Blog Post

Sale or Rent your home?

Chuck Headley • Apr 24, 2019

The benefits of turning your home into an investment property. Gain additional monthly income, increase your tax deductions, build your portfolio!

This may not be the age-old question, but it is a question many home owners face when preparing to move out of their current home. Many home owners do not even consider making their homes into investment properties they just assume they have to sale. Some sale because they need the proceeds of the sale of their current home to purchase another home. Others may choose to sale due to the fear of managing a tenant, destruction of their home, or cost of maintenance.

Why you should consider becoming a Landlord.

If you know me, you will know I am honest and the people I know can count on me! I love what I do and am good at it. The proof is in the houses I sale and manage. I take pride in having the cleanest homes on the market. I enjoy selling my owners properties as much as managing them for my landlords. My goal is to make my clients money. Not just to make them the “YEAH” money by selling a client’s home for a positive gain, but to expand their portfolios’ for their future.

When I say “YEAH” money you made when selling your home. I mean you had a $10,000 to $75,000 gain on the property from what you may have purchased it at. That is fantastic but in no time at all it will disappear into one thing or another. I want my clients to win long term. I want you to have a property or properties that increase in value and equity year after year. I want you to have an investment that someone else is paying for. I want you to not only create additional monthly income, but to have those tax deductions that you deserve. I want your tenants buying your investment future and paying your expenses when you retire. Building your retirement plan with investment property is attainable for anyone. I can make that happen for you.

How can you do this?

If you own your home and are moving either by relocation due to a job change or upgrading to a new home that is a great opportunity to get started. There are many options out there the VA is one of them if you are a veteran or military member. With the VA certificate in Nebraska you have up to $484,350.00 to use under that certificate. I personally have 3 VA home loans under my certificate.

Mortgage options are available beyond the VA you just need to talk to your mortgage loan officer. Ask what options are available for you to keep your current home and turn it into an investment property.

What about the risk?

Limiting your risk is key with a good management company! The company you hire should have an active strong placement policy. A company that prides itself on preventive maintenance will increase your rental rates, and keep them at the top of the market value! Communication is a must if you don’t here back from a management company the day you contact them find a new one. Ask about their occupancy rate is key should be higher than 90% occupancy at any given time!

Preparing for risk?

Separate your personal accounts by creating a rental checking account.
- Rental funds only in this account.
- Let your monthly cash flow build to be used for updates or repairs.
- Only withdraw mortgage, taxes, and insurance payments for property
- Maintain a 2 month rent amount for the just in case.
- Hold all deposits in account do not use deposits.
Expect for minor repairs in first month of new tenancy.
- Everyone uses appliances, plumbing, HVAC differently and products do tend to break in the first month of a new tenant.
Change your view!
- Your property is no longer the home you live in. It now is a business and should be viewed as a product.
- Not every repair is an emergency. Only true emergencies are water leaks, water heater, no heat, fire, and weather disasters.
- Updates are important to keep rent levels at the top of the rental market. Do not need the best brand name materials or contractors. But updating the house with current products, materials, and fixtures will make you more money.
Tenants
- Proper vetting limits risk from renting to tenants that can be a problem.
  - High credit score limits rental payment problems. Those who typically take care of their credit do the same with everything in their lives.
  - We understand and consider everyone has gone through hard times. But confirm all questions, stories, and rental history.
  - We strive to have all properties leases end between March 1st and June 30th of every year. This is the optimal time to relist and rent the property quickly.
Property Management
- We cannot completely limit your risk there is risk in any investment opportunity out there.
- With proper vetting, follow up, strong policies in place, and yearly inspections we do all we can to limit that risk.
- Communication is important. We contact our owners monthly with statements! If there is an issue they know about it when we do! We like to talk to our owners!

There are many reasons one may have for not making your home into an investment rental property. I do understand all of them, but I want everyone I know or meet to consider the potential they may have by turning their home into an investment property!

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Welcome to the new Headley Realty Blog!

By Chuck Headley • 17 Apr, 2019

I am proud to Announce the new Headley Realty website! With the help of all our Agents, Brokers, and staff we are now fully live with the new and improved www.headleyproperties.com. The new site provides a wealth of information on property management and residential sales! This site provides all the technology that is out there to stream line residential sales, and our property management systems. With this new site users can search for current sales listings throughout the Omaha area by direct feed from the Great Plains Regional MLS. Now through the For Rent tab those searching for rentals have access to all our available and upcoming rental properties. They have the ability to apply online and pay application fees immediately. Or they have the option to download the application and policy documents and personally bring them in. The new site also gives the Tenants and Owners the ability to quickly log into their portals to send funds, pay rents, view reports, and submit work orders. Also you will all have the opportunity to check out our new blog! You never know what I might say or do so keep checking in. Have a great day! Chuck