My relative in china has $50K cash. I do not have any cash, but I can get a loan.
We want to co-investment a house something like $220K.
How can we divide our owner percentage ? The total cost is based on $220k or including the interest?
One good answer:
1. if this is your first investment house, think twice, because there is no easy way back.
2. if you insist to do it. check the numbers three times.
3. if you still think you can make a killing, form a LLC.
4. you should treat 50k as 2nd note, paying interest to your friend.
5. you pay yourself a reasonable management fee for your time.
6. when you sell, split the profit as to article of incorporation. its all about negotiation.
I'd like to recommend "Dividends Don't Lie" by G. Weiss and "Dividends Still Don't Lie" by K. Wright. I read them last year and was very impressed.
Their method is to buy blue chips at discount. Dividends serve investors not only as income but also a metric for valuation.
The major argument is that dividends are announced in advance by companies and actually paid out. Unlike earning or even free cash flow, dividends do not lie.
The board members are the ones that really know how their firms are doing. They are not likely to raise dividends only to fail to deliver, especially for the long-established firms with a history of paying out.
Last, the current yield can be used against historical patterns to provide good valuation.
Why can't we all just get along? Because greed is part of human nature, and where there is greed, there will be someone who would rather make a quick buck through an easy lawsuit than actually create something of value.
Enter: landlord lawsuits, bane of our existence, and serial in nature since everyone just loves to hate landlords, under the false assumption that all landlords are miserly and rich. There are ways to minimize the incidence of these lawsuits, however, without offshore accounts or complex legal ownership structures.
You can't win a lead-based paint lawsuit. Say it with me: "I can't win a lead-based paint lawsuit." The tenants kid has a friend over, and it happens the friend has lead poisoning, they can sue you and win. The tenants shove lead-based paint chips in their own kid's mouth (don't laugh it happens), they sue you and win. With me here? It is impossible for a landlord to win a lead paint lawsuit.
That's the bad news. The good news is that there are ways to minimize the likelihood of one occurring in the first place. First of all, you MUST comply with all lead-based paint laws in your state. This probably means a lead paint inspection in between every tenant, and providing a series of lead-based paint disclosures to the tenants when they sign the lease agreement. I can tell you right now that families who like to sue prefer the easiest targets: landlords who don't follow lead-based paint laws to the letter. By showing fastidious attention to detail, you can send a strong message.
A final note: health problems from lead-based paint occur when very young children ingest the paint chips. This means that, if you have an applicant with children under six years old, you should take extra precautions to check their legal history and see if they've ever been involved in a lawsuit (particularly a lead-based paint lawsuit). Beware of serial litigators; they'll take you for all you're worth, and then some.
Landlord Lawsuit Prevention Strategy 2: Mold
I'm sorry, but toxic mold as a national health hazard is a myth. Yeah, yeah, yeah, I know toxic mold can make people sick, but genuine cases of toxic mold sickness are EXTREMELY rare.
Now for the bad news: it doesn't matter that it's not a common risk, because the public believes the fear-mongering campaigns that the media has used to score ratings. This means that you can be sued for toxic mold poisoning, and you'll probably lose.
So what can you do? Prevention, prevention, prevention, starting with choosing rental properties to purchase. Look for any evidence of water infiltration, or leaky pipes or ducts. Be aware of any water problems in the property before buying it, and make sure you correct them before signing a lease agreement. You should also consider having a mold inspection performed prior to signing the lease agreement, by a licensed toxic mold remediation firm. When you do sign the lease agreement, make sure to add a clause into it that tenants are responsible for informing the landlord or property management company immediately if they notice any signs of mold growth, to put some of the responsibility back on the tenants.
Landlord Lawsuit Prevention Strategy 3: Make It Personal
If you take nothing else away from this article, take this away: tenants are far less likely to sue landlords that they know personally. You ever hear people say "Hell, they don't have to like you" WRONG! They do have to like you, because who wants to sue someone that helps them fix their resume, or sends them Christmas cards every year? Time spent getting to know your tenants on a personal basis is time well invested, and is both the easiest and most effective method of preventing landlord lawsuits.
Being an absentee landlord is a guaranteed way to find yourself in the middle of a lawsuit. Instead, be proactive, show some initiative, because with a little effort you can prevent lawsuits before they even occur to your tenants.
haha, can one get super rich by investing RE? the answer is NO, there is only one Donal Trump, but can an average person be financially free by investing RE? the answer is difinitely yes.
compare to most people, I am not a smart person, I don't have an post graduate degree, just a average guy can easily get lost in mountain people mountain sea. but I can happily say, I am near the point of financial freedom, and for that, I think I am way better off than 95% of the people, will I get to 1%? maybe not, my goal is only 10 mil.
there is no secrets in RE investments, time consistency and scale. I believe scale is very important, it can further reduce per unit overhead, lower average management cost, increase occupancy rate, and achieve better cash flow.
today, I hold a porfolio of 9+ mil, own and manage 134 units, with 50% leverage rate, 3 full time workers, life so far, is beautiful.
2008-07-17 19:25:30
I had been involve with RE since I got out of college, it is by far the best tool to accumulate wealth that I know.
My profession by trade is ex-day trader(10 years, did make some and did lose a lot, thanks to Amzon, Lu, Exds and some others), now Fulltime Super DAD( don't pay alot but the fun is priceless ), small business owner(pays good but getting up at 9 is hardest part), part time bill collector(goto court once a week minimum go after deadbeat tenants), and the rest of my spare time, RE.
I involve with many phase of RE, from land development to construction to we all know what - LandLord, Landlording is not the easiest task, most Landlord give up after a few units, because the time and money they had to spend on it, what they don't know is there is light at the end of the tunnel, the more unit you have, less headache you have because you can then hire out, basically yes, economic of scales.
Leverage is the a important tool, but it is also the biggest barrier, Fanny Mae used to limited 10 mortgage per SS#, and now I think they lower that to 4 mortgage, so we have to do some creative financing, there got to be 100s of book on this subject, you just have to learn it and convince people and make it work for you. I am not talking about unlimited leverage, I am talking about controlled leverage, a leverage you must comfortable with, off my 7.4 mil portfolio, I personally invested less than 100k in it, the rest of money are from refi, rehab, land sale and flipping.
1. my avg per unit value at apartments 50k, duplex to 4plex at 75k, SFH range from 80k to 200k. My cost are much less than that, because more than half of them are once bank own REO, I buy them less than 50% on market value, rehab then refi at 75% and I pocket the cash. (I know, this is sub-sub-prime, and this is how the banks lose all the money)
2. my avg mortgage is less than 40k per unit, but I carry a higher interest rate ( mostly at 6.75 but some are as high as 7.875 ), to me, even 10% is cheap money if there is money to be make.
3. Property tax rate is 1.6% (120/7400), yes
4. Monthly rent avg $550 - close, some 1 bedroom unit low as $375, some SFH is high is $1750.
5. my area has a few world class orthopedic company around, so the avg appreciation is better than other area in Indiana, house under $150k still appreciated 10% last year, while overall market here is 3% to 5%. so cheaper houses has its own advantages.
6. my avg net profit per unit is about $100 per month.
[From online RE forum]
Lately, I notice many posts begin to ask questions on "Cash Flow" vs. "Appreciation", that reminded me, these were same questions raised 3 years back, when this forum first form.
This forum was separated from Home forum in 07, RE was so hot, RE investors begin to chase ultra high appreciation. Many forum members share their stories on how to make 25-50k by just signing a construction contract, and value RE investing was put aside.
There were only few members argue that high appreciation, also translate into high risk. in 08, I wrote these.
investment RE must cash flow, cash flow and cash flow
2008-07-17 19:16:19
while traditional RE is more focus at location, location and location, I think investment RE must focus on cash flow, cash flow and cash flow.
many ppl here more interest in ultra high appreciation in RE and sacrifice with negative cash flow, they need to relearn the truth of RE investing in a long term market.
RE investors need to look at how to minimize upfront cash investment, and maximize positive cash flow, providing a consistent cash income and appreciation over time, nothing beats $0 investment but with 150k cash income and 300k appreciation each year.
3 years later today, not many old forum members left, most of them came and gone, the ones the still here, are these sticking to the basics.
I know RE market is recovering in most areas, even in Indiana, my area is almost back to its all time high, but only eying on appreciation instead of true positive cash flow, can be dangerous.
I am not saying high appreciation is bad, but as an investor, market will always going up and down, one should always prepare for the worst...
[From online]
MFU complex has its goods and bads, I usually don't recommend beginner jump in a big complex without any prior experiences, one should start with SFH in decent condition, I personally did not own any MFUs till I had over 20+ SFHs, but to reach a greater scale, eventually you have to look into commercial MFUs..
here are few of the pros and cons I can think of..
Pros
1. cash flow can be very good compare to SFH, due to lower per unit cost.
2. per door maintenance is much less since they all in one location.
3. centralized office means less traveling for you or handy man.
4. Insurance cost also cheaper compare to SFH.
5. similar floor plan, similar setup, easier to manage.
Cons.
1. Higher vacancy rate due to centralized location, aka, neighbors.
2. higher cost of leverage, shorter term loan.
3. commercial loan is harder to get, or maybe near almost impossible.
4. lower quality tenants, more younger generations.
5. owner usually has to pay basic utilities as water, sewer, and trash pickup.
Because the 1099 reporting requirement was a non-health related revenue-raising provision within the health law, its repeal is paid for with a payback provision that recoups funds from people who exceed their estimated income level during the course of the year after receiving subsidies for health insurance.
The Hill: Obama Lifts 1099 Tax Reporting Burden
President Obama on Thursday signed into law a bill repealing the health care reform law's 1099 tax reporting requirement, the first provision of the Democrats' law to get the ax. The Senate passed the law, 87-12, on April 5. The Republican controlled House cleared it in March. Obama signed the bill, which was defeated several times, despite taking issue with the ways it's paid for: a "clawback" provision that goes after people who get more in health care subsidies than entitled to under the health care reform law. "Today, I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law," reads the president's signing statement (Pecquet, 4/14).
Bloomberg: Obama Signs Law Repealing Business Tax Reporting Mandate
President Barack Obama signed a bill repealing a tax-compliance mandate in last year's health care law, giving a victory to business groups that led a campaign against the requirement. The repealed provision, under which companies would have had to report more transactions to the Internal Revenue Service, was included in the law as a revenue-raising measure. It was to have taken effect in 2012 (Rubin, 4/14).
CQ HealthBeat: President Signs 1099 Repeal Into Law
President Obama on Thursday signed into law the first significant revocation of a portion of the health care law — a business tax-reporting requirement that members of both political parties disliked. Obama signed HR 4, which repeals a provision that required business and real estate owners to file a 1099 form with the IRS for every vendor to whom they paid more than $600 in a year. Business groups had lobbied hard against the provision. ... The $22 billion cost of the 1099 legislation was offset by requiring some people, if their income level increases during the year, to pay back a portion of the subsidies they receive to join health insurance exchanges created under the law (Norman, 4/14).
This is part of Kaiser Health News' Daily Report - a summary of health policy coverage from more than 300 news organizations. The full summary of the day's news can be found here and you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters and correspondents file original stories each day, which you can find on our home page.
This LEASE CANCELLATION AND TERMINATION AGREEMENT (this “Agreement”) is made by and among_________________ (the “Landlord”), on their own behalf and on behalf of all other persons or entities having an interest as landlord under that certain Lease dated __________________ ___, ________ (the “Lease”) demising certain leased premises described therein (the “Premises”), on property located at __________________, City of __________________ County of __________________, State of __________________ (the “Building”), and by _____________________ (the “Tenant”), for its own behalf and on behalf of all of its predecessors-in-interest in the Lease and all other persons or entities having an interest as tenant under the Lease.
Landlord and Tenant have agreed that the Lease shall be cancelled and terminated in consideration of the mutual covenants set forth below and in accordance with the terms and conditions set forth herein.
1. Recitals Incorporated. The foregoing recitals are incorporated herein by reference into this Agreement as though set forth at length.
2. Security Deposit. The parties acknowledge that Tenant has deposited with Landlord the amount of $__________.
3. Lease Modification. The term of the Lease shall expire and shall be deemed terminated and cancelled effective on __________________ ___, _____ (the “Expiration Date”). Except as modified herein, the Lease is unmodified and in full force and effect.
4. Lease Termination and Termination Payment. Notwithstanding the foregoing, if, on or before the Expiration Date, Tenant vacates the Premises and leaves such Premises in reasonably good condition and repair and otherwise in such condition as is required under Paragraph 6, below and under the Lease with respect to surrender of the Premises at the end of the term of such Lease, then, in such event, as of the date that Tenant so vacates the Premises (such date being the “Termination Date”), (i) the Lease shall be deemed terminated and cancelled with the same effect as if such date were the normal expiration date of the Lease; (ii) Landlord shall pay or cause to be paid to Tenant, a cash termination payment of __________________ Dollars ($__________________.00); (iii) neither party shall have any claim against the other, and each party releases the other from any and all claims, liabilities, damages or actions of any kind whatsoever arising out of or pursuant to the Lease or Tenant’s use or occupancy of the Premises; and (iv) Landlord shall return the security deposit to Tenant. Notwithstanding any provision in the Lease or in this Agreement, if for any reason Tenant fails to perform any obligation hereunder or under the Lease, including, without limitation, Tenant’s obligation to vacates the Premises and leaves such Premises in reasonably good condition and repair and otherwise in such condition as is required under Paragraph 6, below on or before the Expiration Date, then, in such event, the Prepayment shall be due and payable by Tenant to Landlord immediately.
5. Compliance with Obligations. Tenant shall be responsible for all obligations of Tenant under the Lease through and including the Termination Date, including, without limitation, Tenant’s obligation to pay monthly rent, additional rent, utility charges and all other amounts and charges owing under the Lease.
6. Condition of Premises. On or before the Termination Date, Tenant shall remove all of its trade fixtures and personal property; repair all damage to the Premises caused by such removal; vacate the Premises and leave such Premises in reasonably good, broom swept clean condition and repair and otherwise in such condition as is required under the Lease with respect to surrender of the Premises at the end of the term of such Lease; and deliver the keys to the Premises to Landlord.
7. Mutual Release. By this Agreement, effective on the Termination Date and so long as neither party shall be in default under its obligations hereunder, each party hereto releases the other party hereto from all claims, demands, damages, rights, liabilities, and causes of action of any nature whatsoever, whether at law or equity, known or unknown, suspected or unsuspected, which are related or in any manner incidental to the Lease or the Premises and which first arise out of transactions and occurrences from and after the Termination Date. Each party waives and relinquishes any right or benefit which it has or may have under applicable law regarding waiver of unknown claims to the full extent that it may lawfully waive such rights and benefits. In connection with such waiver and relinquishment, each party acknowledges that it is aware that it or its attorneys or accountants may hereafter discover facts in addition to or different from those which it now knows or believes to exist with respect to the subject matter of this Agreement or the other party hereto, but that is such parties intention hereby fully, finally, and forever to settle and release all of the claims, disputes, and differences, known or unknown, suspected or unsuspected, which now exist or may exist hereafter between each party with regard to the Lease or the Premises. This Agreement shall be and remain in effect as a full and complete release notwithstanding the discovery or existence of any such additional or different facts. Notwithstanding the foregoing to the contrary, this Mutual Release is not intended to release or offset actions by either party for claims arising as a result of (i) a breach of the Lease and occurring on or before the Termination Date, (ii) a breach of this Agreement, or (iii) transactions and occurrences on or before the Termination Date.
8. Knowing Release. In executing this Agreement, each party hereto acknowledges that they have consulted with and received the advice of counsel and that the parties have executed this Agreement after independent investigation and without fraud, duress, or undue influence.
9. Authority of Tenant. Tenant represents and warrants that (i) it is the owner and holder of the tenant’s interest in the Lease and that it has the power, right and authority to execute this Agreement and to carry out the intent hereof, (ii) the execution and delivery of this Agreement shall not violate or contravene any agreement, contract, security agreement, lease or indenture to which Tenant is a party or by which it is bound or requires the consent of any party to any of the foregoing and (iii) the Premises, including all improvements and betterments thereto, are unencumbered, free of any security interests, liens, chattel mortgages, leases, lease purchase agreements or any other security or financing devices and, all such installations have been fully paid for.
10. Attorney Fees. If any party initiates legal proceedings to enforce its rights under this Agreement, the substantially prevailing party shall be entitled to reimbursement of its reasonable attorney fees, costs, expenses and disbursements from the other parties.
11. Final and Complete Expression. This Agreement is the final and complete expression of the parties. This Agreement may not be modified, interpreted, amended, waived or revoked orally, but only by a writing signed by all of the parties hereto.
12. Severability. If any provision in this Agreement is deemed invalid, then the remaining provisions thereof will continue in full force and effect and will be construed as if the invalid provision had not been a part of this Agreement.
13. Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same document.
I am sure you have heard this saying regarding real estate deals… “some of my best deals, were the ones I didn’t do”?
The same can be said for tenants as well. “Some of your best tenants are the ones you didn’t accept.”
The problem with selecting tenants is that your selection process can’t be arbitrary or emotionally driven. Well, it shouldn’t be unless you want to find yourself at the mercy of a judge/jury.
Listen closely. For every landlord, the process of selecting a tenant is the most critical action you could take.
It is more important then location, purchase price and probably even rent amounts.
WHY???
Simple. if you choose the right tenant you will most likely get your rents on time every month, your property will be well maintained, and the neighbors will love you. If you choose the wrong tenant, well, your life will be pure hell and you will end up paying the mortgage until you can get rid of your tenant.
So… your objective is to find good qualified tenants… but as the saying goes “you have to kiss a lot of frogs to find the prince”? And, that means having to Say No to many more applicants then you accept. In fact, you find yourself accepting most applicants you are either extremely lucky or your market is a landlords utopia.
The question becomes is this: how do you Say No?
Well, actually the NO part is easy. It’s all of the reasons and justifications that become the hard part. The reason being is that when selecting a tenant the number of housing laws that come into play can be significant. From a housing prospective almost every tenant is in a protected class… and there are activists in every community that will constantly test how landlords go about accepting/declining tenants. And, if you are not doing things correctly… you will have wished you did.
There are several key elements that every landlord must adhere to when screening tenants and selecting/declining them. While the list below is by no means the complete list, it should get you started.
Screening Tenants: 8 Steps for Finding, Checking Backgrounds & Selecting Your Tenants
1. You should have a set of written criteria that every applicant must meet to be accepted. These criteria might include verifiable income 3 times the amount of the rent, or a credit score of 6oo or above, or never been evicted or been in rent court. You get to determine your criteria (within the bounds of local/state/federal laws) and once you have them apply them consistently.
2. You need a formal application process that includes an application that is completed by the prospective tenant. Important information to include: personal information (name, current address, SSN), to name a few) for everyone over 18 years old who will be living in your property. Current and last two landlords. Current and last two employers. Next of kin, vehicle(make, model, license number)., etc.
3. Charge an application fee. Be sure to know what your local laws are regarding application fees. Some location allow them as long as they are reasonable and most will allow you keep these fees if the tenant is turned down. The application and the fee to submit an application is the first hurdle a tenant must get over… if they don’t make that first hurdle they have taken themselves out of the running. Also, our application specifically states that the application must be completed in its entirety and if it isn’t the prospective tenant will not be considered.
4. Get permission via a separate document to pull a credit report… and then do it every time. The importance of a credit report cannot be overstated. The obvious purpose of a credit report is to determine the credit worthiness of prospective tenants. However, in today’s climate with so many new renters coming into the market due to foreclosures, the chances of them having high credit scores are slim. But, the two things a credit report will quickly help you to assess is… do the SSNs and street addresses match and are there utility judgments against the prospective tenant. The SSN and street address mis-match is a great way to catch someone trying to hide something and of course if there are utility judgments you should be concerned whose name will the utilities be in once the tenant moves in.
5. Get permission to contact current and past landlords… and do it. You would be surprised at the number of tenants looking for a new place to live… right now, that haven’t notified their current landlord of their intent to move. Do you think they will treat you any differently once you become their landlord? Don’t count on it!
6. Get permission to contact current employer(s). You will find that both current landlords and employers don’t want to answer open ended questions. It is best to develop a form that can be provided to these parties that ask direct questions that when answered will provide you with the information needed to make informed selection decisions.
7. Visit prospective tenants in their current home. While I know this could be a logistic nightmare… whenever we did this and we selected the tenant based on this visit and of course the other criteria, we always had a very profitable outcome. Just consider… you show up at the prospective tenants current home with one last piece of paper to sign and you walk into a full-blown over-the-top party in progress. It that the kind of tenant you want in your property?
8. When you finally get around to saying NO… always do it in writing. Make sure that you provide the reasons for declining this tenant, whether it was income, your site visit, landlord input, etc. If the reason had anything to do with the information on their credit report you must identify what agencies you used. The key to the tenant selection process and in making the determination to say no… is that you must be consistent. You cannot let your emotions factor into you decisions… and if you develop and consistently use robust criteria you will never have to deal with tenants who become your worst nightmare.
Remember that if you are doing your job correctly you will be declining many more tenants then selecting… so do it right!
Congress is moving on a relatively fast track to repeal the onerous 1099 reporting requirements enacted in the healthcare reform legislation. Repeal is a priority for NAA/NMHC. Present law requires that businesses remit a Form 1099 only when they purchase more than $600 of services, not goods, and only from unincorporated entities. Under the healthcare legislation, beginning in 2012, businesses would have to file 1099s for $600 or more for both goods and services and to incorporated and unincorporated entities.
On Feb. 17, the Senate approved the FAA reauthorization bill (S 223) that includes a provision repealing the health care law's 1099 requirements. Also on Feb. 17, the House Ways and Means committee passed two 1099 bills. The first (HR 4) would repeal the 1099 requirements enacted in the health care legislation.
The second measure (HR 705) would repeal the health care provisions as well as separate changes enacted last year under a small business law (PL 111-240). Those changes went into effect in 2011 and require passive real estate owners to comply with all present-law 1099 requirements.
While Obama initially called for repeal in his State of the Union speech, his FY 2012 budget proposal actually retains the requirement that 1099s be issued for all services purchased in excess of $600 from both unincorporated entities and corporations. It would simply eliminate the need to issue a 1099 for goods purchased in excess of $600.
Question:
We haired a roofing company(Licensed) changed roof for our house(investment property). If we do not need to file 1099, how to claim the tax? Should we ask for their tax ID?
Answers:
My accountant said: "For corp, ask for W-9. If Home Depot that's obvious enough.
1099 for everybody else over $600."
For 2010, only for services, not goods purchased
my accountant said, most likely that IRS 2011 decision will be repealed...
the new requirement for 2011, you must issue a 1099 to all vendors, for goods and services over value of $600, including LLC/LLP, but S-corp and C-corp are exampted..
the house and senate are both try to repeal the IRS requirement as we speak.
unless the repair bill is less than $600, otherwise you need to issue a 1099, thus, you need their SS# or EIN.
further, whether you can claim as expense or must depreciate over life the property, here is what IRS said..
How Do You Treat Repairs and Improvements?
If you improve depreciable property, you must treat the improvement as separate depreciable property. Improvement means an addition to or partial replacement of property that adds to its value, appreciably lengthens the time you can use it, or adapts it to a different use.
You generally deduct the cost of repairing business property in the same way as any other business expense. However, if a repair or replacement increases the value of your property, makes it more useful, or lengthens its life, you must treat it as an improvement and depreciate it.
Example.
You repair a small section on one corner of the roof of a rental house. You deduct the cost of the repair as a rental expense. However, if you completely replace the roof, the new roof is an improvement because it increases the value and lengthens the life of the property. You depreciate the cost of the new roof.
If no response may mean that that price you ask for is too high.Lower it gradually in $30 to $50 increments. Once you find the sweet spot, there will be lots of responses.
Title is very important:
Example:
newly renovated 3 bedrooms convenient to all ONE MONTH FREE 1000/month
4.875%, no point, cashed out 80% equity. They keep loans in house so they can offer better deals than others. I think you should check your local banks.
After one year, you can cash out refinance your property at it's market value, regular loan, not line credit. General conditions: you have a steady job, credit score>790, the income/debt ratio is <35-40 (depending on state), your property is at fair condition and is rent out and you have less 4 loans (in my state).Not easy process, but it can be done. You need to persistently talk to local small banks.
Another one:
I just did one @ Amtrust, took two months
if you bought the home or properties in 2010, you may be able to deduct more property taxes than you think. Don’t forget to include any taxes you may have reimbursed the seller for. These are taxes the seller had already paid before you took ownership. You won't get a 1098 report listing these taxes. Instead, that amount will be shown on the HUD settlement statement.
Q: How about 20 Year 500K Term life @ $280? 36 Year Old and Healthy.
A 1: Try to get a quote from American General for preferred plus rate. I heard they are very reasonable. A 2: Pretty Good: 0.5m, 15yrs term at my age of 35yrs old, I paid 270/year.. so yours is pretty good... A 3: Your insurance premium is good, but your coverage is a bit too low. When you are young, it's cheap to buy term life insurance. If you have kids, I think you should buy $1m.
I use a combination of:
www.rentometer.com
www.rentjungle.com
and
www.craigslist.com
to get a handle on what I should be charging for rent. The process is practically identical to the analysis you may have done when you first acquired the property.
Rent Prices Jump 11.6% in 2010, Home Prices Slide 9.8%
Washington, DC. - January 6, 2011 - Rental prices across the US increased 11.6% in 2010, growing from a national average of $1181 in January 2010 to $1319 by December. The steady increase in rental prices was inversely matched by falling prices of homes for sale, which saw a 9.8% drop over the same period.
The rental price increase is a factor of uncertainty in the US economic climate, which has forced a transition from a home buying mentality to one more in favor of renting. The growing number of homes lost to foreclosure in 2010 expanded the number of people seeking to rent, creating a renter surplus.
Further, with the US unemployment rate over 9% throughout 2010 (up from 4% in 2006), low risk housing options became more desirable, a trend which may continue in the coming months.
At the same time, HotPads expects to see foreclosed and long standing for sale properties re-enter the market as rentals, which should expand the rental supply, thereby helping ease rent prices. This represents an interesting contrast to the peak of the housing market in 2006, when rental units were being converted into for-sale condos.
The 2010 national rental market data is calculated from a sample of one million concurrently active rental prices on HotPads and the for sale data is calculated from a sample size of 3.9 million prices. These are averages of each state's monthly median price weighted by the number of listings in that state.
"Christian Hill (not centerville but christian hill it's the top part of centerville), Belevidere (I could never spell that section), upper highlands. these are all good areas to live. "
"pawtucketville or belvidere are both good neighborhoods"
"I've lived in Lowell my whole life and have never had any problems with crime! The best areas to live in Lowell are Pawtucketville, Belvidere, Upper Highlands and the downtown area. "
