Buying a rental property is a major investment. Thoughtful investment in a rental property can be a great source of both short-term and long-term income. However, there are certain things that first time rental property investors should be attuned to before making an investment.
Tips that are worth implementing when buying your first rental property are:
- Research: Conduct thorough research before choosing a suitable property. It is important to check the prevailing market trends in order to know if the property you want to buy is fairly priced.
- Determine Rental Income: Based on the details you gather from researching on various rental properties, calculate the amount of rental income that you expect to earn every month. This income refers to the gross income before subtracting expenses.
- Financial Options: If you plan to use a mortgage for making the purchase, it is important to assess all financial options available for you. Consider the type of mortgage that would suit you. You may choose from a long-term or a short-term mortgage with either fixed or adjustable rate.
- Neighborhood: Talk to the residents in a neighborhood for better insight on the area and ask them about any issues they are facing. This will allow you to vet the neighborhoods that offer better living conditions and thus would be profitable for a rental property investment.
- Local Rental Regulations: Educate yourself on the local rental regulations of an area before purchasing a property. The guidelines consist of deposit allowed, maximum rent, annual rent increase, etc.
- Safety Issues: Before finalizing an investment property, hire a licensed home inspector to rule out safety and maintenance issues. Major concerns include lead paint, radon, asbestos and mold. If present, you may have to remediate them by hiring a specialist.
- Amenities: Choose a location that offers easy access to public transport and other important amenities. It should preferably be close to educational institutions and places of interest for your target renter (families, vacationers, retirees, students, etc.)
- Size: When choosing the size of property, it is important to keep in mind your target tenant population and their needs.
- Hire A Professional: Get assistance from a professional for making a profitable investment. This will not only save your time and resources; but the experts will also handle legal, financial and technical aspects associated with purchasing property.
Lone Star Realty & Property Management, Inc. assist clients in buying rental properties. The agents at Lone Star Realty help the clients in choosing an ideal property. For more details, please visit 1020 W Jasper Drive, Killeen, TX – 76542. You can also call at: (254) 699 – 7003.
Buying a home is a major financial investment. Thus, it is essential to consider your requirements and understand the actual value of property before making the deal. There are certain things that potential home buyers should know when buying a home in Fort Hood, TX.
Following is a list of things that prospective home buyers should know before starting their search:
- Knowledge About The Area: It is good to have knowledge about the area before beginning the search for your home. This makes it easier to shortlist potential homes based on factors such as the weather, amenities required, distance from entertainment centers and so on.
- Set A Budget: Setting up your budget helps to focus on properties within your buying capacity. However, the budget should be set after calculating your monthly income and expenditures.
- Keep A Reserve And Down Payment: Set aside a specific amount as a reserve for an eventuality you may come across. Such a reserve ensures you have a back-up to support your plan of buying a house in the face of health issues, unexpected expenses and more. In addition to this, keep an amount aside as down payment preferably around 20 percent of the total purchase price.
- Get Pre-Approved: Pre-approval increases your worth in terms of reliability. Also, it helps you to gain a better perspective on the loan options available to you and your borrowing capacity.
- Compare: When shopping for a mortgage, it is a good idea to compare what different lenders have to offer in terms of rate of interest and loan terms & conditions in order to make an informed decision.
Hiring an experienced real estate agent helps in making the process of buying a home easier. The real estate agents help you in finding profitable deals. They have extensive knowledge about neighborhoods and real estate market.
Lone Star Realty & Property Management, Inc. offers a variety of properties to home buyers in Fort Hood. For more details on things to know when buying a home in Fort Hood, visit 1020 W Jasper Drive, Killeen, TX - 76542. You can also call at (254) 699 – 7003.
After renting a home, you may feel the need to decorate or furnish it as per your requirements. Undoubtedly, adding your personal touch to a rental property is essential for making you feel comfortable at home. The right approach for decorating a rental home is to set a budget, stick to it, get property owner’s approval and follow any rules mentioned in your lease agreement.
Following are some tips to keep in mind when decorating your rental home:
- Add Some Accessories: Spruce up your rental home with accessories such as rugs, cushions, curtains, plants, etc.
- Upgrade The Kitchen: Invest in pretty and practical cabinetry for your kitchen. However, pay attention that the installation or removal of cabinets should not damage the walls. You can also use light fixtures such as pendant lights to make your kitchen look bright and stylish.
- Add The Lighting: If your rental home looks dated due to dull lighting in the hallway, bedrooms or bathrooms, transform its look by investing in good, affordable and stylish lighting. You may choose from table lamps, floor lamps, wall lighting, etc.
- Transform The Bathroom: Improve the look of a bathroom with low-cost upgrades such as a beautiful vase of flowers, some greenery, crisp and clean linens, beautiful soap dishes, replacing shower-heads, etc.
- Add Art: If there is a “no-nails-in-the-wall” policy, improvise other ways of displaying your favorite pieces of art such as placing them against a wall, on a cabinet or mantel, on bookshelves and even on floors.
- Replace Window Treatments: Opt for window treatments such as blinds, curtains or shades to transform and brighten rooms.
- Install Permanent Fixtures: Do not install permanent fixtures in a rental house. It is possible that the property owner may ask you to remove it when you leave the rented house. Instead, install fixtures that are easy to take off and carry along to new places.
- Use Wallpaper: Do not use wallpaper in a rental as it can be messy to remove it and may leave marks on the surface underneath. Instead of traditional wallpaper, you may opt for safer options such as paint stencils, decals, new peel-away wallpapers, etc.
- Replace The Flooring: Do not tamper with the current flooring or replace it. If you do not like the floor, throw a beautiful rug on it instead or request your property owner for a replacement.
- Drill Holes In The Walls: Do not drill holes in the rental as you may be asked to pay for fixing them at the time of moving out.
Lone Star Realty & Property Management, Inc. helps its customers in finding well-maintained rental homes in Fort Hood, TX. To know more about rental properties, visit 1020 W Jasper Drive, Killeen, TX - 76542. You can also contact us at (254) 699 – 7003.
Buying a home for the first time is easier when you know the meaning of commonly used real-estate terms. Having a basic understanding of the words used when buying a house helps buyers in understanding the details of the process better and enjoy a smoother & faster transaction.
Following are some terms that first time home buyers should know:
- Adjustable Rate Mortgage: This is a type of mortgage in which the initial rate is usually lower for a certain number of years after which it may fluctuate depending on the index rate used.
- Buyer’s Agent: A buyer’s agent is a real estate professional who is licensed to help buyers in finding a home of their choice. They charge a percentage of the contract price as commission and represent the buyer in the process.
- Closing Costs: The closing process begins after the finalization of the home sale. It consists of execution of the final paperwork, underwriting and appraisal by the lender, etc. At the time of closing; costs referred to as closing costs such as taxes, loan fees, processing fees, title search, etc. are paid by the buyer.
- Appraisal: This refers to the process of gathering an estimated value of property. An appraiser is appointed by a mortgage lender to get a fair idea of the property’s value.
- Contract: A purchase contract is a binding document that states the terms and conditions of the sale of property.
- Earnest Money: On acceptance of a buyer’s offer by a seller, the buyer pays an amount of money to the seller known as earnest money. The purpose of this payment (a small percentage of the contract price) is to secure the seller’s position. This amount is applied towards down payment at the time of purchase.
- Equity: Equity refers to the amount of investment a home owner has in his home. The amount of equity is the left over amount after subtracting mortgages and liens against the home from its market value.
- Inspection: This refers to the process in which an inspector (a licensed professional inspector appointed by a buyer) visits the home to be bought, inspects it thoroughly and drafts a report of its condition along with the need for repairs.
- Principal: This refers to the amount of money a home buyer owes to a lender; minus interest.
- Escrow: An escrow is an unbiased third party agent who is appointed to observe and manage transactions.
Lone Star Realty & Property Management, Inc. assists its clients in buying a home that suits their requirements by providing an online listing of available properties, searching for property based on buyer’s requirements and providing assistance with paperwork. To know more about buying a home, call at (254) 699 - 7003 or visit the team at 1020 W Jasper Dr. Killeen, TX - 76542.