The Best In Red Hawk Property Management

If you are looking for one of the best property management companies in Arizona, look no further than Red Hawk Property Management. We offer over 20 years of experience managing all sorts of properties in and around the greater Phoenix AZ metro area, and if you are a property owner looking to rent out your house or apartment, we can help you with a wide range of useful services.

houses for rent under the sunset of Phoenix AZ

Exceptional Service

We make a point of offering essential services along with exceptional customer service that you only won’t find at other companies managing properties. Whether you own single family home, a condo or townhouse in the downtown area or a multi-unit complex you are looking to rent out, contact us for very best service. And if you have a Freddie Mac or Fannie Mae property, that’s no problem – we can help with that too.

Property Rental Made Easy

Although we manage thousands of properties all over the greater Phoenix area, we provide each property owner with personal service and are always available to address any issues or answer any questions. Our owner’s portal allows you to access your account and be in control of your rental properties 24 hours a day, making the accounting part of property rental as simple as possible. As an Arizona property owner, one of your most significant concerns is probably finding a suitable tenant, and our thorough vetting system takes the guesswork out of that process. Criminal background checks and a credit report are standard features of how we find suitable tenants, and once they have moved in, we carry out thorough and regular inspections of your property, with a team available at any time to address any maintenance issues. And promoting your property has never been easier, once we put it on our 40 property related websites. We also handle any evictions or collection of overdue rents, so you don’t have to deal with that.

beautiful homes in Phoenix that have residential property management

Phoenix Property Manager

Red Hawk Property Management
2451 E Baseline Rd Ste 410, Gilbert, AZ 85234, USA
+1 480-396-9766
http://phoenixpropertymanagementcompany.com/

If you have property to rent in the Grand Canyon state – call us today!

Property Management In PHX AZ

renting your home with residential property management well help you with your questions

Property management companies are in demand all over the Phoenix AZ area. Due to the recent growth that this part of Arizona has seen. If you like the idea of supplementing your income by renting out your home, Red Hawk Property Management can help you to achieve that goal. Over the years we have earned a well-deserved reputation for providing superior customer service. Also managing a variety of properties effectively and efficiently. Thousands of property owners all over Arizona have relied on us. Especially, to handle their property when it comes to renting it out for extra income.

Responsibilities of a Property Manager

An experienced and helpful property manager handles all the details for you, whether you are renting out single family home, a multiplex or townhouse or a downtown condo. Even if you haven’t dabbled in the business of managing property before. Our focus is known as full-service management. Which means that unlike some other Phoenix property companies, we can help you with every step of the process. One of the most critical steps in marketing and advertising your property and ensuring that as many qualified renters see your property listing, and you can be assured that we will handle that efficiently.

We have an edge when it comes to aggressively and efficiently marketing and promoting your property as we own over 40 websites. Of course, you want to be reassured that you have reliable and responsible tenants and we will carry out background and credit checks to make sure your property is occupied by suitable tenants. Our maintenance experts will be on call to help you and your tenants with any issues that might arise. Before and after they have moved in. We perform regular and thorough property inspections to minimize the chances of any problems. And you can easily track your monthly payments by using our innovative owner’s portal. Discover why Phoenix AZ residents have made us the number one property company in the area – call us today.

Phoenix Property Managers

Red Hawk Property Management
2451 E Baseline Rd Ste 410,
Gilbert, AZ 85234, USA
+1 480-396-9766

Property Management: The Holy Grail Of American Real Estate

having someone to rely on for property management rental homes is important maintance

Red Hawk Property management Phoenix, Arizona is the holy grail of real estate. It holds the key to the future of the industry as it pursues many innovative practices that are the envy of the rest of the world. With hot Phoenix AZ deals on the world stage, the property manager entity is wide open to criticisms. And yet, the preeminent property ventures enclave emerges unscathed and often shining brightly amidst all the competition. What’s the secret?

Call it secrets. First of all, focus or attention to detail is one of several enduring mysteries of the everyday Arizona land or building dealer. The problem with unsuccessful real estate salespersons is that they are too scatter-brained. The fact is when you take care of just one undertaking in Phoenix AZ or elsewhere–your career will take care of itself.

This secret never fails in Phoenix, Arizona or anywhere else in the wonderful world of real estate. Such invaluable secret for the struggling property manager works on many levels and across different professions from burgers to superheroes.

The kind of personal attention to details is what keeps the business going like the Energizer bunny. Try it, just one Phoenix, Arizona customer at a time and watch your property manager venture bloom. In the words of a successful hamburger franchise, just take care of the customer and your venture, whatever that is–will take care of itself.

Phoenix Arizona Quoting Times

A quote in time saves nine or so goes the rehashed old saying. There’s nothing wrong with reinventing or refashioning the wheel. However, there’s always a room for old-fashioned and dedicated customer service. Red Hawk Property Management has proven the success of this principle out here in Phoenix AZ. By all means, the breakthrough can be duplicated anywhere else on the globe.

The key is to find the right people for the job. Surrounding yourself with customer-obsessed individuals is the next big ticket to cutting into the vast and incredibly challenging Arizona property management market. And if you can’t beat a real estate outfit at its game, by all means, care to join it! Just don’t sulk in the dark and lonely corners of your piece or pieces of property in the vast Phoenix, AZ landscape. Make them count.

Phoenix AZ Property Management 

Red Hawk Property Management
2451 E Baseline Rd Ste 410,
Gilbert, AZ 85234, USA
+1 480-396-9766
phoenixpropertymanagementcompany.com/

 

The Right Choice In Property Management

having a property management rental homes team is the best way to invest

Phoenix, Arizona property owners have two choices when it comes to managing their property. First, you can become your own AZ property manager so that you always know what is happening, or you could call in a professional property management company to handle things for you.

Since the majority of people are already with other aspects of their lives, they have little time to devote to managing Phoenix property. Therefore, they choose to find a reliable property manager in AZ to help. Sometimes, friends are enlisted for this job, and frankly, that can work out. Other times, such decisions backfire, and friendships are harmed or destroyed. The better choice would be to hire a professional to manage your property for you.

Trusted Phoenix Property Management

Red Hawk Property Management is a company you can trust to manage your property correctly. We focus our business on the management of residential property. Some Phoenix, Arizona residential companies are also involved in the real estate business which can mean the managing property is secondary on their list of priorities.

One of the most substantial investments most people make is in property, and that makes it a priority for you. Is it really in your best interest to have a property manager that is not necessarily looking out for what is best for you? At Red Hawk Property Management, we use innovative methods to manage property that will provide you with peace of mind knowing that we are taking care of what belongs to you.

Choose Us As Your Property Management Team

Your needs to have your Phoenix property managed adequately are safe with us. When you choose us, you can rest assured that you have selected the best management team you can find. We have a local presence that makes all the difference when it comes to managing your local properties in Arizona.

Contact us right away for more information about what we can do for you and receive a free quote. We would love to enter into a business arrangement with you that is beneficial to us both. We know it will make your life much easier having us onboard.

Phoenix Property Management

Red Hawk Property Management
2451 E Baseline Rd Ste 410,
Gilbert, AZ 85234, USA
+1 480-396-9766
http://phoenixpropertymanagementcompany.com/

What to Look for in a Property Management Company

Single-family homes continue to be a significant investment and the areas surrounding the Phoenix area are especially attractive investment opportunities. Flipping a house is one way to earn income, but moving toward renting is a whole different path, and when you take that route you need to consider how you’ll manage the property or properties seriously. Finding the right property management company can be a daunting task, but with these tips, it should make things easier for you to get a handle on.

1. Make sure the company knows the local market

There’s nothing more frustrating than working with a company that has no clue about your market or location. They don’t cater their decisions toward what the local market and economy look like and do a poor job in using other people’s data in making their decisions. Property management is no different, and it requires knowing the local market to secure the best deals and best contracting opportunities. It also requires that the company know enough about the local market to be able to promote it, not from the 50,000-foot level but the street level and it takes a local to know the best things about the locale.

2. Planning with the property manager

The property management company should have a manager who will set up a meeting and go over all the details with you. This can’t be something done remotely; it needs to be on site and in person. The game plan needs to be discussed and agreed to by all parties. Budgets, goals and long-term vision need to be explained and detailed, and a plan needs to be put in place to achieve these. Going into this without a plan is like wandering through the desert with a blindfold.

3. Make sure your property manager provides excellent customer service

Customer perception is a huge part of any business, so why shouldn’t it be with your property management company? When you select a property management company, you’re counting on someone being there to answer the phone or respond to issues quickly and be able to take care of things 24×7. With all the available communication channels today, there’s entirely no reason why a property management company would not be able to handle 24×7 communication.

4. A property management company is responsible for accounting

Would you trust an accountant who kept loose scraps of paper and notes scattered about his office? How could you possibly trust a property management company who doesn’t show up with reliable accounting and bookkeeping processes and procedures firmly in place? Demand that you see how they manage their expenses and accounting. A walk-through of their process is not asking too much.

5. A property management company should be praised by its tenants

In World War II, the allied POW camps went out of their way to the outside world to appear as if the prisoners were content and well taken care of, going as far as pushing out certain prisoners to provide a grand image. You need to make sure your property management company is honestly taking care of its tenants. You should inquire with tenants and look through the turnover rates. Happy tenants are tenants that will continue to provide you income.

Red Hawk Property Management Gilbert AZ
2451 E Baseline Rd #410, Gilbert, AZ 85234, USA
+1 480-396-9766
http://phoenixpropertymanagementcompany.com/

Five Benefits Of Using A Good Property Management Company

If you are a landlord that would like to avoid dealing with monthly rental income and expense management or would like to eliminate weekend maintenance calls, read on. The right choice for you may be hiring a property management company to handle your real estate investment. Of course, they are going to take a cut of the revenue from your rental, but they are also going to free up your time and much help to streamline your business.

It is essential that you interview several companies and that you take your time making the best decision. The truth is that not every property manager will be the best fit for you, so taking the time to find the right choice is time well invested. The truth is that when you find the correct choice, your days of managing your rentals will indeed be over.

Take A Look Here At Five Benefits That Will Be Provided By The Best Property Management Company For You:

1) Screening Out Problem Tenants

The fact of the matter is that experienced property managers see hundreds of applications, so they are well versed in spotting any potential red flags. Your chances of landing that reliable tenant is vastly improved by their experience and care in these matters.

2) For Tenant Concerns, They Act As The Point Of Contact

When there is any breakdown of your property, it is not always an easy task to rush over and evaluate the situation. This is even truer when the property is not near where you are. A property manager can and will address whatever the problem might be and when necessary, get a service provider to take care of the problem. Still another significant advantage the property manager offers is handling the ever complaining tenant who seems to have some problem that requires attention continually.

3) Decreasing the turnover of tenants

Renters are always kept feeling happy and satisfied by competent property managers. They take care of any problems or issues when they come up and are readily available to address all concerns. When the tenant is happy, they are far less likely to seek another dwelling and are also more accepting of rent increases which are reasonable.

4) Making Certain Rent Is Paid On Time

The property management company is motivated to keep the rents coming in when due since they deduct their fees from the money coming in. The property management company will be there to enforce the terms of the agreement if for any reason the payment isn’t received when it is due. If there is a consistent problem with the rent being collected when due, the property manager has the money to handle the situation properly.

5) Lessening Your Rental Headaches

You are going to have fewer complications and issues to have to deal with when you have a property manager handling the daily management of your property. This allows you to enjoy a better quality of life and far less stress.

The bottom line is that there are so many definite advantages to securing the services of a competent Phoenix property manager and it is well worth whatever the cost may be!

Red Hawk Property Management

+1 480-396-9766

Suggestions For Locating The Best Property Manager

It is a huge decision, hiring someone to manage your investment and so it is essential you do the necessary research before committing to one. Just some of the vital qualities to look for are honesty, organization, and experience. Take a look now at six suggestions that will be of great help in finding your property’s best fit.

From Different Sources, Get Referrals

Word of mouth is tip number one to find a property manager. You can get some great options by talking to other property owners in your area and also by talking to local real estate agents in the community.

Getting a list of property management companies and property managers that they are currently using or have previously used can be of great help. It is also important to ask about any problems or issues they may have had, as well as just what they have been happy with.

Keep in mind that a referral can be biased. This makes it vital that you seek out various sources of referrals. If you continue to hear multiple times the same thing regarding a property manager, chances are far more likely that it is indeed true.

Conduct An Online Search For A Property Manager

Doing your research online is so important. There are websites like AllPropertyManagement and T-Rex Global that permit you to plug in the location of your property, and it’s size, and they will then generate a listing of property management companies that will be in that area.

You will also want to go over a company’s reviews on sites such as https://www.yelp.com/about and even Facebook, before making any arrangements to interview a property manager.

Still another principal source is the Better Business Bureau where you can see if a company has complaints filed against them and also just what kind of a rating it has.

Very often, conducting this research will allow you to come across some of those companies you may have also received referrals, and this will give you, even more, information about them.

Look At Their Current Work

Take a look at some of the current rental ads being run by the property manager. Are they compelling, professional and free of any statements that are discriminatory? Do they place ads in a variety of different places or just on free sources such as community bulletin boards and perhaps Craigslist?

Look at the actual properties that are managed by them. Are they well-cared for and clean?

Speaking to the tenants that are currently managed by them can be an excellent source of revealing information. The tenant’s opinions are so important because property management is about keeping both you and your tenants happy and satisfied.

Do the tenants feel as if any complaints they might have are being adequately addressed? Just how long does it take for a maintenance issue or a repair to be completed? Is the building overall noisy? Is the tenant considering signing a new lease? If not, just why? All of these inquiries will give a clear indication if the tenants are pleased with the performance of the management team.

You should also ask to see an example of the monthly report furnished to you by the management company.

Several Property Managers Should Be Interviewed

Interviewing several different property managers is tip number four. It is just so important that you take the time to do this so that you can come up with the one that you are the most comfortable and at ease within trusting the management of your property.

You will quickly be able to separate the bad from the good when you interview several different potential managers. You will also quickly see those with a solid plan and real knowledge of just what they are doing. That property manager who is consistently placing tenants and within a short period seeking to evict them is apparently one that is just not good at screening them.

You also want to find the candidate who is not dismissive of your questions, but instead is receptive to them. The truth is that if during the interview, they are not putting their best foot forward, things are only going to go downhill if permitted to manage your property.

You should ask questions about their experience and education, fees charged, services provided and whether or not they have a good understanding of the tenant-landlord law.

Check Out Their Certification And License

The majority of states require a property management license or a real estate broker’s license be held by a property manager/management company to show vacant premises. To see if their brokerage license is active, you should check with the Real Estate Commission of the state in question.

Also, you will want to know if the manager or company is certified with a trade organization like the National Apartment Association(NAA), the Institute of Real Estate Management(IREM), the Community Associations Institute(CAI) and the National Association of Residential Property Managers(NARPM). Certification is offered by these companies after a robust training program has been completed. Their going through this process will indicate to you that they are indeed committed to correctly handling their job.

Of course, your instincts should also be trusted, making it so necessary that you are comfortable with the choice that you ultimately make.

Look Over Their Management Agreement

The responsibilities of both the property manager and the property owner should be defined in the management agreement.

You will want to pay close attention to the sections on provided services, responsibilities of the owner, extra fees charged, hold harmless clause, compliance with fair housing laws and any reason for cancellation.

The post was written by:

Red Hawk Property Management Mesa AZ
2451 E Baseline Rd Ste 410, Gilbert, AZ 85234, USA
+1 480-396-9766

Arizona Cities Seeing The Greatest Real Estate Growth In 2017

With the addition of approximately 217,000 new residents, the state of Arizona is one of the country’s fastest-growing states. The new growth has resulted from an enormous economic turnaround, specifically the opening of the Apple plant in the Phoenix suburb of Mesa. There are an estimated 10,000 places available for new residents and homeowners, making the silicon Desert the place to be.

Are homes available? What you want to look for when analyzing areas for relocation and availability of homes, check ownership rates. A high ownership rate leads to a higher overall score, whereas a lower one shows high competition and more options for renters over buyers.

Can you afford to live there? To determine whether a place is affordable you want to use monthly homeowner costs and median home values. The higher score in our report goes to high median homes with low costs of living.

Is the area growing? To answer this, population growth will tell you if an area is attracting new residents. A thriving local economy will usually bring in more home buyers.

Using the above measures, the best places to live in Arizona are provided below. Each of these towns is ideal if you are looking for a place to buy a home. Evaluate what you are looking for regarding incomes, median house values and area growth you can determine which town is a better suit your needs.

1. Maricopa

With a population jump of 19.6%, this area located in the Gila River Valley is a top spot for relocation. More than 805 of homes are owned versus rented, and the median cost for a house is $132,000. Hosting the famous Harrah’s Ak-Chin hotel and casino, the town features a huge historical collection of the Ak-Chin people. The casino is the most significant employer in the area. The community additionally offers the Ak-Chin-Him-Dak Eco Museum which showcases stone tools, arts and crafts, and jewelry.

2. San Tan Valley

This suburb in the Greater Phoenix Area had the highest population spike has not yet been incorporated as its town but did get its postal code in 2009. With a median home value of $126,300 and an ownership rate of 74%, this area is quickly becoming a favorite place. There is potential for growth here, and the low cost of living makes it ideal for first-time homeowners.

3. New River

The residents here earn a monthly income close to $7,185 with 28% of that going towards homeownership costs. Situated to the north of Phoenix, the average home value is $312,200, and it has the highest ownership rates (90.7%). Overall the town has seen 11.23% of population growth. The attraction to this area comes mostly from the low numbers of rentals, showing this is a preferred place for those looking to settle and purchase a home.

4. Sahuarita

A more technologically advanced area located south of Tucson; Sahuarita has median incomes around $5,700 and a relatively low cost of living. The majority of homes in the area are owned rather than rented. Most employment stems from the enormous organizations located there such as Raytheon which is an international defense and aerospace company and the University of Arizona Science and Technology Park.

5. Queen Creek

Thanks to local festivals such as the Roots n’ Boots Rodeo and the American Heritage Festival, this area saw a boost in population numbers of 12.1%. One of the highest household incomes of the places on the list, averages for the area is close to $7,343 a month. Most homes are owned, and cost of living is higher than other places on this list but is still relatively low. Residents can enjoy an amazing Parks and Recreation department, with programs and activities for all ages and come soon will be a new 14 screen movie theater.

6. Buckeye

Buckeye is located in the Maricopa Valley and supports the slightly higher number of renters than the previous location; however, it is still primarily homeowners. This suburb of Phoenix has not had as large of population increases either but has a very decent median household income and low cost of living. The town is famous for its old time’s western theme and annual Buckeye Days festival and the Helzapoppin’ Rodeo.

7. Marana

A relatively young city, when compared to most of Arizona towns, the population soared by 2012 to reach a little over 34,000, which is a big jump from its previous 1977 count of 1,500. Although the city is not very big, it has its airport and a decent monthly income close to $6,000. There is room for growth here, and the cost of living is low, which makes a potentially ideal spot to settle and buy a home.

8. Anthem

A relatively small town of 23,000 residents, this community is still a very busy one and offers a lot to its members. The cost of living here is slightly higher than others on the list, but monthly median incomes are also a little higher. You can enjoy the veterans’ memorial, Liberty Bell Park, and the Splash Pad as well as the beautiful 64-acre community park hosted by the Community Council Parks and Facilities.

9. Green Valley

30 miles south of Tucson, there has not been a lot of growth here in regards to population, and the median monthly income is significantly lower than the other places listed. Most of the residents are employed in the local copper mines or the Smithsonian Institution’s Whipple Observatory (located in the nearby town of Amado). The lower growth rates, incomes and home values ($182,000 on average) are most likely due to this largely being a retirement community.

10. Goodyear

The original land for this town was bought by Paul Lichfield (Goodyear Tire and Rubber Company). Affordable to live there with decent incomes and steady growth rates, the town has an excellent economic standing for potential homeowners. Jobs are provided mostly by Macy’s and Amazon fulfillment centers as well as the popular food production companies of Snyder’s of Hanover, Del Monte, and Poore Brothers. This town is great for baseball fans, as it hosts both the Cincinnati and the Cleveland Indians spring training camps.

Phoenix AZ Property Management

Red Hawk Property Management
2451 E Baseline Rd Ste 410, Gilbert, AZ 85234, USA
+1 480-396-9766
phoenixpropertymanagementcompany.com/

Simple Tips To Protect Your Rental Property From Liability & Lawsuits

If you are the owner of a rental property, it is likely that you have considered the liability associated with that. If you have real legal concerns, it is best to speak with a lawyer. There are, however, simple tactics that you can use to help protect you and your assets.

Purchasing rental properties is widely considered one of the best investment choices a person can make. Usually, you can buy them below market value which opens up the potential to make real money. There are real risks associated with being a rental property owner, such as being sued for money or because of injuries occurring on your property. Whether a freak accident occurs or someone gets hurt from landlord neglect, the risk of injury is a real problem facing owners.

As an owner, you need to consider if the returns you make on the property are worth the risks. Even if it is worth it, there are still precautions you can take to protect yourself. If your returns are decent, then you can afford to take additional precautions. If you are more limited in your options, it is best to consult with professionals to get the best advice on what coverage and precautions you should take.

Use a property manager

Managing your properties or someone else’s increases your liability. There have been cases where an evicted tenant hurt themselves while moving out and turned around to sue the property manager. The tenant claimed that the landlord had broken his TV and left the glass in a window well. When he fell in the window well while moving, he claimed the injury was the fault of the landlord. Tenants can make a lawsuit out of almost anything, so it is best to be prepared.

Even after lengthy court cases and a verdict in favor of you, there is still a valuable lesson to learn. It is critical for landlords to have insurance; with liability insurance to cover issues like this the legal fees would have been covered. Talk to your insurance agent about getting liability coverage. To be a property manager in most states you need to be a licensed real estate agent first, and they require E and O insurance, so this is a good place to start.

As a property manager, you need to be aware of local and state ordinances. Take the time to research which forms and documents. A good example is that some states require you to sign lead-based paint forms and to put up a flyer on all properties. You need to be careful because states can find a great deal of money to get you to pay attention to the laws. You have to consider if you really want to risk losing money on something you had the time to research and take care of.

Create corporations or LLC’s

Creating one or several organizations is a great tactic to protect your properties. Each property will need a checking account for all money associated with that location. Setting up a corporation is a simple process, taking no more than thirty minutes and there are several of online companies that will help you get started with the process. You have the option to have a lawyer set this up for you too, but they can cost around $750. This really is too high, considering you can do it yourself. Setting up an LLC can be fun, you can be as creative as you want when it comes to naming them.

You need to check with the bank that finances the property before transferring it to an LLC. The reason being that some bans have due on sale clauses, which means they can call your full loan if you sell the property. Even though the same individual owns the property and the LLC, it can still trigger the clause to be activated. Once a property is transferred to an LLC, it also becomes harder to refinance.

Homeowners insurance

Think of all the things that can cause damage to the property; frozen pipes, backed up sewers, trees falling and even natural disasters or severe weather. Working with agents to get the proper coverage for your properties is a necessity. Discuss all the possible coverage and find out what is not covered; some companies do not include floods and sewer problems. Each property will require different coverage so for each location evaluate the risks against the insurance costs to determine what will work financially and protect you.

Free and clear is not always best

Having a property free and clear with no loans open puts you at greater risk for lawsuits. People will be more inclined to sue when they are assured of a payoff, and if you owe nothing, you will have to pay more for any suits. Opening a line of credit against the property shows up in public records which can help you. Even if you do not owe anything, the full amount of the loan is what is visible, and it could protect you.

Hiring rental property services to take care of your properties and having proper and adequate insurance coverage is the best protection you can give yourself. Always use a reliable and knowledgeable insurance agent who has experience with rental policies. They can inform you of all the potential policies and explain them to you, allowing you to pick what is best for each of your properties.

It is also a good idea to hire an accountant to make sure all taxes are filed and handled correctly and a lawyer to take care of any possible legal protection you may need. It may be expensive to work with these professionals, but if you are new to the rental property owner game, it is a wise choice to get them involved. Understanding the risks and getting prepared early, will make and future problems much easier to deal with. You could stand to lose a lot with one lawsuit, so look into thoroughly protecting yourself, you will thank yourself later.

Phoenix, AZ Property Management

Red Hawk Property Management
2451 E Baseline Rd Ste 410, Gilbert, AZ 85234, USA
+1 480-396-9766

Residential Rental Property: Is It A Good Investment?

If you have money to invest and you are considering investing in residential rental properties, you may be wondering whether or not it is a good idea. In this article, we will go over the things that you should consider before deciding to invest in rental properties.

What Should You Consider Before Investing In Rental Properties?

The first thing you should decide is whether or not you are going to live in the building that you buy. If you rent out the entire property and you reside elsewhere, you would be able to deduct all expenses related to the building from your income. If you decide that you are going to move into the building, you would only be able to deduct the expenses related to the units that you are renting out. Should you decide to sell your property at some point, The portion of the building that you were living in would be exempt from the capital gains tax. If you rent out the entire building and you live elsewhere, all of you taxable gains would be taxable.

If you have a specific piece of property in mind that you are hoping to buy, you should make sure that the realtor’s listing is correct. If the number of units in the listing is inaccurate, it can change the terms of the sale considerably. To get this information, check the assessment roll. For example, if the building has a basement and it is considered to be a livable dwelling, it will count as an additional unit, which means that you would need to put down a larger down payment.

How Much Of a Down Payment Can You Expect To Pay?

If you are planning on renting out every unit in the building that you purchase, you would need to make a minimum down payment of 20 percent of the price of the building. If you are planning to buy a duplex and you intend to live in it, you would need to make a 5 percent down payment of the purchase price as long as you have mortgage loan insurance. If you are buying a three or a four family building and you are going to live in it, you would need to put down at least 10 percent.

These down payment rules are the same universally for all American financial institutions.

What Are Other Fees Associated With The Sale?

There are several fees that you would need to pay besides the down payment. These charges include:

  • Welcome tax
  • Notary fees
  • Inspection costs
  • Property tax adjustment (The school taxes and municipal taxes that you would be responsible for)

To cover all of these fees, your American loan insurer would calculate a standard amount, which is 1.5 percent of the purchase price of the building that you are planning to buy. In some cases, unexpected issues can arise, which would cost you more money. To cover you if something like this should happen, many financial institutions including Wells Fargo recommend changing the number from 1.5 percent to 3.5 of the price of the building. The additional money would be put in a line of credit or a savings account that is easily accessible.

Besides the Building’s Condition, What Else Should You Look For?

There are plenty of things that you should look for other than what the building looks like on the inside and out.

If you want to find tenants as easily as possible, you should look at how close stores, schools, and other important businesses are to the building.

If you aren’t planning to live in the building, you should consider the proximity of your home and your rental properties to make it easier to collect the rent each month.

If you want to be sure that you are not overpaying when you buy the building, you should take a look at how much similar buildings were sold for in the last year. This is something that a realtor can help you with.

If the building already has tenants, you need to find out about them. Find out how long each tenant has been living in the building and when their lease expires. Also, find out how much the tenants are paying for rent.

Tips For New Landlords

You should make sure that the lines of communication are open between you and your tenants. You want to include every little detail in the lease and make sure that you put everything in writing.

Many financial institutions allow you to schedule the due date for your mortgage payments. You should schedule them for the middle of the month. This will give you the leeway you will need if some of your tenants don’t pay their rent on time.

You should open up a separate bank account strictly for managing the building. If you have one account for rents, mortgage payments, and expenses, it can make accounting much easier.

What Does It Mean To Leverage Real Estate?

Leveraging your property is when you take out a second mortgage on your first investment property to purchase a second building if you don’t have the capital to do so. In most cases, you can get up to 80 percent of the worth of your first building to put toward your second.

The Pros Of Investing In Real Estate

The reason that most people invest in rental properties is that they like that they can see and spend the money that comes in each month. If you have other investments and you want to diversify your assets, real estate is a great way to do this. If you want to own your own home but you are living on a tight budget, The rent that you collect from your tenants will help you make your mortgage payments.

The Cons Of Investing In Real Estate

Real estate investing isn’t for everyone. If you like being a manager, it could work. To be a good landlord, you will need to have a lot of patience with your tenants, and you need to be available at all times to fix any problems that come up in the building. If you don’t think that you can handle something like this, real estate investing may not be the best thing for you. If this is the case, you should meet with a financial planner to discuss other investment options.

Property Managers Phoenix

Red Hawk Property Management