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A Window Of Opportunity: OZs Are Ripe For Real Estate Investing

They are among the nearly 9,000 census tracts that have been designated Opportunity Zones by the federal government and are ripe for real estate investment. The Opportunity Zone (OZ) investment is part of a new community development program offered through the Federal Tax Cuts and Job Acts of 2017, which encourages private investment in low-income urban and rural communities. They are a unique vehicle for smart investors who want to maximize their capital gains while investing that money altruistically to rebuild and reenergize communities. Earlier this year, governors from all 50 states were asked to identify low-income or low-performing areas in need of infrastructure investment. Under the OZ program, investors can defer taxes by taking capital gains from other investments and placing them into businesses or real estate assets in the OZ. For investors who aren’t as well-versed in real estate, these funds provide several benefits: • There is less risk because the fund will invest in different assets and geographies, as opposed to being exposed to the performance of just one market. • Companies creating the funds are usually sophisticated and adept at understanding the economic and social climate for each geography, ensuring smarter investments. It can be a capital investment in a startup company located in the OZ or the development of new residential and commercial buildings. While many investors will look to place their money in funds, there are opportunities for savvy real estate investors and developers as well. But while we await guidance from the government, it would appear from the onset that this program will be mutually beneficial to both investors and the communities in which they operate.

What Are The Tax Benefits of Investing In Real Estate

The important benefits of investing in real estate are increase in property value due to appreciation as well as good cash flow in the form of rental income. When you get rental income from the rental of a residence unit, there are some expenses you may deduct on your tax return. IRS considers that you are exchanging you old property for another real estate property. In order for the IRS to view the home as your primary residence, you should have owned it for five years and lived in it for at least two years. Using a real estate agent can help you a lot in real estate investing. What Does a Real Estate Agent Do For a Buyer A real estate agent will help the buyer in finding the right property at a good price which is a critical factor to succeed in real estate investment. Turnkey rental property investing has really led to increase in the number of people turning from stocks to real estate in the US. Another benefit of investing in real estate vs. stocks is how you can use debt. Other cities that made most analysts top ten residential real estate markets include Dallas, Nashville, Raleigh-Durham, and Salt Lake City. This year is shaping up to be a very strong year for investors who are in the residential real estate market and there are many markets in the US to choose from.

The 6 Real Estate Trends to Watch in 2019

So, what does 2019 have in store for real estate investors? They will affect everyone, driving up costs for home buyers and creating more demand for rentals. Single-story homes will increase in value as demand rises. Millennials are finally ready to purchase their first homes despite headlines saying they “can’t afford them.” But because they are largely seeking affordability and quality of life, they are having to trade in the urban life they crave and head out to the suburbs. Investing Is A Lifestyle Many people want to be successful real estate investors. The problem is that the average person starts at the last step of the investment cycle rather than at the beginning. The property. For instance, if your personal investment philosophy were to invest for monthly cash flow, it would make no sense invest in a number of properties with an aggressive, highly leveraged debt ratio that allowed for no cash flow. As rich dad said, “Business and investing are team sports.” In order to be successful in any market, especially ones that you don’t live in, you need to have the right team. So, if you’re looking into becoming a real estate investor, 2019 could be a great time to do so.

How Much Does a 2-Bedroom Apartment Cost in Your State?

Only in 22 counties in the United States is a one-bedroom home affordable to someone working 40 hours per week at federal minimum wage. That’s from the National Low Income Housing Coalition (NLIHC) report, which outlines the mismatch between wages and rent every year. (Fair Market Rent is an annually updated government estimate, typically the 40th percentile of the gross rent in an area.) NLIHC estimates that the average renter’s hourly wage in the United States is $16.88. The average renter in each county makes enough to afford a two-bedroom in only 11 percent of U.S. counties, and a one-bedroom, in only 43 percent. The national “housing wage” in 2018 is $22.10 for a modest two-bedroom rental home and $17.90 for a one-bedroom, the report estimates. (That’s how much an average renter in the U.S. would need to make to afford a modest apartment at fair market rent, without paying more than 30 percent of their income towards housing. Still, in not a single state, city, or county can someone earning federal or state minimum wage for a 40-hour work week afford to rent a two-bedroom home at fair market rent. The incredible shortfall in affordable units remains the more stubborn, intractable problem. Between 2005 and 2015, apartments costing $2,000 and more increased by 97 percent, according to Harvard University’s Joint Center for Housing Studies; Meanwhile, those under $800 decreased by 2 percent.

25 Best Markets For Rental Property Investment

But rentals aren't a slam-dunk either. Or you could find yourself over-paying in a boom market. First, and most important, the good increase in home prices in the last year means that demand for all housing is strong in these markets, both single-family and rentals. We calculate an "income" price for each market and compare this with the current average home price to see if prices are high or low compared to local income. It's not a precise measure - real estate isn't science - a 10 percent swing one way or the other doesn't mean much, but it shows that from our list only Orlando and Sacramento are close to over-priced territory, near 20 percent, while most of the markets are well below it. The importance of being within the normal range of the "income" price is that you don't have to worry about buying into a boom that can eventually bust. The chance that the average home price in a normal market will ever fall below today's price is almost zero. I've thrown in some stats about recent population growth and the current average home price because some markets have grown faster than others, and some are more expensive to invest in. In these markets you have a better chance investing in apartments, or by splitting single-family houses into several rental units. It's a good time to invest in rentals.

The 22 American cities with the most million-dollar homes

LendingTree collected real estate data from more than 155 million properties across the United States to calculate which cities have the highest concentration of homes worth $1 million and up. Four cities in California have more than 10% of homes valued over $1 million. LendingTree then calculated the concentration of million-dollar homes in each city by dividing the number of homes valued at $1 million or higher by the total number of homes in the statistical area, according to the report. The data shows that expensive properties are more likely to be on the coasts than inland America with the exception of Denver, Colorado. Four cities in California have more than 10% of homes valued over $1 million, and San Jose is the only place where the median home value (among all homes) is above $1 million. Charlotte, North Carolina SergeevDen/Shutterstock Percent of million-dollar homes: 1.02% Median value of homes: $187,000 Median value of million-dollar homes: $1,295,000 2/22 21. Baltimore, Maryland Jon Bilous/Shutterstock Percent of million-dollar homes: 1.07% Median value of homes: $270,000 Median value of million-dollar homes: $1,214,000 3/22 20. Riverside, California sirtravelalot/Shutterstock Percent of million-dollar homes: 1.12% Median value of homes: $332,000 Median value of million-dollar homes: $1,339,000 4/22 19. San Diego, California Vacclav/Shutterstock Percent of million-dollar homes: 10.55% Median value of homes: $563,000 Median value of million-dollar homes: $1,384,000 19/22 4. San Francisco, California Andrew Zarivny/Shutterstock Percent of million-dollar homes: 40.03% Median value of homes: $891,000 Median value of million-dollar homes: $1,409,000 22/22 1.

8 Ways to Make Money With Mobile Homes Inside Mobile Home Parks

Pro Tip: Check with local park managers to find out which parks allow renting, many will not. Pro Tip: As an active mobile home investor, you will want to pay much lower than the retail price for any investment home you purchase. Wholesaling Similar to single-family homes, wholesaling a mobile home inside a mobile home park will allow you to create value between a buyer and seller without actually purchasing the mobile home. As an active mobile home investor, you will obtain a purchase contract on the mobile home and quickly aim to sell this contract to another investor or end-user buyer for a profit. The act of bird dogging mobile homes inside parks is the process of finding and reporting all FSBO properties that fit an investor’s criteria to the active mobile home investors you already know. Some mobile home communities will offer “incentive programs” for park-approved home owners that are willing/able to move in a park-approved mobile home. Pro Tip: When speaking to any new community manager, aim to understand any/all move-in incentive programs for future mobile homes and the age/condition/size of mobile homes the park would consider allowing you to move into the community. Selling Directly to the Park When dealing with a more expensive mobile home or double-wide mobile home (one that must be moved after purchasing), it may be attractive to simply re-sell the mobile home to a local mobile home park that you know is looking for more units. When selling directly to a mobile home park, you'll want to understand what each park is looking for in a used mobile home and how much these parks are willing to pay. Moving Unwanted Mobile Homes from One Park to Another If a park owner wants a mobile home removed from the community, perhaps you can help.

Redfin (RDFN) & Its Peers Financial Contrast

Redfin (NASDAQ: RDFN) is one of 64 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it compare to its rivals? We will compare Redfin to similar companies based on the strength of its analyst recommendations, institutional ownership, risk, earnings, valuation, dividends and profitability. Insider & Institutional Ownership 37.9% of Redfin shares are owned by institutional investors. Comparatively, 35.9% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 41.1% of shares of all “Real Estate Development & Operations” companies are owned by insiders. Analyst Ratings This is a breakdown of recent recommendations for Redfin and its rivals, as reported by MarketBeat.com. As a group, “Real Estate Development & Operations” companies have a potential upside of 38.42%. Earnings and Valuation This table compares Redfin and its rivals gross revenue, earnings per share and valuation. Redfin Competitors $438.91 million $33.86 million 1,287.80 Redfin’s rivals have higher revenue and earnings than Redfin. Profitability This table compares Redfin and its rivals’ net margins, return on equity and return on assets.

Is a Rental Property the Best Way to Grow Your Wealth?

Owning a rental property in addition to your primary residence can be a way for you to build wealth, especially if you may be averse to investing in the stock market. With a rental property, someone else pays your mortgage, and over time your equity grows. So, before you decide to invest in a rental property, consider calculating the return on your investment to see if investing in a rental property is really the deal you thought. How to Calculate the Return on Investment of a Rental Property Like any investment, you need to understand the expected return on investment (ROI). Before you can calculate the true ROI of a rental property, you have to factor in all the costs associated with holding that property, not just the purchase amount. And remember, property taxes don’t typically stay the same each year. In addition, this calculation should be done for every year you anticipate owning the property, as your return will change over time. Conclusion Rental properties can generate income, but the return on investment doesn’t typically happen right away. As with any investment, rental properties should be viewed as a long-term investment, not an instant cash cow. Paul Sydlansky, founder of Lake Road Advisors LLC, has worked in the financial services industry for over 18 years.

Can average investors take advantage of a new real estate development tax break?

There's a lot of talk about Opportunity Zones. Can anyone invest in them? Investing in an opportunity zone is not for everyone, but for the right investor, it could be a once-in-a-lifetime tax break. As a result of recent tax reform, opportunity zones have emerged as a way for distressed neighborhoods to attract needed real estate development and for investors in these projects to receive favorable tax treatment. A good fund, he says, are those established by a firm or real estate developer with a track record of investing, preferably someone already working in the opportunity zone. Alternatively, investors with the time (as well as a lawyer and CPA on hand to look over their shoulder), can create their own fund, since this could reduce fees and provide transparency. Tkaczuk says there is nothing to stop an investor from registering their own opportunity fund with Treasury and invest directly into qualified opportunity zone projects. "And there could be a lot of dead-end projects." "A lot of people are planning and exploring, but investments aren't being made yet." "I think it has a lot of potential as an investment, but I approach it with a healthy dose of skepticism," says Jeffrey Levine, CEO and director of financial planning with BluePrint Wealth Alliance.

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Best Tech Cities for Real Estate Investing: An Analysis of 6...

Tech. Tech. Tech. Those six cities are Denver, Salt Lake City, Seattle, Phoenix, Austin, and Portland. All and all, Denver appears to be a strong tech market with good indicators on investing. Salt Lake City Salt Lake City is strong on six of the 10 tech investment metrics, showcasing well in the following categories: rent-to-income, taxes, insurance value, unemployment, population growth, and an educated population. Those are both negatives, but I still love Salt Lake City for its real estate potential. It also has incredible population growth (second only to Salt Lake City) and strong appreciation. Phoenix definitely does not have enough going for it as an investment, much less a tech investment. And all metrics are not created equal, so we really care about unemployment, crime, population growth and tech growth—all of which are strong for both Denver and Austin.