The first thing we will do after opening escrow is schedule a home inspection.. The cost is $250-300 Second thing I will send a copy of the contract to your lender to start on your loan. The lender will order the appraisal. You may have to pay $450-475 for the appraisal... These are your only expenses at this time...Toward the close of escrow you will pay the balance of your down payment and closing costs after you sign your loan documents just before the close of escrow...
All purchase contracts include an inspection contingency. The standard contingency period is 17 days and it can be changed or negotiated when making the offer. The contract allows 17 days to approve of all matters effecting the property including the inspection, the appraisal, reviewing the disclosures, title report, natural hazard report and to approve of all matters effecting the property. If we are going to make a request for repair or request for a credit for repairs, we do it during the 17 day contingency period.
Review the contract and make a list of important dates. These will include such things as the contract contingency deadlines and the actual closing date. I will keep you posted on these timelines..
As the closing date approaches, you'll go to escrow to sign your loan documents or escrow will send a mobil notary to your home and you can sign your loan documents at home. After you sign your loan documents you will arrange to transfer your funds for your down payment and closing costs to escrow that are necessary to close the sale. At this point escrow will fund your new loan close escrow within a few days. We will schedule a final walk-through of the property to make sure that it is in substantially the same condition as it was when the seller accepted your offer near or at the close of escrow.
Finding the right home can be a difficult process but no matter what you are looking for as an experienced knowledgeable south bay area real estate agent I can provide you with the resources you need to make the home buying process simpler and easier. Enjoy the specific neighborhood information tools to estimate your mortgage payments and buyer resources and articles that will help you through the home buying process. Click Here for Detailed Demographic Neighborhood Reports Just type in any address to get Demographic Information.
No matter what the market you're in, you can use the experience of a qualified south bay area real estate agent like me to help sell your home quickly and at the right price. Learn more about my service, get information about recent home sales in your area or contact me to get started today! Some of the cities I cover are Redondo Beach, Torrance, Lomita, Harbor City, Gardena, lawndale, Hawthorne, San Pedro, Rancho Palos Verdes, and others.
When you start looking for positive cash flow income properties, or a Income property to buy you might find yourself overwhelmed by all of the Apt Buildings on the market. Your realtor may be sending you a bunch of listings for sale or you may have a list of properties you've found on websites like Realtor.com. How do you know which ones are worth looking at further?
I use a simple calculation to make a quick decision, and it saves me a huge amount of time. When you look at a spreadsheet of potential properties with income to buy (this is how to compare opportunities), take three or four to look at closely in less than five minutes. You can spend hours going over the details and analyzing the numbers only to come to the same conclusion.
So, what's my trick?
Before making your decision to buy a rental income property for sale, all you need are two numbers: the price of the property and the rental income you will get from it each month. If the monthly income is at least 1 percent of the purchase price, it's worth investigating further. If, for example, you have a property that costs $300,000 and it gets $3,000 per month in rent, it's highly likely you will get positive cash flow from it. Here is another Idea: get pre qualified for a loan. make sure to ask your lender how much the mortgage payment is going to be along with your price range you are approved for and compare your monthly mortgage payment to the monthly rents of the property with income you choose. If you have positive cash flow then you have a good property.
Also keep in mind some properties rents are under market. You can update the property and raise the rents to the current market rents in that area.
And that is a key ingredient to successful real estate investing.
You can even drop the 1 percent to 0.8 percent, and you may still have a positive cash flow property. One percent is just a rule of thumb. You can decide on the exact number you're looking for based on your objectives, the strength of the area where you're buying, the size of the down payment, and the cost of financing.
Once you've found a rental income property with cash flow potential, you still have a lot of work to do to make sure it is a good one to buy. But by using this trick, you won't waste time running the numbers on properties that don't have much potential to be a good deal.
We accomplish that by finding the property with the highest Cap Rate and Net Income. We review the most current income and expense statement and we negotiate for the best price and terms possible. We find a good lender offering the lowest interest rates and fees. Upon successful close of escrow a new apt owner can have a property management company take responsibility for management of the property.
Try the Mortgage Pay Off Calculator below. Make sure to add in a extra payment monthly to see how much you can save $ in Loan Interest and also see your loan paid of much much earlier….
Use Bankrate’s mortgage calculators to compare mortgage payments, home equity loans and ARM loans. The mortgage calculator offers an amortization schedule.
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