Real Estate Investing in Rental Properties

There are many ways in which a person can make a living when it comes to real estate investing some of them carry more risks than others. It goes without saying that those that carry the greatest risks are often the very real estate investment methods with the highest potential profit but slow and steady, in many cases, wins the race. Flipping houses is in the news a lot because so many fortunes have been made doing this-more than a few have been lost in this venture as well but those don't make the news nearly as often.

Working with rental properties isn't nearly as glamorous and doesn't provide the almost instant profits that flipping houses might but it is also a great and very valid method of real estate investing that will build a steady profit over time if you plan properly. Rental properties are in demand now more than ever with so many people going into foreclosure and losing the homes they've worked hard to build for their families. For this reason rental properties are a good thing to own at the moment, especially those that are family homes.

There are many reasons that people rent and while there are some risks involved when renting properties, the risks are much lower than the risks involved in flipping or pre-construction investment endeavors. There are a few things you should consider when purchasing a property for the sake of renting however in order to make a wise and long lasting decision for your real estate investment.

First, only invest in rental properties in areas that people want to live in. It may be true that you can buy property cheap in a few very run down sections of town but it is doubtful that you will turn those properties into profitable rental units. It is best to pay a little more for a more attractive address for renters. You will find that your properties are inhabited more often, which will make you more money in the long run.

Second, pay attention to the types of people in the area and buy rentals accordingly. It is quite possible to turn large homes into multiple smaller apartment units (according to local zoning laws) that are ideal for college students. You do not want to do this however in an area that is geared towards family homes and won't be friendly or tolerant of college students. Design the rentals according to the market you are attempting to attract.

Third, don't be greedy. The goal of owning rental properties is of course, to make money. At the same time if your price your properties too high you will find that they sit empty more often than not. Every month that your property is empty is a month that you aren't making money on that property at best and a month that you are losing money at worst.

Fourth, know the market. Study the local market for buying real estate and renting real estate. This will help with many things, not the least of which is determining whether or not any given property will make an attractive rental unit. Another thing it will help you determine is how much rent the units you are considering can bring in month after month.

Finally, when renting properties you need to keep your eye on the long-term goals rather than shortsighted goals. Property rental is a marathon rather than a sprint with the greatest profits coming at the end. You will want to pay as little interest on the property as possible and pay the property off as quickly as possible in order to realize the maximum profit potential and acquire new properties. The real money when renting properties as a real estate investment isn't in renting out one or two units but twenty or thirty. The more rental properties you own the more money you stand to make from owning them.

Buying a condominium can be different from buying a home because of the different costs that are involved in the monthly upkeep of your condo. There are many added expenses that you need to take care of while you own a condo that you might not have while owning a home and vice versa.

The first thing that you should consider when buying a condo is the resale value that you will be able to get for your condominium. When choosing what area that you want to buy your condo in, you need to look at the surrounding area of the property. If the surrounding area isn't very well kept up then you might consider looking at somewhere else to buy your condo. Another factor you should consider when choosing the area to buy your condo is the foreclosure rate. If the foreclosure rate in your area is very high, it is not a good sign for the economy of that area and I would reconsider buying your condo there. You want to buy a condominium in an area that is growing and will only increase in property value.

Another factor to consider is the association fees that will go along with owning or living in a condo. Often times, the condos will have some sort of maintenance and upkeep fees that you will be required to pay monthly. These fees will usually go towards the pool, sauna, security, and any other repairs that the building may require. You will have to find a renter for your condo that is willing to pay all of these monthly fees.

Something else to consider would be the reputation of the building and property. Before buying your condo, you should consider visiting some of the other residents there to see what they think of the property, management, and overall area that the condo is in. The residents of the building itself would be the best people to speak with because they are there 24 hours a day and know a lot that goes on that management might not tell you about.

Once you have decided on the condominium that you would like to purchase, you need to begin looking for a mortgage. Choose carefully because you will need to find a renter that will pay the amount that your monthly payment will be if you want to recoup the closing costs that you will get when you originally buy the condo.

For more information, contact the Texas Mortgage and Home Loans at http://texasmortgagerefinanceloans.com/

Joseph Devine

Many people who are looking to purchase their first condominium unit, be it a townhouse or condo apartment, are attracted to the condo lifestyle. With condo living the day to day day concerns are not the same as with owning a house. Cutting the grass, gardening, and general maintenance of the outside of the home is not everyone's cup of tea. Condo living can eliminate all of this as the upkeep of the building is handled by the property management company.

But living in a condo may not be as carefree as most buyer think. The condominium lifestyle can be thought of as a communal experience but without the flower power. When you purchase your unit you are not isolated from everyone else. You share common elements such as the fitness facility, lobby, hallways and parking garage. All areas that must be maintained by those hired by the condo corporation to manage the building's day-to-day operations by using the maintenance fees that are collected from each unit owner.

As an owner, you may also need to abide by the by-laws set-out by the condominium corporations. These set of rules can dictate what, if any, pets are allowed in the building, proper use of the parking facilities, or what items you are allowed to place on your balcony such as barbecues. This has lead to a rise in the number of disputes between the unit owner and the condo's board of directors. So much so in fact that the Ontario government has had to enact laws to try to keep these disputes out of the courts by making it mandatory that these disputes go through an arbitration process first before turning to litigation.

If you have chosen to rent your unit out you may also be responsible for making sure your tenant understands and abides by the building by-laws. If your condo corporation's by-laws prohibit certain size dogs in each unit or the type of vehicle that can be parked in the garage, even in parking spaces that are owned, you would be wise to provide a copy of these by-laws to your tenant. This can help any unnecessary head aches down the road.

Even politics can come into play with each building acting like its own mini-city with residents voting for who will be on the condo board. Once the board members have been elected it is important as a resident to be involved with the board in its decision making. By doing so you are protecting your investment. Buildings that have a low participation rate by their owners may start to see a decline in the maintenance of the condo building. This can translate into lower sale prices as buyers are purchasing not only individual units, they are also buying into an entire building.

Having to follow rules within a condominium building should not necessarily prohibit anyone from purchasing a condo. However, to avoid surprises and disappointments, a potential buyer should know what is expected of each building's residents before signing on the dotted line.

Peter With is a real estate professional specializing in Burlington Real Estate Ontario. Browse through hundreds of available homes for sale. Peter With will be happy to help with your real estate needs.

If you drive down the street of many suburbs or pristine residential neighborhoods, it’s likely you will see people holding signs and waving. Whether they are dressed as clowns or just wearing shades, the human directional advertisers are trying to lead people to the many commercial real estate properties on the market today.

Converting apartment buildings

A growing number of commercial real estate developers are investing in old and new apartment complexes. They are converting the buildings into condominiums. Condo conversion became hot in the past two years as interest rates were low and so many people wanted the live the dream of becoming a homeowner. As the price of homes throughout the United States began to skyrocket, commercial real estate developers saw a need. People could not afford expensive single-family homes, but they could scrap up the money needed for a more affordable and smaller condominium. Taking advantage of low interest rates, a number of people purchased condos. But now, it’s a buyer’s market and a number of condos remain unoccupied. Some commercial real estate investors have decided to try to rent out some of the units until more buyers come onto the scene. If you are interested in investing in commercial real estate for the purpose of turning apartments into condominiums, do your research first. Find out whether the community already has plenty of condominiums or if it’s flooded with other investors. Find out how much people are spending on rent. If they can rent for less money than it costs to buy a unit, many people would rather rent, especially if it’s a college town or transient area.

Buying versus renting

If you are thinking about buying a condominium, make sure you find out what kind of fees you will be paying in addition to the mortgage, home owner’s association fees and taxes. Some communities have community development district fees, maintenance fees and fees for using the swimming pools.

Some of the hottest areas to invest in terms of commercial real estate include North Texas, Naples, Fla. and Tucson, Ariz. A growing number of commercial real estate investors are not just purchasing office complexes to rent out to tenants. Many tenants would rather own their own office suite rather than rent it out.

Finally, it’s a wise idea to invest in commercial real estate in areas where professionals can live close to their office. Many new subdivisions or master-planned communities are being built right next door to commercial real estate properties geared for the professional who wants an extremely short commute.

As the creator of Commercial Property, I urge you to visit our website today if you are seeking information on Real Estate. We promise you won’t be disappointed with what you find.

That is what living in condominiums is all about. Given the expensive cost of owning a condominium unit, you might as well say that it is ideal for individuals who have a lavish lifestyle and earns a good salary.

A condominium is a complex structure composed of individual units, which are often referred to as 'condo units'. Unlike apartment-type complexes wherein individual units are for rent, condominiums are leased for sale. These units may be renovated apartments and townhouses or even warehouses previously used for commercial purposes.

Individuals or families who have purchased units in a condominium own everything from the walls of their units inwards. Individual condominium unit owners share rights to common areas inside the premises like elevators, swimming pools, hallways, and clubhouses. The maintenance of these common areas becomes the obligation of the condominium association, which is composed of individual owners. Every owner have their share of interest in the association, adhering them to make monthly due payments or so-called 'special assessment fees' for huge maintenance problems.

Condominiums provide an alternative lifestyle for many individuals especially those who want to be independent and have their own place that they can call home. Contrary to popular belief, there are condominiums that are affordable. They cost less than paying for conventional home purchases. It is quite cheaper compared to building your own home from ground up. This kind of living quarters is ideal for young professionals as well as small families. In addition, it provides essential amenities such as round-the-clock security and low maintenance (since you own a small portion of the whole condominium).

However, there are certain disadvantages of living in a condominium. There is a lack of privacy in common areas where every homeowner has their respective shares of interest. Condominium arrangements are not the best options for individuals who prefer owning all the amenities and want to maintain their own lawn and garden. In this case, they must pursue single home ownership. Moreover, it is also difficult to sell a condominium unit compared to a conventional home. Remember that you only own the unit and not the ground beneath it.

Despite of the aforementioned disadvantages, there are still individuals who prefer living on condominiums. They do not mind having close neighbors at all and they do not want to be bothered by the responsibility of the lawn or other external maintenance matters. And since the total price of purchasing a condominium unit is relatively lower than an equivalent single-unit home, there are many individuals who are tempted to take this cost-efficient advantage.

Apart from the overall price and amenities available when you decide to live in a condominium, you must be aware of the reality that your stint in your unit may be affected by the condominium association's decisions. Such decisions may be made in regular meetings that can cost an individual unit owner more money, and is virtually impossible to avoid being affected by at least a single decision. It is encouraged that you actively participate in the association's meetings and forums. Living in a condominium is financially advantageous than apartment rentals, yet it will require your active participation in community-related events.

Luxury and grandeur? That was living in a condominium before. Today, you have the financial advantage of owning a place you can call home. Just a reminder: be active in the association and cooperate with your co-owners. That will start your wonderful experience living in a condominium.

For more information visit Michael Contaro web site http://RealEstateResourceHQ.com. Click on Condominiums to read more.

Busy people who are always on the go might profit much by buying condominium units. However, condominium units may not be advisable for people who are married and have kids, since these places are really designed for single people or for those married couples who have no kids. One of the best attractions of condominiums is that you can easily find condo units right in the heart of the city where you are working. You never have to go far or drive for hours just to get home if you live in a condominium. If you are lucky, you can even find a condominium building just a few blocks away from your workplace. Living in a condominium would help you avoid fighting the daily traffic in going to your workplace as well as save on gas consumption.

Another advantage of getting a condominium is that unlike renting an apartment, the condominium unit becomes yours after you have completely paid the amortization. Unlike when you are living in an apartment, where you will never gain ownership of the apartment unit even if you have been paying rent for several years, the condominium unit will become yours after you buy it. Furthermore, as soon as you move into your new condominium unit, you can decorate the interior in anyway you like. The unit is yours, so you can do anything you like with it, as long as you do not violate the rules and regulations of the building administrator or endanger the lives and properties of other occupants of the condominium building.

Check Out More Articles:

Wedding Favors Theme movie , Soundtracks to How To Lose A Guy In Ten Days , Billy Martin Fanfics

If you are single, living on your own, and are very busy with your career, it would be a good idea for you to get a condominium unit instead of buying a home in the suburbs. There are many advantages in buying a condominium unit, especially if the place is near your workplace. First, condominium units are usually located within the city and could be very accessible for you. This is especially if you tend to work until late in the evening at the office. Second, a condominium unit is designed to accommodate your busy lifestyle. It can have some amenities that you can enjoy like a common swimming pool, a fitness center, and a lounge. This helps if you want to swim, exercise, or simply relax after a busy day in the office. However, these amenities do not usually come for free and you will need to pay for these services on top of your regular condominium payments in most cases.

Another advantage of living in a condominium is that it is more practical than living in an apartment. Unlike an apartment, where you pay rent monthly and never have the chance to own the unit you are living in, a condominium unit can be yours right after you have fully paid the purchase price. The unit that you get becomes yours and you can do anything with it, subject to the rules and regulations of the condominium administrators. So, if you want to redecorate your condominium unit right after to move to it, you can do so, since you own the place.

Real estate is booming in Maui -- no wonder, with the number of tourists that flock to this part of Hawaii every year. Maui has been named the Best Island for 12 years in a row.

Any real estate is an investment in a place like Maui and luxury condos are no exception. Builders are constructing luxury condos in all parts of the island and real estate agents and tourism agencies are buying them. Rich businessmen find their holiday homes in luxury condos in Maui. The luxury condos are aimed at buyers who are ready to spend out a few million dollars for a pleasant stay in this tropical island in Hawaii. And the condominiums include not just apartments with bedrooms and living areas, but other luxuries that usually come with a five star hotel.

If you are looking for a luxury condo in Maui, you can start by visiting Mauirealestate.com and its Coconut Chronicles that regularly list the best luxury condos for sale in Maui. They come out with a detailed description of the latest luxury condos, for example, Na Hale O Makena, which is listed out as a new luxury condo community in Maui. Aimed at higher end owners, these condos include amenities like barbecue areas, clubhouses, exercise rooms, Jacuzzi and much more. The market price for a condo in this community is rated at $2,200,000.

Once you have done a thorough search on the Internet and decide on the features you need for your luxury vacation home and the money you would like to spend on it, your real estate agent in Maui can be contacted for a tour of the hottest luxury condo communities in town.

Maui Condos provides detailed information on Maui Condos, Maui Oceanfront Condos, Maui Luxury Condos For Sale, South Maui Condos and more. Maui Condos is affiliated with Kauai Rentals.

In a column in March 2006 I noted that property speculators are pushing up the prices of new condominium units, which one might consider are already high compared to older ones in Bangkok.

Today let's take a look at an example of this phenomenon. There was a new condominium launched recently on a plot of land adjacent to another older building. The latter is a little over 10 years old, but when it was first constructed it was regarded as one of the few genuine grade A condominiums in Bangkok. It has a lovely podium level, with a tranquil pool area, tennis court, every other facility you would expect, and each unit measures at least 300 square metres. Why am I telling you this? It's because the sales prices in this condominium are little over one-half of the sales prices in its new neighbor-to- be.

For convenience, let's say that the older condominium is selling for 55,000 baht per square meter and the new one is selling for 100,000 baht per sq. m. Is the difference in price really justified?

We can easily rule out the land price, as the two condominiums are right next to each other. So what is the difference?

Construction methods? Doubtful. In fact, many older condominium units are arguably more solid than the newer counterparts. Many developers producing lower-grade new condominiums are using materials, such as plastic imitation parquet flooring, which are unlikely to last more than a year or two. Also, lower-grade materials can allow sounds from neighboring units to pass through.

Facilities? Not in the case above. The older condominium has a full range of facilities already.

Calibre of the co-owners? In this case the new condominium has a number of smaller units, geared to perhaps a more middle- class market than the older building which comprises large units only.

The appearance of the building? This must be it. The new condominium will have a nice, shiny new lobby, a clean and newly painted exterior, freshly laid flooring in the common areas, and new furniture. The old condominium is waiting for a repaint, and a new lobby would be nice too.

Then why don't the owners of the older condominium make these improvements? Probably because when it comes to buying a condominium, people are ready with their chequebooks, but for ongoing maintenance, this is not the case. Or maybe the condominium committee members aren't as good at selling-in this case the idea of a necessary cosmetic upgrade to add value – as those working for the developer.

Does this mean that in five or 10 years' time the new condominium will look like the old condominium? Is buying a condominium like buying a car; the price depreciates over time?

Well, if you gave the older condominium mentioned above a repaint, gave it a new lobby with new furniture and resurfaced the podium level, and renovated the small amount of common space in front of the units, and then the difference between the two would not be that great. I don't see many prospective buyers drilling into the concrete structure to check the integrity of the concrete.

Bear in mind that if you buy a unit in an older condominium, there's a good chance that inside there could be a lot of old wooden fitted furniture that's 10 years out of fashion. You may want to rip the whole lot out and start from scratch. If you carried out a thorough renovation of the unit-new floors, new furniture, new electrical and sanitary fitting, then you would probably be looking at spending in the region of 10,000 baht per square metre.

So perhaps it all depends on how much you are willing to spend on a shiny lobby. I myself generally spend about one minute per day walking through the lobby. Most of my time I spend inside the unit. How about you?

Neil Simmons, formerly of CB Richard Ellis, is co-director of Soho Properties (http://www.soho-properties.com), a leading real estate agent and location specialist for property in Bangkok.

Toy Factory Lofts: one of Toronto's few true loft conversions. The developer took the old Irwin Toy Factory building and converted it into work/live condo units. We bought two pre-construction units, over 3 years ago, but not before we did a ton of research.

We put our limited cash resources into this project because we had the opportunity to buy the units at a slight discount before they went on sale to the public , the builder/developer involved in the project has a very strong reputation, the King West Liberty Village area of Toronto was clearly an up and coming area at the time with a very close proximity to the downtown core (a planned community that has converted a huge industrial plot of land into a massive young professionals haven), and the price gave us the strong, positive numbers we needed for us to take on the risk.

The one thing we didn't foresee was having our money tied up for so many years because of the countless construction delays. But, the value has continued to appreciate at higher than average Toronto rates, giving us a very nice return on our 15% down payment. When we finally get occupancy, we will rent out the 2 units for an amount which will cover all of our costs (mortgage payments, taxes, condo fees, insurance, management). Our renters will pay down the mortgage for us, Liberty Village will continue to grow and appreciate (at least we hope and expect it too!), and we'll build equity, for the most part, effortlessly. Nice!

With strong results based on this project, I know I am always on the lookout for a new pre-construction opportunity. If you aren't afraid of a pretty risky scenario, there is an appetizing profit potential in buying pre-construction condo's. Buy today, at today's prices, for a small portion of the down payment (usually 5% to 15%). Then all you have to do is sit back and watch the value go up and up and up, right? Well, not necessarily.

As you can imagine there is a lot more risk in purchasing pre-construction condos in Canada than if you buy a resale property, or at least one that is finished construction. Some things to consider before you walk into the next condo sales office and buy that pre-construction property:

* One of the most important factors to consider: reputation of the builder/developer (not sure how to find out about the reputation check the local homebuilders websites like the Greater Toronto Homebuilders Site, called BILD, or check out the latest JD Power and Associates Builder Survey;

* What will the area be like 1, 2, 3 years from now once it's built;

* How many other units, condos, pre-builds are in the area;

* What will YOUR financial situation be upon completion - will you qualify for a mortgage;

* What is your objective in buying pre-built: rent, assignment, move-in;

* If you intend to rent it out, what are average rents in the area (check rent-o-meter as a quick tool) and how many units are being bought for the same purpose as yours;

* What might interest rates be doing years from now.

There are several large advantages to buying pre-construction condos:

* The power of leverage, you buy today with little down and the building (theoretically) appreciates on your minimal down payment;

* Your financial situation may not be great today, but by the time it's ready for financing, you should be in good shape;

* You get a brand new home!

* Buy at today's prices for future value;

* If you buy early in the sales process, you get a wide selection of floorplans to choose from; and

* You can often make changes to your unit which improve and differentiate it from the others and these changes are usually much less expensive during construction than doing reno's after.

From the above considerations, it's easy to see that there are a lot of factors at play and most of them require a working crystal ball to answer them correctly. In addition to the unknown elements you are dealing with, there are also some things to watch out for, including:

* Buying new means paying the government GST, so even though it's down to 5% now (and you often get a 2-3% rebate), you still have to pay the piper on the New Home -OUCH!;

* Your money could be tied up in this project for more than three years; compare your likely return to that of the other options out there. Your money might be safer and better to sit in a high interest savings account like ING offers;

* Floor models, detailed floorplans, and great marketing can never truly represent the final product you are buying. What view are you REALLY going to have when it's done?;

* Will it be ready in 1 year, 18 months, 2 years? Be ready for delays, it seems that they are NEVER ready when they say they will be;

* If your intention is to assign (sell the contract to another purchaser) your property, not only do you need the builders permission, there is often an assignment fee IN ADDITION TO regular sales agents commissions;

* Further to above, even if you assign your contract, if the assignee is unable to close (get financing), you are still responsible for getting the mortgage;

* Be careful if you plan to rent it out. If you have that tenant lined up with a signed lease for your brand new unit a week after your scheduled "move in" date, you will be responsible for providing them with a place to live if that occupancy date gets pushed out;

* If you intend to rent the unit, you may want to find out how many other "investors" have bought in the complex. Too many units for rent will decrease the rent and saturate the market; and

* Deficiencies, deficiencies, deficiencies! "The toilet, tub, and dishwasher don't work", you say. "Oh, we'll get those fixed soon" says the builder as they work on their next project. Any reputable builder will eventually fix them, but on their own schedule. Their schedule may not make a tenant (nor you) very happy.

Buying pre-construction condos is not for the faint of heart. In our experience, if you do your research, know your objectives, and have some luck, your purchase should turn out strongly for you. Ensure you complete your due diligence by considering all of the items I noted above and luck should be on your side (as "The Donald" was quoted as saying recently "the harder I work the more luck I have").

Dave is a commercial mortgage broker and has been investing in real estate with his wife Julie for 8 years. Together they've built a multi-million dollar portfolio of residential properties. Read their entertaining stories of successes and scary mistakes, get up to date advice and lots of information on investing in Real Estate in Canada at http://www.revnyou.com

Sign up for Dave and Julie's free monthly newsletter and get a free starter tips guide where you'll learn:

* Three easy ways to make money in real estate (so easy you'll be making money while you sleep!),
* How to buy properties in Canada with limited cash,
* Your property type,
* The easiest way to get financing, and
* How to select a location and begin the search for your next (or first) property purchase.