Residential Property Advice

Projections and historical data do not bode well for the purchase in the next five years. Assuming no price appreciation (based on historical observation, the exhibits, and accountant), the present value of owning v. renting is $7680 and the net present value is negative. Given that investment required is so large, the risk is not worth the predicted outcome. This investment virtually depletes the Linton’s nest egg which I would not recommend given that Mr. Linton is still a student and there is some uncertainty regarding their financial needs over the next 5 years due to the limited incoming cash flow.

Wanting to gain experience in the real estate field, Edward Alexander is looking to invest into a small income-producing apartment in the Back Bay-Beacon Hill area of Boston. He considers paying rent to someone else a waste of a capital building opportunity, given that he is building someone else’s equity.

Table 7 in the detailed analysis above shows the summary of the Discounted Cash Flow analysis performed for each of the four potential properties considered for investment. From the chart below, we observe that of the four properties, TFB has the maximum increase in reversion value at the end of the holding period, i.e. 10years. On a primarily income generation potential basis, Alison Green, with a Net Present value of the future rents at $734.29 looks attractive among the four options. Looking at the Investment ranks of the four properties with Simple returns and Discounted returns variables, Alison

In 2008, the American population saw a large wave of home foreclosures during the Great Recession that created an economic crisis that displaced millions of homeowners. Unable to recuperate from the terrible financial situation, these persons found comfort within the rental property industry. These previous owners, unable to purchase new homes, began renting property and living as tenants, contributing to the 4% growth record of the rental industry as published in a study that was conducted by Harvard University. With the growth of this industry, rental property owners began to devote more of their time to the development and marketing of their rental properties. These owners began providing lower rates for their properties, and they began making improvements that allowed them to increase the net profit that they received. With the continual “boom” of the industry and the popularity that it is receiving due to young adults needing places the live, rental property owners need an effective program that allows them to oversee their properties and communicate with their tenants.

The next property presented to John and Judy was Ivy Terrace, an 80-unit apartment under construction in Arlington, Virginia. Even though this property has the lowest Net Present Value ($619) and lowest monthly mortgage ($5,500), there exist the greatest increase in Cap Rate from purchase to sale price (9.12% to 9.51%). Based on calculations, 72% of total benefits will be derived from cash flow while 41% of total benefits will come via future value. This property has the second highest After Tax Cash Flow (ATCF) but has the lowest remaining loan balance at sale ($4583.03), net cash from sale ($4868.34), net book value ($5545.45), and capital gains. Ivy Terrace has the highest depreciation and has the lowest percent of total benefit from future value and lowest amortization and reserve among the four properties. Finally, the developer of Ivy Terrace guarantees 93% occupancy.

Mr. Alexander is new to the property management arena and has no experience with multi-family dwellings. Due to our clients limited capital he cannot afford to hire a property manager. Because Mr. Alexander will also be working his normal full-time job, and doing the property management as a ‘side-job’ the ability to manage multiple subcontractors will be highly inefficient and could lead to disgruntled tenants and higher vacancy rates.

My name is Tricia Murphy, and I am the manager of the Home Owner's Association. I am contacting you to inform you about an issue with your yard. The grass is getting considerably long and the hedges are becoming slightly overgrown.

The mission of T & T Real Estate, LLC is to establish a portfolio of income producing real estate assets over the next 15-20 year that will produce supplemental income for retirement to the two principal owners. The principals of T & T Real Estate, LLC will manage the company in a conservative approach that will allow them to maintain their current full time employment. The company will seek to invest in one to two properties per year. To acquire the capital needed for reinvestment T & T Real Estate, LLC will seek to purchase residential properties that have the potential to generate an immediate return on investment after rehabilitation and will be resold. Those proceeds will then be used to supplement the investment of a second property that be rented as an income producing asset all the while

Just like any investor, Leonard is taking into considerations many different aspects: demographics, amenities, rent averages and county regulation. Considered that Leonard is looking for a long-term source of income, he is looking at properties with an expected low depreciation, a maximized capital appreciation and an increasing market value in the foreseeable future. Given his $25,000 and an expected return on the investment of 8%, Leonard realized he would have to look for properties in the back slope of Beacon Hill, where real estate had a great potential market growth. In order to meet all his expectations and at the same

An investment property may directly reflect the time and effort you have put into it. One strategy for success is to circumvent potential tenant problems when possible. How do you accomplish this? You can start by screening tenants properly. Doing this will help you to prevent a variety of issues from arising. By avoiding such issues, you will maximize your investment and save time and money.

The price of residential real estate is no longer at the level it fell to during the peak of the

Based on a sound foundation of these investment fundamentals, Advamode Developments researches the best available opportunities for property investment and long term capital growth. We have long recognised the need to ensure that you have a professional team working with you to help achieve your investment goals.

Pebble Cove Apartments is a two-story 90-unit Class B garden style complex centrally located in Las Vegas, Nevada. The charming community features numerous amenities including nearby shopping and schools. Historical occupancy is over 95% and the property is currently financed by a $5,076,000 Assumable Loan @ 3.82% Fixed, Due in 2049. The purpose of this paper is be to illustrate and highlights components of Peca’s (2009) six stages of property development. The property selected does not include the Construction or Initial Occupancy Phases.

By many accounts, British property is now the most expensive in the world, particularly in the densely populated southeast. Property prices have increased more in the UK as compared with every other country in the G7. Rising property prices are felt most severely by the UK’s younger population, as more are forced to work in less productive areas or take long ‘marathon commutes’. Approximately 24 percent of people born in 1990 own houses. Due to the increasing real estate prices, general home ownership peaked at 2003 when it reached 71 percent and has been dwindling steadily ever since then.

Between 1997 and 2006, the price of the typical American house increased by 124%. Many people assumed that this trend of increasing housing prices would persist.