It’s Easy To Get Started:
Thinking about investing in a rental property? Good news! You don’t have to be a savvy businessman or businesswoman to start investing in rental properties. You can simply be an individual looking to find another reliable source of income. It is, of course, important to heavily research the market where you plan to invest, along with basic strategies for how to market and maintain your property; but it is not as complicated as it sounds. And All County is here to help!
Assuming your rental property is occupied with tenants, you will be able to receive a steady stream of monthly income (while also paying down your mortgage). If you choose to utilize a property management company such as All County, investing in rental properties is as passive as it gets.
In addition to the cash flow received from tenants, passive income investors may also realize appreciation. And while appreciation isn’t guaranteed, history has taught us that it happens more often than not especially in larger cities such as Dallas/ Fort Worth.
Investing in rental properties coincides with several tax benefits, not the least of which includes depreciation––one of the best benefits of all. There are a number of tax benefits, each of which may deduct from your taxable obligations and save you money.
Pay Down Your Mortgage With The Renters Money:
It is entirely possible to pay off your mortgage obligations with the renters money when the property’s cash flow is reliable.
There will always be some risk involved when it comes to owning rental properties. However, if you stay dedicated to maintaining your property, you should be rewarded accordingly.
What is section 8 housing?
Section 8 usually refers to the Housing Choice Voucher Program, funded by the U.S. Department of Housing and Urban Development (HUD).
This program does not provide public housing, but rather rent subsidies for low-income Americans. The benefits follow the tenant — the voucher holder — who can take their voucher and apply to any rental housing.
Though funded by HUD, Section 8 is administered on the local level. Local public housing authorities (PHAs) review tenant applications for subsidized housing, choose recipients, screen landlord applications, inspect rental properties, and generally manage the rental assistance program. So participating landlords interact with their local housing authority.
How it works
Tenants apply with the local housing office in order to get Section 8 approved vouchers. Those prospective Section 8 tenants usually sit on a waiting list to join the program.
Once approved, they submit rental applications to us like any other renter. They can use their vouchers for any type of housing units, from large multifamily complexes to detached single-family homes.
Generally speaking, the tenant pays 30% of their household income toward the rent, and Section 8 picks up the balance above that.
When you accept a tenant, who has been accepted into the Section 8 housing assistance program, expect some red tape. Your property will undergo an inspection for approval.
1. Reliable On-Time Payments- You can generally rely on the Government to at least pay their portion of the rent.
2. High Allowable Rent Increases- Most cities allow landlords to raise the rent in the 5-8% range per annum. These are determined by the federal government’s findings of fair market rents.
3. Fill Vacancies Faster- Many landlords choose not to accept section 8 housing so there is always a shortage of available homes. For that reason, you can generally find tenants fairly quickly.
4. Lower Vacancy & Turnover Rates- Because there is such a shortage of properties that accept section 8; tenants typically stay longer.
1. Red Tape- The bureaucracy can cost time and money, and delay new Section 8 tenants moving in. There are also more steps involved in an eviction process which can cause it to drag on longer than normal.
2. Delayed Initial Payments- when going through a government agency, things can take longer. Be prepared for the first rent payment to be late.
3. Inspections- this is the top reason that landlords choose to not accept section 8 housing. The inspectors have to meet a certain number of requirements when inspecting a house which can lead to costly repairs.
4. Tenant Quality- Generally speaking, lower income tenants sometimes mean lower credit score, lower reliability, and less stable income.
For the full article please visit https://sparkrental.com/become-section-8-landlord/
Have you ever considered buying an investment property in a College town? No? This is why you should!
They will always be in demand! – Every year you will have thousands of new students (or potential tenants) moving to the area. This is guaranteed traffic one to two times a year!
you can charge! – That says it all. Students want the convenience of being close to campus. The closer the property the less likely they will need some form of transportation. Which means tenants will be willing to pay more.
Good rental security! – Generally, most college students still rely on there parents as their main source of income. This includes their rent money. They will be more reliable when it comes to on time rent payments.
Low vacancy rate! – It’s always a battel for students to find housing. This means there is a small chance that you won’t find eager renters each year!
We have 7 large Universities in the DFW area. (Texas Christian University, University of North Texas, University of Texas in Arlington, Dallas Baptist University, Southern Methodist University, Texas Wesleyan University and Texas Women’s University
These are just a few places that would be a perfect locations for your next investment’s!
Covid-19 took the world by storm almost a year ago. Some of you may be wondering how this could continue to affect the market and your rental property investments.
Here is what we know:
- With the new vaccine being released to the public, restrictions are being lifted in Texas. This means that more people are getting back to their everyday lives.
- People are now choosing to relocate to Texas, specifically the DFW area. Many from out of state. The Texas population is expected to grow from 28 million to over 30 million by July 2021.
- Fortunately, The rental/ Real-estate market has stayed pretty steady throughout the pandemic. Some would even say it is even doing better than it has in previous years.
- A large number of people have been relocating to rent homes or downsizing from their current rental in the previous months due to effects from the pandemic.
- One challenge that has been brought to the rental property market is that the many people have lost their jobs. This has caused some renters to be late on their payments.
- Interest rates are still extremely low! This means it could be a great time to invest in a new rental property of your own!