Rental and Cashflow Property - Management, Strategies and More

If you are looking to purchase investment property, you are going to see the term CAP rate, or real estate capitalization rate, used quite frequently. Fortunately, CAP rate is easy to calculate and easy to understand.

The first step to calculating CAP rate, or capitalization rate, for investment real estate, is to determine the sales price. If you have already purchased the property, then you would simply use the total price you paid for the home including closing costs, etc. If you have not yet purchased the investment property,then use the asking price plus the amount you plan to pay for closing costs, etc.

I am looking at a potential market for property management services. I have many wonderful ideas concerning the services I could provide thanks to this forum. Would someone possibly be willing to share a contract so I can get a feel if I am headed in the right direction?

Wondering if anyone has a letter they send out when a tenant's lease is getting ready to come up?

Thank you,
Micheala

1. Get to know your State/Province
Find out where property is expensive, where it isn’t and where property is showing excellent growth on investments. Your state/provincial landlord-tenant website is a very good resource for landlords because it often has a page that lists vacancy rates, average rental rates and the socioeconomic status of specific areas. Real estate calculations vary widely, so you will need to figure out the start-up costs involved, including mortgage payments, agent’s fees and taxes. Subtract the expected rental income, allowing for a 5 percent or so vacancy rate, and determine your shortfall, if there is one. This will depend on the area in which you purchase property.

2. Find out the duties of a landlord in your State/Province

Commonly people wonder: "How do I find a good tenant that will not destroy my property?"

Here is a little tip I have used and suggest you look at as well. It is not full proof but does ad a level of understanding about a possible tenant that is not available otherwise.

When a client fills out a rental application it will have a spot for the applying tenants current place of residency.

You, now having their address, can send family, friends or receptionist to the address on the application. They will knock on the door and ask for a random address that may or may not exist.

What happens often is that the person who has answered the door to give directions to some address has let the door open and allowed whomever asking to take a long view of the conditions of the inside.

Although there are many a good tenant, for every one there are at least a couple more that skip out.

For years I've been using the auto bank deposit or tenants go to the bank themselves, but with the growth in identity theft and fraud, I have been interested in an alternative. Now that step is clear...
Thanx Marcia!

Next, I am interested in finding an automated system or at least a proficient, sleek system for handling the pursuit of deadbeat and cheating (mainly escape artist) tenants . Any ideas or knowledge of sorts anyone ?

Im Looking to Partner up with an Investor who is willing to make a profit on property in CA. I can provide a valuated estimate on the property and Potential profit. Any Investor Interested in finding and owning a new opportunity, Please ask me about the deal through PM.

Patricia

If you work out a deal with a home owner to take over their payments and do a Lease to Own with a new buyer... Will this trigger a mortgage due on sale clause?

I am looking to refinance two of my rental properties. I have another property that I just refinanced with a lender but I feel like I got nickled and dime in the process. I have been looking for other cash out refi lenders in the area but haven't found anything yet. Can anyone let me know if they know any good honest cash out refi lender that lend in Maryland.

Often times, lease option sellers fail to see what could be a more beneficial sales technique for their particular deal: a land contract sale. There are times when a land contract is actually a more beneficial sales vehicle than selling using a lease option contract. In certain cases, a land contract can actually be used to speed up the process of cashing a home out.