Rental Properties As An Investment
Real estate is all about asymmetric risk and reward. When the government gives you subsidies in the form of mortgage interest tax deductions, a $250K/$500K tax-free profit, and bailouts for overextended homeowners over and over again, you’d be silly not to invest in real estate! When you can invest lots of other people’s money and not have to split the proceeds if you make a killing, that’s a wonderful thing!
There’s a reason why every rich person you know owns multiple properties. There’s a reason why enormous fortunes have been made through real estate as well. How can President Donald Trump still be a billionaire after declaring bankruptcy?
Asymmetric risk and reward.
It’s no wonder property owners were once called lords, or now more colloquially, landlords. The wealthy own assets, while the not-so-wealthy lease assets.
After 30 years of paying $2,000 a month in rent, your return on $720,000 is negative 100%. At least through a mortgage you’ve got an asset which you can live in rent free or pass on to your children once paid off. You might not make money as the downturn has certainly shown, but at least you have a chance.
When it comes to making money, if there is no risk, there is very little reward. The biggest reason for the widening wealth gap is due to the ownership and lack of ownership in real estate. The best real estate investment I have made was simply buying my own place to live at age 26. Today, the property is worth about $1.3 million and is fully paid off.
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Visit Pagosa Springs In Style
Our unique collection of Pagosa Springs vacation rentals allow guests to relax and experience Colorados San Juan Mountains with their friends and family. Many of our rentals have mountain views and have access to lakes, rivers, and the San Juan National Forest. From spring whitewater rafting, to summer wildflower hiking, to fall hunting season, to winter powder skiing at Wolf Creek, the Pagosa Springs area is full of outdoor adventures for the entire family to enjoy.
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Screen Tenants Like The Cia
Dealing with tenants can be stressful, but it doesn’t have to be if you properly screen your applicants thoroughly. Ask for the credit report, credit score, bank statements, resume, LinkedIn profile, references, proof of employment, and income statement. Definitely call the previous landlord and the one before that to ask if there are any issues.
If you’re likely to waver with applicants who are not qualified, or with late rent payments and other lease violations, you may need to hire an agent to protect your investment.
Tenant income should be at least three times the rent and verified by having their employer sign a form. One bad dead who doesn’t pay for a month can ruin your rental returns.
Related: The Best Rental Lease Form To Use
Attractions In Pagosa Springs And Surrounding Areas
Downtown Pagosa Springs is a hub of activity due to the proximity of the soaking pools, and there are plenty of art galleries, shops, and dining options to keep every guest entertained. Shop at the Lantern Dancer or Home Again, and visit Shy Rabbit Contemporary Arts for art collections and professional workshops.
Want to head outside of Pagosa Springs? Try visiting Durango and Silverton for mining and railroad history, or Mesa Verde National Park for archaeological sites. And when it’s time to eat, you’ll have a myriad of choices from Riff Raff Brewing Company to Side Street Sushi.
Our Pagosa Springs vacation rentals will take you away from the ordinary to the extraordinary and beyond. Your wild haven and rejuvenating retreat awaits.
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Cabins Homes And Condos In Pagosa Springs Colorado
Welcome to Pagosa Vacation Homes where you will find some of the best homes, cabins, estates and condos available for short term rental in Pagosa Springs, Colorado!
The properties you are viewing are managed by VIP Vacation Services, a premier short term rental management company providing exceptional guest communication, the best housekeeping in town and top notch concierge services. We are a family owned and run company with a commitment to creating a memorable vacation experience as our driving mission.
All VIP homes are appointed with luxurious linens and towels, bathroom amenities, welcoming gift baskets, overly stocked kitchens and more importantly, all homes are professionally cleaned and given the “white glove” treatment before your arrival.
The VIP team is available each day to help your book activities or rentals, as well as simply give out advice on the best spots to play. When booking a VIP home, you are sure to receive a VIP Experience!
Do The Math Over And Over Again
It’s important to treat each rental property like its own business to serve as a good investment.
The most important consideration for prospective landlords is to accurately estimate rental income and the costs associated with leasing. Until a landlord has a precise grip on these issues, they risk owning a property that rather than a profitable investment is a net loss every month.
Betting on appreciation alone is not a good idea.
Rental purchases should have positive cash flow and good rate of return after putting down the mandatory 20% 30%. The higher the yield, the higher the cash flow. Investment real estate is often valued by its capitalization rate, which is computed by taking the net operating income divided by the going cap rate in the neighborhood to come to an appropriate price.
Your monthly expenses will include the mortgage or debt service, taxes, insurance, lawn and pool maintenance, property management and insurance. At least 20 percent down payment will likely be required if financing the purchase.
Vacancy, turnover and eviction are realities of leasing any property. Therefore, wise landlords must assume at least a month’s rent loss annually. Buying and managing rental property gets much easier if you’ve properly done the math.
Best Rental Property Markets 2021
Related: Why I’m Investing In The Heartland Of America
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When To Sell Investment Property
Owning rental property is like a war of attrition. The longer you can hold on, the wealthier you will likely be. But you might not necessarily be happier since it takes time to maintain and manage. Since real estate is also cyclical, there are times when it might be better to sell than to buy.
I’ve thoroughly gone through a list of 13 items to consider if you’ve been thinking about selling investment property in this latest article: When To Sell Investment Property.
Whenever you’re itching to sell your property start thinking about your children and grandchildren. In 20 50 years they will be amazed at how wise you were for building your real estate empire today.
You will get better at buying and managing rental property over time. Stick with real estate for the long term and get wealthy!
Related: Red Flags To Look Out For Buying A Rental Property
Other Reviews From The Web
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- 80
We stayed at one of their properties that was just beautiful. We had an awesome view of the mountains, morning visitors that literally came up to our porch each morning. On the 1st morning we…
Posted by on October 30, 2014.Brought to you by yahoolocal.
- Average Rating
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We used Sunetha to rent out our Pagosa home for 5 years. They did a good job until last winter. After a New Year’s rental during -20ð temperatures, they neglected to send someone to check the…
Posted by Pa G. on October 03, 2013.Brought to you by yahoolocal.
Wonderful Cozy Cabin
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- 100
We were delighted with our great rental cabin from Sunetha! The staff at the center was friendly and informative, with lots of coupons, guides and suggestions to make our stay more fun. Our cabin was NEW and had every amenity possible right down to a jetted whirlpool tub and cozy gas-log stove. We curled up in the evening to watch one of the 200 movies that were in the home on the large…
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This company sucked
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You better know what you are renting before you get there is all I have to say.
Posted by A Yahoo Contributor on August 23, 2010.Brought to you by yahootravel.
Why we stayed and why we will return
- Average Rating
- 100
Posted by A Yahoo Contributor on April 26, 2009.Brought to you by yahootravel.
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Pines Club Pl Pagosa Springs Co 81147
New construction
- Saves24PERFECT VACATION HOME FOR YOUR NEEDS AND IDEAL AS A SHORT TERM RENTAL This soon to be completed Mountain Modern home was design by local architects with Reynolds Ash & Associates with a low maintenance modern design. Quartz counter tops, dovetail cabinets and vanities, solid core doors, and LG Appliances will all add to the Mountain Modern feel of the home. Low maintenance includes Diamond Kote hardy board siding, heat shields and heat tape in the valleys of the metal roof, and the entire home has LED lighting. The exterior of the home is insulated with foam insulation and many of the interior walls are insulated with fiberglass batting. It is located on the Pagosa Springs Golf Club course, near Pinon Lake, and close to the Core Area for ease of shopping. A copy of the Blue Prints is available under “Associated Docs.” . This is an awesome one of a kind vacation home!Read more
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Choose The Best Location In A Strong Job Market
For long-term equity growth, a residential rental property in a good location is key.
Look for proximity to major roads, public transportation, and most importantly, schools. Research rents in the area you want to pursue, both in as-is condition and with repairs or improvements.
You also want to get inside the minds of your audience: If you are in a college town, for example, it’s important to know how students think, the maximum distance they’re willing to be from campus and the locations they consider ideal, so you can buy a property that will be in high demand.
Above all else, make sure the property is located in an area where the job market is robust and there is an influx of residences. Job and income growth are the key when deciding where to invest property across the country. Here are my top cities to buy real estate in 2020 and beyond.
Sunetha Property Management & Vacation Rentals
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About Sunetha Property Management & Vacation Rentals
The Sunetha Property Management & Vacation Rentals is a US national Real estate company located in Pagosa Springs, Colorado. To figure out why customers choose Sunetha Property Management & Vacation Rentals and to assess the reputation of the company, check the latest reviews on this page. Also, you can add your own review with the latest experience of cooperation with this company.
Find the nearest office location of Sunetha Property Management & Vacation Rentals by address or driving directions by using a map on this page. To contact the representative of the company use phone number below or visit official site. Don’t forget to check the opening hours.
Welcome To Sunetha Properties
Our Association Management Team builds a program tailored to your Association’s needs. By doing this we eliminate the headaches of the day-to-day operation while saving you money in the short and the long term. With our hands on approach we establish partnerships one at a time, beginning with a thorough and thoughtful assessment of the client associations requirements.
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Improve The Property Just Enough To Attract High Rents
To keep your cash flow at optimal levels, don’t spend too much on upgrades for a rental property that will likely need maintenance and repairs during turnovers anyway.
Imagine a box of minimum standards and never go outside that. This keeps your monthly rent at an appropriate ratio of about 1.2 to 1.4 times the monthly cost of the property, with plenty of cushion.
Because maintenance is also a given when owning rental property, a home warranty that costs $500 per year may be a good idea, depending how handy you are. Getting property insurance is a must.
Consider what type of maintenance is required based on the type of property you purchase. For a single-family home, the landlord is generally responsible for things like lawn mowing and snow removal, but if you buy a condo or townhouse, that maintenance is included in the condo fee, resulting in a more hands-off process.
Worst Rental Property Markets 2021
Pagosa Springs Outdoor Attractions
Take advantage of all the wild space around you to do some major exploration. Like most Colorado towns, this is a place bustling with activity and made with the outdoorsy in mind. Pagosa Springs is a great place to try something new and different: try whitewater rafting in the San Juan River in May and June, and tubing/floating in July and August. Always had an interest in rock climbing, or paddle boarding? Ever taken a hot air balloon ride, or seen the Continental Divide? Pagosa is the place to try!
Classic summer activities like hiking, ATV and Jeep tours, and mountain biking are a must. Interested in learning about the wildlife? Stop by the Rocky Mountain Wildlife Park, a facility dedicated to the education and rehabilitation of Colorado wildlife. If wintertime is more your speed, Wolf Creek Ski Resort is just 30 minutes up the road for alpine and cross country skiing. And who would say no to a guided dog-sled tour?
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Start Small And Slowly Work Your Way Up
Start with an affordable initial investment like a single unit or a duplex versus a whole apartment building. That way if things go south and you are unable to afford to pay for mortgage or maintenance, you are not running the risk of going bankrupt.
Because you’re just getting started, avoid properties needing significant repairs, since these could cause you to overextend yourself.
Consider using a property manager and ask friends for referrals for attorneys, contractors and other real estate professionals who can help you and will become valuable contacts over time, Coon says.
One of the best ways to build a real estate portfolio is to buy your primary residence first, live in it for 2-5 years, then buy another primary residence, and repeat. Over a period of 20 years, you’ll be able to amass three or four properties with relative ease.
The great thing about this strategy is that you get to find enjoyment in your properties, write down the mortgage interest and property taxes, slowly make improvements to the home, and take your time finding a new home.
Related: Buy Real Estate For Lifestyle First, Income Second, Principal Appreciation Third
Self Storage In Pagosa Springs Co
As a locally owned and operated small business, we understand that managing a home or running a small business can be stressful, and the last thing you need is clutter getting in your way. That is why we are proud to offer practical and easily accessible mini storage in Pagosa Springs, CO. Whatever your storage needs may be, chances are we have the resources, security features, leasing options and friendly customer service that you want in a storage facility. We are available for both personal and commercial storage.
At Benchmark Commercial Center, we are happy to offer a wide range of special features and amenities, including but not limited to 24-hour access, paved parking, security fencing, security lighting and both long and short term rental options. Self storage units are available in the following sizes for your ease of use: 10×10, 10×15 and 10×20. We are conveniently located one block from Ace Hardware, on the corner of Bastille and Seminole, and have a strong team of 11 helpful and experienced employees ready to rent you the perfect unit for your unique needs. Here are just a few reasons to trust Benchmark Commercial Center with self storage in Pagosa Springs, CO for all of your commercial storage needs:
Proudly offering secure self storage in the following areas:
- Pagosa Springs, CO
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