Investment Property - It's A Great Deal - Invest In Your Future

If you are thinking about investing in rental property... now is the time.  In addition to purchasing a home for your primary residence, one should consider purchasing a rental property too.  It is not as scary as it might seem. 

Once you have decided that this might be an option, you should contact a local realtor in your area to find out what kind of property would best suit your needs.  Some people prefer an apartment building (2+ units) and some prefer a single family residence.  After deciding on which type of property you feel most comfortable with (they each have an advantage), ask your realtor to refer you to a property management company that is reliable.  Set up an appointment and interview several to get a feel for what services they offer.

Single family homes are nice because you have only one tenant to deal with.  These tenants seem to have a sense of "pride of ownership" and may take better care of your property (although that is not always the case!).  Multifamily units (2 or more units) can have more of a turnover, but when you do have a tenant move, the loss of rent is a fraction of what it would be on a single family home.  Ask your property managerand Realtor what they have experienced in your area.

According to AXIOMetrics, an apartment market research firm in Dallas, said last year was one of the best periods for landlords over the past 15 years and may mark a turning point in the short term.  With supply in demand, rental properties are a good investment.

You can manage the property yourself, if you feel comfortable doing so... keep in mind that you must know the local rental laws and codes in your area.  If you prefer, you can hire a property management company and they will handle everything for you for a monthly fee.

I have had many, many years managing rental property for myself and others.  It can be a very rewarding experience, if handled right.  Other advantages include tax deductions and appreciation on the value of the property.

If you have any questions or think you would like to take the plunge... give me a call.

Cheryl Malone

541-951-1960

Check out my other blogs:
www.sellingoregonhomes.blogspot.com

Invest In Your Future Now ... Will Social Security Be There For You?

Are you relying on Social Security as a source of income in your "golden years"?  Most people are expecting their Social Security to support them or help support them when they are ready to retire. 

I am looking at my Social Security Statement from February 2010 right now and there is a very interesting part of this statement that I am not sure you are aware of.

It states: "Your estimated benefits are based on current law.  Congress has made changes to the law in the past and can do so at any time.  The law governing benefit amounts may change because, by 2037, the payroll taxes collected will be enough to pay only about 76 percent of scheduled benefits"

Well, what does that mean exactly... not sure, but I don't think I can really count on Social Security being there for me.  Gee, congress can make changes to the law any time - that is reassuring. 

So lets say you were suppose to get $1,000 a month, now you are getting $760... hmmm I could have done a lot with that extra $240.

I feel that real estate is a very good investment, if you look at it long term.  If you are renting now, you should buy yourself a little home - just to get your foot in the door.  If you currently own a home you can buy yourself a little house to rent out - over the years it would go up in value and your loan balance will decrease.  When you need some additional income to live on in 25 years, it will be almost paid off.  This could be your nest egg. You can refinance and pull your money out or just sell it. 

I like to think of this type of thing as "the investment that keeps on giving".  If you refinance and take some money out to live on, you still have the property... you can then leave it to your kids when you pass away or you can refinance several times throughout the years.  Hence, the investment that keeps on giving.

This type of small investment is easy to manage.  There are many options.  I have years of experience with property management and can help guide you through the process.  Think about your future, Social Security isn't.

Call me and I can get you started.

Cheryl Malone
541-951-1960

Here are some other blogs I wrote:

http://sellingoregonhomes.blogspot.com/2011/02/so-you-want-to-own-rental-why-not-buy.html

http://sellingoregonhomes.blogspot.com/2011/02/rent-vs-own-should-i-buy-house-in.html

So You Want To Own A Rental ? Why Not Buy A House For A Rental?

Buying rental property is a great idea, especially in this market... the prices are great and with the super low interest rates it can be very affordable.  In the past with the higher housing prices it was hard to get the rent to cover the payment/expenses.  This has changed in many areas with the prices being as low as they are right now, it can work out to be a very sweet deal. 

Many people are looking to rent a house because they have lost theirs to foreclosure or a short sale.  So, the demand for rental homes is good right now.  I bought my first house with the intention of living there, but then figured out that I could rent it out for pretty close to the payment.  This was a good thing... it has turned out to be a wonderful investment.  I still own that same rental house 27 years later. 

I always felt that buying a house as an investment was better than buying an apartment building.  You only have to deal with one tenant and a lot of tenants who rent homes, seem to want to take good care of it.  Especially, if they were homeowners before.

Anyway, food for thought... maybe you can invest in your future too and buy a rental house !


Check out my other blog:

http://sellingoregonhomes.blogspot.com/2011/02/rent-vs-own-should-i-buy-house-in.html