Rental and Cashflow Property - Management, Strategies and More

We are always looking for new ways of securing our retirement and I thought this was worth mentioning for those of you that are thinking outside the box. Great strategy

A student sold the development rights to their property to NJ, allowing them to keep their property with a deed restriction, used a 1031 EXCHANGE to avoid taxes on the sale, purchased an income producing investment property with some of the proceeds, and purchased a tenant-in-common interest in a property owned by his girlfriend with the remaining proceeds. Perfect strategy for converting non-income producing property into an annuity for retirement. gchristofely

Due diligence is a term used for a number of concepts involving either the performance of an investigation of a business or person, or the performance of an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is, the process through which a potential acquirer evaluates a target company or its assets for acquisition. – From Wikipedia

1.) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeowner-ship allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2.) You're paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

1. Treating a rental casually
Renting out your home is a business. Fail to treat it as such and you could be hit with fines or legal judgments that far exceed a few mortgage payments. Collect any rent and you are a business in the eyes of:

The tax man: Rent is business income and must be reported to the Internal Revenue Service. On the flip side, certain repairs and upkeep, in addition to mortgage interest, can be deducted as business expenses. Don't skip the extra paperwork; if the IRS finds unreported income, you can be ordered to pay penalties, back taxes and interest. Also, at some point your house could be reclassified as an investment property, which has different tax implications than a primary residence.

The U.S. apartment vacancy rate eased to its lowest level in more than a decade, but stagnant income growth moderated rent increases, according to an industry report released on Monday.

The national apartment vacancy rate fell 0.1 percentage point to 4.1 percent in the fourth quarter from the third quarter, according to a preliminary report by real estate research firm Reis Inc. It was the lowest vacancy rate since the third quarter of 2001, when it was 3.9 percent

A sluggish job market and weak wage growth help keep rent growth at just 0.8 percent, however, well below the level usually associated with such low vacancy rates.

Hey everyone,
I haven't posted here in awhile. But thought this would be a good place to post this.

I need to free up some cash quickly. I have a triplex, its fully rented. Grosses $1200/month. Valued at $105,000. I'm looking to sell a 5 Year Option to Buy at $95,000 on it. The Option fee would be $3500. This could be assignable too.
If you're looking for a longer term investment based off of appreciation or just would want to flip the option quick, send me a message.

I can give more details about the property to serious inquiries. Thanks everyone

Ready to be a landlord?
Let’s do it! What a great time we live in, and a great market we are in right now for acquiring properties and cash-flowing deals. With the market on the move upward, it is a great chance for investors to start cash-flowing on deals now, and making money on future appreciation of the deals in the years to come. I found a great article that outlines some things that you’d want to consider if you were getting into some rental generating properties. I hope you enjoy and learn from this article as I did.

By: Anne Miller

Through the years I have been a landlord, I have had the opportunity to talk to other landlords. I have come to understand that a couple of things good landlords do is maintain their property and move quickly when they have a bad renter. Often times those that are rough on a property also do not pay on time on a regular basis. This does not apply to good people who are struggling and that you can work with.

Often times a new landlord gets nervous and will not complete the eviction process. I have even heard of people paying a tenant, who has damaged a property or who has not paid, to leave.

I need to network with other multi-unit. Investors in Texas, New York and the Chicago Areas.
From a management standpoint I have several Question I would like to ask.

Please message me, so I can communicate with other investors in these areas

I would appreciate some advice.

Thanks

Brian

Owning real estate is fun and lucrative. It has allowed for great freedom and the creation of wealth. Taking care of your assests that you aquire does take some effort.

If you buy real estate that is out of state, budget your money so that you can go see your house the first year you own it. Visiting your property does not have to be a major expense. You may need to catch a flight in the morning and out that evening or simply stay over one night. Get to know your property and your manager. As well as knowing your manager, get the phone number of the tenant.

Stay aware of what is happening with your property. Keep in touch with your property manager and set expectations.

Best of Luck.