Frequently I’m approached by homeowners looking to convert their homes into rental properties. I’m all for it! If you can hold onto your home and rent it out for a positive cash-flow…why not??? However, often times these homeowners have never had any experience with dealing with tenants, screening applicants, preparing lease docs and more. Because they have such a personal attachment to their home they start off and move forward with their emotions at the forefront. I’ve seen this time and time again!
Leading with your emotions causes a HUGE amount of unnecessary stress. I honestly thing that we can apply this to so many areas of our life but we’ll stick to investing for now! This can also lead to missteps like inadvertant discrimination or failure to abide by state and local regulations placed on rentals and their owners; both of which could be SUPER costly.
So what’s the #1 thing to know????
YOUR HOME IS NOW A BUSINESS!
Looking at the home that you’re about to rent as a business rather than you’re “baby” is going to spare you in so many ways! It will help you make diplomatic and rational decisions that will help you increase your cashflow and hopefully minimize your expenses.
This is something that is definitely practiced and it’s something that I continue to work on personally! If you keep this at the forefront of your mind it will help you make the best decisions as you move forward as a real estate investor!!!
When you buy a home it’s a good idea to keep resale in the back of your time! One of the ways you help ensure good resale at a later date is by paying attention to growth patterns in your area. Here are the top 3 indicators of growth that can help you make a smart buy!
- Street widening: If you notice the city widening the streets or highways, that’s a big indicator that they are anticipating growth in a particular area. Additional growth could indicate a rise in home values in the area as well as an increased demand for homes.
- Land to be developed: I bought my house because right across the street is a large open field. I know it will be developed at some point in the future as land is something that is limited. This indicates that eventually there will be more growth in the area which could also mean increase demand for homes in the area and growth!
- Grand Opening of Large Retailers nearby: Many large retailers like Walmart, Starbucks, Whole Foods,etc. do a TON of research before deciding to build and open a new location. Why not take advantage of this research. They are at least 10 years ahead of us when it comes to planning and studying growth patterns. If you’re considering a home near where they are planning to put one of these large retailers it could be a good indicator of growth in your area which means and increase in value in the area.
These are just some of the easy to spot indicators of growth in different areas. Be sure to keep your eyes open to these things as you look for your next home or investment property! Good luck!
Recently I met with a referral from another one of my investor clients that said “if I had known that you also sell homes I would have contacted you sooner…I thought you only did leasing.” The day before, I met with a friend that asked me, “Courtney, how many people know what you do?”
I thought to myself, considering how much I work and that I mostly post about business, I figured everyone knows what I do, but I’m obviously wrong. With that being said, here are 3 things you need to know about King Realty and about what we do!
- King Realty is a family-owned residential real estate brokerage serving the Dallas and Houston markets. My father started this company in Texas, 7 years ago. Although, he has been in the game for over 30 years. He started his own property maintenance company when I was a little girl. He then saw a need for competent property management and after relocating to TX in 2008, he built King Realty and has passed the baton to me to continue to grow it.
- Our niche in the market is helping investors identify properties, purchase them, rehab them and lease/manage them. But it gets better, we also help investors come up with a financial plan and exit strategy to help them not only grow their portfolio but also realize other dreams through the wealth built in real estate.
- We also help sellers and buyers! We are a team of real estate professionals (Agents, Brokers, support staff) that like to empower both buyers and sellers with information to make the best decisions for themselves using the up-to-date market data. My team and I love to show sellers how to get top dollar for their home. We also love to show buyers homes that fit their needs and guide them every step of the way.
This is just the tip of the iceberg! Join me on FB live on Wednesday, August 30, 2017 between 12:15-12:45PM CST to learn more about our company and team and how we can help YOU!
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Most of us invest in rental property so we can capitalize on all the fabulous tax deductions that come with property investment. Today, we’re explaining how a professional company providing property management in Irving should manage your finances. (more…)