Should You Buy A Rental Property?

Buying a rental property is often one of the best things that first time home owners can do. They will often live in one of the units, and rent out the other units of the home. There’s many things to consider before you buy a rental property. Here, we’ll break down the good and the bad of being a landlord and owning your very own rental property. We’ll also show you the steps that you should take before you sign on the dotted lines.

Gather As Much Information As You Can

Before you make the decision to become a landlord, gather as much information as you can. Talk to people who are landlords and who own rental properties. See how people feel about living in their own rental properties. You can also read and research as much as you can on the topic for a broad perspective.

Consider If You’re Ready To Be A Landlord

There’s so many things to consider when it comes to buying a rental property. One of the biggest things to think about is if you truly are ready to become a landlord. There’s a lot of responsibility in being a landlord. Also, you’ll need to be prepared to deal with tenants and various problems that may come up with the property. Before you make the leap to becoming a landlord, think long and hard about how you’ll handle the responsibility and time commitment.

Make Sure You Have Plenty Of Cash On Hand

To purchase a rental property, you’ll need to secure a sizable downpayment for the mortgage. It’s also important that you have a reserve of cash ready for repairs that may need to be done around the building before it can be rented out. You’ll most likely need to spend some money first before you start making money on your rental property.

Decide If You Want To Live On The Property

For first-time homebuyers, purchasing a rental property and living in it can be a great decision. You’ll save on your monthly mortgage all while building your own capital. While you don’t always have to live on site when purchasing a rental property, it’s a great financial option to consider.

Think About Hands-On Management

While you may decide to pay someone to manage your rental property, you may need to deal with all aspects of your property yourself at first. Part of the job will include dealing with tenants as well as scheduling and assessing repairs. You should estimate that about ten percent of the rent that is collected will go towards these purposes. As a landlord, you’ll also need to be sure that the tenants you house are dependable and that the building is in the best shape it can be in.

 

Boost Your Attic’s Efficiency

Did you know your home could lose heat due to a poorly insulated attic? That’s right, and home sellers who want to maximize the value of their residence will want to improve their attic’s insulation immediately.

You should try to air-seal the attic to minimize your home’s energy loss consistently. However, there are several questions you’ll need to consider before you add attic insulation, including:

1. How much insulation will I need?

Ideally, you’ll want your attic insulation to be above the floor joists. And if you notice your attic insulation sets below or at the floor joists, you may need extra insulation to boost your home’s efficiency.

Furthermore, you’ll want to ensure that insulation is evenly distributed across your attic. That way, you’ll be able to avoid low spots, aka areas where energy loss becomes more likely to occur.

2. What kind of insulation should I install?

Just because there is certain type of insulation already installed in your attic does not mean that you have to use this same kind of insulation in the future. In fact, there are many insulation options at your disposal, providing you with plenty of flexibility to find insulation that fulfills your home energy needs and budget.

Some of the most common types of attic insulation include:

• Fiberglass – Fiberglass batts and rolls can be applied to unfinished walls, along with floors and ceilings.
• Foam board – This type of insulation is valuable for unvented low-slope roofs and offers a high insulating value.
• Blown-in – Perfect for unfinished attic floors, blown-in insulation is installed using special equipment and works well in irregularly shaped areas.

Meeting with an attic insulation expert may prove to be valuable, as this professional can offer insights to ensure you can find the right insulation at any time. Therefore, you’ll be able to rely on this insulation professional to complete your attic insulation project quickly and efficiently.

3. How much will it cost to add insulation?

Adding insulation to your attic can become expensive, particularly for those who choose top-of-the-line insulation installed by insulation professionals.

For many home sellers, it helps to budget accordingly when determining how much to spend on attic insulation improvements. Although you likely want to improve your home’s efficiency, it is important to avoid the risk of overspending. And if necessary, you may want to consider lowering the asking price of your home rather than performing comprehensive attic insulation improvements that may provide only a limited return on investment (ROI).

When in doubt, meeting with a real estate agent can help you determine which home improvement projects are paramount. This professional will work with you to accentuate the positive of your home to prospective homebuyers, and ultimately, ensure that you can boost your chances of a quick home sale.

Attic insulation improvements serve as one of many ways that you can work toward enhancing the value of your home. And after you complete various attic insulation improvement tasks, you’ll be better equipped to help your residence stand out from others in a highly competitive real estate market.

Finding the Best Place to Live

As they say real estate is about 3 things: location, location, location.  Finding the perfect city, town, or village to live can be difficult especially if you have a family to take care after. If you are still midst-career and not looking to retire you probably want to live close to work (maybe not too close) , family, and to what is important for you to live in town.

The first tip is simple, you can use sites such as city-data.com to find out more about the area.  City websites with a .gov domain can provide a lot of insight, but don’t forget to do a simple google search or look at the Wikipedia page of that place when they are available.  You can find out just about anything these days:  population, school systems, cost of the average house, and even average city income of the residents.  Most of this information is available thanks to the census of course, so this is a great time to do research as the information was last collected in 2010 as part of a 10 year cycle.

Google maps has a great feature called my places.  Other maps offer similar features if you prefer another, but essentially what you do is create your own map.  There is a link to take an interactive tour underneath the big red create map button if you need help.  It is a very well made tour.  After all of your important locations are marked and labeled you can zoom out a bit and see all of the locations clearly.  There are certain exceptions such as highway access, but somewhere in the middle is generally a good place to start looking.  Combine this with the town information you can find and suddenly you are well on your way to being an expert on the area.  You can even generate driving directions and estimates to and from each location. This is great news of course, because the more you know, the better your decision will be.