KEY TO SUCCESS | How To Choose Your Rental Property Tenants Wisely

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whitneyHow do you find responsible tenants who pay their rent on time, take care of your property, get on well with the neighbors and stay as long as you want them to?

Recruiting: Ask around to find potential tenants looking for a rental or advertise your property online to find them. Two proven ways to find good tenants is through tenant referrals or a reputable management service, which can advertise your property, efficiently screen applicants and refer people to you for a fee.

PERFECT RENTALSSuccess as a landlord starts with having the right rental property—one that appeals to renters, minimizes your costs, maximizes your income and is likely to appreciate in value while you own it. Wise investments start with the following tips:

1. Location. Be sure the property is in a location where rental demand is high (e.g., near public transportation, employment centers, etc.). Check vacancy rates and how long properties stay on the rental market.2. Property. Buy the type of property that is most desired by renters. In some areas, condos, townhouses or multi-family units may be easier to rent than single-family homes. In other areas, the reverse may be true.

3. Condition. Choose a property in good shape and easy to maintain. Excessive repair and maintenance expenses can seriously impact the profitability of your investment.

4. Demand. Find out what is predicted for the area’s rental market in years to come. Learn what plans are underway to change the neighborhood (e.g., road construction, industrial development, etc.) that might affect the value of or demand for your investment.

Setting Standards: Decide what your rental criteria are—then make sure you advertise the property accurately. Determine the following:

  • Rental price and rental period.
  • Minimum income requirements.
  • Security deposits for last month’s rent, damages, pets, etc.
  • Who pays which utilities.
  • Restrictions on pets, smoking and/or maximum number of occupants or cars.
  • Responsibilities for maintenance, repairs, yard upkeep and pest control.
  • Satisfactory personal and former landlord recommendations.

Applications And Screening: Make sure your application form asks for all the information you need. Ask applicants to show their legal identification and verify the information they’ve provided to you. Remember, although you do have the right to choose who lives in your property, the Fair Housing Act prohibits discrimination based on the applicant’s race or color, national origin, religion, sex, familial status, and handicap or disability. In ads: Describe the property, not the people.

TIP: Ask applicants for their credit reports with their application or permission to order a report directly from a credit reporting agency.
Categories: Choosing a rental client, Things to look for in a renter, Wilmington NC Neighborhoods, wilmington nc real estate, wilmington real estate stats

PLAY SMART: Savvy Tips On Buying A Vacation Home :: Wrightsville Beach

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We’ve all thought about it while lying on the beach or inhaling the fresh mountain air: “Why don’t we buy a vacation home?” Owning a vacation home can be a good decision if you buy smart.

Great Reasons To Buy A Vacation Home

They provide another investment that includes a mortgage-interest tax deduction.

Sign up for your own portal for looking at Wilmington NC real estate at www.cbbaker.com

Whether you rent it out or not, you can deduct the mortgage interest as long as you use the home more than 14 days or more than 10% of the number of days the home is rented annually at a fair rental, whichever is longer.

Qualified second homes include houses, condominiums, cooperatives, mobile homes, house trailers, boats or similar properties that have sleeping, cooking and toilet facilities.

Here’s an interesting twist on the mortgage interest deduction: If you take out a home equity loan on your first home and use the funds to acquire your second home, the interest on the home equity loan is also deductible. That’s three mortgage interest deductions off your tax return!

Consult IRS Publication 936 for a complete discussion of how mortgage interest for a second home is deductible.

You can purchase your future retirement home now, at today’s prices.

Though your second home may be a vacation home now, if you buy right you can convert it into your principal residence later.

They can produce their own income.

Renting out a second home occasionally or often can help you pay for the property with OPM (other people’s money). Check with your tax advisor about how much of the upkeep and management expenses are deductible against your income.

Buying Tips From The Experts

Buy something within a reasonable distance.

Be sure you can get to your vacation home in a short amount of time. Before you make a final decision, travel the distance on a typical Friday afternoon to see whether the drive will be too much to deal with after a long work week.

Rent in the area several times before you buy.

If you really like a particular area, check it out during different seasons. This way you get to know the climate, people, pests, traffic patterns and other regional particulars first-hand.

Consult other owners.

Check with owners of nearby properties about public and private facilities, special maintenance required due to location or weather, the social climate, local development plans and prevalence of crime. Learning about the lifestyle of the area may help you narrow down your choices.

Think home first, investment second.

Although you may be able to generate rental income from your vacation home, it may not cover your ownership costs. (If you want to try real estate investments, give us a call to look at properties in the local area.)

Consider different styles of properties in a vacation area.

To minimize upkeep and have a more secure environment, a condo may be preferable to a single-family home. If you plan on converting it to a retirement home, consider what type of home you’ll want as a full-time residence.

 

Categories: Buying a Vacation Home, Figure Eight Island, Wilmington NC Neighborhoods, wilmington nc real estate, Wrightsville Beach NC

BOUNCING BACK | Denied A Mortgage Loan? You Can Recover!

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It’s a sinking feeling: You applied for a mortgage loan only to have your lender reject your application. Now you feel like you’ll never be able to buy your dream home.

But don’t give up hope. Your lender rejected your application because it didn’t think you could afford a monthly mortgage payment of that amount today. That doesn’t mean that you won’t be able to afford a smaller loan now or a larger one in the near future.

Here are some tips for dramatically increasing your odds to earn approval next time:

Listen to what your lender says: Don’t shut out your lender just because it denied your application. Find out from your lender exactly why you were denied. Your lender is required to send you a letter listing a reason, but those reasons can be general. Ask your mortgage loan officer for more specific information. Once you know the problem—low credit score, low income—take steps to fix it.

Work on that credit score: Often, lenders deny a loan application because borrowers’ credit scores are too low. Fortunately, you can improve your credit score. You have to pay your bills on time each month and pay off as much credit-card debt as possible. It might take time—several months, or more—but you can steadily boost that three-digit score.

Time to go it alone? Maybe your credit score is high but your spouse’s or partner’s is low. It might make sense to apply for a mortgage loan on your own. Lenders will rely on the lowest credit score among applicants when deciding who does and doesn’t qualify for a home loan. Make sure, though, that your income alone is high enough to qualify for the loan you want. Remember, too, that the name of your spouse or partner can be on the home’s title, even if both of your names aren’t on the mortgage.

Pay off those debts: Lenders want your monthly debts— including your estimated monthly mortgage payments—to be no more than 43% of your gross monthly income. If your debt-to-income ratio was higher than this mark, pay off as much of your debt as possible before applying again for a mortgage loan. Lower debt levels could mean the difference between denied or accepted.

If you’d like to boost your odds of qualifying for a home loan, call us today. We’ll help you determine what steps you need to take to earn that mortgage.

Categories: Denied a mortgage?, Uncategorized


Kay Baker Associates | 1001 Military Cutoff | Ste 101 Wilmington, NC 28405 | kaybakerassociates@ec.rr.com | 910-202-3607 | Fax 910-338-2428

Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.