Property Management
Buying a rental property in a hip neighborhood in the Denver area makes total sense with today’s hot rental market. But Colorado savvy investors often wonder how they should pay or finance the deal. You could pay with cash, take out a mortgage or do something a little more daring with your retirement money. By rolling over money from a traditional 401(k) or other retirement account into a self-directed IRA in Colorado, you open up a new world.
According to a piece by Forbes, one of the main benefits of a self-directed IRA is the fact that it’s a tax deferred account. If you buy the real estate with a self-directed IRA in Colorado, you can later sell at a profit without owing taxes. You also don’t owe money on any rental income profits.
- A safe haven for your asset
Then there is the asset protection side. Your rental home is an important asset whether you keep it to rent out for decades or sell it. Most experts say real estate is a much safer investment compared to stocks and alternative investments such as gold coins, unregistered securities or business partnerships. By hiring a property management company to oversee your Denver rental property, you protect your rental home. Your property manager will thoroughly screen prospective tenants and enforce the lease for your protection.
- A set it up and forget it approach
Another advantage of using a self-directed IRA to buy real estate is the fact that it takes the burden off of you to manage your property. The IRS has very specific “self-dealing” restrictions that don’t allow you to live in or manage a property bought through a self-directed IRA. Once you set up your self-directed IRA with a third-party administrator and hire your property manager, you no longer have worries. You don’t have to chase down rent, mow the lawn or handle disputes with neighbors.
According to an article by the Colorado Association of Realtors, other advantage of a self-directed IRA in Colorado is diversification for retirement. The Colorado Association of Realtors emphasizes that disqualified people (the IRA holder and his/her lineal ascendants and descendants) can not make repairs to the property.
Legacy Properties-PM provides top-notch property management services in the Denver area. We are longtime members of the NARPM, the National Association of Residential Property Managers. For more information on the benefits of a self-directed IRA in Colorado, please call 720.989.1996 or contact us.
Property Management
Spotting a good deal is paramount for real estate investors in Aurora. Whether you buy a banked-owned foreclosure online or work with a Realtor to find traditional sales, look for value when hunting for your first rental. House hunting for a property you will use as a rental is a little different from hunting for a home you will occupy. When you buy a home for yourself, you follow a different timeline for making improvements. With real estate investing, you want to get your property rent ready in as short of an amount of time as possible. By hiring a residential property management company, you receive the guidance needed to generate income from your rental home. According to an article by Investopedia, there are several features to look for when trying to identify a profitable rental home.
Renters pay more for homes in better neighborhoods because they feel motivated by highly ranked schools and their perceptions of better safety and prestige. In Colorado, some of the best areas to find rentals include Aurora, Denver, Highlands Ranch, Littleton, Lakewood, Parker, Cherry Creek and Centennial. According to Investopedia, where you buy will attract different kinds of renters. For example, if you buy a rental near a college campus, you’ll likely attract students and instructors.
- Checking out the property taxes
Before choosing a rental, check out the property taxes. Your property manager will give you an idea of the market rent for the specific home you plan to buy so you know whether the market rent will easily cover higher property taxes as well as home owner association fees.
When you tour a home, pay attention to whether the necessary improvements are costly or fairly cosmetic and easy. Only an inspector and building contractor can give you a complete estimate of cost and issues. However, you can determine whether a home has potential as a rental. Can you change out a few lighting fixtures, paint and buy upgraded cabinets or appliances?
Your property manager will market your rental home to draw qualified tenants. If you own a rental that’s less than 20 years old, in a good neighborhood, close to amenities and has at least three bedrooms and two bathrooms, you’ll attract a higher rent. Instead of trying to guess the going rent in a neighborhood and what renters want, talk to experts. If possible, buy a rental home that will appeal to millennials since experts believe they will continue to delay home ownership.
At Legacy Properties-PM, we give all of our clients our undivided attention. We are a stellar property management service company in the Aurora area and proud members of the NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Aurora, call 720.989.1996 or please contact us.
Property Management
Retirement looms before us all, and some of us have longer to wait than others. We all know we are supposed to be saving for retirement, but sometimes that seems difficult amidst current bills. If you think what you have saved for retirement is insufficient, property management in Denver or Aurora can help.
Saving for retirement is difficult no matter your age. If you’re in your 20’s you may find putting money aside for a house more pressing. Often in your 30’s or 40’s you have to deal with the expense of growing children, and eventually college expenses. Or, perhaps you are nearing retirement age, had worked very hard to put some money aside, and watched it disappear in the recession. No matter what stage of life you’re in, it’s hard to know exactly how much money you will need to live the way you would like in your golden years, so it’s always a good idea to save more if possible.
The best way to increase your retirement savings is to increase income, and set that money aside. We’ve found that one of the most effective ways to do that is investing in residential real estate. Making a wise purchase and renting it out will generate monthly income that can grow when placed in a retirement savings account. It will also give you the opportunity to gain equity in a property that can be put to use later on in life.
Legacy Properties-PM in the Denver, Aurora, Highlands Ranch, Littleton, Parker & more, specialize in helping people build their own legacies through real estate investment. We can help you find a property that is ideal for purchasing, and do just about all the work for you, from taking care of finding quality tenants, to collecting rent and handling maintenance issues. Because we can handle just about all the details, you don’t even have to live locally to invest in our very profitable rental market.
If you’re concerned about retirement savings, or the financial legacy you will eventually leave your children someday, investing in real estate can take your situation from concerning to confident. To find out more information on how we can help please call 720.989.1996, or contact us.
Property Management, Real Estate Investing
When setting financial goals for the New Year, it pays to consider your real estate net worth. For most people, the wealth they have in real estate is due to their primary residence. For people who got into real estate investing in the Denver area, the net worth statement looks positive because vacancy rates are low and market rent is high. When you hire a property management company to take care of your Denver rental properties, you will find your net worth increases without very much effort on your part. According to an article by Financial Samurai, real estate is an important part of your net worth mix that also includes stocks, bonds and risk-free CDs or money market accounts. Whether you have more of your portfolio tied up in real estate or in other investments depends on your risk tolerance and age. Some of the best communities to own rental properties include Parker, Littleton, Highlands Ranch, Cherry Creek, Aurora, Lakewood and Centennial.
Owning real estate by age 30
By the time you are 30 or older, you have enough work experience to qualify for a mortgage on your primary residence. If you purchased a home earlier in life, you are ready for real estate investing in a hot rental market such as Denver. According to Financial Samurai, a person with a medium risk level strives for 40 percent of their net worth in real estate by age 30.
Enjoying passive income in retirement
If you are a pre-retiree, you are looking for ways to boost your net worth before you claim Social Security. Owning professionally managed rental properties in Denver provide passive income when you need it most. Whether you live in another state or in the Denver metro area, you can retire in style instead of living like a pauper. According to experts, the median 401(k) balance is just $100,000, even though most retirees need significantly more to pay their bills.
Being bullish on real estate
According to another piece by Financial Samurai, the only way to take advantage of the current housing recovery is to buy more than one real estate property. Owning your own home has distinct advantages over renting. Mainly, you have a paid-off place to live when you retire. By owning rental properties, you build wealth over time. Experts point out rental yields are higher than interest rates, which are still at historically low levels. In the Denver area, property owners not only make income off their rentals, but enjoy the appreciation as the value of homes rise.
If you want to get into real estate investing in Denver, don’t go it alone. At Legacy Properties-PM, handle your property management needs. We are members of the NARPM, the National Association of Residential Property Managers. For more information on building your net worth through real estate investing, please call 720 989 1996 or contact us.
