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Flipping Homes? Must-Haves For Every Room
When looking for a return on your investment, keep these things in mind as you scour the market.
While location is key in almost any real estate transaction, that’s not all you should consider when purchasing a property you intend to “flip.” You need to examine the home room by room, looking for potential ways to make it marketable. “Flipping real estate is all about minimizing risk,” says Robin Mathis, a settlement attorney in Fairfax, VA, who flips homes with her husband, Mike Irvin. “It’s not something to go into lightly.” With that in mind, here are some details to mull over before you buy.
Basement and attic: All systems go
Just about every house-flip TV show will tell you that updated bathrooms and kitchens sell houses, but the less glamorous areas are just as important. “Things like electrical, plumbing, HVAC, foundation, roof, windows … these are the things that are more costly to fix or replace,” says Michael Hyne, who has flipped homes for sale in New Haven, CT. If most of these items aren’t in good condition, move on. “Nobody wants to buy a house with a crumbling foundation, even if [it] does have a brand-new kitchen,” he says.
Dining room: Versatility (and utility) is important
It’s a space that will probably be used frequently. You’ll want to have the option to customize it to your clientele. “It helps to know what kinds of families live in the area so that you can tailor your future renovations to your potential buyers,” says Hyne. “You wouldn’t want to do a modern-style renovation and then realize your clients are elderly people looking for a more traditional setup.”
Kitchen: Dream big (but make sure your plan is feasible)
For flips, the kitchen is definitely the heart of the home. Mathis often takes a contractor or home inspector with her to tour properties to make sure her ideas are actually doable. “Non-load-bearing walls are easier and less expensive to remove,” says Hyne, so think about where it’s feasible to knock them out to make a space look and feel more open. Also, consider what can be saved or reused. After all, it’s much more cost-effective to refinish or repaint kitchen cabinets than to replace them.
Bathrooms: Can you add or enlarge them?
“Most people want at least one and a half bathrooms, so think about where you can add one, even if it’s only a half-bath on the main floor,” says Hyne. Keep in mind that freshening up existing bathrooms doesn’t have to be costly. Simply changing the fixtures or other small elements may be all you need. “You can get a brand-new toilet for around $150, and it makes a huge difference,” says Mathis.
Living spaces: What updates and embellishments can be added?
Finishing touches and small updates in foyers, dens, or living rooms can create clean lines (think moldings, light fixtures, and other details), and you may be able to do them inexpensively. “Take a look at what they’re doing in million-dollar homes and then figure out how you can duplicate that in your price range,” says Irvin. He also advises thinking about ways you can make a home unique, which is especially important if it’s in a development where most of the homes have a similar layout.
Living room: Look for hardwood floors
“Refinishing existing flooring is about a third of the cost of installing new,” says Hyne. So, don’t be afraid to peek under that carpet to see what magic (or deflating dose of reality) lies beneath. Use this same logic when looking at the home’s existing finishes. Can dated wallpaper be removed? Will a new coat of paint be a huge improvement? Neutral choices are better, as they allow the home to appeal to a larger pool of buyers.
BUYING WHILE DIVORCED
WHAT YOU NEED TO KNOW TO MOVE FORWARD
Written by Jaymi Naciri on Wednesday, 01 February 2017 3:31 pm
Read Full Article Here Summary
Ending your marriage introduces myriad changes to your life. And when it comes to buying a house, checking the “divorced” box could prove problematic. If you’re newly single and looking to make a home purchase, a few tips can help you accomplish your goal as painlessly as possible.
Check your budget and check it again
Once you involve a lender in your homebuying plan, you’ll get a preapproval (assuming you qualify) that provides you with the maximum amount you can spend on your home. But that doesn’t mean you have to spend the maximum. You don’t want to be house poor, and end up with a home of your own but no money left over after your monthly expenses to actually enjoy your life.
Take your pre-approval from your lender and do some serious math. Can you really afford that payment? Did you factor in the mortgage insurance and the HOA and the home warranty and the landscaping?
Now think about all the other expenses. Like when your kid needs new shoes and uniforms and private lessons for soccer. Or your air conditioner breaks. Or a storm wrecks your roof.
Moving down, if it’s necessary because of changing financial realities, may not sound like a picnic, but overextending to stay in a certain neighborhood or buy a similarly sized house won’t be either.
Talk to multiple lenders
Connecting with a lender who understands both your life stage and financial outlook can help streamline the process and uncover loans and programs that are geared toward single buyers.
Despite having a much lower income ($55,300) than single male buyers ($69,600), female buyers made up over double the amount of men (7 percent)
Consider taking your name off the marital home’s mortgage
This can work toward improving your credit worthiness because, “In the eyes of the mortgage lender, you remain married and liable for the mortgage unless you sell the house or refinance,” said Bankrate.
It should be noted that how to deal with the marital home will undoubtedly be spelled out in your divorce decree, but if you’ve decided your ex will remain in the house and he or she has not yet refinanced to remove your name, that should be done before you apply for your loan.
A newly divorced person might not be financially ready from a savings standpoint and may also still have other intermingled obligations like credit cards, investments, and even old debts that are hurting your credit score.
If you were thinking about buying a house before the divorce is final, you might want to wait a bit. “Even if you can afford it, trying to buy a new home before a divorce is finalized can mean a red flag for lenders,” said US News.
Check your emotional state
While it can feel like the need to move and to have something of your own is urgent, you’ll want to make sure you’re not biting off more than you can chew – especially after the emotional turmoil you’ve probably just gone through in ending your marriage.
Ten Tips to Speed Up Your Home Inspection
Speed up your home sale by preparing your home ahead of time using the following tips. Your home inspection will go smoother, with fewer concerns to delay closing.
- Confirm that that the water, electrical and gas services are turned on (including pilot lights).
- Make sure your pets won’t hinder your home inspection. Ideally, they should be removed from the premises or secured outside. Tell your agent about any pets at home.
- Replace burned-out light bulbs to avoid a “light is inoperable” report that may suggest an electrical problem.
- Test smoke and carbon monoxide detectors, and replace dead batteries.
- Clean or replace dirty HVAC air filters. They should fit securely.
- Remove stored items, debris and wood from the foundation. These may be cited as “conducive conditions” for termites.
- Remove items blocking access to HVAC equipment, electrical service panels, the water heater, attic and crawlspace.
- Unlock any locked areas that your home inspector must access, such as the attic door or hatch, the electrical service panel, the door to the basement, and any exterior gates.
- Trim tree limbs so that they’re at least 10 feet away from the roof. Trim any shrubs that are too close to the house and can hides pests or hold moisture against the exterior.
- Repair or replace any broken or missing items, such as doorknobs, locks or latches, windowpanes or screens, gutters or downspouts, or chimney caps.
Self-Employed and thinking of buying… Read This First
SELF EMPLOYED?
We get a lot of self-employed clients. Many don’t show a ton of income on their taxes. This makes it more difficult for them to qualify for loans when they go to buy. One way of getting around this is to try to get a loan to qualify with just one year’s tax returns.
Yes, One Year of Taxes.
To qualify for a loan using just one year of taxes you generally need pretty clean credit, solid assets and 20% down. Occasionally a loan can get approved with one year of taxes with less than 20% down, but it is very rare.
So, if you have a you want to buy and do not show enough income on your 2015 taxes and they have not filed taxes for 2015, then maybe we can qualify them with just one year of taxes?
Example:
So let’s say you show 42K in 2015 and want to buy a house for $500,000 with 20% down and they have about $800.00 in recurring bills. In the above scenario you would usually need to average about $91,000.00 in income so to qualify using two years of taxes and need to make $140,000.00 on the 2016 tax returns.
If you use just 1 year of taxes then you need to show just 90K. If you` show $90,000.00 instead of $140,000 then your tax liability to the Federal Government and State of CA will be about $16,500.00 less. The next year you can go back to the $42,000.00 if you want, but if you buy a house they you will have an additional $21,000.00 write off so they don’t have to hide as much money.
Keep in mind if a client has to show $140,000.00 in income for 1 year to buy a house that they will have to pay approximately an additional $21,000.00 in Federal taxes and approximately an additional $7000.00 in state taxes.
They will also get a tax write off of approximately $24,000.00 the first year, saving approximately $6000 – $8000 per year in taxes depending on how much income they show in the future.
That makes the break even point about 4 years assuming no appreciation and not taking into consideration that the buyers are paying their mortgage down by $6700 or more per year!
If you’re self-employed people, before you file your taxes get pre-approved to see if you will qualify with just one year of taxes before you file your taxes. Once a lender runs their credit, and gets everything else then they can figure out exactly what is needed to get them qualified. You can complete the taxes as soon as you are qualified and then they can get you a loan soon thereafter.
For Any Questions About This Contact:
Mike Meena
Augusta Financial
24018 Lyons Ave, Newhall CA 91321
Phone 661-260-2970 Fax 661-554-7121
Email – [email protected]
NMLS# 241370
Augusta Financial
24018 Lyons Ave, Newhall CA 91321
Phone 661-260-2970 Fax 661-554-7121
Email – [email protected]
NMLS# 241370
Need to save $25,000? Here’s how to make it happen.
Thinking about buying a home in the near future?
In addition to covering such expenses as closing costs, escrow, and initial payments on taxes and insurance, cash is necessary for a down payment on your mortgage.
Planning to have 20% of a home’s purchase price for down payment is great, but 3% is more obtainable. 3% of $750,000 is $25,000 That’s no small number, but these tips can help you raise that amount and more. Here’s how you can work to build a down payment in one year, three years, or five years.
Raise a down payment in one year
If you target this goal, know upfront that you’ve given yourself a serious challenge. Building a savings fund of $25,000 in 12 months will require you to set aside $2,083 per month and take some extreme measures to make it happen. First, look at every single dollar you can cut from your current spending. Here are a few ways to aggressively trim your expenses.
Move in with a friend or family member to slash your rent. Any way to cut your rent further (or even live rent-free!).
Sell useful but not strictly necessary assets, like your car. Consider consignment stores, online yard sales, and other ways to sell your stuff. Get rid of every nonessential expense, no matter how inexpensive it may feel.
Your new rule should be “If I don’t need to buy it, I won’t.” Remember, you need to bank over $2,000 every month. Many people’s total monthly budgets don’t add up to the amount you’re trying to save!
Save for a down payment in three years
While it’s still an ambitious savings goal (you’ll need to save $695 per month), your approach won’t need to be quite as extreme. However, the basic steps remain the same: Cut unnecessary costs and look to increase your income so you have more cash to save.
Switch to a streaming service. The average cable bill costs about $100 per month. Most streaming services are less than $10 per month. This will give you a monthly savings of $90!
Reduce the number of meals out you buy each week. If a daily lunch costs you $10 but packing your own costs only $4, that adds up to a monthly savings of $180.
Eliminate expensive entertainment. Even one date night to the movies per month can put a dent in your efforts! Two tickets, sodas, and a large popcorn typically cost about $50+. In comparison, a rental from a video kiosk (or your streaming service) that you can enjoy at home with microwave popcorn? Maybe $5.
Beer, wine, and cigarettes don’t come cheap. If you’re used to buying a bottle of wine and a six-pack at the store each week, you may be spending close to $65 per month on alcohol alone. Cut back to just once a month (try the no-spend weekend!), and you could be looking at a monthly savings of $45.
Negotiate your bills. Call your service providers, insurance companies, and cellphone carriers and ask about lower-cost options. You can switch to a more basic service, request discounts, or consider cutting the service altogether. This can add up to a monthly savings of $50 or more!
Every time you earn a raise, get a bonus, or make extra income, contribute it straight to your savings fund for your $50,000 down payment. That will either allow you to reach your goal sooner or require you to cut back less in spending.
Build your down payment in five years
This timeline gives you the most flexibility in saving your $25,000 down payment. You’ll need to save about $417 per month to meet this goal. It’s still a lot of money but completely doable if you’re willing to cut back in places you currently spend. Use the tips above to help you cut costs and free up more cash for your down payment.
With five years until you need the money, placing it in the market enables your money to work harder for you. But remember, all investments carry risk. Don’t take this approach if you’re uncomfortable with the fact that you may end up earning 5% or more — but you could also only break even or even lose money.
The biggest challenge in saving $417 per month for this length of time is staying focused. Make it easier on yourself, create an automatic transfer from your checking to your savings each month.
Call 661.220.5506 and get going with GATELY!
Annual home sales up while condominium sales down in 2016
Don’t start worrying yet. Prices are still up for both Condos and Single Family Homes. They are not expected to fall as before, but what it means is that those from outside the area are using their buying power to buy a home rather than a condo, however pricing for both are still up.
In 2016, the Santa Clarita Valley reported the total sale of 2,493 single-family homes, up 1.7 percent from 2015 numbers. This is the second consecutive year of increased home sales following two years of decline in 2013 and 2014.
However, there was a slight downward trend for condominium sales in 2016 with a total of 1,095 condos sold, a decrease of 0.8 percent from 2015.
“There’s strong, ongoing demand for housing in Santa Clarita,” said Marty Kovacs, the 2017 chairman of the Santa Clarita Valley Division of the SRAC in a press release.
For single-family homes, the reported 2016 median price of sales was $542,933, reflecting an increase of 6.3 percent from 2015. For condominium sales, the reported 2016 median price was $338,875, up 7.8 percent from 2015.
Both homes and condos hit their record-high sales in 2006 at $603,492 and $380,583 respectively. Compared to 2016, 2016’s prices are 10 percent below the record high for home sales and 11 percent below the record high for condo sales.
Based on an article by Christina Cox of The Signal
– January 19, 2017, 2:27 pm
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Staging Adds Value
Landlords do this one thing NOW – or pay for it later.
A
pilot program in three cities permitting the owner of a vacant property to remove squatters by pre-registering the property. This would then enable the owner to obtain a court injunction and the local law enforcement to remove squatters for trespassing.
This California Association of REALTORS sponsored law creates a pilot program in the Cities of Palmdale, Lancaster and Ukiah, applicable to 1 – 4 residential property. Under the program t…he property owner, or an agent of the property owner, could file the Declaration of Ownership of Residential Real Property with the local law enforcement agency which could later be used to remove squatters.
If a squatter is found on the property the local law enforcement agency would be required to respond and take specified action, including requiring the person to produce written authorization to be on the property or other evidence demonstrating the person’s right to possession, and notifying any person who does not produce that authorization that the owner or owner’s agency may seek to obtain a court order and that the person will be subject to arrest for trespass if he or she is subsequently found on the property in violation of that order.
Assembly Bill 1513 codified as Code of Civil Procedure §§527.11 and 527.12. Effective date is January 1, 2015 through January 1, 2018.