May 8th, 2016 8:44 AM by Dale DiGennaro
The concept of building your wealth through rental properties is simple because they pay for themselves. You purchase and manage the property but your tenants actually pay for the properties and whatever extra is profit for you.
It's hard to resist because it's such an easy concept. Aside from any profit gained in charging your tenants more than the property costs you, there is another advantage for you.
While your tenants occupy the property, its value continues to grow and you reap the benefits of the increased property value. That's where the big payoff lies. Your expenses are in any property repairs or upkeep that may arise from time to time. Most small items can be and will be taken care of by your tenants.
The biggest component of running rental properties to give you maximum profit from the least amount of hassle is finding the right tenants. Dealing with tenants who do not pay or cause property damage can be issues that you'll have to deal with occasionally. The less you have to spend time and money on bad tenants, the more money you'll make. Long term tenants are the best choice. They have a commitment to the property and will consider it their home, not just a house they're renting.
Another factor to consider is the type of home you purchase to rent. Cheap properties are tempting to acquire immediately because they require fewer dollars from you. However, middle and upper class properties will require less maintenance and their values will appreciate better than cheaper homes, giving you a bigger payoff when you decide to sell.
We'd love to help! Are you ready to fill out a loan application today? Or....Just curious about rates? Regardless, I'd be glad to help you go over your options. Give me a call at (707) 252-2700 or visit me online.
Don't have time to dry and wax your car after every wash? Especially on warm, sunny days, wash your car in the morning or evening. Water will evaporate more quickly, minimizing spots.
Yes, you know this already, but it's important. Summer is coming up, so swimsuits and tank tops are coming out. It's especially important to avoid sunburns on kids, because every severe sunburn increases their risk of future skin cancer. Don't forget the sunscreen, even in May. And don't forget to check expiration dates. Even sunscreen expires.
Europe and China Worry Investors
Concerns about the pace of global economic growth were positive for mortgage rates over the past week. Friday's key employment data caused some volatility, but had little net effect. Mortgage rates ended the week lower.
The news released over the past week caused investors to reduce their outlook for economic growth in Europe and China. On Tuesday, the European Commission, the executive body of the European Union, cut its growth forecast for the eurozone for 2016 and 2017. The data from China released on Tuesday also was disappointing. China's PMI manufacturing index fell more than expected to a level which suggests that the sector is contracting. When global economic growth slows, it reduces the outlook for future inflation, which is positive for mortgage rates.
The most highly anticipated economic report of the month contained just minor surprises. Against a consensus forecast of 200K, the economy added 160K jobs in April, which was the lowest level since September 2015. Downward revisions to prior months subtracted 19K. Strength was seen in health care, while the retail sector was weak.
The unemployment rate remained at 5.0%. Average hourly earnings, an indicator of wage growth, were 2.5% higher than a year ago. The weakness in job gains was offset by the strength in the wage data, and the report caused little change in mortgage rates.
Looking ahead, additional labor market data in the JOLTS report will be released on Tuesday. JOLTS measures job openings and labor turnover rates. The report on retail sales will be released on Friday. Consumer spending accounts for about 70% of economic output in the U.S., and the retail sales data is a key indicator. The producer price index (PPI) inflation data also will come out on Friday. In addition, there will be Treasury auctions Tuesday, Wednesday, and Thursday.rsday.
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Looking for a simple solution to spice up your home's exterior?
Potted patio plants can add real drama to your entry area. One way to freshen up the potted plant concept is to paint your pots. You can use some of your left over exterior paint on terra cotta pots; this will give the appearance of custom made pots, and will blend with your structure perfectly.
Another way to add drama in this area is to add height. Choosing a plant that will grow very tall is a great start. Some examples might include okra, sunflowers, bamboo, or even corn.
Add varying textures to create interest. Some examples could include mixing lambs ear (soft) with lantana (rough), or even planting lavender with yucca. As long as you combine different textures in the same pot, you will achieve a unique look.
Finally, place a non-flowering plant in with flowering ones. Typically pots are used to showcase flowers, but if you just plant greenery instead, you might be more likely to get a second look from passersby.
Give us a call at (707) 252-2700 or send us an email at dale@clgroup.net. We're glad to answer questions — no obligation, of course.