As the weather cools down and summer vacations and weekends away come to an end, we approach one of the best seasons for investing in real estate. Now more than ever, it’s the ideal time to start looking at cash flow properties. We find many of our investors looking primarily for properties to flip. While flipping can be a great way to make cash, diversifying your investment strategy and seeking a property to hold and generate cash flow is a smart move. When seeking a cash flow property, as an investor, you need to be able to distinguish which areas make sense and run the numbers to make sure it will even generate positive cash flow. The experts at Heaton Dainard can help you pinpoint properties that meet your specific goals in the right neighborhood and fall in your budget. Many investors fail to compute in expenses such as property management, taxes and maintenance. It’s very important to take a conservative approach when running the numbers on a rental property you plan to hold. It’s essential you don’t make the mistake of being overly optimistic and assuming 100% occupancy or zero budget for improvements or maintenance. Having a Heaton Dainard team member walk you through the process can help you make a sound and low-risk decision on the right cash flow property for you.
Did you know that rents are rising faster than home prices in Seattle and nationally? Rents increased 0.2 percent to $1,278 nationwide during the month of July and were up 5.4 percent compared to July 2011.
That’s more than quadruple the gain in home values, which went up a half percent to $151,600 nationally in July compared to the prior month. Home values were up 1.2 percent year over year, with three in five metropolitan areas nationwide seeing price increases.
In the Seattle metro area, home values were flat at $259,800, compared to July 2011, while rents have risen 4.4 percent during the twelve-month period to $1,679.
High foreclosure rates have boosted the rental market in several metropolitan areas, with double-digit rent increases posted in Chicago, Baltimore, and Philadelphia. Only two of the top 25 markets had a decline in rents between July 2011 and July 2012. Rents slipped 1.1 percent to $1,547 in Riverside, Calif., and 0.4 percent in Atlanta to $1,143. Many people that lost their homes and ruined their credit in the economy are seeking single family homes to rent for their families to maintain a similar lifestyle to what they had prior. Most of the cash flow investment opportunities that Heaton Dainard has available are highly discounted properties that need some cosmetic rehab work, which can be funded through a bridge loan from our affiliate lending company, Intrust Funding. Once a cash flow property is revitalized with Heaton Dainard’s touch, you can expect a pool of rental applicants, thrilled to find a home with .
While the gains in home values are small, it is the eighth consecutive month of price increases, according to Zillow Chief Economist Stan Humphries. The relatively tight supply of homes listed for sale in certain markets has resulted in multiple offers on attractive properties and bidding wars. Our firm, Heaton Dainard real estate, is a full service real estate firm that helps clients acquire discounted investment properties, funds the home through bridge loans, manages the rehab of the property and lists the property for sale or helps the investor find a property manager or traditional mortgage for the home after improvements have been made. Most of the homes that Heaton Dainard lists are newly renovated, a benefit that is in short supply in the Seattle area and makes our homes more attractive than the competition. People are willing to pay top dollar for a turn-key resale home or rental because they don’t have the time or energy to manage any home improvement projects. Buying a cash flow property will build your real estate portfolio and retirement plan, rates are low and now is the time to take advantage of that, you can avoid the same capital gains tax you would pay by flipping, you have the ability to do tax write offs on the property and we can expect low vacancy rates in Seattle for years to come. Sign up to be on the Heaton Dainard mailing list by emailing meredith@heatondainard.com. We will send you photos and the number breakdowns of recent cash flow properties that our investors purchased through Heaton Dainard. Don’t hesitate to contact us for more information about attaining a cash flow rental property today!! Visit www.heatondainard.com or give me a call at 425-881-5131.
