Welcome back! This week’s buying rental property part 2, we will cover some information about the property purchases. Our first blog covered some of the things to consider before investing. Before you buy you need to know a bit about the property! Personally, I use a checklist of things to check before investing, ensuring I don’t miss any important details. There are a ton of State and Federal laws that govern real estate investment and properties. Without making it a point, your Realtor is a vital resource and will keep you from a potential hazardous deal! If you aren’t working with a real estate agent, be incredibly careful when looking at investment properties. It really is a field where we earn our commission!
Looking for the “deal.” For the most part, you get what you pay for when buying rental property! “Deals” don’t typically exist and there are many variations of properties that increase (or decrease) the value! Lets just create a small example: You purchase a new rental that was built 40 years ago. Good price, nice area, its a pretty good deal and your excited to start making money! A home built in the 70’s, will not be up to current code and you will need to make some adjustments! You need an inspection, peep holes in the front door, a dead bolt, reinforced front and back doors, etc. The above needed repairs are almost never updated and will cost around a thousand dollars. And that is just a simple home! Buying rental property isn’t a horror story, but you need to know some of the repairs/upgrades you will need to add to the property! You can email me for a list of things to check as well!
More detail repairs. Most rental properties that you will look at need some form of repairs. Because of the competitiveness of the current market, it will be hard to get the seller to pay for any needed repairs! When you’re doing a home walk through, take note of potential repairs you will need to make. Does the home need a new water heater? Are the appliances very dated? Will the walls need repainted? Knowing the general costs to install typical appliances will help you stay out of trouble when buying rental property!
Don’t forget about your taxes! We all love paying property taxes every year! When looking at different rental properties make sure you check the property tax costs! While typically not unreasonable, sometimes the taxes will need to be reevaluated, and your home owners insurance will change rates depending on taxed value! The property tax will be included with your real estate packet, and if your on your own you can request one.
Most of the things you need to check for a rental property purchase are experience based. Make sure your Realtor is experienced with real estate investment, and they will take care of all the reporting and “checks!”
Most outsiders wouldn’t consider Post Falls a “vacation” town. Geographically, it is located between Coeur d’Alene and Spokane and is typically considered a bedroom community. In less then 15 minutes you could be in Coeur d’Alene with the downtown bar scene, or watching an IMAX movie in River Park Square! Truth is your not going to stop in Post Falls for a weekend, but if you skip it altogether you will be greatly missing out. There are several amazing places to stop in Post Falls and you won’t want to skip it! The Spokane River dam (and where Post Falls gets it’s name) is an incredible site! Pictures never do rushing water justice, and its certainly true here! A short trip out from Post Falls proper is Falls Park. Surrounded by green forests and great places to each lunch or dinner, its a great stop for outdoors loving folks. It’s almost hidden gem status and the park is never stuffed with people. Truly a must stop!
Post Falls also has an excellent golf course in The Highlands! Often a venue for parties, weddings, the course features and excellent restaurant and pleasant, relaxed atmosphere. The golf pros keep their shop stocked with fantastic new products and it really is a friendly course to visit! If you love golfing and enjoy the North Idaho outdoors, make sure and mark this one down on your card.
Indépendant breweries and distilleries are really exploding in the United States, and it’s especially true here in Post Falls! In the past few years, half a dozen brewers have opened up small bistros where you can get great food, beer, and conversation! Of special note is Up North Distillery! They make fantastic whiskey and really strive to create an “underground” feel to the distillery. The food is amazing and you won’t be disappointed! We also have Selkirk Abbey and BiPlane Brewery offering fantastic ales to round out your slightly drunken trip through Post Falls! While not a vacation hotspot, there’s more then enough to do for a day! Whether your into relaxing in a spa, or enjoying the great outdoors, give the restaurants in Post Falls a shot! You will be glad you stopped in, even if you’re on your way someplace else!
Buying investment property is one of the most secure investments available. At CDA Real Estate Investment & Property Management we strive to provide our clients with the latest and best information available. The rental market (and in turn, investment) is exploding all around Coeur d’Alene! Our rents across the board have increased at least 15% making a great investment market! The market (as a whole) is rapidly trending upwards as mortgage rates stay low, and more renters move to the area. There won’t be a better market to buy in to, as geographical reports indicate Coeur d’Alene is ready for extreme growth.
Have you Considered Buying Investment Property?
Many people have questions about investing, and never take the time to ask! How much does a house cost? How much money do I need down? How do I manage my renters? These kinds of questions all have easy answers. The most important thing to understand is how easy it is to purchase an investment property! The delays/uncertainty/fear shouldn’t stop you from missing a great investment opportunity! Real estate is one of the most secure expenditures of investment money available. While all investments carry risk, real estate investing provides a steady almost risk free way to build wealth. In Coeur d’Alene our market is increasing on a steady value curve, generating at least 4% YoY and that number is climbing. I have owned rental property for years and have never seen anything like it! If you are considering buying property, briefly consider:
Asking a Investment Realtor for help. I am one of the best agent investors in Coeur d’Alene. By owning a property management company, it allows me to see a different and unique side of real estate most agents miss out on! I can show you how profitable buying investment property can be by showing you my own properties!
Do some Research. The internet is chock full of helpful resources for buying investment property. Most (not all!) of the investment guides you read can provide practical information about down payments, typical rents, and value curves. When you get more prepared to invest, we can get specific data on available rental houses. Some self research will help familiarize you with the purchasing processes.
Don’t be afraid. The big one! Tons of people consider buying investment property, but never take that next step! Don’t be scared, you have an advocate that will help walk you through the process! In the following weeks we will go over specific information about buying investment property. If you have any questions, please feel free to email me! I’m always available and love helping investors make money!
Thinking about buying rental property? I’ve found that most people look to real estate investing as something to do “in the future, when we aren’t poor” or “a nice dream but not really practical.”
In actually, mortgage rates have been low enough in recent years that almost anyone could start looking towards real estate investing. Lower mortgage rates, and higher rental rates typically signal a good time to buy! I have found a couple helpful tips when you are considering buying rental property.
Find a trusted agent. Not all real estate agents are created equal! Just like in any other field, Realtors often focus on different fields of real estate. You want to make sure and work with an experienced Investment Realtor. Starting off with an expert will help you learn more about buying rental property and you can avoid common mistakes that will cost you more money. An investment Realtor can also connect you with a reputed property manager and help you find quality renters. Trust me, don’t skip this step! Feel free to ask me any questions as well, I have done tons of investment deals and come highly recommended. You can email me here.
Expect the unexpected. When looking into buying rental property, you can’t be prepared enough for the unexpected. Repairs, problems, and emergencies never happen on weekdays! Most issues that come up will be resolved by your property manager (as long as you hire one) but if your self managing, be prepared for a few inconvenient problems!
Finding good tenants is the secret to property management success. It can’t be stated enough! If you have a high quality family in your home, your real estate investment will be a dream! Your Realtor, and the local property managers will be able to help you find a great tenant. Just avoid any potential problem tenants, they are more trouble then their worth!
Being a Landlord is not for the faint of heart. I’m going to be really honest here. Real Estate investment and property management are not for people scared of bad hours or risk. It takes a lot of gumption to manage your rental home, however the profit potential and property value increases make it worth it! I personally have yet to lose money on a property deal, and this rings true for my clients as well.
In following weeks we will add to this series, since knowledge is power. While your thinking of investing continue to do your research, and when you’re ready to take the next step give me a call!
We’re getting closer to summer time and everyone wants to come stay out on the lake! Vacation rentals are big business here in Coeur d’Alene and as we get nearer to warm weather it gets harder to find the right vacation spot! Here are a few helpful tips to make sure you get a great place to stay!
DON’T WAIT. Most vacationers think we jack up the price closer to the season start! Truth is, we have people book so early the price never has a chance to increase! By waiting you just risk losing the perfect vacation home!
Check with the Rental Company. Sometimes when we acquire a new vacation rental, we are able to rent it before posting it to our website or VRBO! Give us a call to check if we have any unlisted properties available!
Ask about off weeks. We get a lot of phone calls. One of the less commonly asked questions is about when we’re NOT busy! Feel free to ask about potentially available weeks that might be close to the season start-end dates. We might be able to sneak you in!
Check in monthly. If you really want a property, sometimes bookings get canceled! Before you give up hope and re-book, wait a month and call us again. While cancelations aren’t common, they do happen from time to time!
Be willing to take advice. I often get calls from people for a very specific property. When it isn’t available, its likely I have something else in the same area or condition! Don’t be afraid to take our advice. We want you to enjoy your stay and give us great reviews!
We wouldn’t steer you wrong! In season it’s impossible to find any available vacation rentals but with some careful planning you might just end up in the perfect spot!