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Tuesday, July 30, 2013

What is the Best Type of Real Estate for Me?

Hi everyone, welcome back to my video blog. Today’s video is part two of our series on investment properties. I want to talk about the five major types of real estate and the pros and cons to each.

1.    Single family homes: These are my personal favorite. People always need a place to live and rent. Maybe they don’t qualify for a loan to purchase a home, or maybe they are in a transitional period. For the most part too, you will have good tenants who will take care of your property.

2.    Duplex-type Units: These properties attract a different group than the single family homes. The benefit of this type of real estate is you generally get a better cash flow. The cost to buy versus the rent coming in is typically better than the single family homes. A downfall, though, is sometimes it can be a lower income tenant and you may have a hard time collecting rent at times.

3.    Apartment buildings: These are not for beginning investors. Owning an apartment building is like playing monopoly. It is a great vehicle of income, however, it is very expensive to purchase.

4.    Student rental housing: This is a very popular investment in the Athens area. Rent is typically charged per bedroom, so you can charge a little more. You also have parental guarantee. If you are considering this investment, it’s important to know about the school’s housing program and how enrollment is too.

5.    Commercial: Most people use the other investments as a stepping stone for commercial. You get longer leases and since a corporation or business is paying, it easier most of the time to get paid. The downfall, though, is it costs more.

If you have any questions about the types of investments properties or want to get started, give me a call at 706.621.6085 !

Monday, July 15, 2013

Is Owning a Rental Property Right for You?

Hi everyone! Thanks for joining me again. Today I wanted to talk about the pros and cons of owning an investment property. Having a rental property is right for some people and not for others. So I wanted to give you guys the best information possible to help you decide whether owning a rental property is right for you.

The tenant really determines how the situation will go. If you have a good tenant it’s a dream come true, if you have a bad tenant it can be a nightmare. A bad tenant will destroy your property and cost you money. A good tenant is ultimately going to buy the property for you. Owning a rental property may take 30 years to pay off, but the outcome is all income after that.

Another thing to consider is your personality. Is dealing with tenants in your comfort level? Are you willing to make repairs? If you’re not, an alternative is hiring a property manager. Most property management companies charge within the 7-10% range from a monthly income.

Another tip I suggest is having a backup fund, a savings for repairs and other mishaps that could happen.

Those are just a few things to think about when considering owning a rental property. This is video one of a series. The next topics will be different types of investment properties and other helpful information for you, so stay tuned!