Download Household Budget File

Having checked on your household budget, be prepared for a courageous leap to buy a home.This stage where you want to know the financial arrangement you have to make.The bank or the mortgage broker will delve deep into your financial strength and capacity. Here is the list of documents that you should collect in your Green File:

• Financial statements
• Bank accounts
• Investments
• Credit cards
• Auto loans
• Recent pay stubs
• Tax returns for past two years
• 401K statements, life insurance, stocks, bonds, and mutual account information.
• Copy of your credit report and its clean up if required

When you have gone through estimates of closing costs and monthly for tentative price range of what money can buy, contact a bank or mortgage broker to work with and educate yourself for the type of loan you’d like to qualify. This is the stage for Pre-Qualification for loan.Your loan officer will:

• Give you a Loan Qualification letter to acknowledge your potential for raising a loan towards purchase of a residential property.
• Advice you on types of loans available related to down payment.
• Advise you on the documents for creditworthiness you gave to the loan officer to look at.
• Advise you how to set about for next stage of Loan Pre-approval

Now that you have moved in to your new home having raised loan from a bank, you are now committed to make monthly payment to the lender over a period of time you committed on the Promissory Note,and mortgaged your property as collateral. This is the beginning of your home ownership wealth overtime. The equal monthly payment, called amortization of loan over months for pay off are mathematically computed having component of interest on the balance of loan balance at any time, and the rest is the principal component.

If you can increase your monthly payments to the loan company,you are progressively decreasing loan balance, the interest on the balance, and increasing component of principal payments. The effect is the overall reduction of payoff period of loan.

The equity buildup has two components due to reduction of your loan balance, and the typical increase of the market value of your property due to appreciation of property attributable to economic forces of inflation.Real estate prices are very sensitive to city, locality and neighborhood.

You may be curious to know how the numbers play up towards equity buildup and the financial value of your decision you made to purchase a home for yourself. We have put together an Excel spreadsheet for you to see how numbers change for duration of payoff based on changes in variables of property price,loan, interest rate, duration of committed payoff periods,modify input numbers.Check out here how you can reduce the overall payoff period by increasing monthly or biweekly payments.

For homeowners,motivations to sell your home property typically fall in these categories:

• Youwant to relocate within the same town
• You plan to relocate to another state due to a change of stage and mode of life.
• You want to downsize or upsize your home property.
• You have some life-changing event in your life that is compelling you to sell the home you have been living in and resolve predicaments you have run into.
• You have run into a financial situation that selling your home may substantially help you for betterment in your life.
• You have emotional reasons to sell your home and move on elsewhere.
• You have grown richer or are earning much more and you want to live is a more prestigious locality and neighborhood to enhance your social standing.
• You just want change in life.
• You have rental property or properties that you want to turn over for profit or roll over for other properties

Whatever your reason may be, you want top dollars for the sale of your property and move those dollars elsewhere for a more enjoyable purpose. You probably have a vague Zillow idea of what your property may sell for, but you do need a Comparative Market Analysis of your property to price it accurately and appropriately to attract the interest of the buyers. We’d be glad to do this for you when you have set your mind to sell. In the meantime, get to know what will the selling costs be, and what you are likely to walk away with. We have put together an Excel spreadsheet below for you to help your self to figure out your tentative expenses to sell.

Short-term rental of residential property typically refers to a duration of renting of typically 1 day to
weeks. For purpose of analysis for investing in Short Term Rental residential properties, we have applied the following criteria in the town we are:

The property is in the permitted Short Term Rental zone of the County.

• Size: 1500 – 3,500 SF
• Age: 5 to 15 years
• Type: Single-family and townhomes
• Short Term Rentals Range: $150 – $250 / night.
•  Return-to-Price: 10% – 14% /year, ignoring ROI due to investment leverage.

Short Term Rental potential of the property depends upon the location of the property, the facilities
associated with it, HOA fees, how well furnished, how much sleep, proximity to marketplaces and
the concentration of centers of recreation and entertainment etc.
A Short-Term Rental property has a high degree of sensitivity in competing with hotels, motels, hotel
condos, and resorts to give the best of its potential occupancy and rental performance.

Sensitivities of Short-Term Rental Properties

• The bookings of the property are done online through vacation rentals services available from
  Airbnb.com, VRBO.com, AirDNA.com, and FurtureStay.com.
•  If a property has a pool to add to the recreational value.
•  A number of bedrooms, baths, and sleeping beds.
• How well the property is furnished to provide the comfort of the expected vacation level.
• Turn-over of tenants at the high expected standard.
• Availability of community parking spaces of the HOA and street parking.
• Proximity to places of recreation and entertainment.
• Hospitality services of Short-Term Rental agent.
• Insurance of property and tenants.
• Security features in the property to protect the property and the tenant.
•  Zoning boundaries and restrictions of local county government for such properties.
• Bylaws of Homeowners Associations or Condominium Associations impose restrictions on
  the usage of the property.
• Typically, there are common facilities and security features as part of the Homeowners Association
  for vacationers, thus having much higher HOA monthly fees.

We can provide you full service from the acquisition of rental property to its management.
We have put together an analysis of some sample rental properties taken from MLS in the form of an
Excel spreadsheet. This template assumes financing of the property by 85% loan and revenue potential
for its rate and occupancy. You may change the values of variables of financing and revenue for an
analysis to evaluate the potential of rental properties. This template also gives a reduction in federal taxes
due to the non-cash depreciation of rental property.

Long-term rental of residential property typically refers to a duration of the lease of 12 months. It could be
less or more than this duration. For purpose of analysis for investing in residential rental properties, we have applied the following criteria in
the town we are:

• Size: 1500 – 3,500 SF
• Age: 5 to 15 years
• Type: Single-family and townhomes
• Rentals Range: $2,000 – $3,500 / month
• Return-to-Price: 6.0% – 8.0% / year

The rental potential of the property depends upon the location of the property, the facilities associated with
it, HOA fees, furnished or unfurnished, proximity to marketplaces, and school district, etc. Rental property and its tenant have their own sensitivities to give the best of their potential performance. Sensitivities of Short-Term Rental Properties

• A qualified and apparently reliable tenant who pays rent electronically without reminder.
•  Maintenance of property-related complaints.
• Property insurance that covers tenants of rental property.
• Change of the tenant when it is due.
• Security features in the property to protect the property and the tenant.
•  Homeowners Association (HOA) often has some restrictions for the landlords to adhere to.
  Written approval of the HOA is required to lease out the property to ensure the tenants are well
  informed of the by-laws of the Association.

We can provide you full service from the acquisition of rental property to its management.
We have put together an analysis of rental properties in the form of an Excel spreadsheet. This template will provide you with an analytical approach to evaluate the potential of rental properties in the context of your
financial status

Wealth Growth Model Using Home Equity This investment model assumes that you are young, and have a reasonably progressive job that will improve over time, have bought a home for yourself, and you aspire to build investment wealth in rental residential properties.
The premises of this investment model are that:

• You can pay off a loan over your home property in 15 years by increasing monthly payments to
  reduce payoff period.
•  At end of the first 15 years period, you have fully paid off your home loan, and it becomes your financial
  asset to open a line of credit with your bank by placing your home as collateral.
• You have established good relations with your bank disclosing your intent to the bank that you
  plan to invest in rental residential properties and will place the rental properties with the bank
  as collateral with prior bank approval to purchase and finance.
• You will open a business account in the same bank where rental checks will be deposited, and
  mortgage payments will be paid out for loan payoff in 15 years.

This model is shown in an Excel spreadsheet we have worked out for the homeowners who believe in
savings for the future for a comfortable retirement phase of life and a legacy of assets for the family for
higher take-off points.