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New Year Clutter Removal
Are you cut out to be a landlord?

NEW YEAR CLUTTER REMOVAL
It's a new year already? If you are like me, you can look around your house and office and see the remnants of the last year, in a collection of clutter. It is time to start fresh and here are some ideas on how to do it….

At home....throw away any item if:

• it wouldn't really affect you if you never saw it again.
• using it is more bother than it's worth.
• you have to clean it, store it, insure it, or give it space, but you don't use it.
• it is the wrong size, wrong color, or wrong style.
• it no longer satisfies a need.
• it is broken or obsolete (and fixing it is unrealistic)
• you can't ever find it or forget you have it when you need it
• you have always hated it

Keep items if:

• you feel terrific keeping it
• it helps you make a living
• it has significant emotional or spiritual value
• it has reasonable cash value (you don't want to keep a ninety five cent comic book for fifty years and get only $1.35 for it)
• it would be treasured by the next generation

At the office:

• Feed the wastebasket.
• Skim material as soon as it arrives.
• Don't even skim junk mail, just toss it.
• Pass on to the appropriate person any papers someone else can handle.
• Find a place for everything worth keeping, and put it there immediately.
• Recycle paper.
• Keep everything off your desk unless you are working on it right now.
• Remember, the world won't end if you get rid of it.
• Ask yourself: Do you really want to be the caretaker for this piece of paper?

Be sure to call me when you need Real Estate help this year…and remember….. "The best things in life usually are not things"…Anonymous

ARE YOU CUT TO BE A LANDLORD?
So…you want to buy some rental property? Well…this can be a total pain in the neck, or it can put you on the road to financial independence. But the road can be sketchy at times.

First…let's get real. All of those people who talk about buying rental property with no money down, are trying to sell you tapes, not property. Those of us who own a lot of rentals agree that the upfront costs are usually higher than you expect and the returns lower. You will need 20-30% down and be prepared for a slightly higher interest rate. Remember, the risk to the bank is higher, too. There are occasional exceptions, like if you are willing to live in one of the units, allowing you an owner-occupied loan.

Profit will also be less than expected, and anything above 10% annually is acceptable for most multiple property owners. Tax advantages should be checked with your CPA, as they will vary depending upon your financial situation and the individual property.

Second…be sure to get good tenants. You cannot screen too much. Check their credit, references, previous landlords, even sex-offender databases. You only two times you are likely to get burned are when you are in a hurry to make the mortgage payment, or when you buy someone's sob story. Be sure to maintain 4-6 months of the mortgage payment in your rental checking account in the event you have to evict a problem tenant.

Third…you can't ever learn too much. Pay attention to tax laws for landlords, both at the state and federal level. Don't use outdated or incorrectly worded forms. Know your rights as well that of the tenants. The internet can provide a lot of useful information at sites such as Landlord.com

Personally, I think owning rental property can be massively rewarding, and the occasional headaches are well worth it. Think about it…how many rich people do you know that don't own property.

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