?Renting Back? After Your Home Is Sold

Sometimes it?s helpful to sell your home before you really want to move. This often happens when you are having a new home built, but aren?t sure of the completion date. Is there any way you can sell your home so you?re sure of the funds available for the new purchase, but continue to live in your old home until construction of the new one is complete. Yes, there is with the renting back strategy.

Enter the Lease-Back or Rent-Back Agreement

The particulars of this strategy vary from state to state, but in the strong seller?s market we?re experiencing, buyers will often agree to let the seller stay in the home for a period of time as long as rent is paid. In a competitive situation, the buyer willing to do this will often have the winning bid even though there is another offer as high as his.

Houston Rental Apartments

The city of Houston in the State of Texas is the fourth largest city and one of the most bustling in the United States. With several apartments sprawled across its length, Houston is a prime location for people looking forward to settle down in a cozy dwelling with all the facilities that they wanted. Finding Houston apartments for rent is not a big hassle if the person knows where to look for one. There are several apartment finders operating in every area of the city, which provide one with all the details of the available apartments, such as the facilities, rent, etc. Houston apartments for rent generally provide settlers with the most modern and necessary facilities and amenities. House security is an important issue and the apartments are frequently packed with state-of-the-art security systems to ensure safety for the dwellers. Most of the apartments in the area are equipped with a swimming pool, and some of them even provide pool lifeguards in case of any trouble. Besides these, Houston apartments for rent provide other services as well, such as fitness and health clubs, shopping centers, proper parking places, meeting and convention centers, laundry services, sports grounds, etc.

Playing The Real Estate Rental Game

Real estate investing is a game. To play it well you must understand the four financial benefits of real estate and how to maximize them. Those benefits are:

1. Cash flow
2. Equity build up (the payoff of your loan)
3. Tax benefits
4. Potential appreciation

In this article we are going to look at benefit number one.

Benefit number one ? Cash Flow (cash flow before tax).

Investing in real state is game of numbers. To play the game well you must understand how to manipulate the numbers to get the end results you want. The result being positive cash flow.

The formula to calculate the cash flow is listed below:

Gross Rental Income
Minus: Vacancy
Equals: Adjusted Gross Income
Minus: Operating Expenses
Equals: Net Operating Income
Minus: Debt Service Payments
Equals: Cash Flow Before Taxes

Here is an explanation of each of the factors in the formula above.

Gross rental income is the first number that you need. It includes all the rents and any other miscellaneous income from garage rents, laundry machines or vending machine. This number is that total income that we expect to get during the year.

Investment Property - Leveraging Rental Property Equity

Owning investment property is a tremendous wealth building strategy. Thousands upon thousands of individuals have amassed great wealth by investing in rental properties.

Unfortunately, few investment property owners learn how to leverage equity in a way that maximizes tax deductions while creating and locking in equity gains. Instead, they leave themselves open to price fluctuations in the residential property market. These fluctuations can wipe out or severely reduce equity positions in property.

Housing Boom To End?

There is little doubt we are coming to the end of a huge boom market in residential properties. For the last four years, properties have appreciated at unheard of rates. The question, of course, is what happens when the market cools off? Will we simply see a price plateau or an actual drop in prices? While nobody is sure, the clear consensus is property owners should move to preserve equity while they can.

Protecting Equity Gains

Protecting equity gains in your investment property requires careful planning. This leveraging strategy is fairly simple, but can sound complex. Please keep in mind this is just an introduction to the investment property tax strategy. You will need to contact us to learn more.

With the state of the economy caught on the brinks of being fair, but still unmanageable for some. Those affected by the awful plunge will be pleased to know that there is a tool that seniors can use in order to ensure that their debts are rectified. This tool is known as a reverse mortgage.

If you are presently an American senior who is aged 62 or older, and you own your home you can qualify for this type of mortgage in order to assist you with your day to day living expenses. The qualifications for reverse mortgages are actually quiet flexible.

Inadvertently, the two main qualifying factors are that you’re a senior and you presently own your dwelling. However, keep in mind that reverse mortgages are loans and they only pertain to particular types of homes that are considered to be acceptable by lenders.

Reverse mortgages are taken away from the value of your home. Basically, you will be living off of the equity of your home that you have already accrued through the period of ownership. Your home does not need to be paid off in order to qualify for one of these mortgages either.

Mobile Home Rentals - A Great Investment

Why mobile home rentals? Get past the prejudice and look at the numbers. In our town, for example, a two bedroom house costs %130,000 and rents for %800/month. A %50,000 mobile home on real estate gets %500/month. Cash-on-cash return on investment is obviously higher with mobile homes.

Don’t let the half-truth that mobiles depreciate in value keep you from investing in them. They lose value in a park, on a rented lot, but not on real estate. My first home was a mobile, bought for %19,000 and sold for %45,000 fourteen years later.

House rentals here usually have negative cash flow, while mobile home rentals have some cash flow. Still, investors prefer houses, believing they’ll build equity faster, but is that true? Only during times of fast appreciation.

Equity Building With Mobile Home Rentals

Buy a house for %120,00 with %20,000 down, and take out a %100,000, 6%PRCTG%, 30-year mortgage. You’ll have a payment of %599.60. Of the first payment, %500 will go to interest, and %99.60 to principal. You only built equity of %99.60. This ignores appreciation, but only for the moment.