November 1, 2011
Since we have started converting and acquiring additional properties using the Rent To Own strategy and sharing/teaching our ideas with other investors, we get asked this question all the time…. ‘why don’t you buy cheaper homes and rent out the upstairs and downstairs?’
Yes, that is another way of investing. Neither style is wrong, we have tried them both. We just like to share with you what has worked for us successfully and has had the least amount of headaches. The first step is to ask yourself a few important questions then decide.
What type of tenants are you trying to attract into your home? Depending on the type of home you choose, this could attract different types of families. In your mind you may think a detached 1200 sq. ft. home may be more desirable than a town home that is 1700 sq ft. But the reality is people prefer space. Purchasing a smaller home may attract families with no more than 3 people only, vs. a larger property that can attract all types of family dynamics.
What type of area do I want to buy in and how important is location? Many investors want the lowest price they can find for their investment property. Purchasing a home in a less desirable part of the city will attract a less desirable type of tenant. If you find a beautiful home- in a beautiful neighbourhood- you will find tenants that are more stable and are more likely to purchase the home at the end of the term.
What’s the turnover rate for your strategy? High turnover in your tenancy is usually a good indicator of unstable renters. This could vary from low income/no income to those individuals personal situations. Rent to Own looks at income and job stability. You are not trying to attract students, tenants on unemployment or on government assistance.
Is there an incentive for them to appreciate and care for the home? If you choose location over purchase price, this automatically gives you leverage to increase the monthly price of the rent- over market value. For example, if market rent (in the area) is $1400, our tenants will expect and to pay $1500-$1600- because of the location.
Are they stable in their lives and jobs? For the most part yes- many of our tenants make over 6 figures- but only claim a quarter- if they can prove they earn the amount necessary to afford the rent- they can have the option to become RTO tenants. They understand they have 3 years to claim more income, so they can take ownership at the end of the term.
Other things to keep in mind when you are purchasing an investment property:
Curb appeal: What feeling will your prospective tenant/buyer have when they see the home from the street? Will they feel proud when their friends and family come over? Remember this, ugly homes repel good tenants.
Condition: How old is the home and have the major wallet breakers been upgraded? We prefer newer homes and we want to make sure the furnace, roof and windows are all in good condition. Guess what… so do your tenants moving in. Trust me, it’s less work and maintenance.
A good neighborhood: The ideal tenant will want to live in a home in a nice area. If they feel they are in a neighbourhood where they feel safe and their kids can play, you’ll attract the right tenants to your home.
At the end of the day, either investment strategy will work, it just depends on how much work you want to do and how many cash producing properties you want to own with the least amount of phone calls?
Gary Hibbert is a Canadian Real Estate investor. He uses a very smart and proven Rent to Own technique that provides a win win scenario for both the investor and the tenant. His technique of buying beautiful homes in beautiful neighbourhoods has proven to be a great concept and strategy he share with others investors. Visit Gary and his team at http://shcinvestor.ca
Article Source: http://EzineArticles.com/?expert=Gary_Anthony_Hibbert
Technorati Tags: agent, cash flow, investing, mortgage, properties, real estate, rent to own, rental
December 15, 2010
There are times when living in a big city can be pretty tough. There’s a cold and distant quality to it that, though there are millions of people around, a person can’t help but feel as if he or she is perpetually alone in a giant jungle of steel and cement. That’s why it’s sometimes better to find a life in a small city such as Scotts Valley.
Scotts Valley is a small city found in Santa Cruz County, California. With a population of only slightly more than 11,000, this city can be pretty cozy and tight-knit. The city was named after Hiram Scott, a businessman who settled in the nearby city of Santa Cruz and was truly instrumental in this city’s development.
About 60% of its population are married, half of which have children. The median income for the households in this city is a pretty decent $72,449.
The unemployment rate is a troubling 6.1%, though there’s a job growth of 1.2% in recent years, and a project 20% in the future. The current top employer in Scotts Valley is Seagate Technology, followed by Threshold Enterprises, and then Aviza.
If you plan to move to Scotts Valley with your family, of prime importance would be the issue of education. You’ll be pleased to note that Scotts Valley fares excellently in this category. There’s a Scotts Valley Unified School District which operates four of the city’s public schools, namely Scotts Valley High School, Scotts Valley Middle School, Vine Hill School, and Brook Knoll School, with the latter two being elementary schools. Those who prefer home schooling can also avail of the city’s Independent Study/Home School Program. This city is also home to the Bethany University and the Baymonte Christian School, both private schools.
What’s great about this city is that it’s really picturesque. If you have imagined a peaceful life in a quaint town, then you’ve probably found the place you’re looking for. Coursing along the city and its surrounding areas are several bodies of water, namely the Carbonera Creek, MacKenzie Creek, the Bean Creak, and also the San Lorenzo River. On weekends, you can take your family to one of the many parks in the city and just enjoy an idyllic picnic.
Also, this city’s pretty close to the beach, so it’s easy to just pack up and bring your amily with you on a nice outing. There’s also Camp Evers Fishing Park which is the town’s fishing hole, open only from May to September. Dads will also love going to the Valley Gardens Golf Course where they can play and discuss work with their colleagues.
All in all, Scotts Valley is an excellent place to live if your ideal life includes lots of peace and quiet. The locals here are warm and friendly and you’ll no doubt find it easy to fit in with them once you move in.
Technorati Tags: living in Scotts Valley
June 22, 2010
Take a virtual tour of Scotts Valley, just 6 miles inland from the Santa Cruz beaches and nestled at the base of the Santa Cruz Mountains.
Duration : 0:1:59
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Technorati Tags: santa cruz, santa cruz real estate, Scotts Valley
January 5, 2010
The history of Scotts Valley, California is a lengthy tale. It is positioned at the bottom of the Santa Cruz Mountains. Archaeological digs have unearthed remnants of the Paleo Indian culture dating back as far as eight to twelve thousand years. Settlements of the Ohlone tribes are thought to date back as far as 2,000 B.C. It was also home to the Shasta tribe and many beaver. Wild produce such as acorns, berries, cherries, and plums made the area attractive to indigenous people. Steelhead fish and salmon supplied many meals for people of the region.
The region was formerly called Rancho San Agustin during the time of the Spanish-Mexican inhabitants. The area extends for over 4,400 acres. It was given to Jose Antonio Bolcoff who was recorded to be residing with his wife there in 1836. Bolcoff was a native of Russia but later became a Mexican citizen. He spent a period of time as a traveling interpreter for Alta, California’s governor, Pablo Vicente de Sol .Bolcoff abandoned his “rancho” and it was then given over to his brother in law Joseph Ladd Majors.
Majors was an American citizen from Tennessee. He had previously earned a living as a trapper. When he came to the area he assisted in the operation of a distillery with Job Dye. He constructed a grist mill where area residents were able to get much need ground wheat. He used the “rancho” to assist in stowing away British and American citizens. They were being threatened by the Mexican government who wanted to banish all of the “foreigners” in the area. Meanwhile, Paul Sweet helped to develop the tanning industry in the region. There was a large presence of tanbark oaks within the Santa Cruz Mountains. He was a native of the state of Rhode Island.
Mayor Joseph Ladd Majors was elected into office, and in later years served as treasurer to the city. He decided to sell his property in 1850. A native of Maine, Hiram Scott, purchased Major’s property. Scott had worked as a seaman but became a gold prospector in the area. His family was the only residents in the area for a long period of time. The city was named in his honor. Quail, deer, coyotes, wolves, mink, and grizzly bears were plentiful and indigenous to the region during that time period. He eventually sold off his land to a few different families as they came into the area.
Locke’s Springvale Dairy was an attraction in the area. The dairy donated some land to the school district. Social activities largely took place within the school which became the social hub. Apples, butter, cheese, grapes, poultry and milk became staples of the areas produce. The beautiful landscape of the region called to tourists from many places, especially after The Great Depression. History of Scotts Valley, California shows that the area did not become incorporated until 1964 and wasn’t truly a city until 1966. The city is now home to many high tech firms.
Article Source: http://EzineArticles.com/?expert=Seb_Frey
October 26, 2009
Does anybody know where we can find listings of houses, townhouses, or condos (no apartments) for rent in Scotts Valley, Ca?
Try a search here: http://geo.craigslist.org/iso/us/ca
