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Be financial independent by investing residential rental properties and generate passive income with tremendous amount of
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Inmypreviousposting“benchmarkingcashflow(2)”withthelinkbelow,wediscussedhowtocalculateCapRateorCR%andEquityReturnorER%.
http://blog.wenxuecity.com/myblog/61110/201212/25655.html
Iknowthatthismightbeaboringtopicwithalotoftediouswork.Itcanalsobepainfulespeciallywhenyoureviewsomeofyournon-performingassets.Howeverthisisreallyagoodtooltounderstandhowwellyouaredoingwithyourrealestateassetsandi...[閱讀全文]
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Followingtheintroductionofbenchmarkingcashflow(1)withthelinkbelow,wewilldiveintomoredetailsofcalculations.
http://bbs.wenxuecity.com/tzlc/515367.html
Let'sstartwithsomebasictermsfirst:
CB:  InitialCost Basis=(PurchasePrice)+((ClosingCost)–(Loanrelatedcost)) 
ACB:InitialAdjustCostBasis=CB+(CostforInitial Improvement)
OE:  AnnualOperation Expenses
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Benchmarkingcashflowofportfolioofrentalpropertieswillhelpyoutracktheoverallperformanceandsummarizingaccountinginformationwithyear-to-yearapple-to-applecomparison.
CapRateorCR%iswidelyusedtomeasureannualperformanceforeachpropertywithoutaconsiderationoffinancingcosts.NotethatCapRateisdifferentfromGIM(GrossIncomeMultiplier)methodsuchas“1%rule”withoutconsideringunderlyingcosts.CapRateisnormalize...[閱讀全文]
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(2012-12-19 13:54:44)
Whenyousetupatrustforyourfamily,youneedtoconsiderwhowillbetherightpersontoexecuteyourtrust,manageyourassetanddistributetobeneficiariesaccordingtothetrust.Option1.Yourchildren.Theproblemsarea)Aretheytooyoungtodoso?b)Aretheyreallyresponsibleasyouare?c)Aretheyinterested?Option2.Yourrelatives.Aretheyinyouragegroup?Iftheyaremuchyoungerthanyouandolderthanyourchildren.Thismaynotbeabadoption.Option3.Yourf...[閱讀全文]
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SomereferencepostingsregardstoinvestmentinLasVegas. asof11/28/2012: LasVegasiswaytogo http://bbs.wenxuecity.com/tzlc/504345.html asof12/2/12 LasVegasRealPropertyBouncingBack http://bbs.wenxuecity.com/tzlc/506200.html asof12/17/2012: 賭城商用倉庫方興未艾(上) http://bbs.wenxuecity.com/tzlc/512317.html[閱讀全文]
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Thepropertytaxrateimpactsmarginsofyourrentalincome.TherentalincomeisbasedoncaprateorCRpercentagewhichdependsonNOI.NOIisgreatlyaffectedbyoverallpropertytaxrate.Aspropertyinvestors,weworksohardtoincreaseCRratebyeven1%.Buthighpropertytaxratecaneasilyeatsup2%.Thetaxesonpropertyincludebothstatetaxesandlocaltaxes.Thepercentageratementionedearlierismandatorystatewiderate.Ontopofthat,youmayneedtoconsiders...[閱讀全文]
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ThereisanotherprogrambesidesHARPsocalled"homeretentionrefinancing".Yourinvestmentpropertymightbeeligibleforthisprogramtoo.Checkwithyourmortgagelendercompany.TheadvantageofRetentionoverHARPisasfollows:1)Applicationprocessisevensimpler.2)NoclosingcostTakethisadvantagetoreducecostoninterestandloweryourmonthlypayment.[閱讀全文]
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HARPstandsforHomeAffordableRefinancingProgram.It'sanObama'sprogramhelpinghomeownerswithpropertiesunderwaterstartingMarch2009.AboutTheHomeAffordableRefinanceProgram(HARP2.0):InOctober2011,the FederalHousingFinanceAgency (FHFA), FannieMae andFreddieMacannouncedenhancementstotheHomeAffordableRefinanceProgramthatmakeiteasierforlenderstorefinanc...[閱讀全文]
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Iwouldliketosharesome tipstoaddresscommonlyconcernedissussuchashowtoadvertiserentalpropertiesandselectingonrentingpropertiesbasedonmyyearsofexperience.Ihopethesetipsarehelpfultonewlandlords. 
1)CL/Craigslistisok.It'sfreeandeffectiveonlyhighlyeducatedareasuchassurroundingofuniversities,hightechconcentratedsuchasSFBayarea.
2)Localnewspapermaybeeffectiveforsomeremoteareaorsmall...[閱讀全文]
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Aspropertyowners,weconstantlyrunintoalldifferentkindsofmaintenanceandrepairrequestsfromthetenant.Ifyoufulfilltheserequests,yougraduallygetyourprofitmargineatenupnomatterhowmuchprofityoumake.Ifyoudon'tcontroltherepaircost,1%rulepropertieswon'tdomuchgoodeither.
Iwanttothrowsomeideaforadiscussiononhowtodividetherepair/maintenanceresponsibilitybetweenLandlordandTenants.Themosttenantsareunderi...[閱讀全文]
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