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Wednesday, May 18, 2011

Rental Property Means Smart Move For Many Investors

Owning rental property in Phoenix is becoming a hot topic! Phoenix area rental property is picking up steam, with rents increasing and along with it comes savvy investors looking for “mail-box money.”

Talk to many financial advisors and they’ll tell you, owning rental property can have a number of advantages.  When most people run the numbers, the math points to a higher rate of return than if they put their money in the traditional investment market – plus, they’re assured the much desired “mail box money,” a proven formula for on-going income easing the burden of life as we age.

I entered the rental market myself a year or two ago.  Home prices are at an all time low and so are interest rates for a loan.  I ran the numbers a variety of different ways and each time I did, the answer was the same – It didn’t make sense not to acquire rental property.  I placed a home warranty protection plan on them to give me – and the tenants - peace of mind.  It was a great decision and I haven’t looked back since! 

So if you see me heading to the mail box, now you know what’s behind that ear-to-ear grin I wear!  If you're thinking about rental property, let's chat.

Photo from Flickr courtesy of Bgautrea

Friday, May 13, 2011

Survey Reveals Buyers Want Move-In Ready

Results just being released from a recent survey suggest buyers are looking for “move-in ready” and shying away from “as-is.”  These findings are important for sellers contemplating what to modify and/or update, but also for investors looking for a fix and flip. 

A great article published in Realty Times sums up the findings nicely.  We’ve heard it for years – get back to the basics and set your self apart.  Simple improvements, both inside and out, can add both perceived and real value to the home.  When buyers see areas around a home needing attention, they begin to wonder what else may be lurking that they can’t see.  Minimizing the hassle factor for the buyer is always a good thing!

The findings indicate first-time home buyers are strapped for cash and don’t have a lot of excess money after the home purchase to make improvements to the property.  The home will sell quicker and for a higher price if it’s move-in ready. 

For investors, the market is ripe to go in a find a property in need of repairs, then doing it up right and putting it back on the market.  There are deals to be had out there – and I’m come across them weekly – where homes in need of repair and undervalued and prime for the “fix and flip” investor.

Photo from Flickr courtesy of Mondibongo.