Real estate investments are a dream come true for the average investor. Crowdfunded real estate is provide larger pools of investment from different sources in different countries. This method provides several advantages over traditional methods of investing in real estate. Continue reading
With the right assets, one can ensure they have sufficient cash flow to not only fund their retirement but also to fund the lifestyles of their children and grandchildren. While 65 is a common age to retire, real estate could lower the age for many to retire. Continue reading
Investing while in a marriage is risky business. Hard earned money at stake as well as a marriage. Finding a balance between when investing as a married couple is incredibly difficult. Continue reading
Diversifying Portfolios With Foreign Stocks
When it comes to investing, the more options one has, the better. International markets open up new opportunities for investors with different risk appetites. Foreign stocks provide new ways to diversify portfolios and benefit from the economic growth of other geographic regions. It is often advised to ensure that 5% to 10% of a portfolio is constituted of foreign stocks. More aggressive investors may be increase their allocation to 25% which is considered as acceptable. Continue reading
As a real estate investor, one of the first decisions you need to make is whether to purchase a single or multi-family rental property. While both options offer a reliable income stream, you may decide that one feels like a better fit for you.
To aid you in the decision process, we’re discussing what to expect when purchasing a single-family versus a multi-family investment property.
Why Invest in Single-Family Rental Properties?
The first and most obvious reason many investors opt for single-family homes is that they usually have a lower price point than multi-family properties. This makes it much easier to save up for a down payment, get approved for mortgage financing, and purchase your first investment property.
Single-family homes also offer flexibility when it comes to leasing. There are two primary ways in which single-family homes can be offered to potential tenants. First, you can lease the entire property to an individual, family, or group. You can also rent out each bedroom within the home separately (say, to different college students on individual leases). If you rent to multiple people on one contract, there is a risk of having an empty home if you can’t immediately fill a vacancy after tenants give notice. In this case, you would be responsible for covering the mortgage and any utilities until you find a new renter. You must also pay for any advertising you need to find potential tenants.
Another advantage of investing in single-family rental properties is that they are relatively easy to manage on your own. However, if you’re just starting out as a real estate investor, you may still want to consider partnering with a property management company. A manager can help you handle tenant relations, property maintenance, and more while you focus on building your portfolio.
Why Invest in Multi-Family Rental Properties?
Because multi-family investment properties are larger than single-family homes, they tend to cost more upfront. This means that you’ll need to borrow more and save up a higher down payment for your purchase. While multi-family properties might be more expensive to purchase, you’ll likely see higher profits down the road because you can rent out each unit separately. This might also provide more financial security since it’s less likely that everyone in the building will move out at the same time.
Despite better opportunities for income and greater financial security, there are a few downsides to purchasing a multi-family property. First, you’ll likely have to spend more time and money on advertising efforts to ensure you can fill every unit in your building. You may also have higher repair and maintenance costs, as larger properties have a greater potential for issues.
Landlords of multi-family buildings must also dedicate a significant amount of time to tracking down rent payments, advertising available units, and generally managing an investment property. If you’re looking for something that feels like passive income, a single-family home might be more appropriate. However, you can also hire a property manager to handle the daily ins and outs of your multi-family building.
Financing Your Investment Property
If you’re looking at multi-family buildings with four or fewer rental units, you can apply for a conventional mortgage loan. However, if the properties on your radar have five or more units, you’ll have to apply for a commercial loan.
While some lenders enjoy providing loans for multi-family properties due to financial security, other lenders are more conservative. Hesitant loan officers may sneak in restrictions when underwriting the loan. Therefore, if you decide to purchase a multi-family property, it’s wise to shop around for a mortgage package before making an offer.
Ultimately, both types of rental properties have their benefits. As a real estate investor, you may decide it’s worthwhile to diversify your portfolio by investing in both single and multi-family rentals.
Investing in solar energy creates new opportunities to increase household savings and save the environment at the same time. Different factors determine how much can be saved for households using solar energy. Such factors also determine the length of time it takes to gain adequate return on investments. Return on investment of solar power systems are, among other factors, affected by property characteristics, electricity rates, solar renewable energy certificates, financial incentives. Continue reading
Investing in real estate is a great way to diversify income streams. There are many property markets which provide great return on value for those who are willing to dig deep to uncover the ins and outs of real estate in regions outside of their home nation. Continue reading
Investing while in debt is a touchy subject for obvious reasons. Some believe that investing while in debt is an effective financial decision while others believe it is counterproductive. Money owed increases with time due to compound interest. With no guarantee of returns, investors who have debt put themselves at risk of bankruptcy. Many may, however, find that waiting to invest presents costs in terms of unrealized profits that could have been made from investments. Continue reading
Treasurydirect.gov is not talked about enough even though it’s a great channel to make your money work for you. It is the first and only financial services website where individuals can make direct purchases of securities from the U.S. Department of the Treasury. It is backed by the full faith of the U.S. government.