If this is your first foray with this, you will want to weigh your options as far as how you will purchase your initial property. Not a lot of people have the entire amount up front to purchase the property with cash. So, instead of saving, some people will go ahead and get a loan in order to get started. Some experts say that it is better to wait and save your money first. This way, the monthly income that comes in will go to you instead of the lender. You will also be able to build wealth quicker by paying the entire amount in cash. However, it is still possible that a bank will loan you the money you need in order to get the property. If you go this route, make sure that you have some backup funds in the event you get in a financial rut. At least you will still be able to pay on the loan. Of course, the better situation is to have all of the money up front and pay cash outright for it. After that, you would only be responsible for repairs, maintenance, taxes and other miscellaneous items.

When considering a property for investment purposes, you will need to know how much it will cost you in taxes. Every year, you will have to do this or you could find yourself with a lien on your home. In addition to that, you will need to determine a monthly rent amount for whoever you allow to stay there. Some investors will go through a rental or management company to get their rent. This can release some of the duties from your schedule. On the other hand, you will have to shell out more money to the company for outsourcing. Only when you are financially able, should you do this. As a beginner investor, you should be responsible for collecting the rent and other fees as deemed appropriate.

Even though the real estate market rises and falls, there are still many benefits to being in real estate. You can expect that if something happens that causes the real estate to lower, it will eventually come back up. There is always a need for housing and people are always moving into different locations. No matter what type of real estate you are investing in, you can expect that someone will have the need to live on the property. Because real estate is part of the basic needs of individuals, it can be expected that someone will always be looking, and others will always be selling.

One of the advantages of real estate that gives it more stability is that no matter what the economy, there will always be real estate selling. It can be expected that if the market is bad, individuals will be working towards selling their homes to move somewhere more substantial. If the economy is good, then individuals will be looking into buying homes that can offer more. This helps to keep real estate as one of the stable markets among businesses.

If you aren’t certain about investing in real estate, you don’t need to look any further than the economy and how the fluctuation is always to the advantage of those owning property. No matter what the circumstances, individuals are always looking for a place to live. If you want to make sure that you are part of the trends in the market place, then investing in real estate is a certain way to keep stable income.

The Milford Estate flip is all finished and on the market. Bruce from Canada did an amazing job on this house and created 800 sqft of living space. This is a very unique home sitting on 1 acre in a country like setting. Bruce changed the exterior look of the property by adding a front porch and 2 car garage. Check out the before and after video to see for yourself.

Here is the complete rehab video from start to finish on our latest flip in Winter Park Florida. This home is now on the market at $114,500 and the repairs were just under 25k. Most of our properties are Bank owned, short sales or pre foreclosure. This home was purchased through an estate sale and the closing went smooth.Check back soon to see our property on Jan dr that will be complete this week and up on the website the following week.

Check out our latest flip downtown on Mount Vernon St. We purchased this 2/2 for $80,000 and turned it into a 3/2. The total rehab cost $45,000 and we now have it on the market at $189,900. This home is located in the historic colonial district downtown Orlando. This home was purchased through an estate sale and took nearly 4 months to get closed. We just purchased another home on Pinecrest, walking distance from Mount Vernon, also through an estate sale. We are currently marketing our Pinecrest property pre construction until we have time to get started. Right now we have three other properties ahead of Pinecrest and all 3 are moving right along. Next up we have Dawley, Jan and Miller. I will have them up on the site soon. Stay tuned……….

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FHA recently raised there monthly MIP which goes in effect on April 18th.  You would be surprised how many mortgage people do not know this.  That means if you are working with a borrower that is negotiating a house right now that is doing an FHA loan, the payment they were quoted will be lower that what they will actually get. 

WARNING: If you get a contract accepted before the 18th, make sure the lender is pulling the FHA case number right away to protect your buyer. 

MONTHLY MIP for FHA

FHA Loans with 3.5% down
NOW – .90
AFTER the 18th – .115

FHA Loans with more than 5% down
NOW – .85
AFTER the 18th – .110

FHA Loans with 10% Down
NOW – .25
AFTER the 18th – .50

FHA Loans with GREATER thatn 10% Down
NOW – none
AFTER the 18th – .25

SO HOW DOES THIS EFFECT THE PAYMENT?

For a $150,000 purchase price with 3.5% down:
The payment would increase by about $31.00

Not the end of the world, but with debt ratio limits as tight as they have every been, something you should be aware of.