What to do if your rent does not cover other expenses

When renting out properties one thing that can happen is the rents don't cover the monthly expenses of a property. One reason this can happen is if taxes go up or if the cost to heat the home or other bills go up. One thing you can do if the rents don't cover the monthly expenses is raise the rents. When renting out a property it is important that your lease is not to long, one or two years at the most. The reason for this is if your monthly expense goes up and you have a long lease on all the places you're renting out, you will not be able to raise rents for a long time.

Another thing you can do if the rents don't cover the monthly expenses of a property you are renting out is try to save on the bills you are responsible for. If you can instill a more efficient boiler this can be an upfront expense but can save your money in the long run. One other thing you can do when it comes to saving on the bills is getting new shower heads and toilets that use less water. Doing this can save you money in the long run.

One last thing you can do if the rents don't cover the monthly expenses of a property is try to find cheaper services then you have. If you think you can get cheaper gas or oil to heat the property, switching companies can save you money. Sometimes if you switch companies you may get the same or even better services than you have before. Before switching gas or oil companies it is recommended that you do some research to know what you're getting in to. Raising rents should be a last result because you can end up losing a good person or family you were renting out to for years. If you find a way to cut cost on a monthly basis, this can help you if you have a property that the monthly expense is not covered by the rent.

A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. Another article witch is also recommended is Bringing A Former REO Property Up To Date Thank you and enjoy.
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A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. You can also Add This Article to your web site or blog. Thank you and enjoy.

Real Estate Investing

If you're just getting into real estate investing, chances are you are looking at two basic options for mid-range residential property. You can either own the property indefinitely and rent it out at a profit or you can own the property for a short period of time, fix it up, and sell it for a profit. While both can be great approaches to real estate, some properties are not equally suitable for both.
Renting It Out: Renting out your property can be a huge moneymaker, but not for every property. For instance, if you have just bought a property that is in serious disrepair, you may not want to rent it out. It might be better to fix it up and sell it, because nobody wants to rent a property that is in serious disrepair. Furthermore, if you fix it up and then try to rent it, you now have to recover the initial payment on the property as well as the cost of renovation. That can take awhile, and can be recovered faster by selling the property.
Likewise, if you have just bought an expensive property which is in great shape, you may be better served to make some market-specific improvements and sell the property. People who can afford to rent expensive residential property are probably not looking to rent; they're looking to buy.
Finally, consider the area the property is in. Is it in a transitional area, where people tend to stay for five years or less and move on? If so, renting it out can be extremely profitable. Do something with the property to set it apart from the average property in the market and then list it at 120% of the market value, trumpeting the aspect of the property that sets it apart. In a market where everyone is stuck renting basically the same property, a little bit of color or flair can add a lot of value to a property.
Fixing and Flipping: The key to the fix it and flip it philosophy is to renovate the property to the extent that it is now marketable to a wealthier buyer without spending so much in the renovation process that the increase in value is negligible. This can be more difficult than it seems. First, major renovations can sometimes snowball out of control. What started as a $30,000 project can turn into a $60,000 project before you even know what hit you. Second, you need to know your market very well. You need to know that by investing $30,000 in the renovation of a property you can turn around and sell that property for (significantly) more than $30,000 more than you paid for it. This can be risky.
However, if you are confident that you know your market and can keep the renovation project under control, fixing and flipping a property can involve much less risk. Because you can make your money back in a shorter period of time than renting the property, unforeseen changes in the market are less likely to cause you problems. A faster turnaround should make for higher profits in the long run.
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Visit Automated Homefinder for all of your Boulder real estate needs.

Making money from foreclosures

We seem to hear so much about foreclosures these days, most of us know at least one person who has had their house foreclosed on. Drive into almost any neighborhood and you will find at least one foreclosure sign.
It's no wonder really, most Americans spend what they make and more. We want it all, we max out our credit cards and sign up for so many payment plans till we can barely see straight. We struggle to make ends meet and then disaster strikes, divorce, we lose our job, or any number of things can happen.
Whatever the reasons, there are a great deal of foreclosures on the market these days. So, what does that mean for the average person looking to find a good deal on a house or the person trying their hand at making a little extra money on flipping houses? It means there are some great deals to be found out there.
We sort of stumbled into the foreclosure market about 2 years ago. The housing prices in our current neighborhood were at an all time high and we had already been considering a move for a number of reasons, school districts, getting closer to the grandparents, needed more space and wanted a swimming pool, and on and on.
We decided to put our house on the market and our realtor said he had just purchased a foreclosure at a great deal and we should consider it. So we set our sites on finding a great deal.
We started doing some research and started looking at some houses. Now, you can find some foreclosures in great shape, but your not always going to get the best deals on these homes. You have to start looking at the houses and seeing the potential they have to offer.
Some houses just need a little cleaning, maybe a little paint or new carpet. Other homes have just been destroyed beyond repair. One home we looked at was in a nice new golf course community, great price, plenty of square footage, a swimming pool and only about 5 years old. It was priced way below market value. But at closer inspection, we realized the foundation was bad, very bad!!!
We finally did find a home perfect for us and in the exact area we had been wanting. However, perfect for us, did not mean move-in ready. But we did see the potential in it. You really have to take a lot in to consideration. Our house had been stripped of almost every light fixture, dishwasher, above the stove microwave, bathroom mirrors and oh yes, even the kitchen sink. But it had a great foundation, and no major damage. So we just had to replace some fixtures and few other things, re-carpet the downstairs and put some paint on the walls and we were back in business.
But, we had done our homework. The area we were moving into is a new up and coming area, growing very fast, so we are speculating the prices will go up very shortly. We also priced out the house values for homes of similar square footage, built about the same time as ours and found that it was already priced $20,000 below market value. We then took into consideration the money we would have to put into it and offered the bank, that now owned the house, $20,000 less than their asking price. That's $40,000 under market value. And they accepted.
You see, Banks aren't in the business of selling houses, they are in the business of making money. We quickly learned if your offer is more than what is still owed on the house, they will more than likely bargain fairly with you. They just want to make their money back. So, in the end we paid $40,000 under market value, invested 15,000 to get it back in good condition, and now have $25,000 in equity in our home.
So, if you were wondering if the average person out there could make money buying and selling foreclosures, the answer is YES. You don't have to have years of experience in real estate or have a realtor's license. It's actually not that difficult and we had a lot of fun at the same time. Just make sure you do the your homework and learn everything you need to know before you start because there are some great deals to be had out there.
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If you would like to learn more on buying and selling foreclosures just visit this site