Wichita Property Management Information
5 Essential Financial Terms Every Single-Family Real Estate Investor Should Know
By Dennis Cisterna from US News
When it comes to handling your real estate investments, the words from U.S. businessman Peter Lynch consistently ring true: “Know what you own, and know why you own it.”
Know these important terms:
Cash flow = gross income – operating expenses
Capitalization rate = annual net operating income / cost
Gross yield = gross income / cost of investment
Depreciation and appreciation
5 Home Buying and Selling Mistakes to Avoid
Mistake #1: Assuming the real estate process is the same as when your parents bought their house
Mistake #2: Forgetting that you can actually do a lot of this yourself — and save some money along the way
Mistake #3: Flying blind when it comes to pricing and neighborhood stats
Mistake #4: Assuming you should buy at the asking price or, if you’re the seller, take the first offer you get
Mistake #5: Getting overwhelmed by the process (because it isn’t really that complicated)
8 Critical Things to Do Before Buying a Home: How Many Have You Done?
1. Crunch your numbers
First, ask yourself not if you’re ready emotionally—because it sounds like you are—but ready financially, says Kristen Robinson, senior vice president at Fidelity Investments.
2. Know your credit score
Your mortgage’s interest rate—and, as a result, the size of your monthly payments—will be directly related to your credit or FICO score, essentially a summary of how reliably you’ve been paying off your debts.
3. Amass a down payment
Most mortgage lenders require a cash down payment of 5% to 20% of the price of a home. For the U.S. median home price of $292,700, that’s anywhere from $14,635 to $58,540.
4. Get educated
Consider taking advantage of local home-buying seminars, often offered by banks or nonprofits. Such resources will explain aspects of a home loan, like the criteria lenders use to evaluate a borrower, the documentation buyers will need to provide and what each portion of a mortgage payment goes toward.
5. Interview at least three real estate agents
Just about everyone knows a real estate agent or five, which explains why 52% of home buyers find their agent through a friend. But don’t just settle for the first agent to cross your path—remember, a house is a huge purchase, the stakes are high.
6. Go mortgage shopping
“Mortgages are not one-size-fits-all,” says Scott Haymore, head of mortgage pricing and secondary markets at TD Bank. He advises buyers to find a lender they trust and to discuss their financial situation. A lender will then help buyers “understand what financing options are available.”
7. Ballpark your closing costs
Another sizable chunk are closing costs, and they’re no small chunk of change, ranging from 3% to 6% of the purchase price thanks to taxes, transfer fees, and other expenses. So, make sure to budget for this expense too, just so you aren’t blindsided come closing time.
8. Ponder the future
Home buyers sometimes think of the purchase “inside a vacuum,” says Jeremy Hallett, CEO of Quotacy.com. That’s why he advises “making sure you have a will in place. Buyers should also consider a term life policy that runs at least 20 years and would pay off the home if something tragic happened—$20 a month buys a $500,000 policy.”
4 Powerful Ways Real Estate Can Make You a Millionaire
1. Cash flow
Cash flow is the extra profit left over after all of the expenses have been paid on a property. For example, if my rental property produced $2,000 in income and my expenses came to $1,700, my cash flow would be $300 that month.
When I talk about appreciation, I am not referring to how much I like you (though I do appreciate you!). I’m referring to the natural rise in value that real estate experiences. For example, if you purchased a property for $200,000 ten years ago, and today that property is worth $300,000, the appreciation made you $100,000 richer!
3. The loan pay-down
When you purchase a rental property with a mortgage, each month you make a payment to the lender. That payment includes two parts: principal and interest. Interest is the profit for the lender, but the principal is money you are paying down the loan with.
4. Tax benefits
Finally, the fourth wealth generator in real estate is the tax benefits the U.S. government gives to investors. These benefits are numerous and realized in several distinct parts of the real estate process.
9 Time-Wasting Real-Estate Myths to Avoid
1. Investing in real estate is too risky.
2. You need a higher education to succeed as an investor.
3. You have to be rich to invest in real estate.
4. Investing takes too much time.
5. That late-night TV infomercial real-estate stuff is your only option.
6. You need outstanding credit to invest.
7. You can do just fine investing in the stock market.
8. Only institutions and full-time pros make it in real estate.
9. There is too much competition to be successful.
5 Basic Tips for Investing in Real Estate
From Huffpost Business
If you're just beginning to invest in real estate, you'll find that there's a lot to learn. Real estate investing is more complicated than investing in stocks because of the financial, legal, and extensive due diligence requirements involved. That's why it's a good idea to give yourself a solid education before you purchase your first investment property.
However, before you get your advanced degree, it's a good idea to familiarize yourself with the fundamentals. To that end, here are 5 basic tips for investing in real estate.
5. Use the "1% Rule"
The 1% Rule simply states that an income producing property must produce 1% of the price you pay for it every month. For example, if you're looking at buying a property for $150,000, then the monthly rental income should be 150,000 x 1% = $1,500.
4. Check Your Credit Report
Simply put, banks aren't going to loan money to you for a property that's not your primary residence as readily as they'll loan it to you for your own home. That's why your credit has to be spectacular.
3. Understand the Tax Benefits
Keep in mind that the IRS views your real estate investment efforts as a business so you also get to claim the "necessary and ordinary" deductions that business owners take, including mortgage interest, insurance, and maintenance expenses.
2. Look for Wholesale Properties
Investing in real estate is just like investing in the stock market in at least one way: you're looking for the best deal. If you're a savvy stock market investor, you probably won't buy too many stocks at their high if you plan on holding them for a long time.
1. Location Matters
The old adage that "location matters" is most accurate when it comes to real estate investing. Before you fork over a down payment and put yourself in a significant amount of debt over a property, ensure that it's in a good location.
Top 10 reasons you need a property manager
From the National Association of Realtors
1. No more wake-up calls
2. Turbocharged tenant sourcing and screening
3. Regular maintenance and repair help
4. Avoid messy legal problems
5. Get the income balance right on your properties
6. Keep an eye on your property without having to watch it
7. Stop being the bad guy
8. Never hear “the check’s in the mail” again
9. No nore dreaded evictions
10. Have the freedom to invest in better housing markets
"Owning rental property can be a great investment. But, as you can see, having a property manager can make your life so much easier. If you own rentals, but are feeling overwhelmed, do yourself a favor and look into getting a property manager to take some of the load off. You won’t regret it!"
Best Wichita Schools
Thinking about moving to the Wichita area and don't which school is best for your children? Here's the best schools in Wichita, KS from Zillow.com.
Wichita has 115 schools. One of the highest rated schools is Dwight D. Eisenhower Middle School, which has a rating of 9. The school has 427 children. Public schools in Wichita are part of Wichita School District or Maize School District. Haysville School District is close and scores higher than Wichita School District. Nearby Derby School District scores higher, with a rating of 5.
How do you get started as a landlord with your first rental property?
Once you’ve purchased your first investment property, try these tips to make it desirable to renters:
- Paint the walls neutral colors, but not all white. Make sure the carpets are clean or new. Have everything working and presentable before showing it to a potential tenant.
- Set the rent so it’s comparable to others in the area, but make sure you’re still making money.
- Make your rules and stick to them. If you don’t want pets, don’t have pets. If rent is due on the 15th, always collect it that day.
- Read, understand, re-read and practice the laws of rental property ownership for your state. These can be complicated and can lead to a lot of trouble if not followed.
- Consider hiring a property management company to help you through the process. They will help you with the stressful things of rental management like rent collection, making repairs, finding tenants and more.
If successful, you'll be earning money while you sleep!
7 smart moves for getting started as a landlord
1. Recognize that being a landlord is a business.
2. Start small.
3. Don't invest somewhere you don't know.
4. Figure out the right rent.
5. Be ready to get your hands dirty.
6. Get professional help when you need it.
7. Keep your tenants happy.
Read more here.
Why should I hire a rental property management company?
“Choosing the right property, maintaining it, dealing with tenants—all that takes work. Think hard about whether you’re prepared to put in the time. Can you handle after-hours calls? What if your tenant doesn’t pay rent? (Time)”
For a small fee, a property management company will find qualified tenants and make sure rent is collected on time.
Calls at three o’clock in the morning about a leaking hot water tank or AC that stopped working will go to the manager, not your personal cell phone. The managers will handle contracting the work to make repairs.
Once tenants move out, the mangers will take care of prep work for the new tenants like fresh paint, carpet cleaning and any necessary repairs. New qualified tenants will be moved in with signed contracts, all following the states laws and you will make money while you sleep.
Read more at Time.com
Best places to live in and around Wichita, KS
If you're considering moving to Wichita or the surrouding area, you're probably condering different factors like amentities such as grocery stores, shopping, parks and more. Other more imporart factors include the cost of living, crime rate, proximity to your childrens' school, your work, home values and whether you like the neighborhood.
To help narrow-down your neighborhood selection, an online tool called AreaVibes helps you find the best and worst places to live in and around the Wichita area.
The top 10 areas in and near Wichita with the highest liveability scores include Eastborough, Rockhurst, Derby, Bel Aire, College Hill, Andover, Village, Brookhollow, Colwich and Maize.
To find homes for rent in these areas, click here. To learn more about these areas and Area Vibes, click here.
Should I invest in rental property?
Yes. But do your homework first and don't put yourself in a fincncial bind. Start small and work your way up.
Buy a house near you that's affordable and needs minimal repairs. Make sure it has good schools and is in a desirable neighborhood.
Once you feel comfortable with your first one, start working toward more and you'll begin seeing a real return on your investment.
"Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world." - Franklin D. Roosevelt
Making Wichita Property Management Easier with Regular Inspections
As an investor, preventing damage to your property is essential to ensuring the long-term success of your rental. The cost of repairs can add up quickly, oftentimes negating much of the profit you have worked hard to earn.
One effective Wichita property management tactic for keeping your home in great condition is scheduling regular inspections with your tenants. Not only does this provide the opportunity to discover issues early on, but it can also encourage your renters to treat the property as if it were their own, knowing that you will inspect it during their tenancy.
How Wichita Property Management Companies Advertise Rentals
One of the first challenges that an investor will face with a new rental property is finding tenants. While some properties receive a high level of interest from potential renters, choosing the right tenant is important to your investment's financial success. That is why Wichita property management companies carefully research the best ways to find highly desirable tenants and take care to avoid the ones that are less qualified.
Tips for Rental Property Management Wichita Investors Need to Know
Owning an investment home can be a great way to develop a source of passive income, but there are a lot of things about rental property management Kansas investors need to know before diving in. On top of the tremendous upside of rental homes, they also come with their share of problems. Luckily, the most savvy property managers in Wichita, KS have learned some great techniques to promote positive results.