Purchasing Investment Property: Help Ensure Profits with These 3 Home Features

Any seasoned investor will tell you that if you have a solid plan, you can turn a good profit on your investment. And when it comes to investing in Real Estate, one of the key factors that leads to success is choosing the right property. If you want to turn a profit, here are the three home features you should be looking for in an investment property:   Location, Location, Location This is a lot more important than you may think. An investment property’s location is critical to figuring out how much you can profit from it AND how long you can keep tenants there (or how often you can keep if booked if you are using it as a short-term rental). Remember that you can polish any property to look appealing, but you can’t move it to a better location. So, when considering an investment property, make sure it’s in a good location. A helpful way to determine if a location is good or not for an investment property is to understand that investments with high cash flow usually share similar characteristics. They are usually found in areas with good schools, nearby amenities and attractions like parks, movie theaters, beach accesses and shopping. It’s also important to note what the access to the property is like, those on well-kept streets do better than those on unfinished or non-maintained roads.   Marketability Another thing to consider is what the average rental rates in the area are and how frequently are nearby properties rented. You need to be able to cover your operating costs, and if charging the average rental rate isn’t going to do that, then your investment will not be successful.  How often are other properties in the area rented? Here along the Emerald Coast, seasonal rentals are very common, but are those seasonal rentals booked throughout the season? If the vacancy level in the area is high, then it’s possible that the average rent is too high, or people aren’t as interested to stay there anymore. Whereas if the vacancies are low, you know people want to be there and you can charge a little higher rent to meet the demand.   Trending Floor Plans As mentioned before with location, you can change up a lot in a property to make it to your or the general public's liking, but something besides location you can’t really change is the floor plan. Since you will be competing with other investment properties, it’s important to choose one with a floor plan that is more modern and functional. A way to figure out what types of floor plans are in higher demand is to look at what’s trending. When you have a modern and functional floor plan, it will be much easier to keep the property booked. The bottome line is, good investors know that it’s important to choose a property that will turn a profit. And smart investors know that using a local and experienced Real Estate agent will help them find an investment property that meets all three of the above home features and more.The real estate market is always changing. New neighborhoods are being developed, rental and vacancy rates fluctuate, and trends can spring up or die out overnight. If you’re thinking of purchasing an investment property, contact us today! We would love to help!

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Mortgage Tips: What's a HELOC?

When homeowners have built up equity in their homes, they can use that equity to get a Home Equity Line of Credit (HELOC). This is a great tool that can help you accomplish a lot of financial goals. Below are a few ways homeowners can use a HELOC:   Merge Existing DebtsDifferent kinds of debt such as credit cards or other types of loans can be expensive, unless of course you are fortunate and have no-interest loans. If that’s not the case, then you can consolidate your existing debt into a HELOC which is a secured debt making it much more affordable.Keep in mind, this only works if you stop adding to the debt. The idea is to use the HELOC to get rid of some of your debt quickly.   Emergency FundsAlthough no one plans get into credit debt, things happen like emergency repairs for your home, loss of a job, or other types of unexpected events that can create unwanted debt. A HELOC gives homeowners an option to use it as an Emergency Fund. If one of these unexpected emergencies come up, you can use that HELOC as a cost effective source of funds.   Elective but Effective Home RepairsIt’s true that some home repairs add value to your property, but they can cost a pretty penny. That would be where a HELOC would come in as an additional source of funds. Since these types of repairs are adding value back to your home, you can make good use of your equity by using the HELOC to fund those repairs. Note that for this to work correctly, you should only do repairs that will add "market value" to your home. With the repair costs coming from your equity, you should be able to make that money back if and when you choose to sell.   Investment FundsAnother way to use the funds from a HELOC is to invest. Now keep in mind, this option poses more risks since the loan gets paid no matter how successful the investment is, but if you have never invested before it gives you an opportunity to start.Retirees can also use a HELOC to help with retirement income if their investments are struggling. This solution would only be temporary until those investments could recover, but for someone on a fixed income this option could be very helpful.   As you can see, a HELOC can be a great tool that lets homeowners use their equity when they need it. If you have spent the time building up that equity, you shouldn’t have to worry about using it since it can help you with your financial goals. Are you thinking about tapping into your home equity? Talk to your mortgage provider to find out what options would be best for you. And when you are ready to use that HELOC to prep your house to sell, or to invest in property, Contact Us! We would love to help you on your real estate journey.*Please note that we are not mortgage brokers or lenders, and these tips are based on our experience as Real Estate Agents working with and talking to local lenders as well as borrowers. Make sure to consult with your chosen lender or mortgage broker to confirm the best ways for you to use a HELOC.

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Mortgage Tips: How to Get Pre-Approved Fast

When it comes to buying a house in a Seller’s Market, buyers need to move quickly. Sellers aren’t going to wait for you to get your ducks in a row before they move on to the next interested party. So it’s important that you have your financing figured out before you start seriously looking at property. If you will be getting a mortgage, here are some helpful tips to get pre-approved fast. 1: Figure Out the CostsWhen buying a property, you need to understand your target price range. It’s also important to tell your lender how much money you want to use for your down payment. Doing this will help speed up the process of gaining the pre-approval.   2: How’s Your Credit?Before a lender gives you a pre-approval, they will want to check your credit. Best practice for a buyer is to already have an idea of what your credit score looks like. If you know you need to make improvements, ask your lender what you can do. They know what looks strong on a credit report and can tell you what changes will help to increase that score more quickly. Having this information about your credit also helps you not be surprised with your mortgage offer. Remember that better credit = better mortgage terms.   3: Have Your Paperwork ReadyAsk your lender for a list of whatever paperwork they will need during the approval process so you can deliver it to them with your pre-approval application. If they have to ask you for anything during the process, you will more than likely face delays.   4: Be Clear with the LenderWhen you are proactive and bring the lender everything they have asked for in an organized way, they should be able to pre-approve you rather quickly. Keep in mind this would not be the case if a buyer has complications such as bad credit, or unusual employment structures, however the lender should still be able to give you an answer in a few days despite any complex situations.     As you can see, having a pre-approval from a financial institution is a buyer’s must have tool when negotiating offers. You can get approval fast if you do your homework and a little bit of preparation. When you have a pre-approval, your chances for successfully making an offer go up significantly even in a competitive market. Are you ready to talk to a lender now? We would be happy to share a list of lenders who would be able to help you. Contact Us and we can send you the list.   *Please note that we are not mortgage brokers or lenders, and these tips are based on our experience as Real Estate Agents working with and talking to local lenders as well as borrowers. Make sure to consult with your chosen lender or mortgage broker to confirm the best ways for you to get pre-approval fast.

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