Zack childress-your rental property deserves the best tenants, so for that, you should be doing a lot of background verification which is said to help you in the long run. This piece of writing will give you loads of ideas about how to find a not so good tenant such that you can be trouble-free beforehand.
- Stay away from people who haggle even before seeing the property. Concerned only about the cost, they fail to know the value of the property and this is a sure sign that they can’t afford to pay for the property.
- Unwilling and hesitant to furnish personal information- The essential information that you are with authorization permitted to have such that you can make smart decisions is not something a large burden. If an occupant doesn’t want to furnish their personal information to you, then you should know that there is something underhanded.
- Delay in the income statements- if a tenant delays to submit their income statements, then it is a sign of setback, to check it thoroughly is the most important duty of a house owner.
- Immediate move-in and get annoyed over your verification process- there are quite a few tenants who fear the verification process and try to speed up the move by requesting the property-owner for a quick move in. If this is the case, then as a landlord you should be cautious. On the other hand, there are some tenants who get irritated over your verification process. There is nothing wrong in making the arrangements for an immediate move-in, but at the same time you should make sure that you don’t skip any of the verification process. One more manipulation approach, making an attempt to overawe and persecute you into skipping important steps. With that said, a whole lot of tenants know they need to prove they are good tenants first.
- Contradictory personal information- inconsistent or contradictory personal information of a tenant’s information like names, phone numbers and ID numbers means they are insincere with you. Thanks to scaled up technological advancements, now the landlords can check their tenants details on the NTD (National Tenancy Database).
- Frequent relocation, mainly for no good reason- If a person is known for moving around and used with it, they will continue to do that. It means that you will be in search of finding new tenants again in a short span of time.
If you are looking for more information related to signs of a good tenant, stay tuned to Zack Childress real estate blog. He is a real estate professional helping aspiring realtors to be successful with his teachings like real estate principles, markets, and finance. His seminars and boot camps are a blessing to people who wanted to stamp their mark in the industry. To learn more about the intricate concepts of real estate, do follow him on social media and stay connected to this real estate connoisseur.
Rental property investment is one of the most popular ways for those who want to diversify their investments beyond stocks, shares, bank deposits like fixed and recurring, insurance, and mutual funds. However rental property needs more significant hands-on-work that involves the dealing with tenants and maintaining property. Zack Childress suggests different ways to get the best rental property in real estate.
How to get best rental property in real Estate?
You can get a rental property either out of your efforts or by taking the help of real estate agent. However, it is better if you start searching on your own as sometimes, the agent might put unnecessary pressure to buy before finding what suitable to you.
The best thing is to consult people who are experienced in purchasing a rental property. They may be your friends, neighbors, relatives, colleagues and possibly siblings, so you get an idea about the new houses with all the amenities. Here are the following ways to get the best or the property that suits you.
This is the most important factor while taking a rental property. If you take a rental property near the school, students are the potential tenants. If the house is located near the corporate companies, the company employees are the possible tenants who will be taking the house on rental basis. It depends on the location where you get it.
2.Try to get as much information you can:
To get full or maximum, it is necessary to be social so you would leave your ego or personal differences (if any) aside, if you know them. You need to talk to other investors, mortgage brokers and other real estate agents, who have worked on income property regarding the rental property ownership.
Property taxes vary from property to property. So, there is no pre-defined amount for each of them. However, if you like the locality and the rental property, higher tax rates may not be the criteria.
If you are looking for the rental property having the amenities like the projected parks, malls, movie theatres, public transport hubs and other perks, you need to check with the neighborhood to get an idea about it. You can also get the information by Google search or maps.
When the job opportunities increase in a location, it attracts the potential tenants to take the place to rent.
If you are depending on your rental property’s income, you need to know the average rent in the area where you have purchased the rental property. If your average rent is not enough to pay your mortgage loans (if there are any), property taxes, and other expenses, you need to check for the area, wherein the expenses will be within your rental property income.
The investment related property has turned out to be a good source of income. And of course, there has been a hike in the money got through renting real estate. You might have an idea to put money into the property rentals. But preceding that, the valuing of the real estate rentals needs to be carried out. There are some choicest ways for determining the value of a rental property and the approaches will help you understand whether the property is truly worth it.
The approach taking Sales Comparison into account:
When making a comparative market analysis, an appraiser or a realty agent comes to the assistance. So as to carry out the valuing of the residential real estate, the sales comparison approach is used. Through this method, all that you do is to compare homes with similarities and that have been sold in a given duration.
The approach with respect to the income:
When comparing the income from rental property with the initial income, the income approach comes into the scene. The commercial real estate uses the income approach more often.
The Pricing Model with respect to Capital Asset:
So as to value the real estate better, the Capital Asset Pricing Model (CAPM) is used.The risk factor is taken into account since it is very much relevant to the real estate.There is the concept of discounted cash flow, which is none other than the net present value of finances. There is yet another term used for it, which is discounted cash flow.
The approach with respect to the cost:
This approach implies that the property could hold a value for the scope of its usage. The cost approach is the most efficient way in the real estate market. It is more often applied to make an estimation of the value of a vacant land.
You might desire to purchase about four acres of land and then raise condominiums in that land.The best usage of the land determines the value of the land. In case there are oil fields that are around the land, apartments could not be used, and the best application would be to acquire oil companies in the land.When you are opting for the best valuation model for a given rental property, take into account the one which furnishes the highest value. The attributes with respect to the valuation methods will be taken into account by keen investors.
Once you know these introductory concepts, it should take you towards a better real estate deal. When you have come across the apt property that could get sufficient income, look for adesirable rate of interest for the property. This can be done by using a mortgage calculator.
Investing in real estate has not turned obsolete by any means. But, after the crash that happened in the market, the housing scenario has vastly changed.
As much knowledge as you possess about the realty property, the better it is to value the property.Zack Childress, the multifaceted realty professional, has released number of videos and has presented seminars which could help you get involved in scam free real estate marketing.
It is essential to maintain a good relationship with your real estate agent to pull off a successful real estate transaction. But chances are that the relationship may take an unwanted turn. You may not get exactly what you want from your agent or he may not be happy with your demands. So, in that case, you should consider firing your real estate agent and hiring a new one. Zack Childress, the owner or REI success academy and a maestro in real estate investing and education reviews signs that reveal you have to break up with your agent.
Lacking in action and usage of high pressure strategies
If your real estate agent is missing appointments and not responding to mails, calls or messages, then it portends that he is not willing to continue as your agent. So, think about ending the relationship. If he pressurizes you to sign one deal every yesterday without any negotiation and thinking, then he is not happy. So, break up with him and hire a new one.
If they are not doing what you want
If you have given them your wish list and if they still continue to show you homes with missing features, then it’s time to engage another real estate agent. The current real estate agent is only tiring you with home tours and has still not come up with the suitable home for you.
If they nod their heads for everything that you say
This is really bad. It means that the real estate agent is not expert enough. You should select one who points out the bad and shows the correct path for you. This ensures that you have long term benefits.
Agents who cut short appointments
Agents who cut short appointments are those who are either short of knowledge, experience or are disinterested to continue. So, it is time to change your agent in this case.
If your agent cannot remember your home search parameters
If the agent has selective amnesia, meaning that he is not able to remember your basic home search criterions like the number of bedrooms, no: of bathrooms and others, it is time to fire him.
They don’t act according to your decisions
They cannot take things in their hands and should act according to your decisions only. If an agent does that, you should consider hiring another one as high handed agents may spoil deals for you.
Agents want you to reschedule appointments without prior communication
This will be extremely irritating. Just imagine that you are hurrying to the agent’s office to keep up the appointment, but at the office you are informed that he wants to reschedule it. You will feel annoyed. It is okay to reschedule the appointment but it should be informed in advance
Should You Buy or Not?-Zack Childress
The article below is going to give you “The top 5 Reasons to Buy a House Right Now”, and I have to say, I agree with most of them . I’m going to give you my 2 cents on this, but before I do that. I also want to point out to you that buying a house should not only be a emotional decision, it should also should be a investment decision.
When you buy a house, it is going to be the biggest investment that you purchase in your life. Weather it be your first home or your first investment property. I want you to keep in consideration that when your looking at a house to buy for the first time, or to move out of that apartment and into home ownership, sometimes we have to look at it as a stepping stone.
Yes, you may want the big house, but you may be better off buying the smaller house in maybe not such a new neighborhood to get established as a home owner. Buy it with equity in it because you can buy it cheaper. Sit on it for a year and then sell that house.
Now after a year you are into what is known as long term capitol gains, You get the ability to get $250,000 that you can push of from taxable gains, the beauty of that is now you can take that sale and the equity in that property and place it into a move up house. Over the next 5-7 years you could eventually get into the house you want.
I know we go after the biggest house we want the first time we go out and buy a house. In reality a house is not an emotional purchase, even though it can seem that way. Buying a home is still one of the largest investment tools that you will ever put into your life With that said I also wanna encourage you to buy. I love the article entitled “The Top 5 Reasons to Buy Right Now”.
In the first reason they say “Interest rates are still low”. That is in fact true, interest rates are at a historical low if you look over he past several decades, however they are not going to stay low forever. Why, because the stock market is going to take another plummet.
When that happens money is going to be moved from stocks to bonds, once this happens money gets moved to bonds it means that more investors are chasing the bond market. A lot of the mortgages that are put into place today in this market are attached to lyborgs and bond markets, which means that the interest rates are going to go higher because the need is not is not going to be as relevant with there being more investors coming in.
So I agree the interest rates are still low and they will not stay this way forever.The Second reason, they say “There is More Inventory”. I do agree with that too. Some people will say that the inventory is drying up.
I would look at what kind of investment properties or homes are they going after. If they are looking for the 40-50 cents on the dollar deals, then yes that inventory is drying up. We have to do more of our own direct response marketing to get the best deals.
If your just looking to buy, there is plenty of inventory on the MLS. For instance in the foreclosure market alone 1 in every 1200 houses are going into foreclosure right now. Just imagine how many are in your market. We have seen a 10.4% increase in houses going to the auctions in the last year alone.
There is inventory coming. There is inventory on the market. You are in a perfect position to take advantage of that.
The Third reason, they say, “Home Prices are Going Up”. I agree with this as well, all across the country right now we are seeing markets growing 10-30% appreciation.
You need to find the right areas to buy in to absorb that appreciation, that is known as an appreciation play. Over the next 1-2 years you could bank on that appreciation and sell out. For instance; if you bought it for $100,000 and it’s appreciating at 20% per year and you hold it for 2 years, you could gain $40,000 just by buying that house.
The Fourth reason they say, “Rents are Sky High”. The reason this is happening; displaced homeowners that are getting pushed into the market place.
People that are going into foreclosure are loosing their homes. Whatever the case maybe, they have lost that property. Now they are being pushed out of home ownership and into the rental market. This has increased the demand for rental properties, which is why we see that going up.
We are seeing some markets go up as much as 20-30% even some cases 40% in rent. On the flip side of that you have markets that will never increase that much, they have what is known as rent caps. Markets like Berkley Ca, and San fransico Ca, Oakwood Ca, New York NY and New Jersey, areas in that kind of major metropolitan market do put rent caps in place. Once they reach that rent cap they can’t increase that rent anymore.
Rent prices are sky high, you could get a lower monthly payment from buying a house, or you could move into the rental market and absorb those higher rents.
The fifth reason they say is, “Employment is on The Rise”. I am happy to say that someone is actually reporting that we are putting jobs back into the market.
They say that the US economy has added 200,000 new jobs per month right now. This in turn means that our unemployment rates will start to decrease, which will help to stabilize our economy even more.
Read the article below, give me some insight to what your seeing in your market. I would love to hear what your 2 cents are on this.
That’s my 2 cents, give me yours.
Buying a house is a highly individual decision—and a local one—but current trends are creating a favorable situation for many would-be homeowners.
Interest rates are low, employment is rising, home prices—in most markets—are still well below their peaks, and rents are through the roof.
Every family and each individual has various factors affecting the ability and the decision to buy a home. If you live in a market where studio apartments are $2,400 per month—while nearby condos sell for $300,000—it might make sense to buy a house instead.
Five Compelling Reasons to Buy a House Right Now
Interest Rates Are Still Low
Mortgage interest rates are still low—for now.
A 30-year-fixed-rate loan now averages 4.16%, according to Freddie Mac, but many economists believe we will see 5% rates next year. As interest rates increase, so do your monthly payments.
A $300,000 house at 4.16% with 20% down would have a monthly payment of $1,168. With a 5% interest rate, that payment increases to $1,288.
There’s More Inventory
As more houses enter the for sale market, prices stabilize.
“Inventories are at their highest level in over a year, and price gains have slowed to much more welcoming levels,” said Lawrence Yun, Chief Economist at the National Association of REALTORS®.
The upside is consumers now have more choices, if they are looking at existing homes.
New homes are another story: Yun says new construction needs to double its current production to meet market demand.
Home Prices Are Going Up
Home prices are rising.
The median price of an existing home was $223,300 in June, or 4.3% higher than June 2013. That’s the 28th consecutive month of year-over-year price gains, and economists expect that trend to continue. However, we are still at least 20% off the peak prices of 2006.
“Attempting to buy a home when the market is at its lowest point—or to sell at the peak—is tricky,” said Jonathan Smoke, Chief Economist for realtor.com®.
He compares it to trying to time the stock market.
“You might get lucky one or two times, but overall, timing the market does not work,” Smoke added. “It all points to purchasing power, and that’s a reflection of price and interest rates, which will both be higher in the future.”
Rents Are Sky-High
If you live in a big city, then you know rent is astronomical. In San Francisco, many people are spending 42% of their monthly income to pay the rent. Nationwide, rents are rising at a 4% annual clip.
It’s not unusual to see adults rooming together in expensive cities like New York, San Francisco and Chicago, but everyone needs his or her own space at some point.
Buying a home would lock in your monthly payment and stabilize your finances with a fixed-rate mortgage. This is, of course, assuming you don’t live the San Francisco area, where the average price of a home is $1 million.
Employment on the Rise
Perhaps nothing is as important to the financial stability you need to buy a home as steady employment. The U.S. economy is finally adding jobs—about 200,000 new jobs per month.
The next generation of home buyers—the Millennials—has been particularly affected by the nation’s job slump. Saddled with student loans and tight lending restrictions, many in this generation have been living with their parents to save money until the economy picks up.
If your employment prospects look good these days and the other four factors check out, then it may indeed be the right time for you to buy a home of your own
If you are a beginner and single family residing in a condominium,