** # Entrepreneur of the Week - Post 6 How do you earn a rent without worries and hassle? The answer - buy a good property!…
# Initiated week- Post 6
There are a number of rules / criteria that are milestones for me and I try to adhere to them. If I go out and go beyond that, then the property makes up for other things.
- House size- Looking for houses with a minimum of 3 bedrooms, with a minimum of 1.5 bathrooms, the priority is for 2 bathrooms and a shower. I don't squint at houses under 1000 sq ft and over 1500 sq ft. This is already problematic for me, because the property tax will be settled accordingly and will necessarily be significantly higher above 1500.
- Storage- It is very critical to have a covered parking (car garage) or a basement, one of the two is mast. A house that does not have both - is not taken into account, but every rule has an exception and I have one house, only one, for which I have "bent" this rule over the years and this is due to an investor's very low budget and the fact that the house has a great advantage over other houses Others in the neighborhood, as the house has very large rooms. The investor receives a very, very high return on this house since it was purchased at a very low price, but you have to take into account that it is on sale, I think it will take time to be sold.
- basement- In Michigan, the amount of rainfall is large and when there is water in the basements it is not unusual, but I have a rule on this issue and it is the purchase of houses that the basement is made of cast concrete and will explain; There are 2 construction methods - with the help of blocks and concrete slab that are poured. The houses from the blocks significantly produce more maintenance problems due to the rainfall. So, and again when we talk about renting, I don't buy homes from blocks unless the property is maintained at a very high level or a water-proof system is installed.
- ** Location: ** Location of the property is very important. I do not look at corner houses, because they are more exposed, the level of privacy is low and it is less attractive to rent (and for sale). If you saw a house that is really rare in terms of its data and I had one, then we built a wooden fence that upgraded the yard and demarcated the house, so that the tenant's privacy is preserved.
- Address: To see that they are not close to commercial centers, to see that the back of the house does not turn to a commercial center - the noise lowers the demand of the property, never buys on main streets, ever. Check that there is no railroad in the area - this is a serious nuisance and will be difficult to rent. Houses in front of schools, I prefer not to buy, but only near a school.
- Windows: Another thing I do not compromise on. The houses I buy are old and the windows are also old, in the state of Michigan this is critical because of the weather (cold) old windows were built with wood and metal frames, if the windows are old, I change windows, this is also a considerable expense that will come into my consideration when submitting the offer and again- There are no compromises, I don't want calls from tenants about the fact that the windows are not sealed, I like to sleep well at night, so - I replace old windows.
- The most important thing - Arnona !! Property tax hits us with the numbers if we don't do our homework. In Michigan, there is a different property tax for homestead - and for non-homestead, an investment house will be taxed with a higher property tax. When checking the attractiveness of the property in terms of the amount of the property tax, do not rely and be satisfied with the information on the network -zillow and mls-, but go to the website of the municipality or the district and see the amount of the property tax. Sometimes the property tax is higher than usual, don't panic, it could be that the property owner hasn't paid water bills for a long time and it was transferred to the property tax account, so you need to check the details to understand what the exact amount of the property tax is.
GOLD ASSETS
Have a nice weekend everyone
Thanks a lot Yaron !!! it was great!
Tal Saadon Noam Nahum
Champion
Very important Yaron. Thank you
Thank you
?
Pleasure Ron, thanks for the tips
Michael Lerman
Many thanks Yaron! Good tips!