Showing posts with label home improvement. Show all posts
Showing posts with label home improvement. Show all posts

Thursday, March 3, 2016

4 Signs a Property Is Worth Buying and Renting Out




Do you have fantasies of becoming a landlord? That is, do you dream that one day, you’ll purchase a promising piece of property, move in some reliable tenants, then kick back and collect rent well into retirement? If you’ve got the cash and ambition to follow through, there are plenty of condos, homes, and buildings you could buy and rent out—but pinpointing the right one is tough. Don’t give up the dream! Insiders insist there are a few ways to separate the cash cows from the turkeys. Here are some signs a rental property is primed to gush big bucks. IT MAKES MONEY FOR YOU IMMEDIATELY While many mistakenly size up an investment property by the amount of money it could eventually make them later—once they’ve made a ton of renovations—that’s exactly the wrong approach. As the saying goes in real estate, you should “Make your profit when you buy.” That means: Your income (in the form of rent checks) should cover your costs upfront. Financial planner and real estate investor Jim Ludwick at MainStreet Financial Planning recommends looking for properties that will generate enough rent in 10 months to cover all costs, including mortgage payments, taxes, and insurance. Another popular rule of thumb is the “2% rule,” which holds that your monthly rent should be at least 2% of the total purchase price of a property. Look at comparable rental listings online to get a sense of what you could reasonably charge for rent. Then, try punching in your numbers, from your rent to mortgage to maintenance costs, into an online investment calculator like this one from CalcXML, to see if you end up in the black. A DWINDLING DOM DOM stands for days on market—how long a property has been for sale. And if the DOM is plummeting across the board in a neighborhood, that’s a key harbinger that this particular housing market is heating up. And since this typically precedes price hikes, that means you can still score a deal on a property that could make you beaucoup bucks in rent (and if you resell down the road). Another set of listings to check? Rentals in the area. If landlords are offering concessions to tenants, such as a free month of rent or a lower security deposit, those are signs that they’re having a hard time filling apartments, so you may want to steer clear. GOURMET GROCERIES NEARBY Scouts for Whole Foods, Starbucks, and other high-end chains get paid a lot of money to research the up-and-coming neighborhoods with residents (aka your future tenants) who have the disposable income to support their stores. So, if you can buy heirloom tomatoes and a pour-over coffee in a five-block stretch, things are looking good. The presence of Trader Joe’s, Whole Foods, and Starbucks, in particular, bode well for real estate desirability. “You can’t just look at the numbers,” ways Justin Cohen, chief marketing officer of Pangea Properties, a Chicago-based real estate investment and management company. “You’ve got to really look at the neighborhood and understand what’s happening there.” Get a sense of what type of tenant the neighborhood and property would attract. A property in a college town, for example, might have a high turnover, while one near a desirable elementary school (get stats at GreatSchools.org) might tend to draw families that want to put down roots for years. And since many millennials favor “walkable” neighborhoods, areas near public transportation are bound to be a good bet. And we’re not just talking about buses and subways in urban jungles; transportation matters in the suburbs and small towns too, although in a different way: Look for towns near (but not right next to) major turnpikes or highways. A SQUEAKY-CLEAN TENANT If you’re inheriting tenants with the property you’re considering, don’t just trust that current landlord’s word that they “always pay on time.” Run a background check and a credit check (it’s worth paying for a service such as TransUnion SmartMove to do one for you) on any current or potential tenants to see if there are credit issues or a history of evictions, and ask to see pay stubs or a 1099 to show the tenant has the enough income to cover the cost of living there. And if the tenant has a less than stellar payment history? There actually is a way to turn this into an opportunity to negotiate a lower price for the property, factoring in the cost (and hassle) of a potential eviction. “Whether you keep the tenant or not, by buying someone else’s problem, you’ve gained some equity,” says Jorge Newbery, a real estate investor and the founder and CEO of American Homeowner Preservation.

 By Realtor.com


Courtesy of Lina Arbelaez.

When you are buying or selling property in today's market, it's important to have confidence in your Real Estate professional. My commitment as your REALTOR® is to provide you with the specialized Real Estate service you deserve.
 
When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. My goal is to keep you informed on trends in Miami Real Estate. With property values continuing to rise, Real Estate is a sound investment for now and for the future. 

As local Broward & Miami-Dade area experts with knowledge of the communities, My Ojective is to help you in meeting your real estate goals.

If you are considering buying or selling or would just like to have additional information about Real Estate in your area, please don't hesitate to call 954-600-8739,visit our website, or e-mail linaflrealtor@gmail.com 





Thursday, February 18, 2016

6 DIY Projects You Should Never Do Yourself





Whether you’re addicted to watching HGTV or “This Old House,” home improvement shows always make everything look so easy. But before you pick up the drill and sledgehammer, please pause for this public service announcement. “Those TV shows don’t show about 90% of what happens to complete a project,” says Arthur Sadura, owner of T&A Carpentry and Home Renovations.

As contractors know all too well, home improvement shows are more about people than projects; in their pursuit of drama and a compelling narrative, they bypass a whole lot of details about how repairs and renovations actually get done.

So for inspiration, TV or YouTube is a fine start. But beyond that, a little knowledge can be a dangerous thing. Certain jobs are too dangerous, others too complicated, and some too pricey as the equipment will cost as much as hiring a contractor.

“If you don’t know/own 90% of the tools and accessories you need for a project, then pro it,” recommends MyFixItUPLife‘s Mark Clement.

To help you avoid a ton of headaches or worse, here are six DIY projects to avoid like a misfiring nail gun.

Molding

How many inspiring episodes have you seen where a quick addition of crown molding classes up a room? But heed a word of caution here: “No walls in a house are perfectly straight, not even in new houses,” says Sadura. And no amount of caulk will smooth over these imperfections, either. In fact, Sadura says experts who do molding use various techniques such as scribing, which is painstakingly shaping your material with tools so it fits flush, to ensure your moldings are aligned and stay that way. All in all, it’s not for the amateur DIYer. 

Floor refinishing

Renting equipment to refinish your hardwood floors sounds reasonable enough at first glance—after all, you’re just sanding off the top layer of wood. How hard can it be? Yet Sadura, a carpenter by trade, won’t even sand his own floors. Why? Because sanding machines require what he calls, “the right touch” by someone who does this day in and day out.

“No matter how many times you watch the video, you won’t get the feel for the machine unless you do it a bunch.” Sanding one spot a few seconds too long could result in drum marks on the floor that will be extremely difficult to cover up. And you thought you were saving money…

Electrical work

My spouse is actually quite handy. After watching electricians install dimmer switches in our old apartment, he was able to do it in subsequent homes—but it turns out he was lucky he didn’t blow up the place or electrocute himself. Sadura urges homeowners to steer clear of all electric except changing a light bulb.

“You shouldn’t fool around with electric,” says Sadura. If you do want to DIY a dimmer switch, “YouTube is a good source of electrical tutorials,” he admits. “But a good rule of thumb is if your wires look different from what you are watching, abandon the project to avoid having to guess.”

With more than 400 deaths per year resulting from faulty electricity, according to the Electrical Safety Foundation, this isn’t worth the risk.

Tiling

This one is not an absolute don’t, but a great-looking tile job does require a lot more planning than just slapping squares on the floor or wall, then admiring your work. Even if you lay out the tile, measure and measure again, you will need to cut edges and around things such as faucets—and prepare to scale a steep learning curve cutting tile. Glass mosaic tiles are among the toughest to cut. You’re probably thinking, I’ll get big tiles so there are fewer to install. Not so fast: Large format tiles are even harder to cut than tiny glass mosaic ones, according to Sadura, and there’s lots of waste. Which is why it pays to save yourself the trouble and hire a professional already.

Roofing

Both Clement and Sadura agree: Steer clear of the roof. Did you get that?
“It’s not that roofing is too hard,” explains Clement. “Often it’s just a matter of scale.” And something else: danger. In fact, Sadura goes further, recommending that regular folk avoid any exterior projects that involve scaffolding “for obvious reasons.”

According to the National Safety Council, more than 6,000 Americans die each year from falls, mostly from roofs or ladders while cleaning gutters or fixing roofing. 

‘Permit needed’ work

If you don’t really understand how to get the permit—or if or why you need one in the first place—avoid the project. You need to fully understand what’s entailed in a DIY that requires getting a permit in the first place. Many DIYers skip permits altogether, but they risk being shut down if spotted by an inspector or if a neighbor seeking revenge narcs on them.

“But you also risk something worse than inconvenience,” says Clement. “Namely, problems selling the house.” Why? Because you must disclose unpermitted work when selling. This causes a chain reaction, because buyers might be unwilling to take on a home rife with potentially dangerous work. And they might have trouble financing due to the unlawful alterations to the home. 

You want a general rule of thumb? Typically, painting, built-ins, or simple projects such as adding a chandelier don’t require permits. Once your’e changing the footprint of a house, updating wiring, and adding fences (because municipalities usually have height restrictions), you need a permit—which mans you should probably call a contractor pronto. 


By Realtor.com
Courtesy of Lina Arbelaez.


When you are buying or selling property in today's market, it's important to have confidence in your Real Estate professional. My commitment as your REALTOR® is to provide you with the specialized Real Estate service you deserve.
 
When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why our goal is to keep you informed on trends in Miami Real Estate. With property values continuing to rise, Real Estate is a sound investment for now and for the future. 

As local Broward & Miami-Dade area expert with knowledge of the communities, My objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling or would just like to have additional information about Real Estate in your area, please don't hesitate to call 954-600-8739, visit our website, or e-mail premiersouthfloridahomes.info@gmail.com