Tag: return on investment

Increase Your ROI With These 5 Spring Rental Property Upgrades

Posted on by author

Whether you’re an experienced investor or new to real estate investing, it’s no secret that rental properties need to be updated over time. Upgrading your rental properties is a great way to increase ROI, attract high-quality tenants, and maximize monthly rents.

Here are five upgrades you can make to maximize the value and improve the condition of your rental property to attract tenants. 

Fresh Paint

A fresh coat of paint is one of the best upgrades for your rental property. Choosing a neutral paint color will appeal to more tenants and make your rental property look newer and cleaner. 

While painting every room might seem daunting and time-consuming, you can always start with the more popular rooms, such as the living room, kitchen, and bathroom, and work your way up from there. 

Simple Landscaping 

Curb appeal is essential when marketing your rental property. If your property doesn’t look good online or in person when a potential tenant sees it, they are unlikely to sign a lease with you. Spring is the perfect time to brighten up the exterior of your rental property with some colorful blooms and fresh mulch. In addition, trimming back overgrown bushes and pulling unwanted weeds can help improve your property’s curb appeal.

New Doors

Doors tend to get overlooked when it comes to upgrading, but they’re often one of the items in your rental property that receives the most damage. Upgrading your exterior door will (literally) protect your investment by adding more security to your property and giving it a whole new look! You can also consider upgrading the doors inside to give your tenants some added privacy.

Stay On-Trend

If you don’t take the time to make modern upgrades and keep up with the latest trends, your property can look dated and deter potential tenants. Consider upgrading the light fixtures, flooring, and cabinetry/countertops to give your property an updated look. While these upgrades can be more expensive, they don’t have to be. Pick items that look high-end to stay within your budget.

In real estate investing, it’s important to stand out from the competition and maintain your property’s value to continue to succeed. If you have questions about which upgrades will give you the most bang for your buck, reach out to us anytime at (512) 947-1828 or dbrown@talkpropertymanagment.com.

Looking To Buy An Investment Property? Here Are 4 Ways To Finance It!

Posted on by author

Whether you’re looking to purchase a property to flip and put back on the market or to rent out to tenants, there are many ways to invest in real estate. One of the biggest questions investors might have is, “How will I finance this investment property?” Luckily, depending on your situation and finances, there are a few different ways to finance investment properties.

Let’s dive into four ways to finance your next investment property and see which method will work best for you!

Conventional Loan

Like traditional buyers, conventional loans are one of the most common ways to finance an investment property. Conventional loans conform to guidelines set by Fannie Mae or Freddie Mac, but the federal government does not back this loan, unlike with FHA or VA loans. 

Your credit score and credit history are considered to get approved for a conventional loan. The minimum credit score for a conventional loan is 620 or 740 if you want to receive a good interest rate. In addition, a 20% down payment of the home’s purchase price is required for conventional loans. 

Hard Money Loan

Professional individuals or companies lend money to investors specifically for real estate investing purposes. Hard money loans are easier to secure than conventional loans and are best if you’re looking to flip a property instead of buying or renting it. Hard money loans don’t look at credit scores or credit history; however, they take into account the property’s profitability. While hard money loans are one of the most common types for investment properties, they only last for 36 months and have higher interest rates, around 10% higher than conventional loans.

Private Money Loan

Private money loans are where you have people in your network or sphere of influence who have extra money and are looking for a good return on their investment. Private money loans have more flexible terms and are typically used by investors when banks have turned down. Loan terms and interest rates may differ, depending on your relationship with the person who loaned the money, but interest rates are usually lower, and the length of the loan is more flexible than with other loans.

Home Equity Loan

Home equity loans allow an investor to borrow against the equity of their primary home to use towards buying another home or investment property. These loans are essentially a second mortgage, but with a higher interest rate than your first mortgage.

Lenders will run a credit check and have an appraisal done on your primary property to determine creditworthiness and the market value of your home. In most cases, investors are able to borrow up to 80% of the home’s equity to use towards the purchase, repairs, and more. 

If you’re currently an investor or need help getting started, reach out to us at TALK Property Management. We would love to provide our expertise and answer any questions you might have. 

Important Factors to Consider When Buying a Foreclosed Home

Posted on by author

Foreclosures are often the investors’ go-to’s when they’re seeking a bargain-priced home or wanting to flip a house. And while they’re a solid option, foreclosed homes are very different from traditional resale homes. Let’s take a look at some of the important factors to consider when buying a foreclosed home.

The Dangers of Foreclosed Homes

While foreclosed homes can save you money, they come with baggage. Most foreclosures were not cared for properly and will require some work before becoming livable or sellable. This is common with vacant and abandoned homes, which makes up almost all foreclosed homes since the pandemic began. 

Foreclosures are sold “as-is,” meaning that the owner of the property will not perform any repairs on the property. Another challenge could be the legality tied up into the property. Sometimes foreclosure properties have liens or judgments filed against them. This is a claim for the home due to unpaid taxes, repair bills, and more. When that’s the case, you’ll need to pay these off before buying the house. 

How To Get A Good Deal

If you find a foreclosure property that catches your eye, here’s what you need to do next.

1. Get Pre-Approved for a Mortgage

Unless you have an all-cash offer for the seller, getting pre-approved is a crucial first step. All cash offers are appealing because they usually mean a quick close. 

A loan pre-approval letter shows the seller you’re qualified, prepared, and are a safe bet to follow through on the deal. As your real estate agent, I have a list of reputable lenders, and I’m happy to share that information with you.

2. Research

You’ll need to research the home and the area. You can investigate the house through property records found at the county clerk’s office, and you may be able to avoid paying for liens placed against the property. You’ll also want to look for any improvements to the home, its ownership and sales history, and its assessed value with the county.

3. Get a Home Inspection

A home inspection will help you better understand the property and its flaws. As your real estate agent, I can also help with evaluating the property. 

Once you have more information about the property, work backward to come up with an offer price. The rule of thumb for home flippers is purchase and repair costs should not exceed 70% of the home’s expected after-repair value. 

 

This is just the tip of the iceberg, and there are many more important factors to consider when purchasing a foreclosed home. Contact us today, and we’ll happily guide you through the process: (512) 721-1094 or dbrown@talkpropertymanagement.com.

 

How To Open Spaces with Glass

Posted on by author

When you think of glass in a house, you think luxury, modern, and clean. Some other mental images are natural light and views. But whether you know it or not, glass is a material that can transform a home. Here is how to use it to open up your indoor and outdoor spaces. 

Stairway

A glass stairway helps emphasize the interior architecture and unblocks sightlines. A clear, low iron glass creates a more spacious look. Low iron will remove the greenish tint you sometimes see in clear glass. The popular style is a frame with posts framing the glass infill. For indoor staircases, standoff pins are a fantastic high design frameless look.

Interior balconies

Balconies made of glass will help create an open, airy effect as the scenery can enter the home and be seen from anywhere. It will also remove dark, separated areas with its influx of natural light. Talon spigots are a good option for glass railings to create an uninterrupted view. Another option is a slim stainless steel top rail. 

Exterior balconies

Exterior balconies create a picture-perfect view of nature. With no interruptions, it’s a great option that also blocks wind. If the clear glass is too vulnerable, frosted glass is a good option too. 

Guardrails

If there are guardrails inside the home, help open the floorplan with glass. The glass will enhance the room’s width and openness. It also creates a modern look. Laminated glass is a good option if you want a frameless option as there are layers of glass. 

 

If you’re ready to renovate to glass and get the highest return on investment, contact me so we can get started! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

4 Timely Home Design Trends for Rental Property in 2021

Posted on by author

If 2021 is the year you become an investor, or if you’re already one and looking for ways to increase ROI on your investment, these four home designs should factor into your portfolio decisions in 2021. With the pandemic, people are spending significantly more time at home, and this influences home layout preferences and needs. Here are some home design trends you should look for in your next rental property.

Separated Spaces for Multigen

Open floor plans are not as popular if multiple people are sharing the same living space. Homeowners are looking for areas to do work, place video calls, exercise, and learn remotely, and you can’t do that all in one room. Think of the chaos! This is especially true with the rise in multigenerational families sharing a home, where each individual needs space and privacy for themselves. 

Wood-grain Elements in the Kitchen

Increased time spent indoors is influencing home materials. Homeowners are craving the outdoors indoors, and this includes materials that are organic and natural. This home design ties interior elements to nature and can be accomplished by adding wood-grain cabinets and wood countertops. 

Outdoor Solitude

The backyard has become a break room of sorts for adults and children, so homeowners are looking for entertainment. The items that gained popularity during the pandemic are fireplaces, fire pits, patios and decks, screened-in porches, and outdoor kitchens. While an outdoor kitchen can be expensive, it can be as economical as adding an outdoor refrigerators and dining areas to your rental property. 

Smarter Bathrooms 

Touchless appliances and self-cleaning appliances gained traction last year in smart technology. Motion sensors for lighting and smart temperature control for bathroom floors are some ideas that can increase ROI.

 

Contact us today to begin your investor journey. If you need help deciding what home designs increase your rental property’s ROI, reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Real Estate Investments: How Does a Duplex Compare to a Single-Family Home?

Posted on by author

When investing in real estate, it’s crucial to understand the differences between common types of properties and how these properties can help investors achieve their financial goals in varied ways. Today, we’re going to examine how a duplex compares to a single-family home as a real estate investment, and there are many things to consider.

Expectations

Duplexes are typically more expensive than single-family homes, and there is higher demand for single-family residences than for duplexes, so selling a duplex may take longer than expected. However, duplexes produce more cash flow over time, and this is very appealing to real estate investors.

Vacancy and Monthly Rental Income

A vacant single-family home will significantly affect your monthly return on investment (ROI) more than a duplex. With a duplex, the chances of both units being vacant simultaneously are low, which means you’ll have a better chance of consistent monthly rental income. With a single-family home, you are responsible for 100 percent of the mortgage if it is vacant.

Property Insurance

Property insurance for a duplex is typically 15 to 25 percent higher than policies for a single-family home.

Return on Investment (ROI)

This is the most important deciding factor when purchasing an investment property, and it’s important to weigh which type of property will generate a better long-term investment return. Several factors contribute to ROI, including property condition, how well tenants care for your property, location, and appreciation potential, just to name a few.

Crucial Questions to Ask When Considering a Duplex

Ask yourself:

  1. How much do I want to spend?
  2. What condition am I willing to accept? (fixer-upper or move-in ready?)
  3. What areas or neighborhoods should I consider for my duplex investment?
  4. Do I want to live on one side of my duplex or rent out both units?

These questions will help guide your duplex purchase. Be sure to do your homework.

At the end of the day, duplexes often offer a wide range of advantages. The critical takeaway is to buy a quality property. Crunch the numbers, do your homework, and select a real estate investment gives you the best chance for a higher return.

Have questions about real estate investing? Reach out to TALK Property Management anytime. We’re always available to help.