Top 10 Features of a profitable investment property

Many are aspire to accumulate income through investing in real estate. If that is you, I applaud you, real estate IS a deed a good investment IF done properly. Many lose their shirt in not picking the right deal. Here are a few handy tips and things you should look for when looking for a good real estate investment property.

1. Neighborhoods - The quality of the neighborhoods in which you buy will influence both the types of tenants you attract and how often you face vacancies. Here's an example if you invest in a property close to a university, you can assume most applicants will be college students and the lifetime of there stay will vary.


2. Property Taxes - Property taxes vary from property to property, and if you planning to make money from rent you have to calculate what you will be losing to taxes. many investors believe high property taxes go hand in hand with log term tenants. be ware of this mistake. Speak with the towns assessment office.


3. Schools - Property prices will reflect the reputation of the surrounding school. Although you are investing for a cash generating machine, the overall value of your property comes in to play when you sell.


4. Crime - In most cases people avoid crime. Go to the police station or library to for the accurate crime statistics.


5. Jobs - Locations with growing employment opportunities tend to attract more people. Find the US Bureau of Labor Statistics or local library to find the area rates for that particular property


6. Amenities - Check the neighborhood for current or projected parks, malls, gyms, movies and other perks that attract renters.


7. Building Permits and Future Development - Find out what new development is being planned in that area. If there is building that it is a good growth area. But be cautious of new development that will cause a loss of activity to a friendly space


8. Amount of Listings and Vacancies - If there is an unusual amount of vacancies in this area, run as fast as you can. To many vacancies are never a good sign.


9. Rents - This is the bread in butter. Find out what is the average rent being paid in that area. If the average rent doesn't cover your cost, keep looking.


10. Natural Disasters - Insurance is another expense that will have to subtract from your returns, so its good to know how much to carry.

5 things to know about buying a vacation home

In the spirit of the best vacation season, I want to inform you on 5 things you should know about buying a vacation home. There are lot of good reasons to buy one beside from being financially good investments. As with any real estate, location counts more than any other single factor. The best vacation properties offer something special - a view of the ocean, a mountain vista, a dock on a lake. For maximum appeal to potential renters or future buyers, look for a place within three hours drive of a major metro area. Longer distances or difficult roads make weekend trips a pain, and that limits your market. Lets jump right in

NOW is a good time to buy:

You hear me say this all the time but seriously - in many second home spots, prices are still close to their five- year lows. According to Fiserv, single-home prices in Napa, California, are down 47% from thier 2006 peak for example. The average house in Ocean City, NJ costs 24% less than it did in 2006.

A HOME is a better deal if it's rent-able:

It's a smart idea to shop as if you're going to the place out. That's because home's rental potential can affect its resale value.

Before you make a bid, make sure that the home owners association or township allows short-term rentals (many do not). And keep in mind that renters prefer homes with at least one bathroom for every bedroom.

DO NOT count on rental income to pay your bills:

According to homeaway.com the typical rental property rents out just 17 weeks a year. Including management fees also cut into your profits. TO get a handle on a property's income potential, ask a management company for a history of rental dates and rates for homes comparable to the one you're considering. If you monthly loan payment is less than or equal to one peak week of rent, you're likely to break even.

Lenders raised standards:

If you use the property primarily as a second home and you'll pay about the same mortgage rate as you would on a primary residence. If you need rental income to qualify for the loan, however, the house is treated as an investment property - so you'll have to put down as much as 25% for the down payment and pay up to one percentage point more in interest.

TAX Benefax

Stay there for less than two weeks or 10% of rental days and you can deduct operating cost!

Call or email us to find you a perfect vacation home.

Sincerely,

Team Sohail