5 Things To Know When Renting Your Home


If you own a home that you are able to rent, it is a great way to earn an extra income or an extra way to start saving money. Single-family rentals are booming in the United States and continually are growing in demand as more people are choosing to rent rather than own due to it being more affordable and flexible. Renting out your home is a great opportunity and is something that should be taken into consideration if you are able to do it.

Here are five things to know if you are renting your home.

1. Start An Emergency Fund – One of the first things you should do it you’re renting is start some type of emergency fund. This will be huge down the road if you ever need to perform some major repairs or damages. This is also helpful if you find yourself in the position where your current tenant cannot cover the rent and you must pay toward the mortgage. This will also help any extended vacancy of your home or the event of a disasters like the basement flooding. An emergency fund is key to making sure you will be able to handle the rental for the long haul.

2. How You’ll Manage Your Property – This is entirely up to you, if you want to manage the property or if you have a friend, family member or hire some outside person who the tenant can contact 24/7 if any problems come up. These include regular repairs and upkeep to even a pipe bursting in the middle of the night. It is important to set the ground rules early and decide what route you will take.

3. What Will Your Tenants Maintain – This goes along with #2 on our list. Make sure to clearly mark what your tenant will be responsible for in the lease, such as lawn maintenance or fixing simple repairs. It is entirely up to you, though generally simple tasks like keeping the house clean should be left to the tenant, the rest you can decide for yourself.

4. How To Find Reliable Tenants – This is important for making life easier on you and getting a reliable person in your rental home. Post an AD on Facebook or Craigslist or find a family friend which is often the best case. Always make sure to run a background check, credit report, eviction report, verify income and their rental history. There are many things you can and should look up, you want to make sure the person is reliable and someone you can trust to live in your home.

5. What Your Insurance Policy Covers – You should get some type of landlord insurance policy which will give you the proper protection. The protection you get is similar to the one you will have for a complete homeowner insurance policy but it generally doesn’t cover the belongings inside the home. That is where a good renters insurance policy comes in. Recommend to your new tenant that a renters insurance policy is the best way to protect them and their belongings where you cannot.

Renting your home can often seem like an uphill battle but once you get the hang of the system and a good tenant, it is easy and a great way to earn a second income and save some money.

Article Source: http://EzineArticles.com/9864610

Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com



5 Tips To Choose a Property Management Strategy

Investing in a good rental properly may not be a good decision for everyone. If you want other options or you want to be a passive manager, you are not alone. To choose the best property management strategy, what you need to do is know your lifestyle and goals. Given below are some tips that may help you make the right decision.

1. Distance From The Property

How far is your residence from the property? Luckily, if you live a few minutes away, you can go over there on a regular basis to remove garbage, carry out required maintenance, resolve issues with the tenant and collect rent. However, if you live far away, this strategy may not be feasible for you.

In this case, you may want to go for a hands-off approach. In other words, you can hire a local company or individual to take care of the day-to-day tasks. Just make sure you can do so.

2. Number of units

You can manage one unit without any problem, but you can’t handle if you have over 50 units. As a matter of fact, for more units, you have no choice but to get outside help. With this option, you can still stay in charge of the major operations, but the other tasks are better left to another person.

3. Skill level

Make sure you know your strengths and weaknesses. If you have a rental property, you have a business to manage. However, for managing a business, make sure you know how to organize things. For instance, you should know the dates of rent collection, bills payments, lease expiration, and other payments. If you are like most people, you may not be able to take care of all these matters.

If you don’t know much how to do business, you have two options to choose from: you can learn it or you can get help. Being a property investor, there should be a solid business plan in your head. Besides, you must have a powerful strategy to deal with the routine operations.

4. Time Commitment

Do you like to become a rental property owner or landlord? If you already have already have things to do, it may not be easy for you to manage a rental property. You can choose any investment strategy provided you know your goals. For instance, if you know how to manage a property passively, then hiring a property manager is a good idea. But if you are into active management, you should do everything on your own.

5. Personality

It’s a fact that owning a rental property is an appealing investment as far as most people are concerned. However, not everyone can manage a property actively. So, it’s based on your personality type as well. If you can handle stress, can handle conflicts and can use your skills effectively, you can go for the DIY route. But if you are not that type of person, you should choose the other option.

So, you should consider these 5 tips when choosing a property management strategy.

Article Source: http://EzineArticles.com/9872413

Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Should I Consider Renting to Section 8 Tenants?


What is Section 8

The PA Section 8 program, also known as the Housing Choice Voucher Program, provides rental assistance to low income families in the private rental sector. Funded by HUD (The United State Department of Housing and Urban Development) the Section 8 housing goals are to provide improved conditions for families while assisting them in obtaining low income housing, maintaining rental payments, and promoting a greater freedom of choice in housing conditions. This Federal program provides incentives to the owners of apartment complexes and private homes to ensure the continued availability of government subsidized homes. Locally, the Pennsylvania public housing authority (PHA) is responsible for qualifying applicants and disbursing the vouchers to eligible families.

Low income house rentals are listed by the PHA in each of the 67 counties in Pennsylvania, though each complex and home is privately managed. So, each county, Montgomery County, Chester County, even Philadelphia County manage their own Section 8 programs. Even within some counties there are individual towns that have Section 8 offices. For example, Chester, PA has its own Section 8 office.

Philadelphia County is a busy office and very difficult to work with. To be frank it is a struggle for Del Val and others to work with them. They are trying to improve their systems but are very bureaucratic. It is very difficult to reach them on the phone to get simple questions answered. The counties outside of Philadelphia are much easier to communicate with.

But it is a partnership between three people: the owner/landlord, the tenant and the Section 8 office. Traditionally there is a lease between a tenant and an owner/landlord. That is the contract that lays out how the lease is going to work. But with a Section 8 tenant there is a second contract, which is a payment contract that describes the payment amounts and when they will be made. That contract is signed by the Section 8 office, by the tenant and by the owner/landlord. So, this is an additional contract and in an exchange for them offering to pay the rent, the owner/landlord must agree to comply with their rules and regulations. One of those rules is that the owner/landlord will maintain the house in good shape and Section 8 inspections will occur on a regular basis to make sure that you’re doing just that.

What are some of the Pros of Section 8

One of the pros obviously is its federally funded guaranteed rent from HUD, so there is no credit risk involved. Traditionally, Section 8 will pay probably 90-100% of the rent. The tenant may pay a small portion from time to time but 90-100% of the rent typically is going to get paid by the Section 8 office. You will get a one year contract, sometimes a two year contract. The county of Philadelphia offers a two year contract. So obviously once you put that tenant in there for the next two years you know your property will be rented and you’ll be getting your rent.

Now, the question comes up about rent; Is my rent going to be higher or lower than it would be otherwise? In some cases, it’s going to be a little bit higher but I typically tell owners that it will be within 10% + or – than other rents. Again, it depends on the county, it depends on the city and the area so everything’s a little bit different in each case. Typically, five to 10 years ago the Section 8 rent would be probably 15% below a non-Section 8 person. But I think that gap has come down recently to no more than 10% that you will receive. In some cases, you might actually get more for Section 8 than you would get for a non-Section 8.

What are some of the Cons of Section 8

One of the negatives is they will perform regular inspections. So initially before the tenant moves in they do an inspection and you must comply with what they’re asking you to do. They’re not going to ask for you to do anything out of the ordinary. So you’re going to have to make sure that your outlets work, your smoke detectors work, you have fire extinguishers, stairwell banisters are tight and secure and outside that your walkways and things are all safe and secure with no tripping hazards.

Another of the cons is the fact that the tenant may call Section 8 from time to time and say something’s not working. And if Section 8 comes out and determines that is correct, it’s not working, then they could stop paying your rent for a period of time. That is called an “abatement of the rent”, meaning for that period you won’t get any rent.

Why should you consider Section 8 tenants?

In some areas, Section 8 may be your only choice. There are certain areas where Section 8 is very prevalent and because of that there’s not a lot of options and you may have to go with Section 8. There are certain areas of Philadelphia, Norristown, Pottstown, and Reading that have high concentrations of Section 8. So, it may be your only option in those areas.

Tenants tend to stay longer. If a tenant has a Section 8 certificate and they like your house, you’re keeping it up and repairs are being made, for the most part they’re not going to want to leave. For one reason, because there’s not a lot of other Section 8 housing out there. Also, it is very difficult to move and there’s a lot of paperwork involved and a lot of risk on their part. If they notify you they’re going to move out and they can’t find another house within a 60 or 90-day period, they are potentially going to lose their Section 8 certificate. Second, moving from one county to another county is very difficult. So, if they want to move from Philadelphia to Montgomery County there’s a lot of paperwork involved, and the red tape is not easy. So, for the most part Section 8 tenants do stay a long time.

Section 8 requires you to keep your house in good shape, they inspect it and that’s a good thing ultimately for you as the owner of the property. You want to keep your property in good shape.

There is also lots of demand for Section 8 tenants. When we put “Section 8 Welcome” in our ads they get a lot of attention and so that’s obviously a great reason to use Section 8.

Article Source: http://EzineArticles.com/9858973

Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com


U.S. Real Estate Predictions for 2018


Without elaboration, the year 2017 was tumultuous on the real estate and political front. How often can one say that the forces of market dynamics are shaped by the very few, for the very many. Not often, really. And keeping consistent with last year’s predictions, the following will be referred to as “Sidney’s Pix Six”. So notwithstanding that diversion, let’s keep focused on the positive developments yet to come in 2018.

The Tortoise and the Hare paradigm 
The good news for 2017 is that there was overall appreciation, the bad news of that development is that 2018 is posed to be slower given the lack of inventory. The popular website Zillow noted that housing stock fell 10.5% in the year ending November 2017. Zillow economist Rhonda Olsen stated that the low inventory “drove all the dynamics that we saw, from bidding war in the hottest U.S. housing markets, to the incredibly fast home value appreciation” across the country, but with 653,347 homes for sale ending November 2016, and in November 2017 there was 967,604, this portends a slowdown in home sales in 2018.

Independently Millennial 
In my predictions last year I made a special notation of Millennials. This year is no different. It is anticipated that single Millennials will be more likely than not to own a home, versus previous generations of singles before them.

Patience is a virtue 
According to David Blitzer, head of the Index Committee at S&P, “Underlying the rising prices for both new and existing homes are low interest rates, low unemployment and continuing economic growth. Some of these favorable factors may shift in 2018,” However, Blitzer cautions that optimism that prices will in fact increase in 2018, but that the rate of increase will be notably slower.

It pays to rent 
The age old maxim has usually been that it’s better to buy a home then to rent. However, for all of those naysayers out there who have pestered others to own a home instead of buying, it appears that they actually may be wrong, at least for some real estate markets. “Since home prices are rising faster than wages, salaries, and inflation, some areas could see potential home buyers compelled to look at renting” particularly in expensive West Coast cities, noted Blitzer, from S&P.

Four is the Lucky number for interest rates 
By all accounts and based on a wide sampling of real estate economists, mortgage interest rates on the 30-year mortgage, should hover around 4.0% to 4.5% for 2018. However, don’t get too excited, since according to my numerology friends, Number 4 is actually considered inauspicious in traditional Chinese feng shui. This is so since it sounds like “death” in Cantonese.

Affordability and race 
The color line in real estate home ownership is well documented. Which is to say, that home ownership will not likely increase for the black and brown in this country. With a new HUD director put in place last year, the agenda for increasing those numbers appears only to be lip service. As it stands, the high watermark for black and brown families plateaued in 2007 with the housing bust. They have not regained thus far. According to many economists, those numbers could change direction if new programs were rolled out by the government to encourage home ownership. Growth could be accelerated if new zoning regulations made it easier for developers to offer subsided housing via co-ops, condos and high density locations for example, where the black and brown are most densely populated.
Article Source: http://EzineArticles.com/9864595

Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com


Turnkey Investing – A Great Wealth Building Strategy With Excellent Cashflow Returns


When it comes to real estate investing, there are really two categories – investing for capital gains and investing for cashflow. Capital gains investing includes strategies where properties are bought and subsequently sold for a capital gain. Cashflow investing on the other hand involves purchasing properties and holding them to collect the cashflow they create.

Each strategy offers benefits but if you are trying to build wealth, then investing for cashflow is the strategy you must choose. The reason for this is because cashflow investing offers five different ways to profit from the investment.

1. Cashflow

As the term implies, cashflow investing creates a monthly passive income from the rent that is collected on the property. There are expenses like taxes, insurance and property management, but if purchased right, the rental income from the property should pay these expenses and also provide a monthly cashflow.

2. Appreciation

Many investors do not think of appreciation when they invest in rental properties. However, over time as a property appreciates it creates equity that the property owner can borrow against.

3. Depreciation

Depreciation is an expense the government allows you to take which covers the loss in value to the property due to wear and tear. The great thing about depreciation is that it is what is called a paper loss, meaning you do not actually pay for this expense. You are allowed to claim the expense though, and thus your taxes are lowered. At the time of writing, the US Government allows rental property to be depreciated over 27.5 years. For example, if you purchase a property for $27,500 you would be able to claim a $1000 depreciation deduction against the property every year for 27.5 years.

4. Interest Deduction

If you mortgage the property you are purchasing, the interest paid on this mortgage is deductible thus reducing your taxes.

5. Principle Reduction

If you mortgage the property, the rental income the property generates will pay your mortgage payment. Your tenant is effectively paying for the property on your behalf.

Because of these profit centers, cashflow investing is a great way invest in real estate, and if you purchase multiple properties it can be a great way to build wealth. However, setting up rental properties is not necessarily a straightforward thing to do. To be successful, an investor must have the knowledge on all of the following:

  • Where properties should be purchased
  • How to renovate the property to demand the highest rent
  • How to screen tenants properly
  • How to properly manage the property

Fortunately there are companies out there like Michigan Turnkey that offer real estate investors the opportunity to purchase “Turnkey” rental properties in great markets like Michigan. As the name implies, a turnkey property requires nothing more than the investor to purchase the property and start collecting rent checks. Finding the property, renovating, tenant placement and installation of the property management company are all taken care of by Michigan Turnkey. The only job the investor has once they purchase the property will be to cash the monthly rent checks.

Article Source: http://EzineArticles.com/5141582

Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com


For Turnkey Property Investment Memphis Is Hot


In The Market For Turnkey Property Investment Memphis Is Really Blowing Up

If you’re ready to make money through turnkey property investment Memphis is one of the cities you should be looking at.

By concentrating on turnkey investment, you can spread your holding out over a great distance, and the Memphis area is one place where you definitely want to get a foot in the water sooner rather than later.

Turnkey Investing Defined

“Turnkey” is a term that shows up in a lot of different industries. It started in construction, describing a house built “on spec” instead of customized for an owner.

Ironically, by the time it came back to the world of real estate, “turnkey” had picked up a new meaning. A turnkey investment property is one that’s rented to tenants.

It’s not just ready for tenants to move in, either; turnkey properties are transferred from one owner to another while they’re occupied. This is an attractive prospect for buyers because you get a piece of rental property that comes with an stream of income that’s active from the moment you close the deal.

The Benefits Of Turnkey Properties

Most properties sold as turnkey investments also feature a solid property management plan already in place.

(In fact, many investors consider pre-arranged property management a prerequisite for turnkey deals!)

That means that a professional is already taking care of maintenance, repairs, and tenant issues.

Buying turnkey properties is extremely straightforward when compared to other forms of real estate investment.

Many brokers and Realtors specialize in facilitating turnkey sales, with different firms operating either nationwide or locally.

Finally, if you’re looking to build a diverse investment portfolio including properties in many different regions, turnkey investment is ideal.

It relieves you of the burden of property management and provides steady income.

What Makes Memphis Particularly Attractive

Among the different areas suitable for turnkey property investment Memphis is exceptionally hot right now.

The city features considerable growth at the moment. The financial upheavals of the last few years led to a huge number of foreclosures, sales, and renovations in the Memphis real estate market.

The city’s intrinsic appeal and strong job market were unaffected, though, so demand for quality homes has remained high.

Rentals are surging ahead of home purchases, making Memphis an ideal environment for turnkey investment.

And thanks to the relatively modest average price of Memphis homes, (currently at about $122,000) you can pick up a fine turnkey property without committing too many of your financial resources.

Points To Prepare Yourself For

If you’re going to get the most out of a piece of turnkey real estate in Memphis, you have to do your homework.

Although one of the great appeals of this form of investment is the ease with which you can find properties, you still have an obligation to pick the ones that offer the greatest money-making potential.

You’ll want to thoroughly research the neighborhood trends of a home you’re going to buy.

You also want to investigate the manager handling the property; as your direct representative you need this person or company to be reliable, trustworthy, and competent.

You should also make sure you’re clear about the responsibilities to your new renters you’re taking on. In many turnkey deals, you’ll have to honor the terms of any leases or other agreements the previous owner made.

If you’re ready to make turnkey properties a part of your real estate investment portfolio, the market in Memphis is definitely worth your attention.

The long-term profit potential is excellent, yet the costs of getting into the market right now are low.

There’s never been a better time to pick up a great rental property or two in Memphis.

Article Source: https://www.bluffcitymanagement.com/for-turnkey-property-investment-memphis-is-hot/

Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

11 Things to Consider When Setting Your Goals


To prepare for the most success in the next 12 months:

1. Decide – what you want to accomplish. Then break it down into manageable steps. In our business, we speak with 20 sellers to set up 8 appointments to buy 1 house. If we want to buy 12 houses next year, we need to speak with 240 sellers. How can we best make that happen? If we want to buy 1 house per month, how do we find 20 sellers each month to speak with?

2. Set financial goals – and hold yourself accountable. Your net worth won’t grow unless you plan for it. How much more money do you “plan” to have saved at the end of the next 12 months? Break that down – how much will you put aside monthly? Warren Buffet famously said, “Do not save what is left after spending, but spend what is left after saving.”

3. Focus on net worth, forget about income – like the wealthy do. How much do you make every year? Is “annual income” even important? Depends. If you make $225,000 per year but you spend $250,000, your income sucks. The wealthy focus on and grow how much they have left at the end of every year – their net worth. Do you know your net worth? Focus there.

4. Pay attention to what you’re making hourly. Seems like a contradiction to item # 3? It’s not. A millionaire makes $500 per hour. If you want to be one, start thinking and acting like one. If you can hire a job out at less than $500 per hour, do it so you have time to do the $500 per hour stuff. Which leads me to my next point:

5. Figure out the $500 per hour stuff. See item #4. What in your life and your business creates the highest financial rewards? I’m in the real estate investing business. For me, I make the most money buying and selling houses which means I should spend the most time talking to sellers and buyers. I do not make money when I am painting walls or mowing yards, so I don’t. I focus on finding and speaking with the people who create success for my business.

6. Think long term. What can you give up today for financial security in the future? When your goals are exciting enough and you have manageable steps to get there, sacrifices today become easier and more than worthwhile because you’re focused on the eventual pay off. Think long term and give yourself enough lead time for the payoff you desire.

7. Live below your means – which sort of goes with #6. If you live better every time you earn more, that won’t leave money for saving and growing your net worth. Don’t increase your lifestyle every time you get a raise.

8. Schedule – whatever you need to make your plans happen. Do you need to set up marketing? Do you need to schedule interviews with banks and hard money lenders to establish funding options? Get out a calendar and schedule the things you need to do to make your goals happen.

9. Focus – Notice how I use this word a lot? Your actions can get sidelined not only by distractions like TV and Facebook, but by what’s happening in your daily life. So much of our life is not planned, but don’t get taken off track for longer than necessary. Identify one goal and work hard to achieve it. Don’t get distracted – don’t make excuses – don’t waste time.

10. Hang out with the right people – not to be snobby, but to accomplish more. Peers greatly influence your behavior so find people successfully doing what you want to do and hang around them. It’s been said that we’re the average of the 5 people we spend the most time with, so changing friends as your lifestyle changes (or even before) will happen. Doing what you’ve done in the past won’t take you where you want to go in the future, neither will hanging out with the same people. It’s a fact, most people hang out with others who make within 10 percent of what they make annually – higher or lower. As your income increases, your friends will change and that’s OK.

11. Keep going. Be OK with failures and set backs. To accomplish a lot, you have to do a lot. When you do a lot, you will make mistakes. The most successful people have made the most mistakes, they just refused to get stopped by them. Don’t get stopped.

Article Source: http://EzineArticles.com/9841543</span&gt;

Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com