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Zoning can be a confusing topic no matter where you own real estate, whether it’s a large city like Charlotte, NC, a small town like Asheville, NC, or a rural area like Buncombe County in western North Carolina. . Zoning is a tool used to designate individual areas of land for specific purposes. When used correctly, zoning can help rapidly developing cities and counties create a smart growth plan. This is one of the reasons Buncombe County Commissioners are implementing new zoning in the metropolitan region surrounding Asheville, North Carolina.

The new zoning, adopted in May 2007, affects property owners throughout Buncombe County, as well as prospective real estate buyers, sellers and investors. A clear understanding of zoning ordinances and restrictions is essential if you are going to own real estate. It affects the value of your home and the choices you can make when selling or building on your property. This applies to both residential real estate and commercial property owners.

Zoning Rules for Real Estate in Asheville, NC: The Importance of Community Responsibility

In a video titled “Will Zoning Affect You?” on the Buncombe County website, [http://www.buncombecounty.org/governing/depts/Planning/landUse.htm], Deputy County Manager Jon Creighton explains the county’s motivation for rezoning in the spring of 2007 and describes the proposed zoning changes. It also confirms that concerns about the growing number of county residents, developers, and homes being built on mountain tops and slopes have forced Buncombe County and City of Asheville officials to make zoning a priority.

Creighton begins by defining an open-use zoning designation. Open use, or OU, is a zoning typically found in rural areas. Land deemed available for open use means that the property can be bought and sold for a wide variety of residential and commercial purposes, with the exception of certain restricted uses. Restricted uses on open-use land include incinerators, concrete plants, landfills, asphalt plants, chip mills, mining operations, and motor sports facilities.

According to Creighton, these types of businesses have a huge impact on the community as a whole, which is why any real estate investor or owner interested in these ventures should present a project proposal at a public hearing. This allows other property and homeowners in the Asheville area to hold Western North Carolina real estate and commercial developers accountable for the impact they have on existing neighborhoods and residents.

How does zoning affect buyers and sellers of homes and land in the mountains near Asheville, North Carolina?

Comprehensive zoning throughout Buncombe County and Asheville, NC also changed in 2007. Comprehensive zoning differs from open use because it separates residential and commercial areas into designations such as R-1 and R-2 residential districts, employment districts, and residential districts. commercial and neighborhood services. . Buncombe and Asheville County home buyers and sellers can find their property’s zoning designation using the county’s online GIS system. The system can be found at [http://www.buncombecounty.org/governing/depts/Planning/landUse.htm].

Property owners and real estate investors interested in changing the zoning designation of a specific piece of land can approach the Buncombe County Commissioners and Board of Adjustment. Public hearings are required if an Application for Variations or Conditional Use Permits or a Request to Amend the Text or Maps of the Buncombe County Zoning Ordinance is filed. To obtain a building permit for any zoning district that is not open use, real estate investors and property owners must submit a Certificate of Zoning Compliance. The cost associated with these applications varies.

Size counts! Downtown zoning at issue on Merrimon Avenue

The latest zoning debate to take place in Buncombe County is taking place in downtown Asheville, NC. In an article by Mark Barrett in the January 15, 2008 edition of the Asheville Citizen Times, the Asheville City Council will explore two major zoning issues in 2008. First, the developers of the Horizons Project, which would construct nine buildings, including two of 10 Story Towers, have asked to postpone a public hearing until July to assess opposition from neighbors and economic conditions.

Barrett also writes that the “Asheville city council is scheduled to hear from city staff on zoning proposals for the 2.4-mile stretch of Merrimon between Interstate 240 and the North Asheville Library near Beaver Lake.” . “The city had considered creating a new zoning district for much of the property along the street that would encourage the construction of taller buildings closer to the street,” continues Barrett, “but several property owners and some residents opposed it. “.

As Buncombe County moves into the future, growth is inevitable, but the real effects zoning will have on real estate in Asheville, North Carolina remains to be seen. Local homebuyers and sellers can achieve more real estate success the more educated they are about zoning restrictions and changes. For more information on zoning or buying and selling real estate in Asheville, NC, visit http://www.MarkGJackson.com.

Boston is, in particular, the academic center of the United States with many renowned universities. It is also a port, an industrial and cultural center with millions of people who converge here to study, work or simply retire. New workers arrive here every day and as such there is a demand for the different apartment rental units that are available in places like Brighton, Hyde Park, East Boston, West End and West Roxbury. Renting an apartment in Boston and its many neighborhoods sometimes requires good credit. This is because it is now standard procedure for rental units to check credit and rental history to uncover financial well-being and check for broken leases.

How to Rent an Apartment in Boston You Approve Even with a Breached Lease or Bad Credit

To rent an apartment in Boston with a broken lease, bad credit, or a criminal record, you must first find out where these apartments are. There are hundreds of new apartments becoming available every day in Boston. These apartments are in high demand by students, new workers, and people looking to relocate from one side of Boston to another for study or work. A tarnished credit or blemished rental history can cause one to be denied but not for all apartments. Some of them are able to pass even despite these anomalies.

Another step, know your score

Knowing one’s credit score is also recommended for those looking to rent. That’s because research shows that a sizable portion of the total number of credit scores is clouded by errors. These errors can be challenged, disputed, and removed, raising your overall credit score.

Finding an apartment that rents despite a broken lease and spotty credit can sometimes end up being a downright frustrating ordeal. This is because these apartments are not openly advertised and tend to be low key. Others may be in areas that are less desirable, especially for decent families.

Search for Bad Credit or Defaulted Lease Apartments in Boston

One of the ways to find these apartments is, of course, to check the yellow pages. Places like Craigslist can also find some, but many of these are usually brokered by apartment locators looking to make a quick buck. In general, a lot of time and energy can be spent locating these types of apartments and this does not even guarantee success in the form of approval.

Looking for an apartment in the Boston area that is rented to people with a broken lease and bad credit?

So, do you want to sell your own house? Maybe you want to save money on a commission that would be paid to a broker. Perhaps you are one of those people who believes that selling a house is a simple process because it seems so easy on television. I understand that it’s probably not as hard as getting a root canal, but if you try it unprepared, it can feel like you tried the above.

The first thing to consider when selling your own home is to determine what the current market is like in your local area. This doesn’t mean you should buy a copy of the Wall Street Journal and try to extrapolate what your local market is like based on national or, worse yet, international trends. Some markets have never seen a big up or down over the last decade despite what was happening elsewhere. So how can you find information that is relevant to the local area? One way is to contact a local real estate agent and ask, but that can create unwanted pressure to register with them; which I actually suggest for the vast majority of homeowners. Another way is to check your local newspapers which can reveal certain statistics, such as average days on the market, a comparison of selling prices with listed prices (they are rarely the same, except perhaps in an active market), and interest rates. local interest. Now what do you do with all this information? For now, keep it, as we’ll use it to help price your home.

Once we’ve collected some basic data, the next step is to start finding some comparable properties. A comparative market analysis is the most accurate way to price a “normal” home. It may not be the best way to assess the value of a new home, historic home, income property, or commercial property. What you’ll want to do is collect the SOLD price of at least SIX comparable homes that have sold in the last 6 months. If you use home sales prior to that date, you run the risk that the comparison will not be very accurate. Comparable homes should be as similar to your home as possible, but they do not have to be identical. These households must be in the same school district, zip code and, if possible, in the same housing complex, if applicable. Explaining exactly how to do this process can be very detailed, so what I will say is for an amateur review, make sure your home is priced less than homes that offer more amenities and size, and more than homes that offer less. size or that they are not as up-to-date. . Knowing exactly how much these differences affect the price of your home from comps requires market knowledge that most homeowners don’t have. Remember that money spent on renovations does not correlate 100% with an increase in value.

Ok, now we have an idea about the list price. The next thing we need to do is go back to what is happening in the local market. If houses are selling fast, I suggest you stay close to your estimated price for a quick sale of your home. If homes are selling at a 3-6 month average rate (again, the average is different depending on location), you would consider keeping your estimated list price or up to ten percent less if you expect a quick sale. If homes don’t sell on average in less than 120 days, as an owner sale, you will need to price well below the competition, 10% or more. My reasoning for this is that highly marketed houses don’t sell, where your house will have a fraction of the advertising compared to listing with a broker. You will need an edge to beat the competition.

Well, we fulfilled the first step; appraising our house. This is actually one of the easiest tasks we will ever have to do. The second step will be to determine our budget to market the house. This is actually the main reason I suggest hiring a broker, as advertising, if done haphazardly, can cost MORE than hiring an agent. You can now advertise on sites that cater to for sale by owners, but honestly the traffic they generate is just pathetic compared to many of the more well known sites. If you’re serious about this, I’d suggest listing on a reputable site. When it comes to advertising in the local paper, it certainly doesn’t hurt, but keep in mind that more buyers find your home online than through the local paper. However, the local newspaper appeals to older generations and can help with a cross-generational marketing campaign. Another consideration is that according to the National Association of REALTORS, 89% of home buyers surveyed in 2011 used an agent to purchase. That means that, like it or not, you will likely have to deal with an agent or pay them. Like an owner sale, you can offer to pay an agent to bring you a buyer. This can help you save some money compared to having an agent list you as well. A good number to start with is to offer a 2-3% commission to any buyer’s agents. This will ensure that 89% of buyers looking for a home with the help of an agent don’t avoid it altogether. Another marketing tool that you can use is a yard sign. These can be obtained relatively cheaply from a local print shop or online. If you have the guts to let strangers wander into your home, you can also host an open house. It’s estimated that nearly 5% of home purchases are made on impulse, so you can’t hurt your sales effort. I would like you to consider that bringing strangers into your home can be unsafe, so please proceed with caution.

All right, we’re moving toward the sale of our house. We have a price, we know how we are going to market it and we are ready to quote, right? No, sorry, we still have work to do. The next thing we need to do is fill out a seller disclosure form to give to potential buyers. This form can be obtained from a local housing authority or online. In addition, we must provide potential buyers with a lead-based paint disclosure law if your home was built in 1978 or earlier, thanks to a 1992 law. Also, now is the time to neutralize your home, fix peeling paint (trust me, fix the peeling paint) and complete any other small maintenance tasks that are needed.

Ok, now we can go ahead and list the house. The easy part is done, we’re moving on to the harder and harder parts of selling a home. Now, if you listed it yourself, I suggest you buy a landline number to use for advertising purposes. There are many places where you can find one cheap. When your first potential buyer calls, greet them politely and share any information they need. As tempting as it may be, before you invite them to view the home, make sure they’ve been pre-approved, or at least pre-qualified for a loan; ask them to bring their pre-approval letter. People have no problem wasting your time. If they refuse to bring such documentation, skip the visit because they probably won’t be that interested in your house anyway. In fact, they can’t even make a real offer right now. Show buyers that they’ve met the prerequisites, but avoid insisting on anything personalized inside the house, as they’ll likely be imagining how they can change your house to suit their needs. If they are interested in making an offer, please do not enter into a verbal price negotiation. First, your offer is not legally enforceable under the fraud statute, and the back-and-forth negotiations may elicit an emotional response from you. Instead, insist on a written offer and a binding contract. They are likely to work with an agent, so this is usually a point of silence. When the offer comes, be emotional if it’s more than you expected, or less, as most buyers will expect the savings you received from not paying a commission to be passed on to them (Now, if you used my suggestion from offer a buyer’s offer). agent commission, you may find that you receive a more reasonable offer). You have two options; accept or reject the offer. If you decline the offer, you can always make a counter offer. Some things to expect during this time are buyers wanting you to purchase a homeowners insurance warranty (what you need to do to save yourself a headache 6 months from now when your water pipes burst or your furnace fails with only 4 years old). The second is that they will probably put various contingencies on the offer, which are completely normal. These contingencies may include a home inspection, land survey, title insurance, tint test, as well as several others.

Well, you’ve found a buyer and your house is under contract. The next 30 to 90 days will be your toughest yet, but wait because you’re almost there. During this time, a home inspector after examining your home will compile a list of several hundred problems with your home. If he’s already disclosed these items on his seller’s statement, you shouldn’t be too concerned, as they won’t be items your potential buyer can use to back out of the transaction. Now, for the things you didn’t know about, buyers can try haggling the price even lower. I suggest that for small ticket items, stick to your guns. Higher value items will likely require some compromise on your part. Your other option is to make no compromises and try the entire process again, revealing the newly discovered problems. If things progress beyond this point, be prepared for more expenses at closing. You’ll need to pay transfer taxes on the property, as well as prorated property taxes if you haven’t already done so for the tax year. Again, there will be some other expenses, and rather than go into detail here, I suggest you take a look at a HUD-1 form to get a solid understanding of what expenses are covered at closing. If your agent doesn’t handle the closing, I suggest you hire a transaction licensee or attorney to handle the paperwork. DO NOT attempt to complete this stage on your own unless you are an agent or attorney.

Well, if you made it through closing, you’ve done what only 15% of homeowners for sale can do! Congratulations, and when you go looking for your next home, turn to an agent.

Cyprus Informer is a free newsletter and blog for everyone planning to visit the beautiful island of Cyprus for a SAFE holiday and inside you will discover the answers to all of the following Cyprus travel tips…

You should find out why we believe that Cyprus is the perfect place to rent a villa or enjoy a beautiful, warm and SAFE holiday (as long as you are informed). Find out what you need to know before you rent a villa in Cyprus to ensure you get exactly what you want – no nasty surprises!

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Video guided tours of a great selection of quality villas for rent in Cyprus (from reputable rental agents you can trust). Find out when is the best time to visit Cyprus (it’s not when you think)

Regular updates to make sure you always know the latest Cyprus holiday news, tips and exclusive offers, so join our free newsletter now and we’ll send you to our invaluable free report… Don’t rent a villa in Cyprus until you’ve read this first!

Go to a delicious stay

Do you want to travel with me to discover a truly tasty path? It is said that one needs to share the goodness of life and that is what I intend to do by taking you to a practically gourmet destination known for its exquisite and exquisite cuisine. I think by now everyone has heard of Kerala, a land of stunning scenery, artistic culture and a culinary paradise for foodies.

Interestingly, Kerala cuisine has been influenced by Dutch, Middle Eastern, Portuguese, English, Jewish and Arab traders. With indigenous dishes fused with foreign flavors, Kerala boasts a rich repertoire of culinary concoctions that have captivated the palate and taken its cuisine to delicious heights.

Discover fascinating, magical and delicious dishes of Kerala

The fragrance of spices, scent of Thalasseri Biriyani, delicious smoky Nenthrakka chips, sweet prathamans, spicy pickles, spicy karimeen pollichathu and innumerable culinary delights showcase the art of cooking in Kerala. With vegetarian and non-vegetarian concoctions to delight the taste buds, one of the most talked about culinary experiences is the 24-course Sadya served during Onam celebrations. It goes without saying that each dish stands out with the flavor of coconut and coconut oil.

Known for the coconut trees that populate every nook and corner of its verdant and lush state, Kerala has infused the flavor of coconuts into every possible dish. In fact, it is hard to find a dish without coconut in Kerala! Talking about coconuts and the incredible flavor it gives to any dish is another matter. I dare say that no guest would leave feeling empty and hungry in this land of plenty. But, I’m getting sidetracked… I just want to tell you about an exotic and divine dish that I had the privilege to try, savor and enjoy. Puttu, like Kerala, is God’s dish which is made with powdered white rice and of course coconut. As an unusual accompaniment, Puttu is served with chickpea sauce. This spicy and aromatic sauce has a coconut base that is seasoned with red chillies, mustard seeds and curry leaves in coconut oil. There are other variants of Puttu with another tasty breakfast dish made with Matta rice or red rice that is just as magical.

Experience the melt-in-your-mouth heavenly puttu

Let me tell you what I enjoyed the most besides being enveloped in a cloud of fragrances, aromas and steaming dishes from this calm and fortuitous land. It is Puttu, of course! Basically a breakfast dish, Puttu is a grated coconut rice cake that is steamed in a cylindrical bamboo container or steel steamer. Typically served with a sauce consisting of kala chana or black chickpeas with coconut milk, spices and shallots, this dish can also be enjoyed with ripe plantains and a side of papadams. Since jackfruit is also abundant, Puttu can be served with this sweet fruit instead of plantains. I traveled to the zenith of flavor as I savored this melt-in-your-mouth dish with sweet black coffee that brought out the gourmet in my soul.

Being a passionate chef at heart and an ambitious foodie, I couldn’t resist trying this famous and popular breakfast dish. So I got this ancient and authentic recipe from a good friend of mine to bring back the memory and experience of tasting Puttu.

This is how puttu is done:

Ingredients needed:

Rice flour 2 cups

Raw White Rice Pachari ½ kg.

Water ½ to ¾ cup

Shredded coconut ¾ to 1 cup

Salt to taste

Method:

Soak uncooked rice for 2 hours. Drain the water and let it dry for a while. Grind it into a coarse powder. Stand aside.

You can also substitute uncooked rice for rice flour.

Place the coarsely ground rice in a pan and heat for 5 minutes. Be careful not to overcook the rice. Remove it from the heat and let it cool.

Next, take a large bowl or container and place the heated coarse rice flour in it. Sprinkle water lightly over flour. The water must be mixed carefully and slowly so that the flour does not become pasty or lumpy.

Add salt to taste and gently knead the wet flour mixture until it reaches the consistency of breadcrumbs.

Take a Puttu Kutti or a pot to make Puttu (this is available in the market). This is very much like an Idli steamboat. It has two sections. The lower section contains the hot water and the upper section is made up of the puttu mould. There are perforated plates separating each section.

Fill the bottom of the puttu machine with water. Heat until water simmers and is hot.

Now take the perforated disk that comes along with the puttu maker.

Place the puck inside the puttu maker. Check that it fits perfectly and that it is not crooked or unstable.

Fill the bottom of the puttu machine with grated coconut.

Slowly add about 6 tablespoons of coarsely ground rice flour.

Keep repeating the process alternating between grated coconut and coarsely ground rice flour.

Top the filling with grated coconut.

Put a lid on the puttu mold and place it on the perforated plate.

Once steam starts to come out of the bowl, lower the flame and keep it on for another 5-6 minutes or so.

Your Puttu is now ready.

Serve hot with curry/kadala sauce, egg sauce or green curry and papadams.

Hard money loans refer to financing provided by non-institutional lenders. There are many hard money lenders that offer fast financing at attractive interest rates.

As a borrower, you’ll need to do a thorough check on the lender’s reputation and business, but as you research, you’ll find that hard money lenders can provide a huge advantage in your quest to finance your real estate investment project.

Benefits of hard money loans

• Faster Approvals – Without a doubt, one of the main benefits of a hard money loan is the fact that investors can get pre-approved within a day or two, given that they have submitted the number of documents requested by the lender. Hard money lenders focus primarily on whether the asset itself has a good market value and whether the borrower’s equity is at least 20%. Funding can take less than a week, compared to normal loans that can take a month or even longer. When asking about hard money lenders, a key question to ask is how quickly they can finance.

• Flexible Payments – With a private lender, you’ll have more freedom to create a personalized payment plan. With a large financial institution, you will not have this freedom. Instead, you must accept the payment terms established by the bank. However, with a private lender, you can discuss and come to a mutually agreeable payment plan that you feel is right for you.

• Less requirements: When applying for a loan from a normal financial institution, you are expected to meet many strict requirements, such as income history, experience, etc. It’s no secret that bank approvals can be a cumbersome process. A hard money lender probably won’t burden you with as many requirements. As long as you have a high-value asset with at least a 20% equity stake, there’s a good chance you’ll qualify for the loan.

• Zero prepayment penalties: If you take out a loan from an established bank, you may be subject to prepayment penalties if you pay off the loan before the due date. Most fix and flip lenders don’t charge prepayment penalties, so if you find extra money and decide to pay off your loan before it’s due, you can do so with confidence without worrying about being penalized for it.

• Credit History Isn’t a Big Deal: For large lending institutions, your credit history can have a big impact on whether or not you’ll get a loan. With private lenders, less emphasis is placed on a poor credit history. This is because a private lender bases loan approval on the value of the property, the borrower’s equity, etc. As long as you meet these criteria, you have a good chance of getting funds.

An added advantage of getting a loan from a hard money lender is that as more properties in the community are renovated, property values ​​are expected to increase and the quality of the neighborhood improves.

Low-cost startup ideas are literally lying around, waiting for you to grab them. In fact, there are so many of them that you might have trouble deciding which one you want. One thing is for sure, there has never been a better time to start up business from home. So the sooner you get going, the better.

One idea out of many for low cost home based businesses that you should know about is right here on your computer. Online auctions are big business these days, and chances are you already have items ready to post for sale.

With the profits from the sales of those things you would otherwise call junk, you can visit local flea markets, real estate sales, and garage sales for more products to sell online. You will be surprised how easy and profitable this is!

Another low cost home business you may want to consider is buying vending machines. These are generally low cost and low maintenance, and you can place them everywhere from the break rooms of your big local businesses to car wash waiting areas.

The possibilities of where to place the vending machines are as limitless as your imagination. Ideas for what to put in them range from peanuts to gum. You can pick up this type of item at any discount club or grocery store for a song and make a huge profit on the deal.

You can also form a personal errand service. The need for these simply cannot be stressed enough. People are so busy these days that getting to the dry cleaners can feel like trying to get to the top of a mountain.

Other people who are in dire need of a personal errand service are the elderly. They are particularly grateful to have someone do their personal travel for them. Creating a personal errand service is a great option for a low-cost home-based business because it gives many people what they really want plus time.

You may also want to consider auto detailing as your low-cost startup business. Americans spend more time and money on their cars than anyone else in the world. And they’re willing to pay $150, and often much more, to get their cars sparkling clean. If you love cars and being outdoors, this is the low cost home business for you.

Moving services are also a good option on the list of low-cost home businesses. Do you know someone who wouldn’t love someone else to do the heavy lifting when it comes to moving? I do not think so. Plus, they’re willing to pay a lot of money to have someone else do it! Also, this is an especially good home business if you live near a college or university. If you like to be active, a moving service business could be the ticket for you.

If having fun is more on your mind, consider becoming a party planner. You can plan parties ranging from children’s birthday parties to gala events for large local corporations in your area. The wonderful thing about this low cost home business is that you get to go to a lot of parties! After all, you just have to be at those parties to make sure all those little details you planned so carefully get taken care of right!

The list of low-cost startups could go on for days. Hopefully, you’ve found the right one for you, or gotten the idea for one from this short guide. The main thing you want to remember when choosing the right business for you is to consider your likes and dislikes.

After all, it will be your business and you will spend a lot of time on it, so make sure it is something you enjoy. After you make your choice, make a plan for the things you need to do to get your business up and running. Follow it, and before you know it, checks will be filling your mailbox!

Net Present Value (NPV) is a measure of a property’s investment performance that converts investment cash flows into a single amount to facilitate a real estate investor’s decision making for property analysis and comparison purposes. And this is true whether the investor is interested in maximizing wealth at a particular point in time or minimizing the cost of making a particular profit.

In this article, we define net present value, discuss the components needed to calculate it, and interpret the results.

Technically, NPV measures the sum of the present values ​​of a property’s future cash flows and the net reversal against the initial investment. In other words, all future cash flows (including future sales proceeds) that you expect to receive over the course of holding the income property (the holding period) are discounted at your designated “discount rate” (the yield) to calculate the current value of those funds and then “added” to your initial investment.

Okay, that was a mouthful and maybe confusing, but bear with me. It should become clearer once you understand the components surrounding net present value.

• Holding Period – This is the specified length of time you expect to own the investment property, i.e. five years, six years, etc.
• Initial Investment – ​​This is the cost of the investment and is typically the purchase price of the property plus loan points (if applicable) minus the total loan amount. For example, if you pay $100,000 for a property and borrow $80,000 at a loan point, then your initial investment would be $20,800 (price – loan points).
• Cash Flows – These are the funds projected periodically at the end of each year the property is owned and are derived from rent and other income less operating expenses, debt service and (in the case of cash flow after taxes) taxes.
• Sale Proceeds – This is the amount you expect to receive from the sale of the property at the end of the intended holding period. Proceeds of sale equals sales price less brokerage fees and other closing costs, outstanding loan balance(s), and (in the case of after-tax proceeds of sale) any taxes resulting from the sale.
• Discount Rate – This is the minimum acceptable rate of return you want to earn by owning the investment property. In other words, if you have the opportunity to earn a 7 percent return on an alternative investment of similar risk, size, and duration, you probably don’t want to accept a rate of less than 7 percent as your discount rate to get the NPV of the investment. property being analyzed.

Well, let’s see an example so you can see the procedure followed to calculate the net present value. For our purposes, we will assume a holding period of four years, but note that it can cover any holding period. It should also be noted that NPV can be used with pre-tax or after-tax cash flows and sales proceeds, although most real estate investors would likely include taxes.

For our example, we will assume an initial investment of $10,000 and the following periodic cash flows: zero EOY 1, negative $1,000 EOY 2, $4,000 EOY 3, and $6,000 EOY 4 along with sales proceeds of $4,500. Our desired return (discount rate) will be 7.0%. Here is the structure:

Year 0: (10,000) – initial investment should be shown as negative Year 1: 0 Year 2: (1,000) Year 3: 4,000 Year 4: 10,500 – cash flow plus sales revenue

Now for the calculation: discount each cash flow in years 1-4 to year 0 at 7.0% and “add” that amount to the initial investment to determine the NPV. This is the result: (10,000) 10,402.15 = 402.15.

This means that the present value of the cash flow benefits of this investment property exceeds our initial investment by $402.15. In other words, based on our net present value, we can pay up to $10,402.15 ($10,000 $402.15) for this rental property and earn our required rate of return of 7%. Likewise, a negative NPV in this case would have indicated that the future cash flows of this investment are not sufficient to generate the required 7% rate of return and the investor could not pay more than $9,597.85 ($10,000 – $402.15) to obtain the investment. requires a 7% rate of return.

Smaller investment properties often offer significant financial/economic benefits, in terms of creating a combination of asset growth, return on investment and a degree of security. However, this is true only if the buyer first fully understands what to look for and why. Different potential properties, have, vary, potential, for optimal performance, etc! While not everyone can consistently take care of, pay for, or get involved in big real estate deals/purchases, many more can take advantage of smaller properties, etc. These vehicles often include one to four families/units, houses, and while some offer attractive investments, others may not always do so. With that in mind, this article will attempt, briefly, to consider, examine, review and discuss, 4 important, significant, main/essential considerations and evaluations.

one. Cash flow: Cash flow, when it comes down to it, usually refers to the difference between funds/income received and monthly costs. It is important to consider these, conservatively, basing assessments, not on the highest potential rent-rolls, but on market-based rents and, no more than 75% occupancy (to avoid a possible , cash- crushing, if there are interruptions, due to a variety of possibilities/contingencies). In addition, the investor must be careful to ensure that his personal cash flow is not affected by using too high a percentage of his reserves for start-up costs, building reserves, etc.

two. Area/ neighbourhood/ local market: Before you take the plunge, carefully consider and assess local real estate market conditions and discover the rental market in terms of availability, demand, pluses and/or minuses. Get to know the specific area thoroughly and determine, if it offers, the best scenario for you and your priorities and purposes!

3. The 6% rule: Many pay close attention to what is often referred to as the 6% Rule, when it comes to purchasing smaller investment properties. This means that three quarters of a realistic rent-roll must reach at least a six percent profit. Expenses must include: mortgage-related expenses, including principal, interest, taxes, and security deposit; owner – utilities paid; repair; renovations; updates and reservations, etc.

Four. State of the property: Understand the existing condition of the property in question, and what will need to be addressed, immediately, on an intermediate – basis, and in the long term. The reserve funds must be used and prepared for as many contingencies as are foreseeable, etc! On the other hand, do not be too influenced by the staging and overestimation of rental reels.

After more than 15 years as a licensed real estate seller in New York State, I am a firm believer in the possibilities and advantages of investing in smaller investment properties, but only when done with care. , and in a focused way! The smarter you proceed, the better off you will be!

Every time you have a home inspected, your inspector will look at the structures and systems that make the home what it is. Naturally, he will look at wooden structures, such as floors, walls, doors, and windows.

There are four things that can cause problems in the structure of wood. They are: 1) Deviation and deformation, 2) Fungal and insect attack, 3) Fire, and 4) Connection failure and improper alteration. In this article we will look at insect damage and rot.

Insect and fungal damage is commonly found where wooden door frames touch the concrete or ground on the grade. Moisture is an open invitation to such damage. Dry wood will not decompose. If the wooden structures of a house are properly protected, the moisture content will not exceed 10-15%. However, at levels of 25-30%, you can expect rot from fungal or insect infestation.

Your home inspector will check the wooden components of the house. You’ll be on the lookout for wood stains, fungus, termite shelter tubes, holes, soft or discolored wood, and small piles of sawdust.

You can test all suspect wood with a sharp instrument and check its moisture content with a moisture meter to see if those problematic 20-25% levels are present. Sound wood separates into long, stringy chips, but rotten wood comes up in short, jagged pieces.

When your home inspector looks at the exterior of the house, they will look at the following areas:

* Locations where wood is in contact with the ground, such as wood pilings, porch and deck supports, porch trellises, wood steps, adjacent fences, and nearby wood piles.

* Foundation walls that could harbor termite harbourage tubes, including tubes in cracks in wall surfaces.

* Frames and sills around basement or lower level door and window frames, as well as the base of frames around garage doors.

* Wood framing next to slab-on-grade porches or patios.

* Wood that is near or in contact with roofs, drains, window openings, or other areas that are subject to periodic wetting from rain or lawn sprinklers.

When you inspect the interior of the house, you will check the following areas:

* Spaces around or within interior foundation walls and floors, crawl spaces, piers, columns, or pipes that could harbor refuge tubes, including cavities or cracks.

* The slab that covers the foundation wall and the joists, beams and other wooden components that are in contact with it.

* Partitions based on wooden frame.

* Plinth trim in slab-on-grade buildings.

* The subfloor and joists under the kitchen, bathroom, and laundry areas.

* Sheathing and roof framing in the attic around chimneys, vents, and other openings.

When wood is damaged by fungus or insects, it may be possible to repair it at a reasonable cost. Affected areas may need to be replaced or supported, depending on the cause of the problem. The damage may not be severe enough to seriously affect a home’s stability, but certain parts or components may be seriously damaged. Of course, an exterminator should be consulted when evidence of termite or other insect damage is found.

There is a lot to consider when it comes to the wood frames of a home. That’s why it’s so important to do a home inspection before you buy or sell a home to determine the condition of those structures and point the way to correcting any fixable problems.