So you want to Invest?

You often hear analysts say "run the numbers before buying an investment property" but what do they really mean? Running incorrect numbers can cost you hundreds even thousands of dollars monthly. Below are a list of the "numbers" to consider.....

RENTAL INCOME
Rental income is not black and white. Often times, current rent rolls do not reflect true market values. Consider comparable leases for the neighborhood and size of your unit. Your local newspaper or real estate agent could offer insight in this area

MORTGAGE COSTS
The interest from your mortgage will more than likely absord the lionshare of what would otherwise be your profit. Be clear on the details of your loan options and estimate interest rates before considering your profit; it could make the difference between a good and bad investment. Keep in mind that 4+ family properties are considered commercial properties and are subjet to higher interest rates and mortgage requirements. It is important to contact local banks as well as mortgage brokers to disuss the over all benefits and drawbacks of choosing a fixed loan vs. an ARM (Adjustable Rate Mortgage) as well as determining the appropriate amount of downpayment.

TURNOVER EXPENSES

Tenant turn over cost can be considerably more than expected. This includes advertising for a new tenant, cleaning, repainting, replacing carpet, etc. If you expect to have high tenant turnover, like next to a college campus, anticipate this to be a significant cost.

INSURANCE COST

Investment properties are typically insured at a higher rate than owner occupied, single family homes. It is advised to get an insurance quote on the property prior to purchase. Liability insurance is also another costly consideration.

MAINTENANCE

Undoubtly, the most difficult number to estimate, maintenance costs depends on the property and how handy you are. It is difficult to give a precise number but there are factors to take into account.

TAXES

In cases were substantial improvements were done to a home or the property may have been historically under assessed, taxes can raise considerably within a year after purchase. While there are no guarantees, the safest approach is to research the current tax rate and the purchase price to determine your future taxes.

VACANCY RATES
People typically forget to take into account the fact that thier property may not be rented all 12 month's of the year. Even when looking to invest in a desirable rental area, the rule of thumb is to factor in a 10% vacancy rate.

Property Type - Different types of properties must be evaluated differently. Brick is relatively worry free avoiding exterior painting expenses and issues of wood rot. Decks require considerable maintenance; Wood floors are easier to clean and will not have to be replaced when you change tenants.

Property Size - In the caes of maintenance costs, smaller is better. The reality is, the less square feet you have to maintain, the less it will cost you.

Property Location - Consider how far you live or work from the property. Over the course of a year, transportation cost can add up.

UTILITY COSTS
Check for owner expenses vs. tenant expenses. Be sure to include utilities and landscaping services. In addition, there may be owner expenses like parking lot lights and rubbish removal and municipality services costs like septic tank expenses.

PROPERTY MANAGEMENT
When considering a company to manage your property, definitely get their rates and accessibility. When choosing, consider Red Roof property management services .

Top Reasons to use a Realtor to help you find your next apartment

The Westchester, NY rental market is a continually climbing and extremely competitive marketplace, however, when most people are looking for a rental property, they do not even consider enlisting in the services of a broker or realtor. Rather, they look through newspapers, rely upon word of mouth, or use an online apartment locator to assist them in the search. This is unfortunate because a realtor can be of great help when it comes to finding an apartment.

Many do not realize that a realtor does so much more than sell real estate. In fact, a real estate agent can be a key source in finding a great apartment at a cost you can afford.

Putting Realtor Knowledge to Work for You
One of the best parts about using a real estate agent as your personal apartment locator is the fact that a realtor is quite knowledgeable about different neighborhoods. In fact, a competent realtor should be able to answer any questions that you might have about the different neighborhoods you are considering moving into. The realtor should also know quite a bit about the apartment complexes in those areas and whether or not any apartments are available. In this way, you can better determine if the neighborhood is a good fit for you.
Some factors you might want to consider when searching for an apartment include:

Is the apartment conveniently located near to public transportation and other conveniences, such as stores?

Is the neighborhood and the apartment complex family-friendly?

How bad is crime in the neighborhood?

How long of a commute will you have to take to get to work?

Are there parks or other attractions nearby?

If any of these are important to you, your realtor should be able to quickly determine the neighborhood in which your should concentrate your search.

Save Time With a Realtor as Your Personal Apartment Locator
Most of us lead very busy lives and, as such, we don't have time to call about every available apartment or to visit every one that is available. After you tell your realtor what you are looking for, he or she can narrow down the choices and take you to see only the apartments that are most likely to suit your needs.

If you are getting ready to move into the state or city, this time saving element can be a necessity. After all, you don't have time to travel back and forth to look at many different apartments. Rather, you can higher a realtor to narrow down your choices and arrange for you to see all of the potential apartments in just one day. That way, you only have to take one day out of your busy schedule to see what is available. Having a realtor work as your own personal apartment locator can save you a great deal of time and inconvenience. If you are moving into the area, contacting a real estate agent ahead of time can make the move much easier and create for a far smoother transition. Even if you already live in the area, however, getting help from a qualified real estate agent will still save precious time and will simplify the entire process.

Do you know your Westchester History?

A little history about the lovely suburb of Westchester County, NY

The first Europeans to explore Westchester were Giovanni da Verrazzano in 1524 and Henry Hudson in 1609. The first European settlers were sponsored by the Dutch West India Company in the 1620s and 1630s. English settlers arrived from New England in the 1640s. Westchester County was an original county of the Province of New York, one of twelve created in 1683. At the time, it also included the present Bronx County, which constituted the Town of Westchester and portions of three other towns: Yonkers, Eastchester, and Pelham. New Rochelle was once the private farm of Thomas Paine, a writer of the Declaration of Independence and the author of 'Common Sense'. Much of southern Westchester came under the ownership of Lord Pell(Pelham/Pelham Manor), who sold the Huguenots the land to settle New Rochelle in the late 1600's. In 1846 a new town, West Farms, was created by secession from Westchester; in turn, in 1855, the Town of Morrisania seceded from West Farms. In 1873, the Town of Kingsbridge seceded from Yonkers.
In 1874, the western portion of the present Bronx County, consisting of the then towns of Kingsbridge, West Farms, and Morrisania, was transferred to New York County, and in 1895 the remainder of the present Bronx County, consisting of the Town of Westchester and portions of the towns of Eastchester and Pelham, was transferred to New York County. By that time, the portion of the town of Eastchester immediately north of the transferred portion had seceded from the town of Eastchester (1892) to become the City of Mount Vernon so that the Town of Eastchester had no border with New York City. In 1914, those parts of the then New York County which had been annexed from Westchester County were constituted the new Bronx County.
Today it is one of the most affluent counties in the country, home to many of New York City's most desirable suburban communities. It is a haven for commuters, whether traveling by car or by the Metro-North Commuter Railroad.