HotPads.com – Find & List Rental Housing

Looking for a place to rent? Or are you a property owner looking for a good tenant?
You may want to check out HotPads.com. I had heard of this site sometime back but had forgotten about it until earlier today when I was bouncing around the internet between appointments. I was blown away.

The site is pretty impressive and is a good resource to find your next rental house, or, if you are a property owner, to list your home. Go to the site and check it out. If you have had any experiences with HotPads.com before drop me a comment or an email and let me know how it went for you. I’m curious to know!

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Reading: A great source of real estate knowledge

I’ve heard an old axiom that went something like this: “There are two ways to learn; 1. By your own experience. 2. By someone else’s experience.”

So true.

On the right side of this site you will see two books advertised for sale. Is it because I need the $0.86 or so I’ll make from you buying the through this website? (I do have four kids…so it won’t be turned away!) It is so that you can read two very well written books with slightly different perspectives about real estate investing. I’ve recommend these two books before and I still haven’t changed my mind. They stand up in any market for any community.

Whether you’ve been at this for a while or new to the game or just thinking about real estate investing you should take the time to read or re-read these books.

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A Home Inspection? What is that?

Many of us have lived in a home for the better part of our lives. We’re used to living in them, used to using their components and even used to repairing them when we see problems. So why would anyone need to hire a home inspector? I mean, really, how hard is it to see a defect in a home? Can’t everyone tell if a faucet is leaking or an automatic garage door opener doesn’t work?

To answer that, let’s ask the question, what is a home inspection? That’s the easy part – A home inspection is a visual examination of the readily accessible components of a house.

That’s the simple answer. But looking a little closer, there are many components of a home. They include the structural systems, the foundation, the roof, the mechanical systems, the electrical system, and the plumbing system, among others. All systems are independent, but are designed to work in conjunction with one another. A home inspection will give valuable insight into the condition of all of these components, and help to identify those that may be in need of repair or replacement. This is especially valuable information for those that are ready to buy or sell a home.

Consider this analogy: If you have a pain in your neck (other than your boss), you might consider going to your family doctor, or general practitioner. Your doctor might then refer you to a specialist for a more thorough evaluation of the specific problem in your neck. Your doctor may be a very good doctor, but he or she is not a specialist in every aspect of the human body. In much the same way, you can consider a home inspector as a general practitioner regarding a home. Your inspector can point out the obvious, and can even give you an indication of the condition of the systems or components of the home. Your inspector might even suggest that you consider hiring a specialist to look at a specific component (such as a HVAC specialist for the furnace, or a plumber for the water heater).

A good home inspector has been trained in all aspects of the components of the home. He or she can readily identify and describe the condition of each component. Inspectors understand how the components interact with each other are trained to identify material defects, operational defects, and other indications of problems that may exist in a home.

A thorough home inspection will take between 2-4 hours for the average home of approximately 2000 square feet and will cost between $250-400 on average. In this time, a home inspector will operate and visually inspect all the readily accessible components of a home. A thorough home inspector will evaluate the major systems of the home, including those listed above. The inspector will give you a list of the items of in the house that need some type of attention or repair, and will even let you know when a specialist is warranted for a particular component of the home. During this evaluation, most inspectors will encourage you to follow along and ask questions.

The inspector is there for you. It their expertise and time you’re buying. Make the most of it, attend the inspection, and ask questions. It is an excellent opportunity to learn a lot about the home.

Until next time….

John Clason, ASHI Certified InspectorCrown Home Inspections

Ask the Inspector

Approximately once a week, I’ll post a blog regarding some aspect of home inspections, and the home inspection process. In the mean time, feel free to email me directly if you have questions, or if you have a topic that you’d like to see discussed. You can reach me at john@crownhomeinspections.com or on my cell phone at 816-305-4624.

John Clason, ASHI Certified Inspector
Crown Home Inspections

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Filed under Kansas City Real Estate, Preferred Vendors

KC Star: Prices reel from robust toward bust

For those of you not from the local area, the Kansas City Star has an article in today’s paper that has a really helpful flash graphic to help show the local economy’s housing condition. It’s a good read and a cool graphic.

Personal note: None of this should be a surprise to anyone watching the market. Again, long term Buy & Hold is a great way to invest in real estate. But be very wary on Buy & Sells (flipping) unless you are sure of the buy or you have deep pockets.

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Learn to Invest in Real Estate 101

Shameless plug here:

A workshop to help neophytes and the experienced alike know how to determine profitable from not profitable income property BEFORE they buy. February 24th, 2007 starting at 9:3o a.m. at the office of Keller Williams Realty, Diamond Partners, Inc in Olathe, Kansas and lasting until 11:00 a.m.

I will speak from both knowledge gained and personal experience on what to look for, how to measure it and why one should consider real estate investing. Either go to my website or email me to register. Space is limited as I keep the class sizes small to allow for as much interaction as possible.

There is no charge for the workshop and you will not be asked to buy any books or tapes. It’s low key and information based. Hopefully, when you decide you need a real estate agent, you will think back to me! So register today.

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Blues. Beer. BBQ.

If that saying sounds familiar you must be a fan of B.B.’s Lawnside Bar-b-q. Located off 85th Street in Kansas City, Missouri this long time eating establishment is one of my favorites for a night out with my girl. The smoked meats are magnificent with a BBQ sauce to compliment them. (My favorite is the beef brisket…but that’s true of any good BBQ.) Good beans and fries. Great atmosphere. Heaping portions. Cold Boulevard beer. Do I need to go on? They even have a good cajun selection for those of you so inclined.

Run by Lindsay Shannon (you may have heard him on 101 the Fox where he does a blues show) and his wife Jo this place is pure BBQ fun. National and local blues acts play there just about every night of the week that they are open. Two of my favorites, D.C. Bellamy and Four Fried Chickens and a Coke are coming in the next few weeks and I’ll be there for at least one of the shows, if not both.

Make sure you visit their website and book a night that you and your special ones can go out for a good time. They even have a deck you can dine on. (When the weather is right and that seems so long ago!) There are many BBQs I like to frequent. This is the most fun.

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What Should I Own for an Investment?

I’ve written about the theories of Single Family Homes vs. Multi-Family Homes before. But it has been a while so I thought I would cover it again since it is one of the more frequent questions people seek council on.

Single Family Home

  • + Appreciates with neighborhood, not rents.
  • + More people want to live in SFH than MFH so easier to rent.
  • + SFH rents seem to take a little more pride in the home, IMO.
  • + Resale can be to just about anybody.
  • – Money down will usually have to be more to get it to break even or cash flow.
  • – Rents for a lesser value on the Gross Rent Multiplier.
  • – 6 units of SFH could be all over the place instead of in one location.
  • – 6 units means 6 roofs that will need replacing, 6 lawns that need mowing…

Multi-Family Homes

  • + More security for many investors. After all, if one unit vacant still have other income.
  • + For newer, young investor it’s great to live in one side, rent the other (helps when qualifying for loan) and then you can move on and rent other side.
  • + Maintenance all in one place. Only 1 roof per “x” number of units.
  • + Can cash flow at a much greater rate than SFHs with much less invested.
  • – MFHs can be in the middle of “rental” neighborhoods thus limiting their selling power to only other investors.
  • – Tend to appreciate along with the value of rents not neighboring properties.
  • – When purchasing over 4 units you’ll need a commercial loan with a very large down payment and the bank will want landlord history.
  • – Dealing with many more tenants and thus may want a property manager.

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