Phoenix Coyotes Stay in Glendale What it Means for Real Estate

Its been over 3 years since the Coyotes woes started but they finally saw all the pieces fall into place when a new Ownership group lead by a team of Canadians bought the team and secured a lease for jobing.com arena with City of Glendale. This is all great but what does it mean for Real Estate in the area?

BIG THINGS... that's what it means, since the Coyotes have sold Westgate Entertainment district has seen an explosion in number of restaurants and shops. Part of this could be contributed to the announcement that Glendale will be the host of the 2015 Superbowl but undoubtedly a large contributing factor is that the Coyotes are here to stay. Also since the announcement of the sale we have seen an increase in prices of residential real estate around the Westgate Entertainment District. Prices at The Quarter, an upscale condo complex on the edge of Westgate, have seen price rise from the $175-$190 Thousand dollar range before Coyotes announcement to $225-$250 Thousand weeks after the announcement.

All in All I think it is safe to say that with the Coyotes staying in the desert for at least another 5 years, and hopefully a lot longer than that, real estate around the Westgate Entertainment District and jobing.com Arena will be a hot commodity.

Phoenix Property Management

Phoenix Real Estate

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

Maximize Your Investment Properties Potential

Tips To Maximize Your Property Investments

No matter what your reason is for investing in property, there are many things you need to do to make sure that your investment boom doesn’t become a bust. You need to make the right decisions running the property as well as keeping it the way you want potential tenants to view it.  Each investor has their own ways to manage their property, but here are a few tips that I think will help maximize your property investments:

Invest In a Property Management Company
Even though it may cost a little extra money, it is a great idea especially if you don’t have the proper time or understanding of how to get the most out of your property investment. Hiring a property management company will allow you to ease some of your anxiety of all the things that go into making a property investment a financial gain for you. The company will not only run the property, but it will also more than likely do the legwork to get the vacant property filled, especially if it is an apartment unit. The quicker it gets filled – and since you don’t always have enough time – the less money you are leaving on the table.

Purchase Before Project Is Complete
If a new property is on the horizon and you have done research as to the area and its surroundings, pull the trigger early and get the investment before the entire project is fully complete. Many times there are discounts (small ones, but discounts are discounts) when you invest and sign the dotted line before the building is complete. This will allow you the chance to potentially pick what unit(s) you would like to purchase, possibly with a great view or possibly close to an elevator/staircase. This sounds maybe a little elementary, but these things are what potential tenants are looking for in a unit. Therefore, by getting in the game early, you get the opportunity to get a great property with what will probably come with a discount and easier resale potential.

Accelerate The Work Process
If you have invested in an apartment or condo space to rent out, understand that there will be a ton of turnover – many tenants only rent for 1-2 years at the same place before moving on. That being said, it is critical to make sure when you are between tenants that you speed up the process on getting the space available for the next one to come in. The last thing a potential tenant wants to hear is that they can’t move in for several months – they instantly start looking elsewhere. None of us have the time to sit and wait for the next space to come available, we need it right now. Put yourself in the tenant’s shoes and understand that the quicker you do things to get the property ready, the quicker the money will start coming in again on that same investment. The work could include more than just cleaning the apartment from head to toe, it could mean patching up small holes in the wall and painting over them, or ensuring that all of the appliances are working properly. Remember do not take more than a week or two to finish the process, and remember the money you could be losing out on.

Don't Overlook The Upgrades
No matter what type of property investment you have, there are always going to be upgrades that are needed. Some more of a financial investment than others, but regardless there will be some. However, you need to figure out which ones are the most important for the long haul to ensure your investments will continue to grow as the years go on. All of the upgrades that you may make – whether it is something small in the kitchen or bathroom, or adding new decking outside – aren’t always going to raise the value of the property, but by not doing at least the minor upgrades throughout the years will shun potential tenants away, thus losing money.
Everyone who has invested knows how tough and stressful owning a property can be – hell if making money in real estate was easy everyone would do it!

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

Property Management Phoenix

Arizona Property Management

Bad MLS Photos - Episode 1

Alright I have been searching through the MLS and lately I have come across a lot of photos that make me scratch my head and think what was the agent thinking and I thought I would share some of them with you in a series I am going to run called Bad MLS Photos. In this episode all photos came from homes that were listed above $250K

Blurry and Dark Photo, Why Not Turn on Some Lights?

What a Nice Dog... Dose He Come With The Home?

Yes the Home Has A Pool, Too Bad Its Green

Taking Pictures is Hard Work I Think I am Going to Sit Down And Rest

Don't You Hate When You Get Stuck at the Light At The End of Your Driveway?

I Only Took One Photo of the Front Who Cares if It's Washed Out

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

Phoenix Property Management

How to Make Your Home Eco-Friendly in 10 Easy Steps

It seems that everyone is wanting to jump on the Eco-Friendly band wagon these day's, and for good reason. Studies show that you can save some real green by going green. Some green solutions are easier and more cost effective than others and Adam Prince of Zero Energy Design recommends implementing what you can now, while also creating a plan for the future.

Here are 10 simple tips to make your home more Eco-friendly:

1. Change your light bulbs to more energy efficient ones - Studies have shown that replacing light bulbs can have a significant impact on energy savings, The link will take you to my review of my experience with the switch.

2. Change your air filters regularly - Dirty air filters make it hard for you HVAC system to breath which in turn makes it work harder to cool or heat your house, it is recommended to replace air filters every 30 days.

3. Install a programmable thermostat - A programmable thermostat costs around $35-$50 dollars but can save you 5 times that cost in one year especially if your home is empty for most of the day.

4. Replace an old water heater - As the saying goes if it ain't broke don't fix it, but if its an old water heater were talking about you may just want to replace it. Some new water heaters are up to 75 times more efficient that older models, so replacing that old water heater could see you some real savings!

5.  Seal up air leaks - Air leaks are the number one killer of energy efficiency, even a small air leak can cost you hundred of dollars a year. It is advised to check your home for air leaks twice a year before the summer heat comes and before the freezing temps of winter hit. Don't forget to check your windows, doors and HVAC ducts.

6. Upgrade Plumbing Fixtures - Low flow shower heads are all the rage for water savings, Some new fixtures can cut your water usage by as much as 80%

7. Install ceiling fans - If you live in a place that experience mild to sever summer heat something as simple as ceiling fans can do wonders to you pocket book. Ceiling fans keep air flowing around a room and that slight breeze is enough to make it feel 3-5 degrees cooler.

8. Replace old appliances - The biggest energy hogs in our homes are our appliances because most of them are used on a daily basis, Take that Fridge for example newer models are better insulated and can run more efficiently than older models saving your considerable money, also check with your utility company odds are they will pay you to recycle that old fridge.

9. Use sustainable products when replacing household items - When it is time to replace cabinets, flooring or anything else in the home look for new products that are made out of renewable or local materials.

10. Use recycled bags - The number one use of plastic is for plastic grocery bags and water bottles, both of these items are hard to recycle and most people throw them away which means they end up in a land field where they will not decompose. It is better to reuse bags that are made out of sustainable material and take them to the store every time you go. Same with water bottles it is better to buy a reusable water bottle and re fill it from home or if you just cant do tap water a large 5 gallon bottle that you can refill at the grocery store.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

Property Management Phoenix

Arizona Property Managment

Which Cities have the Greenest Homes?

In this day and age people all over the country are looking to green sustainable building to help, save on energy costs, protect our environment and cut down on city pollution. In some parts of the country it is easier to find these energy efficient and Eco-friendly homes than others. Recently the real estate brokerage Redfin ranked cities that have the greenest homes, basing its rankings on the number of homes for sale that boast green features—such as solar panels, LEED certification, and Energy Star appliances—as well as taking into account each city’s carbon-dioxide emissions ranking.

"The residents of these cities are reducing their environmental footprint and saving money at the same time" by lowering their monthly utility bills, says Julie Jacobson, a real estate agent with Redfin.

The following cities emerged on the top of the brokerage’s list for greenest cities for homes:

1. San Francisco,  California
2. Washington, D.C.
3. Sacramento, California
4. Boston, Massachusetts
5. Portland, Oregon
6. Philadelphia, Pennsylvania
7. Phoenix, Arizona
8. Los Angles, California
9. Seattle, Washington
10. Austin, Texas

Source: “10 Cities With the Greenest Homes,” AOL Real Estate (April 19, 2013)

iDeal Realty & Managment

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

Phoenix Property Management

Phoenix Real Estate 

Save Money with CFL's and LED's

Have you ever wondered how much money you could actually save by using those CFL's or LED lights in your home? I mean can the slightly extra cost really pay for its self in the long run and how long do you really have to wait before you start to see the savings?

Well I am going to do a little bit of math for you to show you that CFL's and some LED lights are worth the switch and even the extra upfront cost in the long run but even in the short run they can be worth it. At the end I will explain my experience since switching from incandescent bulbs to LED's and CFL's.

First the math:

Lets say you have 15 light bulbs in you home that get used on average 6 hours per day. Lets also say that the current bulb uses 60 watts of electricity

15x60=900     900x6=5400

So in this example those 15 bulbs are using an average of 5400 watts of electricity per day or 5.4 kilowatt hours of electricity per day.

Now lets look at those same bulbs if they were CFL's most 60 watt equivalent CFL's use only 13watts

15x13=195     195x6=1170

So these new bulbs are using an average of 1170 watts of electricity per day or only 1.2 kilowatt hours of electricity per day.

Although the savings may not seem significant enough to be worth your trouble in switching lets look at how much that savings adds up to during a normal month. we will base it on a 30 day month.

5.4x30=162     1.2x30=36

Now you can start to see the savings in one month the incandescent bulbs are using 162 kilowatt hours of electricity, where as the CFL bulbs are only using 36 kilowatt hours of electricity. So you can see that regular bulbs use about 4.5 times as much electricity as CFL's

Now lets look at those same bulbs if they were LED's the newest and most energy efficient bulbs that are on the market today. LED's that are equivalent to a 60 watt bulb only use about 7 watts of electricity.

15x7=105     105x6=630     .6x30=18

So an LED bulb will only use about .6 kilowatt hours of electricity per day and for a month only use about 18 kilowatt hours of electricity which is about 10 times less than a standard bulb uses.

Now my experience:

I made the switch to all CFL's and LED's about a year and a half ago in my house I have a total of 45 light bulbs (I don't necessarily use all 45 in any given day but I switched them out all the same.) Since the switch I have managed to cut my electric bill down to an average of around 450 kilowatt hours/month during the the last 12 months. Before the switch I was averaging around 800 kilowatt hours per month during the same 12 month span. So just switching out light bulbs really can save you about 50% on your electric bill.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

Phoenix Property Management

Housing Investors Buying Up Florida Real Estate

Florida is the next stop for investors that are looking to buy homes on the cheap, fix them up and rent them for some short term cash flow and hopefully net a pretty penny on resale in the next 5-7 years.

Created last year by private equity titan Blackstone Group, Invitation Homes has spent about $3.5 billion buying 20,000 houses in nine U.S. markets, including Southern California. It's a new business model emerging from the misery of the mortgage meltdown.

Blackstone and a handful of other firms believe prices fell too far in the hardest-hit markets. So they're racing to buy up the bargains, rent them for short-term profit and hold them for long-term price appreciation. These firms say they've invented a new investment strategy that also serves the public good by fueling the housing recovery and sprucing up homes.

The investors have played a major role in recent home-price surges in markets that are recovering. Southern California's median home price has jumped 21% over the last year, and Arizona's Phoenix Market has jumped up about 30%. In the process, financial firms — including Oaktree Capital Management, Colony Capital and the Alaska Permanent Fund (which manages that state's investments) — are rapidly staking claims as the new landlords of the suburbs.

On paper, the buy-and-hold calculus makes sense. The foreclosure crisis destroyed home values — but drove up rents, as repossessions created a new wave of rental demand from would-be owners with ruined credit. Fresh demand from young workers, a short supply of newly built rental units, and stricter mortgage requirements have also made the rental market competitive.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

Phoenix Property Management

Home Builder Confidence Drops

Home builder confidence unexpectedly fell for a second month in March. The National Association of Home Builders/Wells Fargo index of builder confidence dropped 2 points to 44 this month. In a Bloomberg survey, the median forecast called for a gain to 47. Anything below 50 means many of the respondents said the conditions were poor. According to the report by the NAHB, the drop is due a decrease in the measure of current sales.

“In addition to tight credit and below-price appraisals, home building is beginning to suffer growth pains as the infrastructure that supports it tries to re-establish itself,” David Crowe, chief economist at the builders association, said in a statement.

The builders’ index compares with a reading of 28 in March 2012.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

Phoenix Property Management

2013 List of the Most Expensive Rentals

The real estate website Trulia recently compiled a list of the most expensive rental properties currently available on the market. Surprisingly, only one property has enough square footage to qualify as a mansion. One of the biggest factors determining a few of the astronomical rents was simply location.

Top 10 Most Expensive Rental Properties

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

Phoenix Property Management

Most Young Consumers Want to Buy a Home, Survey Finds

Today, the vast majority of consumers between the ages of 25 and 44, comprising both millennials and those in Generation X, say that home ownership is at least somewhat important to them, according to a new survey from Prudential Real Estate. In all, 96 percent of all consumers feel this way. But 77 percent of those aged 25 to 34, and 78 percent of people between 35 and 44, say it's "very important." Further, 74 percent say that the current levels of affordability lent by historically low interest rates mean that now is a great time for them to buy a home.


In addition, 63 percent of those polled say they currently have a favorable view of the real estate market in general, and those in the younger generations were typically more enthusiastic about it than their older counterparts, the report said. Further, the number of people who contemplated getting into the market but did not buy or sell a property in the previous year was up 10 percent in the last six months of 2012 when compared with the end of the second quarter.

However, many consumers are still understandably cautious about wading into real estate even with all the improvements and good sentiments, the report said. In all, 62 percent say they're having more trouble getting financing from lenders than they would have faced prior to the downturn, and 72 percent want to have a trusted partner in their lender. It's believed that more buyers will continue entering the market in the next year at least, driven largely by interest rates and prices that have remained extremely low when compared with historical norms.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

Why You Might Want to Add More Photos to Your Listing

Selling a home is a lot of work, you have to find the right realtor, find the best marketing strategy, and make sure you listing gets published to the internet in as many places as possible. But do you take the time to make sure you have enough good pictures of your home?

Studies have shown that you could increase the sale price of you home by 3.9 percent simply by adding one picture. A new study of 4,000 homes evaluated by researchers Justin D. Benefield, Christopher L. Cain and Ken H. Johnson, shows that the more photos you add to you listing the more you stand to gain. Each photo could net the seller about $150 to $200, not bad for a little bit of extra work.

A good working ratio Johnson told The Wall Street Journal is to have a ratio of four to five interior shots of a home to every one exterior shot. Interior shots were found to have a bigger effect in increasing the sales price than exterior photos. Interior shots were found to increase the value 4 percent vs 1.9 percent increase from exterior shots.

Although the study shows that adding photos could increase the sale price of you home there is a bit of a catch 22 for some people. The same study found that adding photos to a listing increased the time that it takes to sell a home by 16.5 extra days. The reason Johnson suggests is that photos provide buyers with more information to consider and can slow the decision process.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

Controlling Allergens in the Home

Household allergens can cause a variety of symptoms in many people, including sneezing, watery eyes, coughing, and shortness of breath. Allergens may also be a contributing cause of asthma, especially in children. However, it is possible to minimize the effects of such allergens by taking steps to control their presence and dispersal in the home.

The most common household allergens include dust mites, mold, mildew, pollen, and pet dander (dried flakes of skin shed by pets, particularly cats and dogs). Effective control relies on a combination of measures that, when used properly, will reduce the levels of allergens

• Increase ventilation to the home. Opening windows whenever possible promotes good air exchange and will reduce the concentration of airborne allergens, especially pet dander.

• Wash bedding and stuffed toys once a week in hot water to control dust mites and cat allergens in particular.

• Keep pets clean and well groomed to control dander.

• Use mite-resistant mattress covers and pillow covers and wash these frequently.

• Dust and vacuum regularly, and use microfiltration or HEPA filter vacuum bags. The jury is still out on whether bagless vacuum cleaners are more effective in removing allergens than those that require bags; some studies indicate that many bagless vacuums are not sealed tightly enough and can actually exacerbate the problem. Wearing a dust mask while dusting and vacuuming is also a good idea.

• Consider removing wall-to-wall carpeting and use easily-cleaned area rugs instead, particularly in bedrooms.

• Make sure bathrooms, especially those with showers, are well ventilated. Open the window and use exhaust fans that vent to the outdoors to prevent a buildup of moisture, which can encourage growth of mold and mildew.

• If possible, reduce indoor humidity to 50% or less by using room dehumidifiers or the dehumidifier feature available with many central air conditioning systems.

• Clean or replace furnace and central air conditioner filters on a regular basis. Make sure that air conditioner drain pans are clean and allow the water to drain properly.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

FHA Mortgage Insurance Premiums on the Rise

The Department of Housing and Urban Development and the Federal Housing Administration will increase FHA Mortgage Insurance Premiums according to a press release dated February 27, 2012.

The press release, HUD No. 12-037, states, “FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.50 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent.”

The increases are scheduled take effect in April 2013, so if you are in the market for a FHA insured loan it is advised to start the paperwork before March 24th so you can be sure you have a case number issued before the April 1st deadline.

FHA mortgage insurance premiums may be going up, but according to the press release, the changes are not severe, adding to about five dollars per month for most new FHA home loans where applicable or $100 per year for each $100,000 in loan amount.







The Bigger hit announced however is the fact that borrowers may be paying the mortgage insurance premiums for longer. Under the old rules a borrower could get rid of the PMI premiums after paying them for 5 years if the Loan dropped below 78 percent of the value of the home. But under new rules home owners who's loan is 90 percent or higher to the value of the home will have to make those PMI payments for the life of the loan.

As stated previously, the FHA Up Front Mortgage Insurance Premium is also affected; the current rate of one percent will increase to 1.75 percent of the base loan amount.

According to FHA.gov, “This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2013,”

The press release also adds, “Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the pricing changes announced today.”

For more information on the announced FHA mortgage insurance premium increases, visit the FHA official site.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

 

Phoneix Home Prices Level Out?

The good news for most people who are upside down on their homes this last year is that we have seen a steady increase in housing prices. This means that people who were only a bit upside down a few months ago might actually be back in the green.

The bad news however is that according to recent statistics we might be seeing prices level off. Most of this is probably due to a natural slow down in the market around holidays but the bigger reason might be the fact that banks and home owners are taking advantage of the higher prices and marketing properties out of the range for many first time home buyers.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

Housing Prices Rise Mortgage Loans Fall

Is now a good time to buy a house? Yes, if you’re able to do so. For the third month in a row the price of the average house in most regions of the country moved higher, albeit not by an impressive amount. When it comes to the number of home sales, the picture didn’t look so bright last month. Sales of new single-family homes fell 0.3% in August to an annual rate of 373,000, the Commerce Department said on Wednesday, September 19th. The pace of sales last month was less than what most analysts had expected. Economists polled by Reuters predicted sales of 380,000. July sales were revised higher to 374,000 units from 372,000 units — the fastest pace since August 2010.

U.S. home prices continue to rise. In July, home prices rose 1.6% following a 2.3% increase the month before, according to the latest S&P Case-Shiller data reported. The reported data through July 2012, released by S&P Dow Jones Indices for its S&P Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed average home prices increased by 1.5% for the 10-City Composite and by 1.6% for the 20-City Composite in July versus June 2012.

For property managers it means the supply of residents who can only qualify to rent homes and apartments will continue to rise for the foreseeable future. Let your owners and best clients know that the inventory of rental properties is low in many areas, and now may be an auspicious time to buy more rental homes. There are more families than you might realize who’ll need a home to rent in the year ahead.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

Surviving the "Cold Snap"

Those of us who live full time in the Valley of the Sun rarely get to see temperatures that are below freezing for any length of time, but this last week has been rather unusual as it has been below freezing for multiple days in a row and to top it off the High Temperature has been about 20 degrees cooler than normal.

Here are some tips to help you deal with this cold snap

1. Water pipes can and generally will freeze in any temperatures below 32 degrees, especially here in The Valley of the Sun, where most pipes are exposed to the air out side of the house. However there are some simple steps that you can take to keep the pipes from freezing. First of all it is a good idea to wrap them up in an old towel or jacket to keep them warm especially of the night time temperature is going to be below 25 degrees and there will be a slight breeze. The second thing to do is to keep the water running just a trickle at one of the faucets generally the one furthest from the main water line. This will keep a small amount of water flowing and moving water is harder to freeze then water that is standing still.
   
   
   
   
   
2.   Plants need protection from the cold also. Most of the plants that are planted in the valley are chosen to be able to survive the extreme summer time temperatures and as such are not well equipped by nature to survive extreme cold. To help your plants survive the cold it is important to make sure that they are kept as warm as possible, this means making sure the roots have substantial ground cover, you can do this by mounding up some extra soil a the base of the plant. Another step to take in extreme cold is to take an old bed sheet or blanket and drape it over the plant to help protect it from the cold. If the plant is small enough you might want to bring it inside until the outside temperature warms up.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

How To Project Cash Flow and Return on Rental Property

If you are thinking about buying some rental properties as investments, you should probably understand how to project cash flows and evaluate the investment returns you hope to achieve on your hard earned invested cash equity.

There are really two types of returns that we can earn on investment property, first is appreciation in value which is the most common hoped for return. Secondly, and much more important but generally overlooked by investors, is the cash flow picture the property will generate.

The vast majority of investors buy real estate with the hope that it will go up in value. This is really a big mistake because many properties, particularly the prize “location, location, location” properties have corresponding negative cash flows on operations that may negate any true increase in wealth from one’s long term appreciation in value.

So a savvy investor needs to look at the cash flow picture and buy properties with positive cash flows, not negative cash flows. As an example of this in Scottsdale, one could buy a nice condo for around $500,000 which would rent for about $2,300 per month. That rent, minus all the maintenance expenses, HOA fees, insurance, property taxes, and mortgage payment would have a deficit on cash flows of about ($1,000) per month, or ($12,000) per year.

So while a buyer is hoping some appreciation in value will earn him or her a fair rate of return, that appreciation has to additionally compensate for all the money he has to take out of his savings to cover the negative cash flows. Those negative cash flows, on this example, could span several decades and hundreds of thousands of dollars before the property turns positive.

Alternatively, there are many properties that cash flow positive from day one as an investment. A moderately priced house, only a little ways away in the $150,000 price range, might generate $1,300 per month in rent and positive cash flows of $325 per month. That’s $3,900 per year of positive cash flow. As a side note – the appreciation in value, over the long term, will probably be similar on both properties anyhow. So why not go for cash flow plus appreciation in value!

To calculate a cash on cash return, we divide that $3,900 positive cash flow by the cash equity we invested, maybe $40,000 on the $150,000 property for a cash on cash investment return of 9.75% on our money. And that’s a really good deal! Especially compared to the fancy prize condominium that might generate a negative (8.5%) return on our invested equity.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

I'm Back

That's right like the NHL I am back to do some more blogging for all of my readers. I apologize for being away for so long, unlike the NHL it was not a labor dispute that kept me away for so long, but things just got crazy for a little while with the explosion of real estate prices at the end of last year. But now with a new year ahead of us I am back and will try to post some good information one a week or so. I hope you will all still find my information relevant and helpful.