Tips For Dealing With Problem Tenants
So you decided to rent out your home or purchased a residential multi-family building with the goal of earning some extra income from real estate but somehow ended up with tenants who are either not clean, always late on their rent or something else. What are some of the more effective ways to deal with the problem tenants so that they don’t leave your rental house or rental unit in a total disaster? This article explores how to best deal with problem tenants and protect your investment.
Spot Problem Tenants From The Start
One of the easiest ways to deal with problem tenants is not rent to them from the start. Property owners who are managing properties on their own should be thoroughly screening tenants based on the rental applications they submit to you. Full credit checks should be done, criminal history background checks, and even checking out the potential tenant’s current living situation. Is the potential tenant living in a clean apartment or does it look like a tornado went through their home? Trash in the wrong places, dirty clothing, not cleaning up after pets who made messes indoors all can attract pests that can lower the value of your investment and make it more costly to fix once the problem tenant leaves. If a tenant is not living cleanly in their current home chances are they will not be any cleaner up just because they move into your rental.
Credit checks can be important since it shows a tenants ability to handle money. If a tenant has a low score due to too many...
Pros and Cons Of Different Types Of Investment Real Estate
When it comes to investment real estate there are a number of different options to choose from. Real estate investors can buy single family homes, multi-family homes, and residential properties classified as commercial in order to build an income stream to meet their investment goals. Each type of real estate investment has associated with it different positives and negatives and this article will explore those in detail.
Single Family Residential Home
One of the most common building types available and usually the easiest to purchase is the single family home. A majority of the residential properties on the market today are single family homes. With a single family home an investor is getting a property where generally one family will live and pay rent for. Some larger single family homes can be converted into multi-family homes in order to increase the amount of renters in the property but for this to happen the investor will need to comply with local zoning and building codes. Some areas may only allow single family residences and would refuse to authorize any segmenting of the home in order to add rental units.
The biggest advantage of buying a single family home is the fact that if an investor decides they no longer want to be in the residential investment business they can easily sell a single family home to another investor or to another buyer who is looking to live in the home themselves. Provided there are no tenants in the home, a single family home...
Why Investment Property Owners May Want to Consider Selling Their Investment Property
With real estate prices increasing all over the United States many investors are seeking lower costs investment properties in a number of cities in Ohio. Notable cities in Ohio that these investors are looking at include Cleveland, Columbus, Dayton and Cincinnati. These investors are looking for lower costs properties with a good history of rents in order to better invest their money than they can in high real estate cost areas like Los Angeles, CA; New York, NY, Seattle, OR, Las Vegas, NV and more. As a result investment property prices in the Cincinnati, Ohio area are at multi-year highs and Cincinnati investment property owners might find it advantageous to sell their properties now while the prices are high.
What Are Some Of The Reason For High Investment Property Prices In Cincinnati, Ohio?
Cincinnati has long been known as having great overall affordability. In fact in 2017 US News & World Reports rated Cincinnati as the 14th most affordable city to live in the US. Not only is the cost of living low in general the real estate in Cincinnati is more affordable than in many other major metropolitan matters. As a result for out of state real estate investors looking to buy properties for a good price and still get a good rate of return, Cincinnati has become one of the go to markets and the prices have gone up as a result. Even with the cost of property management deducted from...
Tips For Selling A Multi-Family Home
Many out of state buyers are looking to make a purchase of a multi-family building here in Cincinnati, Ohio and Northern Kentucky due to the lower cost as compared to other states. With the lower cost and higher Return on Investment (ROI) out of state investors are lining up to purchase great cash flowing properties and as a result Greater Cincinnati multi-family properties are at 5-7 year highs. While demand is high that does not mean multi-family building owners can expect a cake walk when it comes time to sell. Multi-family building owners still need to prepare their buildings so that they attract buyers who want a ready to cash flow building as opposed to those buyers looking for a bargain. Bargain hunters will only be interested in a building if the price is in the bargain range.
A multi-family home is a building that allows for two or more families to live together in separate apartment/living spaces but generally under one roof. Conventional mortgage financing can be used for multi-family buildings when there are no more than two to four units in the building. Anything more than four units requires commercial lending products in order to purchase. Due to the allowance of conventional mortgage financing for 2-4 family buildings buyers can actually buy one of these buildings as owner occupied and pay a lower amount for down payment (anywhere from 0% to 5% depending on the loan program). If a buyer does not intend...
5 Smart Tips For Buying An Investment Property
Whether you want to buy a home that doubles as an investment property where you live in one unit and rent out the others to reduce your mortgage payment or you want to strictly buy a property for investment property to earn income from it, these tips are for you. Many are realizing the benefits of buying and holding investment properties for their rental income potential. The tips in this article will help you make sure your investment is a sound purchase that provides you with income for years to come.
1. Get Pre-Approved Or Have Your Cash Ready Prior To Buying An Investment Property
Buying a multi-family with four or fewer units allows buyers to use conventional mortgage financing, whereas investors wanting to buy buildings with more than four rental units will require the use of commercial financing. Commercial financing usually comes with more restrictions and less favorable terms compared to conventional financing. With conventional financing borrowers can get 30 year fixed loans and only need to put at most 25% down for a non-owner occupied property. With commercial financing borrowers will be required to put 30% or more down and may have loans with a 20 year or shorter term. Additionally commercial loans will have higher credit requirements, may be stricter with the requirement of showing actual investment management experience and/or offer variable rate loans only.
If a buyer is wanting to buy a multi-family home and live in one of the units then the requirements can be even lower than a non-owner occupied mortgage. Investors who intend to occupy the building...