We often get questions about rental properties. Here's a recent question sent to us by a client who currently lives in the property they plan to keep as a rental in the future:
Question: "I have planned to make some updates in our home. We did look at new homes that had updates like granite or granite tile counters and I am wondering if that would be a good upgrade to make if we plan to rent our home later?
I also am thinking of upgrading all of the facet fixtures in the kitchen and bathrooms and possibly changing out the plastic shower enclosure in the master bath with inexpensive tile. Are any of these worthwhile in your opinion? And would we get more rent with these upgrades?"
Answer: As for upgrades, there are a few items that will return to you more than others, but in different areas and for different reasons. If you plan to sell, then granite kitchen tiles, shower tile and new fixtures are a GREAT update to see a good return.
As for renting the home, while these items may make the place more attractive, they will not get you more rents. What they might do is allow you to rent it faster than, say, a plain-Jane place nearby.
The one thing I do caution anyone about is, if you plan to keep the home and rent it, then you have to consider the repair costs. If a granite tile breaks, it’s much more expensive to replace or repair than a ceramic tile or laminate surface.
So, depending on your timeline, let’s consider some goals:
• Do you plan to live in the home for at least 2 years before renting it out? If so, you may want to go ahead and do the upgrades for yourself, since it will be for you to enjoy as well.
• Do you plan to rent it out soon? Maybe in one year or less? Skip the fancy stuff, keep the upgrades simple…you will need to supply a fridge for the renter, and will want a "cushion fund" in case it takes some time to get the right person in. Plus, you'll have to pay for moving costs for yourself, so keep your money in your pocket for now.
Good for Rentals
One thing that is a good return, almost always, is a good quality, STRONG laminate flooring (for a rental, laminate over hardwoods since real wood tends to scratch more easily and is much more expensive). Laminate flooring is easy to keep clean (carpets can get THRASHED quickly in a rental) and easy to replace one board if needed. Plus, it appeals to a lot of people…so consider this type of upgrade before you think granite or other expensive, fancy finishes.
Have more questions for us regarding rental properties?
Please send your questions to: sherinebeltran@cbseal.com.
Friday, January 30, 2009
Monday, January 26, 2009
Rates at Record Lows
Rates at a Glance
30 Year Conf Fixed
4.750% 1 point
FHA
5.00% 1 point
VA
5.00% 1 point
Jumbo
5.75% 600K 90% LTV
0% Down Rural
5.25% No MI 1 point
30 Year Conf Fixed
4.750% 1 point
FHA
5.00% 1 point
VA
5.00% 1 point
Jumbo
5.75% 600K 90% LTV
0% Down Rural
5.25% No MI 1 point
Just Sold!
Check out these two Bank-Owned properties....our buyer's picked them up for far less than even the current market value dictates. We can help you do the same.
Wednesday, January 21, 2009
Friday, January 9, 2009
Tax Time Tips
For those starting to gather your receipts from 2008, here are a few items you don't want to miss! Be sure to include whatever deductions work for you.
And, for those first-time homebuyers who closed escrow in 2008.....don't forget about your $7,500 first-time buyer tax credit!
And, for those first-time homebuyers who closed escrow in 2008.....don't forget about your $7,500 first-time buyer tax credit!
Sunday, January 4, 2009
What is a Good Real Estate Investment?
As real estate investors, we get this question a lot. What is it about a home that makes it a good investment for a first-time landlord or a seasoned real estate investor? There are a few factors to consider, and it's actually a lot easier to figure out than you might think.
Start by answering some questions that will help you keep a house on your "short list" of good investments.
1. The Home's Appeal: is it a home that people would want to live in? Start thinking like a renter and consider a few main points.....does it have a good floor plan? Does it have easy access to schools, freeways, shopping etc? Does it have something extra special like a fabulous yard or a terrific view? If the answer is "yes" put the home on a short list to consider as an investment property.
2. The Financials: will the home rent for a good amount? Is it in an area of homes that perhaps sit in a desirable school disctrict or close to a major job source? If "yes" add it to the list.
3. The Deal: what is the home's list price? Is it far above the average home in the area? If so, it might not be a good one to consider. If it's priced fair or -- better yet -- under value for whatever reason, it should be added to the list.
Next, get in touch with a local real estate expert to find out what you can about the history of the home. Has it been foreclosed on? If so, there may be hidden costs like deferred maintenance that could cost thousands to fix. Or, perhaps the last owner was a contractor who added all sorts of great extra's that will add to the appeal of the home. It pays to do a bit of digging on the property itself before ruling it out -- or in.
Lastly, make an educated offer. Even in a buyer's market, there's a low-ball offer that will only offend the seller. The seller may dig in his heels, so to speak, and not even counter. It's imperative to offer a realistic price for the correct value of the home. And, if you've already done your homework, you know the place is a solid investment. So offer accordingly.
Some Portland Facts to Consider:
* Forbes cites Portland, Oregon as a favorable city for getting the most value for your homebuying dollar.
* Rents will continue to rise in 2009, by as much as 4% (according to NAR)
With interest rates hovering around 5% (4.875% as of today), home prices at highly affordable prices in many areas, and rents on the rise -- it's an optimal time to buy an investment property. We have our finger on the pulse of the local market and have a few "Best Buys" on our short list, we'd love to share these deals with you.
Call us today, start investing for tomorrow.
Start by answering some questions that will help you keep a house on your "short list" of good investments.
1. The Home's Appeal: is it a home that people would want to live in? Start thinking like a renter and consider a few main points.....does it have a good floor plan? Does it have easy access to schools, freeways, shopping etc? Does it have something extra special like a fabulous yard or a terrific view? If the answer is "yes" put the home on a short list to consider as an investment property.
2. The Financials: will the home rent for a good amount? Is it in an area of homes that perhaps sit in a desirable school disctrict or close to a major job source? If "yes" add it to the list.
3. The Deal: what is the home's list price? Is it far above the average home in the area? If so, it might not be a good one to consider. If it's priced fair or -- better yet -- under value for whatever reason, it should be added to the list.
Next, get in touch with a local real estate expert to find out what you can about the history of the home. Has it been foreclosed on? If so, there may be hidden costs like deferred maintenance that could cost thousands to fix. Or, perhaps the last owner was a contractor who added all sorts of great extra's that will add to the appeal of the home. It pays to do a bit of digging on the property itself before ruling it out -- or in.
Lastly, make an educated offer. Even in a buyer's market, there's a low-ball offer that will only offend the seller. The seller may dig in his heels, so to speak, and not even counter. It's imperative to offer a realistic price for the correct value of the home. And, if you've already done your homework, you know the place is a solid investment. So offer accordingly.
Some Portland Facts to Consider:
* Forbes cites Portland, Oregon as a favorable city for getting the most value for your homebuying dollar.
* Rents will continue to rise in 2009, by as much as 4% (according to NAR)
With interest rates hovering around 5% (4.875% as of today), home prices at highly affordable prices in many areas, and rents on the rise -- it's an optimal time to buy an investment property. We have our finger on the pulse of the local market and have a few "Best Buys" on our short list, we'd love to share these deals with you.
Call us today, start investing for tomorrow.
Thursday, January 1, 2009
Happy New Year! News on Rates for 2009
30-Year Fixed Rates, Still Dropping
Interest rates on 30-year fixed-rate loans continue to drop into uncharted territory, but a surge in refinancings appears to be leveling off, two surveys of lenders suggest.
Rates on 30-year fixed-rate mortgage (FRM) loans averaged 5.1 percent with an average 0.7 point for the week ending Dec. 31, down from 5.14 percent last week, Freddie Mac said today in releasing results of its Primary Mortgage Market Survey.
The 30-year FRM averaged 6.07 percent a year ago, and has never been lower in the 37 years Freddie Mac has been conducting the survey. The survey tracks conventional, conforming loans.
(According to Inman News)
Curious What You Could Refinance Into?
Call or email us and we'll put you in touch with a top-notch lender so you can take advanatge of these record lows. It's an amazing time to refi or purchase!
Want to Know About Buying Bank-Owned Foreclosures?
We're working with many investors and buyers who get the big picture and know this is the time to buy. Call us today if you're interested in tapping into this amazing buyer's market and we'll search out the best deals for your specific investment needs....we've got leads on multiple foreclosure properties around the Portland Metro area.
Call us today...start investing for tomorrow.
Interest rates on 30-year fixed-rate loans continue to drop into uncharted territory, but a surge in refinancings appears to be leveling off, two surveys of lenders suggest.
Rates on 30-year fixed-rate mortgage (FRM) loans averaged 5.1 percent with an average 0.7 point for the week ending Dec. 31, down from 5.14 percent last week, Freddie Mac said today in releasing results of its Primary Mortgage Market Survey.
The 30-year FRM averaged 6.07 percent a year ago, and has never been lower in the 37 years Freddie Mac has been conducting the survey. The survey tracks conventional, conforming loans.
(According to Inman News)
Curious What You Could Refinance Into?
Call or email us and we'll put you in touch with a top-notch lender so you can take advanatge of these record lows. It's an amazing time to refi or purchase!
Want to Know About Buying Bank-Owned Foreclosures?
We're working with many investors and buyers who get the big picture and know this is the time to buy. Call us today if you're interested in tapping into this amazing buyer's market and we'll search out the best deals for your specific investment needs....we've got leads on multiple foreclosure properties around the Portland Metro area.
Call us today...start investing for tomorrow.
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