6 Great Tips For Selling A Home With A Tenant
Whether you purchased a home for investment purposes or inherited a home with a tenant and now no longer want to deal with the property it still can be sold even with a tenant in place. Sometimes you are unable to have the tenant move out since there may be a lease in place and the cost to buy out the lease may not make financial sense. With high interest in individuals wanting to buy investment real estate it can make sense just to sell the home with a tenant in place since a future potential buyer may like that the home is already cash flowing. Whatever the reason may be, selling a home with a tenant in place is something can be done as this article will explore.
If a tenant is on a month to month lease then now is not the time to have them sign a long term lease as the next buyer may be looking to buy the house for themselves rather than own as a rental property. With a month to month lease the tenant can generally be given thirty day notice to move out and be moved out before closing if that is what the buyer wants. In fact some buyers may include as part of their offer the requirement that the owner have the house vacated prior to closing so the buyer can move in after closing. If the tenant is on a long term lease then the owner does not need to make changes to the lease but should have a conversation with the tenant if they would be open to a lease buyout. With a lease buyout the owner is offering some money to the tenant to cancel the lease early and move out. The owner needs to know...
The Top Ten Most Expensive Apartment Buildings In Greater Cincinnati
The Greater Cincinnati area has been getting a lot of attention from out of state and even out of country investors looking for multi-family apartment buildings in order to build their cash flow empire. With prices being paid for buildings in the Greater Cincinnati area investors can find their dollars generating more cash flow in Cincinnati than in many other large markets around the United States. Check out some of the most expensive multi-family listings available on the market today as well as learn more about the locations they are in. If you want to learn more about the cash flow possibilities of any particular property be sure to get in contact today with a local Cincinnati and Northern Kentucky Real Estate agent. (This list focuses on multi-family buildings in one location as opposed to a listing of a portfolio of property spread around the city that are listed for sale as a package deal.)
Park Hills, Kentucky
Starting off at the top of the list is a large apartment complex located in Park Hills, Kentucky. Located in Kenton County Park Hills was incorporated in 1927 and has an area of 0.8 square miles. Park Hills was named one of ten great little neighborhoods to live in in the Greater Cincinnati area by Cincinnati Magazine. See more Park Hills, KY real estate listings.
Next on the list comes a property in Covington, Kentucky. Also located in Kenton County Covington...
Real Estate Investment Scams To Be Aware Of
With interest rates as low as they are and mortgages easy to obtain to buy real estate many people are considering real estate as an investment. While many invest successfully in real estate when they work with the right team there are others who are not so fortunate and may end up losing quite a bit of money due to scams that seek to steal money from real estate investors. This article looks at some of the common real estate investment scams and provides advice and guidance on how to avoid them.
One of the more common scams involving investment real estate are lending scams. Due to higher requirements for down payments and limited ability to finance investment properties that need rehab with conventional mortgages many real estate investors turn to alternative lending resources in order to seek financing. Many of these alternative lenders may do not have the same standards for property condition as a conventional lender would and are willing to offer lend additional money with the loan for which the investor can improve the property and thereby improve the value of the property as well. Often times these loans come with higher interest rates and shorter payback periods than conventional mortgages will offer.
Scams with these types of loans are more frequent since a majority of these lenders do not have to be licensed and are not vetted by any state or national agency since the money they lend is not a conventional mortgage loan that has licensing requirements. Sometimes called private money lenders or hard money lenders these lenders use money from private individuals to fund the loans they...
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 credit card accounts,...
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 can appeal to both investors...
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 rents it still makes sense for...
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 to occupy the building then...
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 they buy can only use...