Three Ways to Increase Property Values

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Real estate investors live and die by their ability to add value. With no added value, there are no profits. This is true with any business, but what makes real estate such a great business and a great investment, is the number of ways you can add value and cash in on big profits. Here are three ways you can add value to your properties.

Upgrades and Repairs

OK, this is the obvious one and is the reason fix and flippers can make money. Some repairs add a lot more value than it costs to do. The more creative you are with the improvements, the more value you can add. For example, I have a client that adds square footage to every house he buys. He really likes the inner city properties because they are the hardest to add square footage. You either need to finish an unfinished basement, or add a second story. There is not typically enough land on the lot to add an addition by increasing the foot print of the property. This client does a lot of basement finishes and “pop tops,” but where he has made the most money is the basement that is only 5 or 6 feet deep. He will go in and dig out the basement to a full 8 or 9 foot height and then finish it. Something most investors would not think of, so he is able to get the deal most other investors pass on. I have also seen some investors find houses that don’t really fit into a neighborhood and they make them fit. This could be limited bedrooms or bathrooms or funky floor plans. All of that can be changed. Obviously many cosmetic fixes like kitchens and bathrooms add a lot of value too. There is a lot more to it than this, but the idea is to buy a property at its true ‘as is’ value, (don’t over pay), and then add value with the repairs and upgrades.

Owner Finance

I love this one because it is so easy to add value with very little to no work. You will need to wait to cash in on your profits, but it is a way to increase a sell price significantly. You can also use this strategy to defer tax gains over a few years, instead of taking a big hit all in one year. When you have a property for sale there are a limited number of buyers for the house, although right now that pool of buyers seems pretty big. If you can increase the pool of buyers, the demand for that one house increases, which forces the price to go up. Someone that cannot qualify for an ordinary loan, limiting the supply of houses to choose from for that buyer, will likely buy your property. That also increases the price. You are adding value by giving them the chance to own a home that they normally would not be able to own. For this value, you should be compensated with a higher price and a decent interest rate on the profits, while you wait for the buyer to refinance and pay you off in full.

Shared Units

This is one area of real estate that I have not dabbled in, but it is extremely inviting. The idea here is to sell your property to multiple buyers. You are seeing this a lot in resort towns. It is always a vacation or second home. Have you ever been to a time share presentation? They are pretty enticing aren’t they? About 13 years ago my ex wife and I were in Florida and got sucked into a time share sales pitch. We decided to go because they offered us free tickets to Disney. We sat there for about an hour and a half and then the hard sale came. They were very good at selling the “idea” of the time share and had my ex wife sold. She asked me to move forward with the deal, but I could not bring myself to do it. I told her that I was not comfortable with an emotional purchase and that we needed time to think it through. “Can I please have our Disney tickets?” was my response. As we rode back to the hotel that afternoon, I started thinking about the math. Each unit can be sold to 52 different people because your purchase only gets you 1 week a year. Add that to the annual maintenance fees and the numbers are staggering. I know people who have flipped time shares successfully, because you can get them for free or near free on Craigslist, but it is not an investment I was interested in. With that said, I have considered doing a half or quarter share on a house in a ski town in Colorado. In this scenario, you are sharing a house with 1 to 3 other people so there is a ton more flexibility. You can use or rent out your weeks and you can be guaranteed valuable high demand weeks every year. It is a way to get a second home without the full expense. From the seller’s point of view, it is a way to get more for the house. ½ a share of a house is going to cost the buyer more than ½ of the fair market value. I have seen business plans from investors that would buy a house and quarter share it out. The idea was that after they improved the property and sold ¾ of the house to 3 different buyers, they would own the last ¼ free and clear. Obviously this strategy will work best in areas where people want second homes. The downside is if there are any improvements or major issues. I can see there being disagreements, so this is something you would want, as a buyer, to work out with all the other owners in writing before you buy.

Article Source: http://EzineArticles.com/9790980


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

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Investment Properties for Sale

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When you are looking at investment properties for sale you want to make sure that you are getting the best investment property for your money. When looking at investment properties for sale you are looking for property that you can rent or resell. If you want to be successful in your venture there are some things that you need to consider before buying the property.

When you look at investment property you want to not only look the property over but also where it is located and what they are asking for the property. Just because the sign or realtor says it is investment properties for sale do not always mean it is a good investment. You need analyze closely the potential property.

After looking at what they are selling the property for you then need to consider the potential value. If you do not see a gap between their selling price and the actual value and it is not in your favor you should consider looking at other properties. If you really want the property they you need to develop a strategy for getting a good return on the property. This strategy could involve renting out the property, whether it is an apartment, home, or piece of property. You could also hold onto the property to allow it to gain gradually more appreciation value.

Some buy properties for sale to renovate and then rent or sell it. Before going this route make sure that you consider all that will have to be done to get it to rentable or salable condition. If you underestimate the repair costs you could lose a lot of money. Some opt to purchase substandard property that does need repairs but not as much as renovation properties.

If you are going to hire a contractor to get the work done on substandard or renovation property make sure that you get accurate quotes of all the work that needs to be done before placing a bid on the investment property for sale. You should get at least two quotes for repair work. Make sure that the contractor can work on the property full time and can get the house to a standard that will allow it to pass inspection. This is important if you are going to use it as rental property.

You also need to consider where the investment properties for sale are located. If you are looking at commercial investment properties for sale you need to envision what type of business could be built on that property and see if there is a need for the business or businesses that could be placed there. You also need to see if those particular businesses would be attracted to build in the area.

Article Source: http://EzineArticles.com/9618909


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

 

Wholesaling Real Estate – What Is It?

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If you’re a real estate investor, you’ve either wholesaled properties or heard about others doing it.

In real estate, what exactly is a “wholesale”? Here are the basics:

  1. a property is purchased at a deeply discounted price
  2. no repairs or rehabs are done to the property
  3. it is resold to an investor who plans to rehab it and sell again for their own profit

Let’s break this down:

To purchase a property at a deeply discounted price, expect it to be in bad condition. The properties that need a lot of repair and have been neglected for years are the ones that are typically sold for very low prices.

How do you find properties that can be wholesaled?

  • Direct mail marketing gets sellers who call before they talk to anyone else. No competition deals are always the best.
  • Marketing also lets sellers know before they call you that you’re not an end user and won’t be paying retail.
  • To buy a lot of properties, you must talk to a lot of sellers. The nationwide average is that you must talk to 20 sellers before you buy a property. If you’re not finding these deals, you’re not talking to enough sellers. How many properties you want to buy will tell you how many sellers you need to meet with.

Why do sellers sell that deeply discounted? Many reasons, including:

  • Lived in it for years and never did anything to it (no updates and/or minimal repairs)
  • Moving to retirement home
  • Inheritance
  • Live out of state
  • Distressed and can’t afford to fix it
  • Burned out landlord
  • Hard for them to sell in this condition
  • Hoarders

What do you need to evaluate when making the purchase?

  • After Repair Value (ARV) – What will retail be? You need good comping sources to determine what the value will be after repairs.
  • What will it cost to rehab it to retail value?
  • How much can you pay to buy it?
  • Your purchase price must be low enough to allow both you and the next buyer to make profit.

What do you do to a wholesale property before selling it?

  • Typically nothing!

Why do wholesalers often get a bad name?

I think most people who have a bad taste about wholesaling either haven’t done it or have run into some who do it wrong.

I was a full time investor for 8 years before we began wholesaling. In 2013, my husband and I purchase a HomeVestors franchise – the We Buy Ugly Houses people – and we have been primarily wholesaling since.

To do it right, we spend money every month on marketing to the right people to get the phone to ring. Then we spend a lot of time with the seller crafting a solution to their problem. And we negotiate a price that allows us to resell to an investor who will rehab and still be able to make profit on the deal we sell to them.

Do all these steps, and people will respect you and come to you for deals. There is nothing wrong with wholesaling so don’t be afraid of it.

Is wholesaling legal?

Wholesaling is not a buying technique, but a selling technique. With wholesaling, you purchase the property for a low price. There is a closing with either a title company or attorney and you go on title as owner. You then mark it up a minimal amount and sell it to someone who plans to rehab and make their own profit.

It is not illegal as it is a normal purchase and sale – you buy it, own it, then you sell it. The only thing different between wholesale and a regular purchase is the low price and no work is done to the property before resell.

Article Source: http://EzineArticles.com/9806205


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

 

Wholesale, Wholetail, Assignment – What’s the Difference?

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Investors often discuss these buying/selling techniques without knowing the differences. Especially when discussing them together, investors can become quite confused. Let’s clear that up.

What is Wholesale?

With wholesale, you buy a property for a low enough purchase price that you can mark it up and sell it to an investor who will be able to rehab and resell it on the retail market for their own profit. The skill here is learning to negotiate your buying price low enough that there is room for the next buyer to also make money.

Normally you do nothing to a wholesale property after you purchase it other than sell it to the next buyer – no fix up, no repairs.

What is Wholetail?

Wholetail is very much like wholesale but you do a little bit of work to the property to make it more attractive to rehabbers. This includes things like:

  • cleaning out trash
  • replacing a leaking roof
  • making sure the property is structurally sound

With a wholetail, you might want to bring it up to meet FHA buying requirements which means it must be functional – all mechanical systems must work. FHA requires that HVAC, electrical and plumbing systems work and that there is some life left in the roof. But, you don’t do the interior details like carpet, paint or plumbing fixtures so it still doesn’t sell to the typical retail buyer.

What is Assignment?

With both a wholesale and a wholetail, the purchase transaction is very much the same as any retail purchase in that you close on the property with an attorney and go on title.

With an assignment, you do not close on the property; you do not purchase the property, you never own it. You deal only with the purchase and sale agreement which is the document you’re assigning. You, as the assignor, simply transfer the signed contract to the assignee. You sign a contract to buy from the seller, then find someone who will buy the property for more and assign the contract to them for the higher price.

Wholesale – buy at a really low price, mark it up a little bit, resell to someone who’s going to renovate and sell it on the retail market

Wholetail – same as wholesale but you do a small amount of work before you sell it to the rehabber

Assignment – you don’t buy the house, you just deal with the contract, the purchase and sale agreement – get it under contract and assign the contract to someone for more than you agreed to pay for the house.

Article Source: http://EzineArticles.com/9803712


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 Essential Features That Make Real Estate Investing Profitable

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Every now and then persons trying to make up their minds where to put their money ask me if real estate ventures are more or less profitable, compared to other businesses opportunities around.

Apart from its potential for yielding significant profits, investing in real estate often confers long terms benefits.

Five such advantages below:

1. You Can Refurbish (to Enhance the Value of) Real Estate
After you buy a stock, you hold it for a period of time and hopefully sell it for a profit. The success of the stock depends on company management and their corporate success, which is out of your control.

Unlike other conventional investment instruments, like stocks, for instance, whose rate of returns, depend on third parties (e.g. company management), real estate investments are directly under your control.

Even though you will not be able to control changes that may occur in demographic and economic aspects, or impact of nature induced changes, there are many other aspects that you can control, to boost the returns on your investment in it.

Examples include aspects relating to adding repairs, or improvements/enhancements to the physical property and tenants you allow to live in it.

If you do it right, the value of your investment will grow, resulting in increased wealth for you.

2. Real Estate Investing, When Done Right, is Proven to be Profitable Even During a Recession (like the one we’re in right now)
It has on several occasions, been used to effect a bail out, from financial setbacks, such as those that many have experienced during the economic downturn happening in Nigeria today.

A considerable number of clients have confided in me that due to the present economic situation, they are not sure of profitable channels to invest their money. Some of them are done with bonds and treasury bills, but are in dire need of a new investment.

We had extensive discussions, and based on my expertise as a real estate consultant, I recommended landed property investment, as the most suitable and secure alternative channel of investment.

This is because, even if all businesses crumble, land will always appreciate greatly. Then to drive my point home, I ended by sharing the following apt quote, by a former American president:

“Real estate can’t be lost, nor carried away, managed with reasonable care, it’s about the safest investment in the world” – Franklin Roosevelt.

Not surprisingly, the client chose to take my advice – and signed up: it was the obvious, common sense thing to do!

3. Real Estate Investments Are Immune to Inflation
In other words, investing your money in ownership of viable real estate can protect you from the harsh effects that inflation usually has on other conventional investments.

This is because the value of real estate generally tends to rise in positive correlation with inflationary pressures. This is why property values and rental rates go up with rising inflation.

The nature of real estate, therefore affords owners the unique advantage of being able to adjust the rates they offer, to match inflation.

Monthly rents for example can be raised to compensate for inflation – thus providing a cushion effect against inflation induced losses that other monetary investments suffer.

4. Real Estate is Uniquely for Being Universally Acceptable as Collateral, Towards Securing Funding from Banks
Today, real estate in form of either building or lands, with proper titles (i.e. Certificate of Occupancy – aka “C of O”) is the most recognized and accepted form of collateral in Nigeria – and some other parts of the world.

It has the unique feature of being able to protect the interests of both the borrower and the bank (that’s doing the lending), so that funds can be released i.e. after due verification, and terms and conditions are agreed.

This is one of the key advantages a private C of O has over the global C of O, because the former (i.e. private C of O) is what will be needed by the intending borrower, in the event of any future financial dealings with bank in Nigeria.

5. Real Estate Investing Allows Use of Other People’s Money
In other words, you can do it even if you do not have enough money. You just need to know how.

This is possible because real estate is physical property or what is called a hard asset. That is an attribute that makes it attractive to financiers i.e. people with money to invest.

This is why many times real estate products are bought with debt – unlike conventional investment products like stocks which are NOT tangible, and therefore perceived as being more risky to invest in.

So real estate investment can be done using cash or mortgage financing. In the latter case, payments can be so arranged to allow payment of low initial sums, provided by you or a willing third party.

Those payments will be happening on landed property which will continue increasing in value throughout the duration of such payments – and indeed beyond. That further inspires confidence in the minds of those financing the acquisition, that their investment is safe.

Little wonder that real estate investing has continued to prosper for so long!

Article Source: http://EzineArticles.com/9587574


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

 

Think Like a Millionaire – How to Invest in Real Estate

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Many people fail to see that skills fade, but assets are forever.

They don’t know their entire financial education in their lives is completely WRONG!

Too many people believe that a good job, good skills, and a positive attitude will make them great wealth. The problem is that it just doesn’t work that way. People who make an hourly wage and an annual salary cannot build wealth. This is because their money doesn’t work for them, and instead they work for their money. This idea keeps them from understanding that the only way to build wealth is to invest in multiple sources of income that you don’t have to work for, but instead build yourself or purchase from someone else.

Another misconception of multiple sources of income and passive income is that people assume government and financial institutions offerings such as the stock market, CD’s, and many other financial instruments are passive income. Most of the time however, unless it is a note or bond that pays you regular interest. It is not actually passive income or a stream of income. As a stream of income or passive income is income that you make every day, every month, and every year continuously as cashflow. Stocks and the like only make you money on the sale and never anything in the meantime. Meaning they don’t ever actually cashflow. For example, it is the same as purchasing a piece of fine art and hoping that it appreciates the longer you hold onto it. Which is risky and locks your money up from better uses.

Real Estate as an Investment

Real Estate is the King when it comes to creating wealth for people. No other offering has the traits and abilities like real estate does. It is constantly appreciating and gaining value. It is always in demand because people need a place to live. And most important of all, it is a real asset that isn’t going anywhere soon. Allowing you to borrow against it as collateral and even to write off all expenses and costs associated off on your taxes. Now let’s not wait a moment longer to get into Real Estate as an Investment.

Real Estate You Can Buy as Investments

There is so many ways to invest in real estate and the major differences comes to how much capital you will need to put down to purchase them. This could be as little as $40,000 -$50,000 to buy a condo outright, to only $10,000+ to purchase a $100,000 single family home, or to as much as $20,000-$30,000 to purchase a multifamily home (2-4 units). All of which are Residential and can be easily financed.

Once you get past 4 units, small office buildings, and industrial properties. You’re going into commercial territory and have a lot more hoops to jump through as well as have to start working with commercial lending which can require sizable amounts of capital before they will lend. In the rear, is my personal favorite of mobile homes and parks. Which are hard to sell, but can cashflow in all sorts of amazing ways from lending on the mobiles themselves to charging them for renting the use of the land. All of which is taxed as land which is the cheapest tax rate you can have on property.

  • Condos/Flats – Condos and flats are some of the best to buy for cashflow as they give the best cap rates. The only issue comes on the resale as many can be hard to finance as an investment property, preventing a large portion of the population from being able to purchase them.
  • Single-Family Homes – Single-family homes are easy to rent, easy to sell, and easy to finance.
  • Duplexes/Triplexes/Quads – Small multifamily properties (2-4 units). These property types combine the financing and easy purchasing benefits of a single-family home with the cashflow benefits and less competition found in larger investments.
  • Small Apartments – Small apartment buildings are made up of between 5-50 units, they can make great cashflow, but can be very illiquid on the resale.
  • Small Commercial Office Space – Buying small commercial buildings and renting out office space to business professionals.
  • Industrial Properties– Manufacturing, warehouses, distribution centers, etc.
  • Mobile Homes – Inexpensive way to enter the world of real estate investing and can also experience significant cashflow.
  • Mobile Home Parks – The entire park in which mobile homes are situated on can also be bought and sold. Rent the individual lots to mobile home owners, and as well as have corporately owned and leased ones.

Strategies in Finding Investment Properties

Just as there are a million ways to skin a cat, there is a million ways to find properties for investment. Of the many ways to find the properties for investment. The most common ways are to find the owner directly and give them a cash offer, to find properties that are owned by a lender or bank that they want to get rid of at a discount, or purchase a lien on the property so you can foreclose on the property yourself.

  • Lease Options – Buying the property and “renting” it with the legal right to buy it later.
  • For Sale By Owners (FSBO) – Private owners sell their property themselves with a sign or newspaper advertisement, they may want to sell their properties at a discount to avoid paying a realtor.
  • REO’s – Foreclosed Property owned by banks can be bought under market if the demand isn’t too high.
  • Auction at the Courthouse Steps – During the process of foreclosure, a home is brought to the courthouse steps to be sold to the highest bidder.
  • Buying in Pre-foreclosure – Sellers on the brink of losing their home can be very motivated to sell their home and save their credit and their lives.
  • Short Sales – A bank will often take less than the loan amount on a property to save from the hassle and costs of foreclosing and reselling.
  • Tax Liens – When homeowner’s refuse to pay their taxes, the government can foreclose and resell the property.
  • HUD Foreclosures – When a US government ensured loan is foreclosed on, it often becomes the property of the department of Housing and Urban Development.
  • VA Foreclosures – Similar to the HUD foreclosures, the US Department of Veteran’s Affairs sells their homes as well after foreclosing on one of their insured properties

Strategies in Buying, Renting, and Selling Properties:

When you finally have the property in your grasp, there are many techniques you can use to maximize your return. Some properties are great for buy n’ holding. Meaning you buy them for cashflow, but are expecting to also make a sizable return on the resale due to appreciation. Next up is Fixing N’ Flip/Hold, which is finding properties undervalue and fixing them up to either hold onto for cashflow or to sell immediately for instant profit. Then there is Turn-key-Investing, this is where you find the property, turn it into a profitable cashflow and sell it as a source of income to a big fish investor. For Big Commercial, there is NNN leasing that entails having the company renting the property takes care of all the trimmings of the property and pays you for leasing the space. Another Buy N’ Hold strategy that can make decent money is to turn your Buy N’ Hold property into a Vacation Rental and charge 3x as much than a normal lease. Then there is hard money lending, where you finance others in their fix n’ flips, buy n’ holds, or primary residence.

  • Buy-N-Hold – Buy real estate, rent it, and hold it until the market is up and a great buyer comes along.
  • Fix-N-Hold– Buy below market value, remodel to force appreciation, and held until the market improves and sell it.
  • Fix-N-Flip – Buy well below market value, remodel to market prices, and sell it immediately to get your return.
  • Turn-Key-Investing – fix-and-flipper, but sells remodeled properties to out-of-town individuals seeking a good place to keep their money moving.
  • NNN Lease – Big Businesses rent the building and pay all costs associated with the building such as maintenance, taxes, insurance, and more. We can own these buildings for highly-passive income.
  • Vacation Rentals – Buying vacation property and renting it out off and on season (Snowbirds).
  • Cash Purchase, Sell on Contract – Buy properties and immediately re-sell them to buyers who may not be able to conventionally qualify for a mortgage. Collect a large down payment when using this method.

How to Finance:

Financing is readily available to anyone who has a cash for a down payment. Below is the major ways you can finance your Real Estate Investments.

  • All Cash – Property with no mortgage attached is very stable and a safe return. May not be as great as when using leverage (like a mortgage).
  • Seller Financing – Seller owns a property free-and-clear (no mortgage), and can be negotiated with to find a finance deal.
  • Unconventional Lending – There are many lenders who will lend on any deal you have as long as the number make sense, this can be anything from landlord loans, had money, and much more.
  • Self-Directed IRA – If you have a 401(k), throw it out, it’s time to put that money in a self-directed IRA and make that money finally work for you than expecting some money manager who is just trying not to lose your money than make you any. You can use your money in your SD-IRA to do all the strategies in buying, selling, and renting.
  • 20%-25% Down Conventional Investment Mortgage – buy a real estate investment through a bank. Come up with 20-25% down payment and have the bank finance the rest.
  • 10% HomePath Investment Mortgage– These loan types are only available on Fannie-Mae backed bank REOs, but can allow an investor to purchase the home for just 10% down payment with other benefits.
  • Home Equity Line of Credit (HELOC) – With significant equity in real estate, M&T can borrow a line of credit off M&T Real Estate equity.
  • Small Business Loans – Banks often will finance a line of credit or loan for small businesses- to include a real estate investment company.

Conclusion:

If you have the mind for real estate or want to hire someone who does. Then you should forego a large portion of your portfolio to invest in real estate. It easily as one of the highest returns than any other investment in the world, the only caveat, like anything else, is that you need to do it right to be successful.

Article Source: http://EzineArticles.com/9392552


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

Is Your House Prepared to Be a Rental?

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If you have lived in the house for a while, there may be broken or worn out items that you have overlooked. Safety issues and even legal issues should be resolved before you put your house on the market. It is in your best interest to do some preparation before you post the “for rent” sign.

Repairing structural or system defects should be at the top of the list. Tighten handrails, repair steps, and remove hazards inside and outside the home. Make sure all heating, plumbing and electrical elements are up to code. Elevated decks, railing, flooring and framing should be inspected by a Class A contractor for structural safety. Your goal is to have all systems running smoothly and efficiently.

Pay special attention to regularly used appliances such as refrigerator, stove, microwave, washer, dryer, etc.. These appliances receive heavy use daily and should be in good working order. Bathrooms, toilets, showers and tubs should have a clean appearance and be free of mildew. Replace missing tile grout and re-caulk tub and shower with a fresh bead of caulk. Is your carpet stained or worn? Cleaning the carpet, or if necessary replacing it, will freshen up your home. Make sure there is at least one working smoke detector on each level of the home and replace old batteries with fresh ones.

Make sure the property has a clean and tidy appearance inside and out. Remove all personal items from the interior and exterior of the home and yard. Take cans of old used paint to the dump along with yard waste and other items that are not needed. Clean out the garage and sweep away dirt and cobwebs to make the space fully usable. Improve curb appeal by trimming shrubs and bushes and touching up peeling paint on the house or porch.

When thinking about whether to make an improvement or an upgrade to your potential rental property, consider the competition and the price range of other rental homes in your neighborhood. Think about who your target tenant will be. Your location along with the price will be the deciding factor in who will be interested in your house. Will you attract university students, a family with younger children, or singles? You don’t want to over-improve your home and price yourself out of the rental market in your area.

Lastly who will service and manage your home? Do you plan to manage the property yourself or employ a management company? If you are managing the property yourself, you will be the sole contact for the tenant – collecting rent, performing regular property inspections, routine maintenance, and emergency repairs. Hiring a property management company will relieve you of these responsibilities and partner with you to make your investment profitable.

Article Source: http://EzineArticles.com/9709725


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