Buying rental property in Toledo can be extremely profitable. However, buying the wrong property can create a financial nightmare. Here are tips I use in determining whether a house can be a good investment. They include....
1. Exterior Material...Go for property that has either aluminum or vinyl siding. Reduce the possibility of
having to do exterior painting.
2. No Furnace- No Hot Water Tank- No Problem...Houses that do not have these mechancials usually have
lower prices, which translates into you being able to install new mechanicals and reducing the chances for
costly repairs in the near future.
3. Value...If you want a rough estimate of value, consider looking to the value of the house around the year
2000. If a seller suggests a return on investment, be conservative and reduce it by 30%.
4. Get The Taxes Reduced...Use your purchase contract or HUD statement to prove the value and get the
taxes reduced.
5. Ratio of Home Owners Verses Renters...Neighborhoods with more home owners than renters tend to
keep their value or increase in value.
6. Foundation...Make sure the foundation does not require repairs...these are usually the most expensive.
7. Rent Average...Call 3 management companies, pretend you have a house in the area and ask what they
could rent the house for.
Investing in real estate has helped make many people financially independent and it can you too. Buy the worst house in the neighborhood, make it better and enjoy the cash flow.
For more details, feel free to call Flex Realty Property management at 419-843-4335 or go to flexrealtypropertymanagement.com
Tuesday, December 6, 2011
Interviewing Property Management Companies
Having the right property management company is just as important as picking the right property to invest in. Here is a series of questions you must ask a company before hiring a company...
1. Are They Licensed...in Ohio, a company must be a licensed brokerage to manage property for others. Fines can be as high as $20,000 per property. Also, hiring a licensed company is the ONLY way to insure you are protected against theft of money.
2. Designated Personnel...Do they have one person in charge of accounting, leasing, maintenance, etc. If you need answers, you don't want to be passed from one person to another. You want someone to be accountable to you.
3. Accounting,,,What kind of accounting program do they use? Ask to see a copy of a statement. Do they give you actual copies of invoices. When do they send statements in relation to when the rent is due-if the company goes beyond 30 days-find another company.
4. Maintenance...Do they make money on maintenance-if so what percentage is their mark up? What is the cost threshold before they call for permission to do work.
5. After Hour Calls...Do they have a live person answering the phone at all times or simply use an answering machine? This is especially important in emergency situations.
6. Marketing...How do they market the property? Are they address specific? Do they do open house showings?
These are just some of the important questions you should always ask before hiring a company. Forget about references-do you honestly think they are going to give you the names of people who don't like them?
For more tips, feel free to call Flex Realty Property Management at 419-843-4335 or visit flexrealtypropertymanagement.com
Flex Realty offers Toledo property management, Toledo rental houses, FSBO services, Ohio property management and more!
1. Are They Licensed...in Ohio, a company must be a licensed brokerage to manage property for others. Fines can be as high as $20,000 per property. Also, hiring a licensed company is the ONLY way to insure you are protected against theft of money.
2. Designated Personnel...Do they have one person in charge of accounting, leasing, maintenance, etc. If you need answers, you don't want to be passed from one person to another. You want someone to be accountable to you.
3. Accounting,,,What kind of accounting program do they use? Ask to see a copy of a statement. Do they give you actual copies of invoices. When do they send statements in relation to when the rent is due-if the company goes beyond 30 days-find another company.
4. Maintenance...Do they make money on maintenance-if so what percentage is their mark up? What is the cost threshold before they call for permission to do work.
5. After Hour Calls...Do they have a live person answering the phone at all times or simply use an answering machine? This is especially important in emergency situations.
6. Marketing...How do they market the property? Are they address specific? Do they do open house showings?
These are just some of the important questions you should always ask before hiring a company. Forget about references-do you honestly think they are going to give you the names of people who don't like them?
For more tips, feel free to call Flex Realty Property Management at 419-843-4335 or visit flexrealtypropertymanagement.com
Flex Realty offers Toledo property management, Toledo rental houses, FSBO services, Ohio property management and more!
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