Jan

3

7 smart strategies for bathroom remodeling

Posted by ohyeah75 under Uncategorized

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The foreclosure rate in Baton Rouge was at 2.12% at the close of 2012, according to the latest report from CoreLogic. That’s up slightly from the 2.09% rate in November—which was the lowest local rate since December 2009—but down considerably from the 2.48% rate at which Baton Rouge opened January 2012. The last time the local foreclosure rate was below 2% was December 2009, when it dipped to 1.98%. The highest the rate has climbed since then was 2.82% in February 2011. For historical comparison, the Baton Rouge area foreclosure rate was 1.28% in January 2009, 2.1% in January 2010, and 2.81% in January 2011. Meanwhile, the Capital Region’s mortgage delinquency rate—that is, the percentage of home loans three months or more past due—was at 5.31%. That figure was also up slightly from the month previous, when it was 5.29%, but down from the 5.88% rate recorded in January 2012. CoreLogic has a map of foreclosure rates by ZIP code in the Capital Region that you can check out here.

To get a list of baton rouge foreclosures for sale, click here: http://johnmondello.kwrealty.com
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May

19

Monthly sales report in baton rouge area real estate

Posted by ohyeah75 under Uncategorized

Good numbers guys. New construction a bit down but resale way up!

New Construction Resale
Mar. 2011 127 units — $28.8 M 442 units — $81.1 M
Mar. 2012 99 units — $19.8 M 547 units — $99.3 M
Jan-Mar. 2011 300 units — $62.9 M 1063 units — $191 M
Jan-Mar. 2012 309 units — $61.6 M 1279 units — $231 M

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Renting vs. Owning

Although some renters believe that renting is “maintenance free,” they are actually paying for maintenance in their rent “ whether they need it or not. Renting offers you no equity, no tax benefit, and no protection against regular rent increases. If you™re paying rent, you™re really just paying someone else™s mortgage. Let™s compare.*

Rent vs. Own

Monthly Payment

$1,000

Monthly Payment

$ 855

Insurance

$ 30

Insurance

$ 50

Taxes

$ 0

Taxes

$ 260

MIP Insurance

$ 45

Total Payment

$1,030

Total Payment

$1,210

Savings

Interest Deduction

$ 0

Interest Deduction

$ 175

Tax Deduction

$ 0

Tax Deduction

$ 75

After Tax

Net Monthly Payment

$1,030

Net Monthly Payment

$ 960

*Payment based on FHA 30-year fixed rate loan with 7% interest rate, sales price of $125,000 and a loan balance of $121,250.

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It’s easy to fix up your properties if you have unlimited cash. However, you need to keep your repairs to a Related Information: “Flipping Properties Course” minimum to stay profitable. You also need to keep your properties in good shape to attract tenants or buyers. There are the basic improvements, such as carpet and paint, but these can still costs thousands of dollars. The following are some inexpensive ways to improve your properties with very little cash.

#1) New Electrical Switch Plates

This is such a minor, yet overlooked improvement. Most rental owners and rehabbers paint a unit and leave the old, ugly switch plates. Even worse, some even paint over them.

New switch plates cost about 50 cents each. You can replace the entire house with new switch plates for about $20. For the foyer, living room and other obvious areas, spring for nice brass plates. They run about $5 each – not much for added class.

#2) New or Improved Doors

Another overlooked, yet cheap replacement item is doors. If you have ugly brown doors, replace them with nice white doors (you can paint them, but unless you have a spray gun it will take you three coats by hand).

The basic hollow-core door is about $20. It comes pre-primed and pre-hung. For about $10 more, you can buy stylish six-panel doors. If you are doing a rehab, the extra $10 per door is well worth-it. For rentals, consider at least changing the downstairs doors.

#3) New Door Handles

In addition to changing doors, consider changing the handles. An old door handle (especially with crusted paint on it) looks drab. For about $10, you can replace them with new brass finished handles. Replace the guest bathroom and bedroom door handles with the fancy “S” handles (about $20 each).

#4) Paint/Replace Trim

If the entire interior of the house does not need a paint job, consider painting the trim. New, modern custom homes typically come with beige or off-white walls and bright-white trim. Use a semi-gloss bright white on all the trim in your houses.

If the floor trim is worn, cracked or just plain ugly, replace it! Home Depot carries a new foam trim that is pre-painted in several finishes and costs less than 50 cents per linear foot. Create a great first impression by adding crown molding in the entry way and living room.

#5) New Front Door

You only get one chance to make a first impression. A cheap front door makes a house look cheap. An old front door makes a house look old. If you have nice heavy door, paint it a bold color using a high-gloss paint. If your front door is old, consider replacing it with a new, stylish door. For about $125, you can buy a very nice door.

#6) Tile Foyer Entry

After the front door, your next first impression is the foyer area. Most rental property foyers are graced with linoleum floors. Consider a nice 12″ Mexican tile. An 8′ x 8′ area should cost about $100 in materials.

#7) New Shower Curtains

It amazes me that many landlords and sellers show properties with either no shower curtain or any ugly old shower curtain in the bathroom. Don’t be cheap – drop $40 and buy a nice new rod and fancy curtain.

#8) Paint Kitchen Cabinets

Replacing kitchen cabinets is expensive, but painting them is cheap. If you have old 1970′s style wooden cabinets in a lovely dark brown shade, paint them. Use a semi-gloss white and finish them with colorful plastic knobs. No need to paint the inside of them (unless you own a spray gun), since you are only trying to make an impression.

Americans spend 99% of their time in the kitchen (when they are not watching TV). A fancy modern faucet looks great in the kitchen. They can run as much as $150, but not to worry – most retailers (Home Depot, Home Base, etc) often run clearance sales on overstocked and discontinued models. I have found nice Delta and Price Pfister faucets for about $60 on sale.

#9) Add Window Shutters

If you have ugly aluminum framed windows, consider adding wooden shutters outside. They come pre-primed at most hardware retailers and are easy to install. Paint them an offset color from the outside of the house – (e.g., if the house is dark, paint the shutters white. If the house is light, paint them green, blue, etc.).

#10) Add a Nice Mailbox

Everyone on the block has the same black mailbox. Stand out. Be bold. For about $35 you can buy a nice colorful mailbox. For about $60 more, you can buy a nice wooden post for it. People notice these things….and they like them!

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For those that are not aware, tax credit has been extended to those who HAVE a purchase agreement signed before April deadline but was unable to close on June 30th. Happy hunting!

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So if you are looking to invest and are curious as to if its going to be worth it, check out this formula:

annual net operating income (NOI)/ down payment = percentage return

I know, what is “annual net operating income”? This is basically, income  minus expenses or in other words, cash flow.   Let’s look at an example to see how it all breaks down.

Subject home: $160,000
Required down payment: $40,000
Amount Financed: $120,000
Rate 5.625%

Income:  1,550
Mortgage:    690
Property tax:       83
Insurance: 52

Add this all up and you have a monthly NOI of $725 or annual of $8,700.   Getting back to our formula (NOI / down payment), it would look like this:

$8,700 NOI / $40,000 DP = 21.75% return

Not too bad. I usually try to shoot for 15% or greater.  Can you make this in the stock market or anywhere else? Hence, my passion for real estate investing!! Got further interest? Give me a shout.

John Mondello, Realtor
“I find the house, you make it home.”
Keller Williams
(225) 329-8119
http://www.GeauxRealEstate.com

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I’m all for the buy and hold strategy which I believe would favor the single family investments but i’d like to hear a take on buying multi family.

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Welcome to john mondello’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Geismar.

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