck

Last blog post we covered some of the basics of turnkey real estate. This week we’ll cover what you should do to get started investing in turnkey, if you think you are a right fit for it!

Steps

First, look for turnkey properties. You should be able to browse some websites specific to turnkey reality. And while you should narrow down your list of specifics, you will be able to look long distance. You can secure a fantastic property manager for any long distance properties. While researching, make sure you get a clear picture of the property’s financial situation. You don’t want to offer on a property only to realize that it won’t be making you any money. Then, you make an offer. That follows standard procedure, where you negotiate until you and the seller are both happy with the outcome. Finally, you figure out the financing and close on it. It really is as simple as that!

Tips

  • Long distance properties are not a bad idea. You won’t have to be hands on, which makes it a great option! And, if you live in an expensive area, you can search out of state to get a better deal!
  • Make sure you don’t assume the property is good. Research, research, research! You don’t want to think you’ve found a dream option, only to learn that it’s in unlivable conditions a week after you buy it.
  • Similarly, know how long a property has been on the market. This may not change your decision, but it’s good to have that knowledge so that you can make a decision that’s best for you!

Turnkey properties are a great investment, especially if you want minimal hassle in the real estate world. As long as you research what you will be buying, you should have a great property with almost immediate reward.

Don’t forget to check out our earlier blog post about turnkey real estate: https://allcountylegacy.com/2021/09/14/turnkey-real-estate-the-whats-and-hows/

To learn more, check out this article that inspired this blog: https://finance.yahoo.com/news/2021-clear-simple-guide-turnkey-181431989.html

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

Reasons to Invest in Rental Properties

Posted on | by Allison Zuck

Stocks may be the most traditional investment option, but that doesn’t mean that they are necessarily the best! Real estate is also a fantastic option to consider, for a variety of reasons.

Easy to Research

First, the real estate market is very easy to research. You can see the prices of properties in your area (or far away, if you are investing where you don’t live) and easily see what sort of market you’ll be dealing with. There are also resources about investing (like this blog) that can help you make good choices along the way! And, if it all becomes too much for you to handle by yourself, you can always invest in a great property management company!

High Demand

It can be hard to predict what sort of products will be in demand in the next few years. However, we can all be pretty certain that people will need roofs over their heads. In a good market, and with a good investment (which should be easy to make with solid research), you are almost guaranteed to have money in your pocket!

Financial Benefits

First, there are different ways that you can get money back on your rental. It will hopefully increase in value, which will earn you money just by having it! You’ll also have someone paying you to let them live there, which is minimal trouble for you, especially with a property manager to take care of the details. Additionally, you can take out a mortgage when you buy the property. This means you won’t be shelling out a lot of cash all at once, and you’ll instead have a loan you can pay back gradually!

Lots of Choices

When you start investing, you can tailor it however you’d like. Do you want to drive past your property every day on the way to work? You can find a house near you. Or, you can buy one states away, and hire someone to take care of it for you! There’s also no right property to invest in. You can get whatever suits your style, as long as it should turn a profit. Want something in perfect condition? Get it and only worry about minimal work before a renter can move in. Want a big renovation project? Buy a fixer upper and tailor it to whatever style you want.

There’s so much flexibility in real estate! And that flexibility translates to good options and lots of benefits. So, if you’re looking to invest, start diving into the real estate market!