Below is some pretty decent advise from the Wall Street Journal regarding investing in real estate called "Are You Ready to be a Landlord". I think here in Tracy its a perfect time to become a landlord. We are renting properites within a month of selling them. I offer full service property managment services as well as contractors who can get repairs done in a quick turn around time.

The goal for my clients is I want to see them get a house that's ideal for rental as well as for resale. As I am going to most likely be the property manager as well as the selling agent, its a big motivation. But the problem can be the ideal rental (which is also ideal entry level home for owner occupied) is not a secret to other buyers and they tend to attract many offers from every type of buyer. Its common even with cash to have to make 5 offers before getting one.



Call us we can discuss your next investment.

209-833-7777


Below are some highlights:

  • For the week ending Nov. 10, the average rate on a 30-year fixed-rate loan was 3.99%, not far from the Oct. 6 record low of 3.94%, according to Freddie Mac data going back to 1971.

 

  • The average monthly rent for all categories, including apartments and single-family homes, was $846 nationwide in the third quarter, up 2.5% from the same period a year earlier.
  • Government officials have been soliciting ideas for how to convert some of the foreclosed homes owned by Fannie Mae and Freddie Mac into rental.
  •  A good rule of thumb: Make a deal only if you can collect at least 1.25% of the purchase price each year in rental income. For Tracy we are looking at $1600-1850 per month for an investment of 200K-250K, which would be 9.6% to the 200k home and 8.88% for the 250K home.

 

  • When looking at properties, act like a renter, says Jeff Cronrod, president of the Boulder, Colo.-based American Apartment Owners Association. Tour the neighborhood to see if landlords seem desperate to lure tenants. Are there lots of vacancies? Are buildings offering deals like living rent free for a couple of months in order to drive up demand? If so, be wary, Mr. Cronrod says.

 

  • To ensure that a major repair doesn't break you, set aside at least six months' worth of expected rent, he says.







"The Boss"