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Breaking Down The Highest And Lowest Rent Costs In The U.S.

Here's a breakdown of the significant rent costs from region to region you'll want to consider as you hunt for the perfect income property. The Highest Rent Costs In The Country It's no surprise the biggest cities in the country tend to come with the highest rental prices, with metropolises like San Francisco, Boston and Manhattan typically ranking at the very top of the list. Meanwhile, Boston's average rent is just a shade below San Francisco at about $3,400, though the median for a one-bedroom is a much more manageable at $2,400 per month even after a recent boost in prices. As for Manhattan, the average price of an apartment is the highest in the nation and estimates range from about $3,650 to more than $4,100 per month, with a one-bedroom apartment renting out well north of $3,000. Beyond the major cities, states like California continue to grab headlines for being far above the national average when it comes to rental costs — a trend that goes beyond just the Bay Area, Los Angeles and San Diego. In New Jersey, Watchung, Bridgewater and Florham Park all rank among the top 10 most expensive areas to live according to the same median-price projections, with median prices of a one-bedroom apartment exceeding $3,600 per month. Out of the top 20 cities with the highest average rental costs, 19 come from California, New York or Massachusetts. While a two-bedroom apartment in Battery Park City will likely run you about $1.8 million (average rent is typically between $6,500 and $7,000 per month), the average two-bedroom in Washington Heights is closer to $725,000 and rents out for about $2,775 per month, as of the summer of 2018. Because of the variance from neighborhood to neighborhood, it's critical to look for specific, localized information within the overall market you're looking at for a rental property. An Overview Of The Lower Rental Areas While the upper levels of the real-estate market mostly consist of the United States' biggest cities and towns with significant geographical advantages, rent in most of the country is significantly less expensive.

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.

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.

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.

Should Real Estate Investors Be Worried About U.S. Stock Market Volatility?

The downturn rippled through world equity markets. Should real estate investors be worried? Yes, says Richard Barkham, Global Chief Economist & Head of Americas Research of CBRE, but only if policy makers overreact. Black Monday raised fear that the global economy was slipping into another serious recession, like that of 1979 to 1982. Interest rates were lowered and government spending was increased. Since the global economy remained in relatively good shape, the stimulus stoked inflation and fueled a property boom, particularly in the U.K. Real estate did well for a couple of years but crashed in 1989, not as a direct result of Black Monday but of the mistaken policy response, CBRE explains. The bursting of the dot-com bubble in the early 2000s was spread over three years, but the DJIA lost 27% of its value between January and October of 2002 alone. Interest rates were lowered, the U.S. moved to a zero-interest rate policy and government spending increased. Far more damaging was the housing market boom, ignited by aggressive interest rate cuts, which fell apart in 2007, continued CBRE. Bottom line: The global economy is in good shape and real estate investors should not fear a real estate crash reports CBRE.

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.

Opportunity Zone sales jump 80 percent in New York City

With interest in these opportunity zones increasing rapidly, the report notes, it is not surprising that, on a national level, sales of development sites in opportunity zones spiked by 80 percent in the first three quarters of 2018 when compared to the same period last year. As detailed in the report, the program will defer and reduce or eliminate taxes on capital gains invested in opportunity zones, in an effort to bolster development in these historically distressed neighborhoods. By putting their capital gains in a Qualified Opportunity Fund – which is required to have 90 percent of its assets invested in opportunity zones – and investing at least the purchase price in capital improvements, developers are able to reap significant benefits and avoid or reduce their tax payment on those capital gains. “While the increase in investment was expected – and was indeed the objective of the program – the fact that activity increased so dramatically before details of the program were even finalized is clear indication of the appetite investors have for these tax incentives,” said GFI Realty Research Analyst Justin Fitzsimmons. Market participants who have already created Qualified Opportunity Zones include RXR Realty and Youngwoo & Associates, each of which has launched a $500 million fund; Viceroy Equities, which launched the B’KOZ Opportunity Fund with a $75 million investment and plans to invest solely in Brooklyn projects Notably, the program is significantly more broad than the 1031 exchange; while 1031 exchange tax deferments only apply to investments of “like-kind” capital gains, any capital gains can be invested in qualified opportunity zones, including gains from the sale of stocks. “Many opportunity zones in New York are situated in neighborhoods that were either recently rezoned or have been pegged for rezoning. With the combined benefits of these two programs, we can expect to see developers enhance a wide range of neighborhoods in all five boroughs, which will benefit local residents and businesses alike.” Some areas poised for revitalization due to opportunity zones and rezoning include: Central Harlem and East Harlem have recently been rezoned, and are already hotbeds of development that have attracted new retail options, including a Whole Foods. In the coming years, opportunity-zone investment will likely combine with the existing new development pipeline to continue the area’s path to full revitalization. Far Rockaway – In its recent Far Rockaway rezoning, the city focused its efforts on the area’s commercial district, but Far Rockaway’s growth has extended to residential development, including several large multifamily buildings that are currently under construction. With the opportunity zone tax incentive, an increasingly strong downtown and added transportation, Far Rockaway is primed to reach unseen heights in the near term.

Pros and cons of different types of homes

In general, though, they break down into three categories: Single-family homes (including manufactured houses, modular homes and PUDs) Condominiums, co-ops or townhomes Multi-unit housing (duplexes, triplexes and fourplexes) Different types of homes are easier to buy and appreciate at different rates. But it makes sense to break them down into seven categories: Single family residence Condo/co-op Townhome Zero lot line Planned unit development (PUD) home Manufactured Modular/pre-fab Multi-unit Each category has characteristics that make them more or less attractive to a purchaser, depending on that person’s needs. Pros Someone else is going to clean, repair and maintain the common areas, including the grounds Many condos and co-ops provide extra amenities, including pools, gyms and 24-hour security/door staff They typically have lower prices than an equivalent single-family residence, though there are exceptions They’re often located where land is at a premium, so you may find yourself with a sea view or in a prime downtown location where a single-family residence would be prohibitively expensive Many condo developments and co-ops have a real sense of community and may help you make friends quickly However, some of those pros have flip-side cons. Related: Townhomes, condos and more (how property type affects your mortgage) Most townhomes share walls with two neighbors. Cons You’ll be sharing a party wall with at least one neighbor and usually two. Depending on your choice of zero-lot-line home, including its ownership model, almost all the pros and cons listed under the different types of homes above could apply. So you may well find single-family residences, apartment-style condos, townhomes and zero-lot-line homes all within the same PUD. Pros Plenty of attractive amenities Communal facilities and spaces maintained by the HOA or condo management Larger PUDS often have restaurants, bars, and shopping and medical facilities on site Selection of types of home This is a lifestyle choice that can deliver convenience and amazing amenities with a real community “feel.” Cons None of this comes cheaply: watch out for high HOA/condo fees You’ll be paying for the upkeep of amenities, even if you don’t use them Your mortgage lender will want to know you’re buying within a PUD Individualists may find HOA rules and that community “feel” oppressive Make sure you’re going to enjoy this lifestyle and that you’re prepared to pay for it. Multi-unit homes Multi-unit homes come with two-to-four units on one property. Pros Multi-unit housing can be a great option for multi-generational families who want to live together, but not right on top of each other You can live in one unit and get rental income for the others Most lenders allow you to finance them as primary homes as long as you live in one unit Many programs (like FHA) allow you to finance a higher amount with a multi-unit property Cons Multi-unit homes don’t generally appreciate as fast as single-family housing Fees for financing two-to-four unit homes are higher Qualifying for a home loan may be more difficult, depending on the lender and program You may not like your neighbors or being a landlord Related: Buy a duplex, tri-plex or four-plex and let your tenants pay your mortgage Different types of homes Don’t worry too much about choosing your next home.

Real Estate Investment: 5 factors to look for before buying distressed property

However, there has been stress of cash flows among market makers. With pressure on sales and the Real Estate Act coming into shape, developers are struggling to re-align their business models as per the new norms. On the investor front, a number of them depended heavily on cash components for exiting their resale investments and are now left awry post the drive of demonetization. Given the current market conditions, property buyers are showcased with a range of opportunities across retail and office assets, single residential units, and even entire projects at attractive valuations. Smart property buyers can make the most of this opportunity. Some of the factors to keep in mind while buying a distressed property are as follows: 1. Leverage: With the current market scenario of increasing interest rates, a buyer must not over leverage himself for buying out the distressed asset. Any litigation against the property must be factored in as well. Distressed asset purchases should be done as an informed decision, which should be aligned with the investor’s risk appetite. An inadequately-researched decision of buying a distressed asset can lead to a massive financial setback and, in cases, even legal complications.

Five Reasons Why Your Real Estate Investments Aren’t Earning You Money

His responses were stable cash flow with some potential for appreciation, long-term time horizon of 5 to 10 years, not tolerant of high-risk investments and his real estate experience was limited to the purchase of his single-family residence. This means that he lost out on the last five years of cash flow and appreciation, and his money suffered from five years of creeping inflation — a poor outcome. Plenty of people desire to be in real estate, but consistently fail to invest successfully. No Clear Objectives The primary reason investors I meet do not make any money in real estate is because they have not taken the time to establish specific, clear objectives. Most investors have answers for the questions I asked our representative investor above and believe that is sufficient for moving forward. Lack Of Time A real estate investment must be viewed as a business. As with any business you have clients (tenants), vendors (property managers, contractors, utility providers) and possibly employees. We constantly acquire properties for our investment funds, and a key gating factor when deciding whether to pursue a property is if we have a quality property management firm in place to run it. Inability To See The Big Picture When buying properties across the U.S. and in many different markets, there are two critical factors we look for before considering an investment: net population increase and diverse economic base. How can you tell if you are buying the right property?


3 Ways to Sell Your House Cheaper Than Using an Agent

When it comes time to sell, you’ll be glad for all the money you put into it. As a result, many sellers are looking for ways to avoid paying the agent commission. Historically, consumers have relied on agents to help determine a fair market value for their property and help market their home to buyers. So, most consumers can already determine an accurate selling price. Related: Attention, Real Estate Agents: Stop Worrying About Job Disruption and Start Investing NOW Online brokers like SimpleShowing charge a fixed fee of $5,000 to list the home on the MLS, which includes professional photos and help with things like negotiation. “The best option is to come out of the gate priced right.” Understanding the market and being willing to market your property effectively is the best strategy for saving yourself 100 percent of the agent commission rate. “MLS Only” Listing The general standard rate for real estate agents is between five and seven percent of the purchase price of the home. However, some real estate agents, known as discount agents or “MLS only” agents, offer a lower percentage for their services. “There are plenty of great discount real estate agents out there. It will also help you to test the agent’s competency so that even though you’re getting a discounted rate, you’ll be able to get a great house for your money as well.