Residential Property

Definition for a Residential Property

A Residential Property is one which is zoned for housing purpose for single-family, multi-family apartments, townhouses, and group housing. In general, commercial work is not permitted on a residential property.

Residential Property Management

Designed for real estate and residential property professionals who know first-hand the unique problems and challenges of managing single-family and small residential properties.

When you hire a professional residential property manager you eliminate the pain. Professional residential property managers are committed to maximizing the benefits of your residential properties; thus freeing you from management problems while providing the most professional real estate and residential property services. Professional residential property managers are dedicated to keeping your investment in good shape with least costs; leasing it at competitive prices while carefully screening and selecting residents.

If you are a private residential property owner managing your own residential properties, you probably have found that keeping up on the current laws is too difficult. And not knowing the law is risky. Experience is the key to the job. A professional residential property manager makes it his/her business to keep up and abide by these laws. Part of that business is staying aware of current market conditions and minimizing your rent loss by utilizing a broad range of advertising media.

When screening a prospective residential property tenant, do you know what you can or cannot ask? Do you know the key questions to ask? A professional property manager does. Looking at many screening reports gives that property manager some guiding experience and foresight. Working with many work requests affords that residential property manager has all that experience to get the work done at an affordable cost. And hiring competent contractors gets the residential property owners a good price on repairs.

A professional residential property manager provides you with protection through proper proper addenda, lease agreements, legally served notices, rent receipts and forms, and other documents. They provide key control procedures to protect the owner and the tenant against unauthorized entry.

So to summarize a professional residential property manager can do the following for you-

• Make sure that one of the biggest investments you make in a lifetime is still the most valuable asset you own when you come back to the home or decide to sell.
• Get the best rate for your home and expose it to many advertising channels.
• Find you a contractor that will do the work right the first time and keep your tenants happy.
• Keep an eye on your property while you are gone and follow all current laws.
• Get your rent and prices on time.

Rajmahal Royal Residency is a great upcoming heritage residential township. There are just no hassles in this one.

Residential Property Investments

Real Estate and residential properties can be a very lucrative way to make money. One of the main indicators is the CAP Rate. This tells you your annual rate of return and how many years it will take to recover your investment. This does not include the tax benefits, rather the actual return. If you buy a building for $100,000 but you only put down $25,000 (25%) then your personal CAP Rate is based on $25K.

You add up the rent and all other income and subtract the following (each case may be uniquely different, but this is just a guideline):

• Mortgage Payments (if any)
• Vacancy Rate (this can depend on the building and area)
• Insurance (if any)
• Management (even if you do it yourself you should calculate what it costs you)
• Utilities (If the tenants don't pay it)
• Maintenance (like cleaning, washing etc.)
• Minor Repairs (a certain amount of repairs be assumed for an year)
• Major Repair Work (depends on the age of the building, and when certain items were replaced)
• Legal Fees

Rajmahal Royal Residency is a great opportunity for real estate investment. There are just profits in this one.

Residential Property For Sale

There are times when we see a vacant residential property and thought - That would be a good investment? We keep thinking and do nothing about it and all of the sudden we see someone is now grabbing it and soon see a “Residential Property For Sale” or “Residential Property For Rent” sign in the yard. Yes, we knew that would be a good investment! But we missed on that one. Truly speaking we just weren’t sure how much you should offer and how much profit you should allow before making an offer.

Unfortunately, there are as many different ways to analyze a deal, as there are ways to put a deal together. There are spreadsheets that you can buy to do the same thing and you can even design your own. There are software programs that you can purchase that will calculate your internal rate of return every year from now until the residential property is ultimately paid off and beyond. You can use a calculator or a simple pen and paper method. But the point is you have to know what numbers to enter into your calculations to get the right answer.

The answer is shot and sweet; basically we need to ask the seller or realtor a few specific questions and then one can make an offer on the spot before we ever get off the phone. Here are a couple of hard and fast rules of thumb.

The first rule when analyzing a residential property is very simple - “If you need a calculator or any other gadget, it’s probably not done”. Let me explain. If the profit numbers are so close that you have to figure it on the calculator then you probably need to say “NEXT” and move on to the next residential property.

The second rule is also very simple. “If you have to ask someone if it’s a profitable deal it probably isn’t”. Lets face it, you know what to do for the most part. You can tell whether it’s a deal or not so if you have to ask someone then it probably isn’t.

The third rule is to know, the after repaired value, the amount of repairs and closing cost and that’s it. And if it is a rental residential property then we want to know the rent or potential rent. Sure we will eventually find out more information but this just the start.

How much should you pay. This is as easy as anything else. Consider keeping a margin of 25%-35%. This insures that when you are finished making the immediate repairs, you will still have 25%-35% equity. Then you can sell it, refinance it or you can lease option the property.

Rajmahal Royal Residency is a great residential property for sale. You'll get all positive answers for this one.

That's it. A residential property is for life. Play it safe.