Archive for April, 2014

Comments Off on National Investment Property Sales Remain Strong

Investment House Means Investing In Real EstateThe National Association of Realtors (NAR) released its 2014 Investment and Vacation Home Buyers Survey today.

It’s my favorite report of the year.

NAR’s survey is based on investor purchases of single family homes, townhouses and condos, and multi-unit properties like duplexes, triplexes and apartment buildings.

For the third year in a row, the median purchase price for an investment property rose to $130,000. This happened in spite of an 8.5 percent decline in investment home sales to 1.1 million properties; down slightly from 2012’s 1.21 million sales.

Nearly half of the 2013 investment properties (46 percent) were purchased with cash.

It should be no surprise that 47 percent of the investments purchased were either foreclosures (29 percent) or short sales (18 percent).

On average, the typical investor intends to own their property for five years.

More than 80 percent of the people who purchased either an investment property or vacation home believe now is a good time to buy real estate. They’re willing to back up that belief as well, as 60 percent of investment buyers intend to buy another one in the next two years.

Interest rates remain low, and rent keeps rising.

It’s still a great time to invest in real estate.

Comments Off on Real Estate Investors: There’s An App For That

appsWhether you’re looking to buy and rent a single family home, duplex or apartment building or rehab and sell a property for a profit, chances are there’s an App that will save you endless hours with spreadsheets and calculators.

For residential rental property,  I’ve become fond of Property Evaluator – Real Estate Investment Calculator. Available for free from iTunes (there are upgrades available, but the free version may be plenty for most users), it allows you to enter all relevant data for an investment property spreadsheet.

With that information, it automatically calculates your cash flow, rate of return, cap rate and even a gross rent multiplier. This helps you decide in an instant whether a property is worthy of acquisition, and also, whether you should keep it in your portfolio after you own it.

If you’d like to earn a little sweat equity as well, there’s an app called Real Estate Flip – Investing Calculator. This app requires slightly more math than the first one. For example, it doesn’t allow you to calculate your down payment as a percentage, what the remaining balance on a note would be, or what your closing costs might be based on commission and county tax percentages (you have to manually enter the actual amount).

It does, however, automatically calculate your payments and holding costs. It also has a list of common repair items, like windows, for example. It will give you an average of what they’ll cost based on the type (casement vs. double hung) and number.

Everybody has different tastes. The good news is Apps aren’t that expensive. Play around with them. You just might discover one that will make you a fortune.

Minneapolis Duplex Sellers See Signs Of Spring

said on April 1st, 2014 categorized under: Twin Cities Real Est

Comments Off on Minneapolis Duplex Sellers See Signs Of Spring

First sprout aspire to the sunIt’s finally starting to feel like spring in Minneapolis and St Paul. During the week ending March 22, 2014, however, this spring’s duplex market felt a lot like last year’s.

Nineteen Minneapolis and St Paul duplex sellers accepted offers on their properties. At 78.9 percent, the vast majority of these investment property owners have equity in their property and will leave closing with a check in hand. On average, the off-market MLS list price for these properties was $193,458.

One year ago during the third week of March, 17 investment property owners agreed to sell. At 64.7 percent, more than half sold and put money in their pockets. On average, they achieved a sales price of $187,500.

Unfortunately for buyers looking for a broader selection, there were just 26 new listings during the week. Most of these, at 76.9 percent, are sellers not facing a distressed sale. However, new inventory was down 23.5 percent from the week last year, when half of the properties were either the result of  a short sale or foreclosure.

Single family home inventory saw a slight uptick of 2.6 percent during the week.  This is positive news, as overall inventory was 6.8 percent lower than one year ago. However, pending sales were also down 6.9 percent, which may help to temporarily offset some of the imbalance.

As the spring thaw continues, we should start to see a truer measure of the Minneapolis and St Paul duplex market.

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