What to Do if You Purchased a Home at Too High a Price

 Purchased a Home at Too High a Price? Here's What To Do

If you bought a second home or an investment property when the market peaked, you are probably worried that you made a wrong decision. You need to know that the real estate market - like any other market - experiences upheavals and fluctuations in prices.

Ramifications of buying a home at too high a price

Knowledge of the implications of purchasing a home at too high a price can help you determine what to do to manage the situation. Here are some ramifications of buying a home during market peaks:

•    You may lose equity: You may not be able to recover the original value of the home because new buyers may not be willing to pay more than the current market price.
•    Decrease in resale value: The value of the home or investment property may not go over the purchase price for a long time, meaning you will sell it at a lower price than you bought it at.
•    Potential loss of cash flow: Rental prices may decrease resulting in reduced income from the property or home.

What to do

If you bought your second home or investment property at too high a price you really don't need to worry. Here's what you can do:
•    Be patient: Markets don't stay the same forever. Don't be in a hurry to resell the home or investment property. 
•    Add value to the property: you can increase the value of the property by making some additions such as a swimming pool, or giving it a new coat of paint.

Before you worry too much about the home you bought at a very high price, you need to remember than that markets are always changing. You may need to be a little more patient and see what happens to the prices. You may also add more value to the home to get a better prices. For more information, please contact us today. 

Diversifying Real Estate Portfolios

 6 Easy Ways to Diversify Your Portfolio and Include Real Estate Holdings

When it comes to protecting your finances, investing in real estate is a sound decision. And, with the current state of the economy and stock market, now may be a good time to consider adding real estate holdings to your investment portfolio. Let us show you how easy it can be to get started.

Here are 6 easy ways to diversify your portfolio and include real estate holdings:

- REITs: A REIT, or real estate investment trust, is a company that owns and operates income-producing real estate. By investing in a REIT, you can gain exposure to the real estate market without having to directly purchase property.

- Home Equity: If you own a home, you can use the equity in your home to invest in real estate. There are a few different ways to do this, such as taking out a home equity loan or line of credit, or selling your home and using the proceeds to purchase an investment property.

- Economic Development Zones: Economic development zones are areas that have been designated by the government for economic growth and revitalization. By investing in these areas, you can receive tax breaks and other incentives.

- Tenant-in-Common Property: A tenant-in-common property is a piece of real estate that is owned by two or more people. This can be a great way to invest in real estate with less money down.

- Real Estate Investment Trusts: A real estate investment trust, or REIT, is a company that owns and operates income-producing real estate. By investing in a REIT, you can gain exposure to the real estate market without having to directly purchase property.

- Real Estate Exchange-Traded Funds: A real estate exchange-traded fund, or ETF, is a type of investment that allows you to invest in a basket of real estate-related securities. This is a great way to diversify your portfolio and get exposure to the real estate market without having to directly purchase property.

By diversifying your investment portfolio to include real estate holdings, you can protect your finances and potentially see greater returns over time. And with so many easy ways to get started, there's no excuse not to add real estate to your investment portfolio today.

Pet-Friendly Rentals - Yes or No?

 During the COVID-19 pandemic, more Americans than ever adopted pets, with the American Society for the Prevention of Cruelty to Animals estimating 23 million American households added new furry friends to their households in the last few years. What does that mean for you as a rental property owner? There may be a huge market of renters you're not reaching if you don't allow pets in your units. It's not an easy decision to make, however, because there are certainly risks. Before you make any decisions, think closely about the potential pros and cons.

Pros:

• More tenants to choose from. This is the big one! There are many pet owners looking for places to live with fewer options to choose from. If you're struggling to find good tenants, this might just be what makes it worth it. 
• Many pet-owning tenants are willing to pay a premium to bring their furry family members with them. In addition to higher base rent, this can also come in the form of a pet deposit or monthly pet rent and help put more money in your pocket.
• Responsible tenants. While you may be worried about the risks of pets in your units, oftentimes pet owners can be excellent tenants. They have taken on the responsibility for owning a pet and often understand they must be on the best behavior to keep a place for their dog or cat.

Cons:

• You risk damage to your unit. Dogs and cats may chew, scratch, or have accidents inside. There are several ways you might mitigate this risk, from establishing a higher pet deposit to creating a strong pet policy in your lease. Get advice from others as to what a good pet policy looks like. You might also include a policy that requires renters to have the unit professionally cleaned upon move out.
• Pets might disturb neighbors in the building or on the block whether through barking or running around overhead another unit. Again, you should outline how issues like this will be addressed in your pet policy. This might include warnings and fines. If you're worried about this risk, consider a cats-only rental. They are still in demand, but you likely won't have to deal with as many noise issues as exist with dogs. 
• There are potential liabilities to think about, especially related to the risk of dog bites. While you can't ever eliminate the risks here, talking to a rental professional about the kind of liability insurance you should have and what you should require your tenant to have is an important first step.

There's no right or wrong decision, just like many other aspects of managing a rental. Thinking about the potential risks you are comfortable with is a critical first step in deciding if making your units pet-friendly is the right choice. 

Rehab, Renovate or Remodel

 Is there a difference between Rehab, Renovate, and Remodel?

Do you know the difference between rehab, renovate, and remodel? More importantly, do you know when each term applies? While they're all terms that get thrown around in the building world, it's easy to use them interchangeably. But in a real sense, they are different.

This article will help you understand the differences between these terms and help you choose the best option for your home improvement project. Ready? Let's roll.

Rehabilitation

Rehab is the first step in a home's transformation. It's defined as any work necessary to bring a property to local building codes and basic habitability standards. 

This can include installing a new roof, replacing broken windows, fixing faulty wiring and plumbing. Additionally, it can involve cosmetic upgrades, such as new flooring or painting.

Renovation

On the other hand, renovation is restoring something to its original condition. It is often used when referring to property restoration, including buildings, monuments, and residences.

A renovation project could be as simple as painting the walls and repairing the floors to replacing old pipes, electrical wiring, and HVAC systems. It can also include repairs on foundation or reinforcing beams to specifics like replacing countertops and appliances in kitchens and bathrooms.

Remodeling

Remodeling could be as simple as removing a load-bearing wall between two rooms or as complex as building an addition to your home. 

Remodeling usually involves changing the layout of an existing space — removing or adding walls, for example — rather than just updating finishes.

While renovations and remodeling may sometimes overlap in scope, rehabs are more invasive than either of those processes. A rehab intends to take a dilapidated house and make it livable again. 

Rehabs are typically done when a house has been neglected so long that it's no longer habitable. 

Bottom Line

Ultimately, the important question is what you want out of it. If you're trying to sell your home and want to give it a facelift, a remodel best serves you by remodeling. But if you'd like to make it truly your own space and renovate what you can, this is likely your best option. 

 

Ultimately, rehab will work the best after a disaster since it will make your home livable.

However, either way, we hope we've made it easier for you to make the right decision for your next DIY project.

Home Improvements to Raise Property Value

 7 Property Upgrades That will add Value in Today's Housing Market

Many homeowners choose to make updates or repairs to increase the value of their property. It's important to remember that the norms for home upgrades may have changed since the market crashed in a tough housing market. A few home upgrades consistently generate a high return on investment (ROI). So, which upgrades still make sense in today's market?

1. New Siding

Siding is a great way to improve the overall look of your home, and it can also add value. If your home needs new siding, now is a good investment. If your home currently has vinyl siding, consider replacing it with something more luxurious, like cedar shake siding.

2. A New Roof

A new roof is a wise investment in any housing market. It can add value to your home and also make it more energy-efficient. Asphalt shingles are a popular choice among homeowners, but metal roofs are becoming increasingly popular. In addition, a new roof will protect your home from the elements and could even lower your insurance premiums.

3. A New Deck

Adding a new deck or patio is a great way to add value to your home. Outdoor living spaces are becoming more and more popular, and you can use them for entertaining, relaxing, or even working from home. If you have an area, this is an upgrade that will pay off in the long run.

4. A New Kitchen

A new kitchen is always a good investment. Whether you're planning to sell your home soon or stay put for years to come, an updated kitchen will add value to your property. A new kitchen can be a central selling point if you're planning to sell. Buyers are always looking for homes with updated kitchens and bathrooms. If you're not planning to sell anytime soon, a new kitchen will still increase the value of your home and make it more enjoyable and cozy.

5. A New Bathroom

Like a new kitchen, a new bathroom can be a significant expense – but it's also one of the best ways to increase the value of your home. Updating your bathroom is one of the smartest investments you can make in your home. Not only will a new bathroom increase the value of your property, but it can also provide you with years of enjoyment.

6. A New Garage Door

If you're looking to give your home an instant facelift, a new garage door is a great place to start. It's a relatively affordable upgrade that can make a big difference in the curb appeal of your property. A new garage door can give your home an instant facelift, and it's a relatively affordable upgrade.

7. New Windows

Replacing your windows is a great way to improve your home's energy efficiency – and it can also add value. Installing new windows is a great way to enhance your home's appearance and energy efficiency. New windows can save you money on heating costs in a cold climate.

Final Thoughts

Making home improvements is a great way to add value to your property. Whether you're planning to sell your home soon or stay put for years to come, these upgrades will make your home more enjoyable to live in and increase its value.

Raising Tenant Standards

 How to Raise Tenant Standards That Don't Violate Fair Housing Laws

If you're a rental property owner who wants to increase the quality of your tenants, you may be wondering what steps you can take. It helps to weed out applicants who are likely to be unreliable in terms of rent payments. It's important to remember that you cannot set requirements that unfairly discriminate against certain groups of people, so any changes you make to your tenant selection process must be within the bounds of fair housing law. We will outline a few tactics that you can use to improve your tenant pool while still staying within the law.

1. Require A Credit Check

One way to get a better sense of whether or not an applicant is likely to be responsible tenant is to require them to undergo a credit check. It will give you information about their credit history and debt-to-income ratio. Applicants with a poor credit score or high debt levels may be more likely to miss rent payments or cause other damage to your property.

2. Require A Lease Application and A Security Deposit

Requiring applicants to complete a lease application can help you get a better sense of their qualifications for tenancy. It will allow you to see if they have a history of evictions or outstanding debts, for example. Additionally, requiring a security deposit from all tenants can help protect you from potential damage or missed rent payments.

3. Using a Property Management Company to Handle Applications

Using a property management company to handle your tenant applications can help you avoid any potential discrimination lawsuits. Property management companies are experienced at screening tenants and know how to do so that they don't violate fair housing laws.

Final Thoughts

There are several ways to improve your tenant pool while still staying within the bounds of fair housing law. By requiring credit checks, references, and a lease application, you can better understand an applicant's qualifications for tenancy. Additionally, using a property management company can help you avoid any potential discrimination lawsuits.

Pool? What You Should Consider

  Things to Consider Before Buying an Investment Property with a Pool

Buying a house with a swimming pool can be thrilling because it has various benefits. Sunbathing at the poolside, tasty summer BBQs, and family gatherings are things you can do at the pool. But, it is also important for you to consider the following 3 factors when buying a home with a swimming pool. 

 

Cost Implications

Maintaining your swimming has some cost implications. You need to think about them before making your final decision on your investment. That is because pool maintenance is a must if you enjoy swimming in the pool. Also, proper pool maintenance increases its longevity and avoids costly repairs. But it also increases your pool expenditure when you replace filters, and vacuum clean the pool, and much more. 

 

Pool Condition

Looking at the surface alone will not help you know your swimming pool's condition. Before investing in the house, it is paramount to inspect the pool to know its true condition. For that reason, it will help you if you work with a certified pool inspector with a home inspection expert.

 

Value of the House

Both renters and buyers like houses with swimming pools because of their benefits. But a swimming pool also increases the property's value, and you need to consider it when buying a house. For that reason, you have to factor in the raised cost before making your final decision.

 

However, it is possible to get some funding when buying a home if you cannot afford to buy it in cash.