Can I Afford to Be a Landlord?
According to Freddie Mac, the Federal Home Loan Mortgage Corporation (FHLMC), multifamily rent growth should level out to its long-term average performance as interest rates increase. That does not mean that investing in a multifamily property is a bad idea, it just means that the supply and demand conditions are varying by location and adjusting to job growth or stagnation. Since most rental housing demand comes from 25- to 34-year-olds, the FHLMC expects the need for rental property to grow by up to 1.6 million as the employment picture improves.
You do not have to be a high-level investor to participate in the expected rental housing increase. Younger investors, especially those in the under 40 range, might consider purchasing a property and renting out rooms, or buying a duplex, living in one side and renting out the other. While being a landlord has some hazards and pitfalls, having a constant income stream that helps to pay the mortgage, offers some tax advantages and also provides a place to live might be a great start to your real estate investment future.
We can help you locate potential single-family homes with multiple bedrooms to let to students or others, or multi-family properties that might be an excellent investment for you. Location is important since many renters prefer to live nearer to where they work, shop, worship or attend school, while owners often are more willing to live further away in order to afford their mortgage.
Is a Duplex a Good Investment?
Buying a duplex, for example, might take a little more work than a single-family home, but the process is similar. In fact, FHA (the Federal Housing Administration) will loan up to 96.5% of a duplex’s value as long as the owner intends to occupy one of the units for at least a year. The Federal Housing Administration credits the buyer with as much as 75% of the rental income as part of their qualifying income and will finance as much as $347,000 for a two-unit property in some locations.
The most obvious advantage of owning a duplex is help with the mortgage payment via the rental income. In addition, however, duplexes are more affordable than larger apartment complexes, and often cost the same as a single-family home. If you have an elderly parent or adult child, you can rent to them so that family members have privacy, but share in the cost of the family property.
Disadvantages include close proximity to your tenant. If you have a needy tenant, you might find yourself continuously interrupted by a knock on the door. Your rental income is not a guarantee since there is no certainty that you will find a tenant, and when the unit is vacant, you are still responsible for your entire mortgage.
Landlord Responsibilities
Just as in your own home, you are responsible for all of the repairs, electrical panel upgrades as well as upgrades to appliances, maintenance and general upkeep like a new roof install, window cleaning, etc. of either a single-family rental unit or a duplex or multi-family unit. Since most states and counties—and some cities—have specific rules about cleaning, repainting and other costs between tenants, make sure you know the rules and regulations for your location.
So, whether you are looking for a single-family home to rent or a duplex to live in while you rent the second unit, we can help you with the information you need to find the best property for your needs.
The warming days of spring are the perfect time to bring some light and air into your home. Whether you are planning to sell your home now or sometime in the future, having clean bright windows gives a home a whole new look and transform a dull interior into a bright living space. Take the time to get yourself a few good tools and you can make window washing a breeze. Clean your windows when the sun is not shining directly on them since the sun will heat the glass causing your soap’s suds to dry too quickly and streak. So if you have a lot of windows that might take you most of the day, start on the South and West sides and move to the North and East as the day progresses, or choose an overcast day. And if you wish to have
Sometimes selling a home can feel like a big job – one with a thousand small tasks required to get it done. But many sellers make the job harder by ignoring or avoiding some of the biggest factors that contribute to a faster sale. Use this list to see if your house is truly ready for that “sold” sign.
With many older neighborhoods experiencing revitalization and renovation with the help of a
With all of the tools available online and off for finding your new home, you can spend lots of time thinking about the type of house you want, planning how many bedrooms, what type of flooring, what appliances come with the kitchen, and if it has a fireplace. But… before you get that far, perhaps you should stop and consider the neighborhood you want to live in first. You can find the perfect house, but if it is in the wrong neighborhood, it can be like a badly fitting shoe: very stylish, great to look at, but so uncomfortable you rarely want to wear it.
If you’re considering selling now that the housing market outlook is improving, take a few moments to consider how buyers have changed what they look for in the home buying process. During the past six years, changes in how buyers communicate, share information, research, and decide what they’re looking for, mean that you need to provide them with the information and buying experience they seek. We can guide you in each of these areas because we know the strategies that are working best in your home’s neighborhood.
If you’ve lived in your home for some time, you notice when the neighborhood around you is changing to a younger demographic. Thinking this might be a good time to sell, you wonder what was so appealing about the house down the street to the young couple that just moved in.
With NCAA Final Four Basketball finals coming up, basketball themed bedrooms, game rooms, theater rooms and garages stoke dreams of future champions. Give a makeover to a space in your house and score big time with March Madness fans and upgrade your home’s real estate value at the same time.
Extended families living in one home are more the norm these days. When looking for a home to share with your older parents, consider that while they may be completely mobile now, in the future they may need assistance to maintain balance, negotiate stairs, utilize a wheelchair or walker, or enter or exit the bath. If you inform your real estate agent and pay attention to these important requirements when house-hunting, you will save yourself costly remodeling in the future:

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