Rental Property Investing &
Real Estate Market News and Information

Rental property investing is a long game. It takes patience, strategy and a strong stomach. Why invest in real estate, when it's so risky? Because with risk, can come great reward. Tax deductions, cashflow, equity... residential or commercial... there are lots of ways investing in real estate can pay off. Already an investor or looking to become one?  An important step is strategic management of your assets. Don't buy/rent and forget about your investments, that's the #1 reason why landlords fail. Hire a professional property manager (tax deductible in most cases) to oversee your property, handle preventative maintenance and lease enforcement, and keep a watchful eye on your expenses and ROI. This blog posts information on rental property investing from the widest variety of sources, and we encourage you to bookmark and check back often. The more knowledge and information you have in this field, the more success you will achieve!


Rental Property Investing

Trump wants Fed to cut interest rates to zero or below. Here's what it could mean for you.

It seems like only yesterday that the Federal Reserve was steadily raising interest rates as the U.S. economy picked up steam after years of near-zero rates following the Great Recession of 2007-09.But the Fed cut its key rate in July for the first time in a decade, another such move is likely next week and there’s growing talk of pushing rates down to, or even below, zero.JPMorgan Chase CEO Jamie Dimon this week said bank executives have discussed imposing certain fees on consumers if rates fall to zero. And President Donald Trump on Wednesday tweeted that the Fed “should get our interest rates down to ZERO, or less,” allowing the federal government to refinance its massive debt at a lower cost.Here's why the Fed may eventually lower rates to zero or below – and what that would mean for consumers....

Continue reading "Trump wants Fed to cut interest rates to zero or below. Here's what it could mean for you."

What Credit Score Do You Need to Buy a House in 2019?

Your credit score plays a major role in your ability to secure a mortgage loan. Not only does it impact your initial qualification for a loan, but it also influences your interest rate, down payment requirements, and other terms of your mortgage.

Are you considering buying a house and want to be sure your credit is ready? Here’s what you need to know.

How Credit Score Impacts Your Mortgage Prospects If you’re planning to buy a home, your credit score will play a big part in the process. At the start, it will determine which loan options you can even consider as a homebuyer. While some loan types require minimum scores as high as 640 (conventional loans), others go down to 500 (some FHA loans).

But more than this, your credit score will also impact the costs of your loan. This is because your credit score represents your level of risk...

Continue reading "What Credit Score Do You Need to Buy a House in 2019?"

South Florida Attorneys Weigh in on Planned Fair Housing Rule Change

The Trump administration wants to make it harder for minorities and other protected classes to claim housing discrimination under the Fair Housing Act’s disparate impact rule, prompting mixed reactions in South Florida real estate circles.A Miami housing attorney said this would gut protections against discrimination and potentially bar claims altogether. But a Coral Gables attorney said this merely balances protection for residents as well as landlords who imposed legitimate, nondiscriminatory policies intended to maintain safe, well-run communities.The U.S. Department of Housing and Urban Development on Monday published a 35-page plan to change the Fair Housing Act standard. Stakeholders can weight in by Oct. 18 before the change could be implemented.Currently, a protected class of residents can claim disparate impact from housing policies...

Continue reading "South Florida Attorneys Weigh in on Planned Fair Housing Rule Change"

Federal Reserve cuts key interest rate by a quarter point

The Federal Reserve has cut its key interest rate a quarter of a point but suggested it isn’t part of a cycle of lower rates.Wall Street fully expected the rate cut at Wednesday’s meeting but had its heart set on a series of future cuts. When Fed Chairman Jerome Powell referred to the move as a “mid-cycle adjustment,” stocks sold off. In its July meeting statement, the Fed policymakers actually found little reason to cut interest rates. The statement noted that the job market remains strong and consumers are still spending generously. Inflation is actually pretty low. About the only reason the Fed could find for its action was some softness in business spending.So the Fed announced a rate cut but suggested that would be it, at least in the short term. Upside for consumers in debtWhile that was clearly disappointing to investors who have gotten used to the idea of cheap money, a quarter point cut in the federal funds rate is still good news for consumers, especially consumers who are in debt.The Fed’s key interest rate doesn’t have that much impact on mortgage rates but it is usually in sync with bank's prime lending rates. When the federal funds rate goes down, so does the prime rate.That in turn usually lowers credit card interest rates...

Continue reading "Federal Reserve cuts key interest rate by a quarter point"

My husband and I owned three homes before the age of 30 and paid off one mortgage in cash — here’s how we did it

At the end of 2006, my husband and I purchased our first property in Central Indiana — a three-bedroom, two-bath ranch home with a fenced backyard and a two-car garage.We were 26-years-old with steady jobs and no intention of moving, so we figured we should lay down roots before we had kids.The home only cost us $102,500, mostly because we lived in a suburb of Indianapolis where housing is cheap. We put down a small down payment of 3 percent and financed the rest with a thirty-year, fixed rate mortgage at 6.99 percent APR — a decent rate at the time...

Continue reading "My husband and I owned three homes before the age of 30 and paid off one mortgage in cash — here’s how we did it"

What I Wish I Knew Before Investing In Rental Properties

The best way to learn how to invest money is to make mistakes and then to learn from them. The problem with rental investments is that even small mistakes can be very costly! Every investment ties up a large amount of capital, often leveraged up with a mortgage - creating significant liabilities from interest payments, to property taxes and maintenance.You better do it right on day 1, or you may soon be yet another real estate investor filing for bankruptcy. And don't think a second that I exaggerate here. Bankruptcies are a very common outcome in rental investing and often the result of stupid mistakes that could have been avoided with better education...

Continue reading "What I Wish I Knew Before Investing In Rental Properties"

Americans Prefer Property Over Stocks And Shares

he world of retail investment covers a vast range of products that far exceeds just traditional stocks and share found on major exchanges. On the contrary, there are full range of asset classes that everyday investors can now speculate on with ease. In a recent study conducted by Self Lender, more than 1,500 Americans were asked what financial product they would consider investing in this year, if they could only choose one. Those that participated in the study were provided with 4 different asset classes. Notably, this included bonds, cryptocurrencies, property, and stocks and shares. Interestingly, when the results were broken down by the participant’s age group, the outcome still remained consistent. irst and foremost, almost half, or 48.6% of those surveyed said that if they could only invest in one financial product, then it would be property...

Continue reading "Americans Prefer Property Over Stocks And Shares"

Roofstock offers investors the chance to buy a part of a home

The four-year old Oakland-based startup is willing to sell just a “tenth of a home” to willing investors who’re looking to start small.What Roofstock does is it buys homes and properties and places them in a trust. The trust then sells stakes in those properties for a minimum of $5,000. The idea is to help investors avoid carrying a loan on their personal balance sheet, while still being able to receive the tax benefits of owning real estate, as well as part of the rental income from it.“The whole idea at our founding was to create a platform where real estate could trade much more like a stock,” Gary Beasley, CEO of Roofstock, told Bloomberg.More startups are popping up that want to help investors once again amass large portfolios of rental homes...

Continue reading "Roofstock offers investors the chance to buy a part of a home"

Private Equity Is Moving in on Single-Family Rentals. Individual Investors Might Want to go Commercial Instead

In the past, individual investors owned more than 80 percent of single-family rentals. Since then, the number has fallen significantly. Once upon a time, buying single-family homes and renting them out was the default way individuals diversified their investment portfolios beyond stocks and bonds. Becoming a landlord generated steady income (albeit a small one in terms of yield), and (successful) individual investors could buy rental properties and simply sit back and watch their wealth grow.That model has been disrupted in recent years, as individual landlords have been increasingly marginalized by big institutional investors...

Continue reading "Private Equity Is Moving in on Single-Family Rentals. Individual Investors Might Want to go Commercial Instead"

Condos vs. Houses: Which Is Better to Buy?

Aspiring homeowners might gravitate to condos over houses for plenty of reasons: Condos offer less upkeep, look more up to date, and seem to be more affordable. However, the economics of houses may work out better, especially when it comes to selling down the road. Condos also demand certain accommodations when it comes to everyday life, as well.

Defining a Condo A condo (short for "condominium") is a private residential unit within a multiunit building, project, or community. While the residences are usually apartment-like—they share walls—they can also be semidetached, like townhouses, or even fully detached, too. The residences frequently share common areas, facilities, and amenities, both external (yards, swimming pools) and internal (laundry rooms, garages).

There are two main types of condos: those that were simply converted from rental apartments and those that were originally built as condominiums—sometimes in a brand-new structure, sometimes in a renovated or configured commercial or industrial space. If you can't see the difference, it probably won't matter for future values. Often, however, the rental-conversion type is older and can look or feel cheaper—both of which suggest the need for repairs and more upkeep in the future.

A big factor in condo life is the condominium association...

Continue reading "Condos vs. Houses: Which Is Better to Buy?"