What type of real estate investment income is right for you?

When getting started in the real estate investing game, new comers are generally focused on two things. How much money will they make, and what will they be buying with all that money. Although those are good things to keep in mind, there's a critical consideration they should not hastily over look: the two different types of incomes that can be generated by investment properties.

Income Type 1: Ongoing Cash Flow

On going cash flow is usually generated from monthly rental income. When a property is rented, the investor receives the rental income and uses some of that income to pay the taxes, repairs and property management fees that a property incurs. The rest of the money collected after paying all the fees associated with a particular property is profit for the investor.

Income Type 2: Capital Gains

Capital gains income comes from selling the property at a higher price than it was bought for, usually associated with a rehab or property flip. The investor has (usually) already spent money to buy the property and fix it up so the money received from the sale of the property is used to pay off debt and expenses incurred during the rehab. The rest is profit for the investor.

Things to consider

While investors are thinking about all that potential profit from the cash flow income or capital gains income, they should also be thinking about this: Each one has a distinct impact on the budget. Ongoing cash flow from rentals can tie up your capital for the long-term but creates a dependable stream of regular, predictable money that becomes increasingly profitable as the mortgage is paid off, plus you can recoup most or all of your initial investment at resale if you bough at a good price. Capital gains income is slightly more liquid (in that you intend to sell the property and get the money back at some point soon) and results in big "spiky" windfalls, one downfall is if a property you intend to flip sits on the market for a long period of time you may not make any money and in turn might even loose money.

One provides steady and dependable but relatively small monthly payments. The other provides big buckets of money but less steadily and with greater deal of risk.

 Which type of income is right for you?

Each one has its advantages and disadvantages. There are a million real estate investing gurus out there who can suggest an answer but only you know what is best for your budget. No matter which investment strategy you decide to go with we at iDeal Realty & Management can help you make the most of you investment. Give us a call to discuss you options and your investment goals and we can put together a plan that will help you achieve them. 

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

How Owners and Residents Can Lower Their Electric and Water Bills

iDeal Realty & Management
623-201-3544
www.idealrealtyaz.com

Summer is prime time for high bills especially in Arizona, but by utilizing some of the tips below you could help your self save a ton of money.

Save Electricity

If you use electricity as the main energy source for air conditioning and food preparation needs, then there are effective ways to reduce energy costs.
First, make sure your home is well insulated. Room-darkening shades and weather stripping around the windows and doors are essential. Turn up the thermostat on the air cooling system by just 3 degrees and you’ll save almost 5% on your electric bills if combined with improved insulation. The use of box fans and ceiling fans can make quite a difference in keeping a home comfortable and reducing the need for continual air conditioning usage.

Your local utility company usually has pamphlets and online sites that discuss how to save electricity. Here are some more summertime electricity savings tips:

• Keep your blinds, drapes or shades closed during the day.
• Use ceiling fans or windows fans instead of air conditioning. Ceiling and window fans use much less electricity.
• Only use air conditioning when it is hot outside.
• Turn off your air conditioning if you will be gone from home for more than an hour. At least turn the thermostat much higher.
• Clean or replace your air conditioning filters every month (in both central and window air conditioners).
• Plant trees in your yard to shade your house in the summer. Get advice from a nursery or tree specialist concerning the best tree types to use.
• If you can, shade your air conditioning unit. If your unit is in the bright sun, it will use up to 5% more energy than if it was in the shade.
• Use energy efficient light bulbs such as CFL's or LED lights as they use 3 times less energy and produce less heat then regular incandescent light bulbs, helping keep you house cooler.
• Check your attic vents, often times attic vents become clogged with insulation causing excessive heat to build up in your ceilings, causing your air conditioning unit to work harder.
• Use the exhaust fan when cooking foods that will produce steam or when taking a shower, as steam adds water vapor to the air raising the heat index.

Conserve Water

You can save money on you water bills too! Here are just a few overlooked suggestions

• Replace shower heads with newer low flow show heads, also limit the time of you showers the average shower head uses 2.5 gallons of water per minute. 
• Run your clothes washer and dishwasher only when full, you could save up to 1000 gallons of water per month
• When washing your dishes by hand don't allow the water to run continuously, instead fill one side with soapy water and the other side with rinse water.
• Also when shaving and brushing teeth don't allow the water to run contentiously. When shaving fill the sing with a small amount of rinse water to swish the blade in between passes.
• Use the garbage disposal minimally, instead compost organic food matter if possible, not only dose this save water but is good for the environment and your plants also.
• Water you lawn and garden in the early morning or evening when temperatures are cooler to help minimize evaporation.

Phoenix Area Rental Statistics for May

iDeal Realty & Management 623-201-3544  Email Us  Median Lease $: $1,100 Average Lease$: $1,234 Average Days on Market: 40 Number of closed rentals last month: 2,790 Closed Rental Units Per Month The heat map below shows where the most active rentals are. Areas with red circles have a flood of active rentals available driving down rental prices, where as small yellow circles means rentals are scarce and rental prices are up in general. Market statistics can change daily and the following information is for reference only.

Bug Off! Tips to Keep the Creepy-Crawlies Out of Your Home

  iDeal Realty & Management  Office Phone: 623-201-3544  Website: www.idealrealtyaz.com

 

Date: April 18, 2012 | Author: Erika Riggs | Category: Tips & Advice

 

inS

Spring is time for blooming gardens, warmer temperatures and unfortunately, the return of indoor and outdoor pests.
Some insects present only a minor concern and then there are those that can cause serious problems and nearly always require a professional exterminator’s attention.
“There are pests that are on the property, and then there are another set of pests that invade the house,” said board-certified entomologist Lynn Frank of Suburban Exterminating in Long Island, New York. “And then there is the wood-destroying insect that everyone worries about.”
Found in every state but Alaska, termites cost homeowners an estimated $5 billion annually for repair and control measures, Frank says.
“Most people wait until they see a termite swarm before they call,” said Frank. “And by then it’s an expensive proposition.”
While there’s no guarantee against pests — especially something like wood-destroying insects —there are some preventative measures that homeowners can take:

• Make sure any wood on the exterior of your home is finished, painted or treated — making it less attractive to wood-destroying pests and bees looking to nest.
• Get rid of any compacted earth or piled wood near your home that could attract pests, especially termites.
• Seal all cracks and holes that would give insects access to the inside of your house. Check crawlspaces, along the foundation and any exterior vents.
• Check the exterior of your home often for wasps. They like to build nests under eaves, underneath tables or even in barbecue grills.
• Keep food in sealed containers and keep your kitchen clean. Rotting fruit, dropped crumbs or even pet food can attract ants, flies and rodents.

But if you do happen to have some unwelcome pest visitors — and you may at this time of the year — it’s best to call in the pros sooner rather than later.

Best Neighborhoods in Phoenix, Arizona

Founded in 1861, Phoenix is the capital and largest city of the U.S. state of Arizona, as well as the sixth most populated city in the United States. According to the 2010 Census Bureau, Phoenix is home to approximately 1.4 million people. The city has a notable and famous political culture and has been home to numerous influential American politicians and other dignitaries, including Sandra Day O'Connor, Carl Hayden, John McCain, Barry Goldwater, William Rehnquist and Janet Napoleon. Phoenix has maintained a growth streak in recent years, growing by 24.2% since 2000. This makes it the second-fastest-growing metropolitan area in the United States following only Las Vegas. Phoenix and the surrounding area have several cultural activities, including the performing arts, museums, and events.
See Rentals in Phoenix

Temperature

Average High - 105, Average Low - 45

Sports

Basketball - Suns
Baseball - Arizona Diamondbacks
Footballs - Cardinals
Hockey - Coyotes

Crime Rate

Crime in Phoenix has reached a 20 year low; although as with most major cities, crime can be an issue.

Top Neighborhoods

• Scottsdale is one of the largest and most beautiful and most talked about suburbs in the state of Arizona. What began more than a hundred years ago as small desert town with dirt roads has seen dramatic growth and development over the years, culminating into a forefront of the best of the best that Arizona has to offer for those who are seeking a pristine and culturally lavish residential atmosphere. Scottsdale features two main sections that together deliver the best the neighborhood has to offer. There are several great elementary, middle and high schools, and one of the largest communities of colleges in the nation. Scottsdale offers fine dining and great nightlife.

• Gilbert was once a small town, but not so much anymore. It is considered to be one of the fastest growing suburbs in the state and in the country for that matter. Although not known for it's nightlife, there are quaint shops, and stores available. Gilbert offers some of the most affordable housing in the Arizona area; great green spaces and a quiet safe neighborhood that has very little crime. Although it is a bit removed from the expressway, Gilbert is a pocket of nicety just inside the busy city limits. Gilbert has great schools from elementary to high school, and is a nice place to raise a family.

• Tempe is quite possibly one of the largest college towns in the US. Tempe hosts Arizona State University and Tempe Town Lake as its main attractions. The city has undergone much change and upgrades in recent years. The crime rate is far lower, the businesses have been cleaned up and the world famous shopping on Mill Avenue has grown exponentially. Housing prices are in par with the national average, but actually finding a house that is for sale may be challenging. There are plenty of great places to visit as well as ample jobs in this growing revived neighborhood.

• Sedona, Arizona is a hip, young, vibrant and happening small town that is filled with gorgeous and natural red rock formations, and lots of alternative-lifestyle interests. It hosts two world class resorts, the Miano Spa and the Four Seasons; frequented by the world’s best-known celebrities and VIPs. Sedona offers scenic hikes, enjoyable horseback riding on trails and of course, one of only four natural equinoxes in the US. When people move to Sedona, it seems they never want to leave. Although finding housing can be a little difficult, living in Sedona is certainly worth the effort..

• Downtown Phoenix is the central business district of Phoenix. It is located near the geographic center of the Phoenix metropolitan area. Phoenix, Major arts and cultural institutions also call the area home. Downtown Phoenix is a center of banking and finance and of course major league sports activities, live concert events. The US Airways Center is home to the Phoenix Suns, the Phoenix Mercury, the Arizona Rattlers and the Phoenix RoadRunners. US Airways Center hosted the 2009 NBA All-Star game. Downtown Phoenix is alive with activity; from the busy epicenter of the financial district to the fans of professional sports that take over at night. Downtown Phoenix provides art, culture, sports and entertainment. What more can you ask for?

• Central Avenue Corridor Located halfway between the major arterial roads 7th Street and 7th Avenue, Central Avenue is the dividing line for Phoenix. Central Avenue Corridor provides a great mix of people from every walk of life and socioeconomic level. Central Avenue represents almost every architectural use and style found in Phoenix; and as a result, a wide range of price points for and housing options. You can find everything from converted warehouses to small single family homes to high rise living, the Central Corridor has it all. On Central or in the immediate vicinity lie officially recognized and protected historic neighborhoods and a variety of cultural, performance, and sporting venues.

Home prices in Phoenix area up 20 percent in past 12 months

Home prices in Phoenix area up 20 percent in past 12 months

Harp 2.0

Notice to all Arizona Home Owners and Landlords!!! Are you upside down with your mortgage and can't refinance? Give our strategic partner at Radiant Financial Group a call and let them know you were referred by iDeal Realty & Management.

Grand Opening!

Our GRAND OPENING will be

June 15th, 2012

1:00pm - 4:00pm 

Ribbon Cutting at 2:00pm