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How do
I project rents on a rental?
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If you are buying a rental
income property and applying for a loan to do so, the lender will
require an area rent survey by a certified appraiser. The amount a
landlord can expect to receive in monthly rent largely depends on what
the property has rented for in the past, the condition of the building,
its location and the current housing market.
Lenders also look at other cash-flow considerations. They want to know
if you have enough reserves on hand to cover predictable and unforeseen
expenses, such as property insurance, taxes, regular maintenance and
repairs.
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Answer
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How do building codes work?
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Building codes are
established by local authorities to set out minimum public-safety standards
for building design, construction, quality, use and occupancy, location and
maintenance. There are specialized codes for plumbing, electrical and fire,
which usually involve separate inspections and inspectors.
All buildings must be issued a building permit and a certificate of
occupancy before it can be used. During construction, housing inspectors
must make checks at key points. Codes are usually enforced by denying
permits, occupancy certificates and by imposing fines.
Building codes also cover most remodeling projects. If you are buying a
house that has been significantly remodeled, ask for proof of the permits
involved before you purchase to avoid future liability for fines.
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Answer
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How do you increase the value of your property? |
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The biggest factor
that can affect property value -- market conditions -- are outside of your
control. But other factors -- including the condition of the property,
certain home improvements and neighborhood stability and safety -- are not.
For example, specific home improvements can increase your property value
above the cost of the improvements themselves, such as remodeling a kitchen,
adding a bathroom, finishing a basement or upgrading landscaping. Just be
sure that quality pays with remodeling. A bad remodeling job will do little
to boost your property value.
If you live in a high-crime area, an organized community watch program not
only will lower the crime rate but can enhance property values, too. It also
helps to live in an area where other homeowners are upgrading their homes,
which can help pull up your property value, too.
The bottom line is to measure the cost of any improvements you want to make
against the overall values in your neighborhood. If you over improve for the
neighborhood, you may not necessarily recover your costs or boost your
property value significantly.
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Answer
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How can I improve the value of my property? |
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The biggest factor
outside of a homeowner’s control is market conditions. But other issues --
including the condition of the property, specific home improvements and
neighborhood stability and safety -- can influence property values.
The greatest rise in home prices occurs when the economy is strong and the
number of home sales is increasing. Though markets vary, that has occurred
several times in recent history -- including the early 1970s, late 1980s and
late 1990s.
Specific home improvements can increase the value above the cost of the
improvements. According to Remodeling magazine, which publishes an annual
"Cost vs. Value" remodeling report, a remodeled bathroom returns 81 percent
to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82
percent. Remember, quality pays. Well-planned and well-executed remodeling
jobs are a good investment while bad work seldom enhances value or
livability.
The safety and security of a neighborhood can affect property values, too.
If you live in a high-crime area, an organized community watch program not
only will lower the crime rate but give home values a boost, too.
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Where do I get information on homes with historic value? |
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For information
about homes with historic value, contact the National Trust for Historic
Preservation, Washington, D.C. at (202) 588-6000;
nationaltrust.org.
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Where do I get information on REITS? |
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Ask for
information on real estate investment trusts, or REITs, from the National
Association of Real Estate Investment Trusts, 1875 Eye St, N.W., Washington,
DC 20006; (800) 362-7348;
nareit.com.
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Where do I learn about HUD foreclosures? |
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One good source is
their Web page hud.gov.
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Answer
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Where do I find about IRS properties? |
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Go the IRS
property site at
treas.gov.
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