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Looking to maximize your rental income without spending a lot of money out-of-pocket?

Looking to maximize your rental income without spending a lot of money out-of-pocket? Tenants don’t want to cook in a dark, cramped, outdated space. Increase the wow-factor of your property by updating your kitchen. Stainless steel appliances are nice, but if you’re remodeling on a budget, read on for some easy, low-budget ways to improve your kitchen. Plus, if you decide to sell in the next 5-10 years, a mid-range kitchen remodel  can give you up to a 70% return on your investment, according to Remodeling Magazine’s 2015 Cost vs. Value Report

Paint Cabinets White

Are your kitchen cabinets a little beat up? Do you have wood cabinets that look dated and make the room gloomy? You can easily upgrade your kitchen by painting your cabinets white. White cabinets work with all types of design styles, so whether your tenant’s style leans more toward rustic or modern, they’ll be able to make their belongings fit nicely. White cabinets also give you a neutral palette to try out an array of stylish backsplashes or even a bold color for a statement wall.

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Via Modernize.com

 

Add Interesting Lighting

Lighting is an inexpensive way to add some real style to your kitchen. Pendant lamps or even a chandelier are great tools for integrating your cooking and eating space–whether it’s a breakfast nook or an adjacent dining room. You can also play with scale to make a cavernous space feel more intimate or a small space more cozy and welcoming.

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Via Modernize.com

If you have a kitchen that tends to get very hot, consider adding a light fixture with a ceiling fan. Your tenants will appreciate it in the warm summer months.

 

Maximize Storage Space

Even if you have a small kitchen, you’ll be able to meet the needs of your tenants with some smart storage solutions.,. Install multiple shelf units within cabinets to double and sometimes triple the storage space. In the area under the sink–always tight because of plumbing–install some handy door racks inside the cabinet to keep supplies organized. You can also make the most of those faux drawers (typically found below the sink) by converting them to tilting drawers that hold sponges and other small cleaning supplies. If you’re working with limited space for dishes, utensils, spices or small cooking accessories, look underneath the cabinets. There are ample options for installing racks with hooks to hang coffee mugs or utensils; magnetic strips for cutlery sets, dish drying racks and even spice shelves. The space underneath cabinets can provide an incredible amount of unexpected storage space, and in a neat and tidy manner.

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Via Modernize.com

 

Utilize a Non-Traditional Island

If you have the space, consider adding an island to your kitchen. The island will provide valuable counter space for preparing meals and can serve as a dining room table for small family dinners or as a serving buffet during parties. Depending on the type of island you select, you may also be able to get some extra storage space out of it. You don’t have to spend a lot of money of a factory produced island (that may or may not match your cabinets). Instead, consider non-traditional islands like a repurposed dresser or bookshelves. Here are some great DIY inspirations for kitchen islands. Whatever you end up using, just make sure to fasten the island to the floor to keep the surface stable.

 

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Source : Bryn Huntpalmer, Editor of Modernize.com Via Modernize.com


 

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www.RedRockManagementLV.com
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Real Estate Finance

Is property management affordable for single-family rental owners?

Not only is property management affordable, using a property manager can actually increase your property’s overall profitability. Most property managers charge a small percentage of your monthly rent in exchange for comprehensive services that range from finding and screening tenants, to handling emergency maintenance, to keeping the books and preparing year-end taxes.

Source – All Property Management

 


 

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www.RedRockManagementLV.com
Info@RedRockManagementLV.com
FREE Property Management Consultation– CALL 702-622-8668

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Why Real Estate Could Be a Better Investment than Stocks – Ya Think!

Before my added “Ya Think” emphasis, the title is the same as a title of an article this week over at Money,USNews.com. It’s not surprising to see an article like this now, as the China situation took the Dow Jones down in a dramatic way over the course of a week or so. If you want some historical perspective, there are some dates and Dow plunges historically:

• August 24, 2015: -588.47
• August 21, 2015: -530.94
• August 8, 2011: -634.76
• Six more 600 points or larger drops since 2000.

Yes, if you just bought and held for 15 years, you would have done well in stocks. Unfortunately, many people can’t simply drop a major chunk of change into stocks and just let it ride for that long. And, depending on when you buy, having to sell after a drop like these can be devastating to your savings and retirement.

So, that said, I’m not saying dump all of your stocks and buy real estate … particularly not now. However, the next time your stock broker advises you to “diversify,” don’t just do it with stocks. Let’s look at some of the points referenced in the linked article.

Actually, the article wasn’t really that positive about the advantages of investing in real estate. Things like the ease of placing stock trades and low cost of transactions were mentioned. Property taxes were mentioned as a negative, and they are to a point. The article’s title really wasn’t in my opinion supported very strongly by the content. So, let’s take a look at some differences between stocks and real estate as an investment asset class.

Inflation Hedge

Stocks are susceptible to inflation risk. Your return is whatever it is, including dividends. When inflation gets rowdy, it can take away major chunks of your investment gains in stocks. That’s not to say that real estate is inflation proof, but there are some logical reasons why it may be better.

Let’s think about what inflation really is. It is an increase in the cost of goods and services. So, what do you expect to happen to home prices when wood, tile, wiring, plumbing and other materials and labor costs increase? If it costs more to build, usually within a reasonable period of time it will cost more to buy. Your owned property value can actually increase during inflationary periods.

Interest Rate Increases

When interest rates rise, stocks and definitely bonds usually suffer. It costs companies more to borrow to expand and finance operations, so their profits are reduced. Bonds carry a fixed rate of return, so their value drops when interest rates increase.

If you own rental real estate with a fixed mortgage rate, interest rate increases don’t really bother you. In fact, they can help. If mortgage rates rise, more people must rent than buy. Rental demand increases and rents rise.

Taxes

Sure, you must pay property taxes if you own real estate. However, if you’re doing your job, you factor those into your purchase of rental property and the positive cash flow you project to receive. Sure, they can go up, but you may be able to offset that with rent increases.

One major difference is in using the IRS 1031 Exchange rule for growing your real estate portfolio. While the stock market investor will pay capital gains taxes in the year they sell a stock at a profit, real estate investors get a major break. Using this IRS rule, you can sell and roll the profits into another investment and forego paying capital gains. It’s complicated and the rules are strict, so an accountant needs to be involved.

I’m not trying to push anyone into real estate who is afraid of it or not suited for a landlord’s duties. But, there definitely are reasons for real estate as a diversification strategy.

 

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