Buy or Sell Homes in South East Valley of Arizona

In our  East Valley Real Estate Investor  article, we talk about a fictional man named Carl who has owned four homes since 1999. The homes were built in the 1970’s and the mortgage on each home is $650. Carl charges tenants $750 per month, well below the $1300-1800 market rate for rental homes in the area. When the air conditioner in one home needs to be replaced, Carl has no choice but to finance it. This creates more debt on what should be a cash flow investment. He is in a real bind and his family is asking him if it is time to sell the investment property. While fictional, this scenario represents a lot of investors who haven’t managed their properties and end up in a different financial position than they had likely intended. When is it time to sell the investment property? The reality for Carl is that it may make sense to sell at least one of the four homes. Because the homes have not been renovated, he may not get market rate on the sale but will still likely have...

Becoming a  real estate investor in the East Valley , or anywhere else, is a big step toward the financial future you desire and as such shouldn’t be taken lightly. Mixed with a traditional retirement plan, real estate offers returns and monthly income that you can access long before you’re eligible to dip into your 401k. Keep in mind it’s a lot more complicated than buying a house, renting it, and collecting income. It takes identifying a clear goal, having a plan for the properties, and a willingness to bend with change. What is a real estate investor? If you have the financial ability to buy a second home, fix it up, and rent it, you may be a real estate investor. Determining whether or not you can afford to become an investor happens when you work with a real estate professional like me, Elaine Beery of Beery Realty, and our team of trusted lenders, to understand if you’re able to qualify for a loan, the loan amount, and loan programs to fit your needs. If you’re a seaso...

Lately many of the folks I come across are thinking of and acting on having a couple of rental homes as a second source of income to their retirement income. Does that sound like you—well know you are not alone. A Harvard University recently published a report of the rental market in the United States . This study included rental-market trends over the last decade and predictions for the next ten years. One of the most surprising facts from the study is that renting a home has become a more common option for almost all types of Americans. These are some of the results found in the report: The number of renters increased for people with all levels of household incomes.  The number of renters increased for single people, couples, and parents with children.  The number of single-family houses that have been converted to rental units also increased.  Rising Rent Costs in Most Cities  This housing study also looked at America's largest rental markets. Three ou...

As an investor, I understand the stress and reward of having rental properties. They make a great investment, especially for retirement planning, but they also cost money in maintenance. Often I am asked by investor clients, “When is it time to sell my rental property?” Here are some guidelines: Costs . Being a real estate investor is like being a business owner and you have to know your numbers. What is the rental home actually costing you? If the mortgage is $1,000/month and the renters are paying $1200/month, is that enough to cover taxes, pool maintenance, landscaping, HOA dues and other expenses? If the answer is no, it might be time to raise the rent if the market will allow or sell the home.   Market Shifts . In the Phoenix market, it is estimated that we will see a shift from a seller’s market to a buyer’s market in 2016. That means prices of homes will go down. If your rental property is paid off or you have a low mortgage compared to current market value, you m...