Investing in Single Family Homes

Investing In Single Family Homes

Investing in single family homes is still big business. Recently Gaurav Singhania and Brian Grow, of Morningstar Credit Ratings, LLC., gave a webinar providing updates and analysis on single family rental performance.

Good news for institutional investors – the gist of their seminar is that single family home rental investing is still growing – it’s still a huge market opportunity. They are very optimistic for its future.

Bill Conerly, an economist stated that given the gradual improvement in jobs, more younger people are likely to move out, either from their parents or from roommates, thereby potentially creating a need for as much as over a  million housing units this year and a like amount next year. And while rising incomes usually lead to buying rather than renting,  as long as we still experience a  less favorable mortgage lending environment, there will still be a demand for renting over buying.

As I previously suggested – stop sitting on the sidelines and start buying investment rental properties.  When the economy improves to the point where your renters can afford to buy again, sell and maximize your investment.

 

But remember – being an investor is one thing – but being a landlord is a distraction.

When it comes to managing your single family properties, rest easy – Octazon Management has got you covered, can protect your asset and take away your property management headaches and distractions through our full-service or back office property management services. Octazon uses cutting edge, cloud based property management software that fully integrates the entire property management and financial process enabling the investor direct access to valuable owner/investor information 24/7 bringing them “simplicity and peace of mind.”

When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales – so you never have to worry about losing control of your relationship with the owner. 

Providing Simplicity and Peace of Mind™ 

Call us 954-674-2467 or email us at info@octazon.com today.

                                           Check us out @ www.octazon.com 

SINGLE FAMILY HOMES * MULTI FAMILY * COMMERCIAL – OFFICE – INDUSTRIAL

Proactive Property Management

Do you manage your own investment? Is this your full time job or are you typically busy with your day job and only get to your property problems on nights and weekends.  If that’s you, then you probably manage your investment property(s) in a “Reactive” mode.  You let events and circumstances set your agenda. Every tenant email and tenant phone call catches you by surprise. Huffing and puffing, you painfully scramble to react to keep your investment afloat. Reactive management is exhausting, overwhelming & frustrating.

However, “Proactive” management is anticipating maintenance events, potential problems, and related tenant demands and then planning ahead for them. To be proactive, you have to ask yourself what is likely to happen, and react to it before it happens. Being proactive means being able to anticipate what the future will be and react accordingly before it actually happens.  The problem is, if you self manage, you really can’t be proactive at the expense of your day job.

Hiring a property management company may seem like an added, and maybe even unnecessary, expense. But, a property management company can actually increase the value of your investment thereby increasing your profit. Good property managers focus on being proactive and prevention, reducing the instances of repeat repairs due to mistakes and help keep tenants happy. Also, having a professional manage your property can help you focus on your day job, which in turn can help you add more properties to your investment portfolio.

Are you ready to start being proactive and bring order to your investment? Then Octazon Management has got you covered and can take away your property management headaches and distractions. Octazon is a full service property management company with cutting edge cloud based management technology that provides a wide range of property management services for the single family home and condo investor, to the management of apartment buildings, offices, commercial and industrial properties. Our advanced technology allows us to stay connected and maintain transparency with our clients. Our team can handle everything from tenant and vendor management to maintenance and landscaping, to preparing leases, handling code violations, insurance claims & tax appeals. With Octazon, we bring order to residential property ownership.

Call us 888-324-9528 or email us at info@octazon.com today. Check us out @ www.octazon.com 

ATTENTION REALTORS: When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales– so you never have to worry about losing control of your relationship with the owner. You get to focus on making the next sale and signing up the next tenant, while we handle all your management headaches  

WHAT GOES ON BEHIND YOUR REAL ESTATE TAXES FOR YOUR INVESTMENT PROPERTY

FLORIDA REAL ESTATE TAXES

All tracts, lots and parcels of real property in Florida are subject to real property taxes, a.k.a. ad valorem tax. These taxes are necessary to fund our public school system as well as our local municipal governments and related services such as water management, hospital district board, fire and rescue and other emergency responders, municipal services and library. Thus the county commissions, school boards and other tax levying boards or authorities for the area in which your property lies, determine the millage rates needed to pay for these services, which amount will then be used to calculate your ad valorem taxes. If they decide to keep your property tax rate flat, that most likely will result in a reduction and deep cuts to the above basic services. Your tax bill is then based on the millage AND the taxable value (taxable value = the assessed value minus any exemptions) of your property as determined by the property appraiser’s office.

 As we are in September, all property owners, by now, should have received their Truth in Millage (TRIM) Notice. This Notice is provided to every owner no later than the end of August. It shows your estimated taxable value as of January 1st of that year along with the proposed millage tax rate by each taxing authority. In other words this TRIM notice reflects the property appraiser’s estimate of your property’s new tax value as of January 1.

 However, what is still needed to determine your final tax bill, will be, the actual millage rate.  The millage rate is expressed as $1 for every $1,000 of taxable property value. If your millage rate is 20.49, then you are paying $20.49 in taxes for every $1,000 of taxable property value.

 Once you have the taxable value of your property and the millage rate, you can determine the amount of your annual property taxes with the following formula. First subtract the amount of any exemptions that you may be entitled to, if any, to determine the taxable value. Then multiply that amount by the millage rate.  For example if the investment property being assessed is $150,000.00 and the millage is 24, then take 150 x 24 = $3600.00 – the approximate amount of your tax bill.  Or, to put it another way, take your Assessed Value and subtract your Exemptions (if any). That = your Taxable Value.  It is your Taxable Value X your Tax Millage Rate that equals your tax bill.

 Here are some relevant dates for investment property, during each property tax year. 

January 1 – date of assessment of each property in the County, and applying your specific applicable exemptions.

March 1 – deadline for property owners to file with the county property appraiser for their relevant exemptions, agricultural or other classifications. 

November 4 the actual tax bill is mailed to property owner and discounts apply for early payment.

June to July, property owners who want to appeal a denial of exemption, classification, portability, or tax deferral, must file a petition with the value adjustment board 30 days after the denial letter was mailed.

September, property owners who want to appeal their property value to the value adjustment board must file a petition with the clerk of the court within 25 days of the Notice of Proposed Property Taxes.      

April 1st of the following year – unpaid property taxes become delinquent with penalties accruing monthly.

June 1st of the following year – the date that tax certificates are auctioned for properties with unpaid taxes.

 

When it comes to managing your single, multi family or commercial properties, rest easy – Octazon Management has got you covered and can take away your property management headaches and distractions. Our full-service property management company provides detailed financial reports and other services through our advanced technology that allows us to stay connected and maintain transparency with our clients. Our team can handle everything from tenant and vendor management to maintenance and landscaping, to preparing leases, handling code violations, insurance claims & tax appeals.

When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales– so you never have to worry about losing control of your relationship with the owner. 

With Octazon, we bring order to residential property ownership.

Call us 888-324-9528 or email us at info@octazon.com today.

Check us out @ www.octazon.com  

Super Priority Code Enforcement Liens Are Unconstitutional – New Supreme Court Ruling PART II

In my Blog in May 2013, regarding the Florida Supreme Court (S.C.) case of City of Palm Bay v. Wells Fargo Bank, I discussed that the court ruled that a municipal ordinance which grants municipal code enforcement liens super priority on par with real property taxes, is in conflict with Florida law.

The affect of this ruling is that municipalities may no longer assert that their code violation liens have priority over previously recorded mortgages. I mentioned that this decision is significant, as investors, lenders and purchasers in theory no longer have to worry about municipal liens taking super priority over their earlier recorded mortgages. However, regarding the application of how title underwriters will address this new ruling, I told you to stay tuned.

So now that some time has passed since this ruling, here is how some title underwriters are now handling the application of this new S.C.  decision.

Every code violation consists of two aspects to the violation: (1) the actual compliance with the violation (2) paying the monetary fine for the violation.

So while this new S.C. case resolves the monetary issues by taking away the super priority of lien, the title agent must still obtain written confirmation from the municipality that the property is in compliance and that the violation is no longer continuing on the property. The concern is once the foreclosure is complete and the property is now in the name of the lender, if the violation is still ongoing, the municipality may try to collect fines and may even re-lien the property. Also,  despite the S.C. ruling , if the municipality claims money is still due, then the title agent must get the municipality to agree, in writing, no money is due based on the S. C. ruling.

So as a result of this S.C. ruling, title agents will no longer need to obtain a release of lien to clear title or pay any fine, if: (a) the municipal lien is subordinate to the mortgage being foreclosed and (b) the municipality is properly named and served in the foreclosure action and (c ) the property is in compliance.   

While this is how some title underwriters are deciding to approach the S.C.  ruling we still don’t know how the municipalities are going to apply the S.C. case.  So I guess we still need to stay tuned.

When it comes to managing your single and multi family residential properties, rest easy – Octazon Management has got you covered. Our full-service property management company can handle everything from maintenance and landscaping, to screening potential residents, preparing leases, marketing, advertising and managing your properties online with our advanced technology that allows us to stay connected and maintain transparency with our clients.

With Octazon, rest easy, because we bring order to residential property ownership.

 Call us 888-324-9528 or email us at info@octazon.com today or check us out @ www.octazon.com

“Single Family Residential – REO – Multifamily – Commercial”

Single Family Renters Continued Growth Creates Need for Good Property Management

According to David Brickman, SVP of multifamily at Freddie Mac, more than one-third of U.S. households are renters, the largest share since 1997. Additionally, the nation has seen 5.4 million new renter households between 2004 and 2011, and growth is expected to continue. John Tashjian, principal at Centurion Real Estate Partners in New York City, explained the housing decline has “left a deep and lasting impression on the psyche of Americans as potential homeowners. This drop in consumer confidence has caused a rush toward rental housing which, in turn, has caused rents to rise nationwide and a decline in affordable rental housing stock.”

According to a new survey from Premier Property Management Group, the fast-growing population of single-family renters is more likely to dwell in their home for longer periods of time compared to multifamily occupants. This suggests the demand for single-family rentals offers greater stability than the multifamily market. One reason single-family renters might be more prone to stay longer is their higher satisfaction with property management, according to the survey.

Chris Clothier, director of sales and marketing and partner of Premier Property Management said that “Single family rentals can be found in virtually every community today and more and more families are choosing single family rentals either as a temporary stop on the road to becoming homeowners or as a permanent solution to their housing needs.”

When it comes to managing your single and multi family residential properties, Octazon Management has got you covered. Our full-service property management company can handle everything from maintenance and landscaping, to screening potential residents, marketing, advertising and managing your properties online with our advanced technology that allows us to stay connected and maintain transparency with our clients.

With Octazon, rest easy, because we bring order to residential property ownership.

Call us 888-324-9528 or email us at info@octazon.com today.

Check us out @ www.octazon.com

Managing Single Family Homes for Portfolio Investors

Investors are looking outside the stock market and more towards residential single family investment opportunities as a source for yielding a greater return on their investment.

Investors are taking advantage of this new asset class looking to invest in one of the numerous small and large single family residential funds being offered in the market place. These funds typically deliver cash on cash yields that range from 6% to 9% with an exit strategy that can potentially offer returns at 15-20 %. The goal of many of these funds is to sell the houses within three to seven years in one of several ways: a public offering, a sale to an existing REIT or to a large institutional buyer or pension fund. This translates to a great opportunity to purchase single family homes, rent them out and take advantage of the real estate market. Mom-and-pop outfits, investment firms, hedge funds, private equity partnerships and real estate investors have all become big buyers of single family residential properties.

It is one thing for these funds to buy these properties, it’s quite another to manage them. Managing single family homes is time consuming and requires knowledge. Many of these funds are not local and therefore not equipped to manage their portfolios. This is a passive investment for these investors who will find managing the property a distraction. They are not adequately or efficiently equipped to field calls from tenants or vendors, or to deal with rental and maintenance issues. That’s where property managers come in. Property management companies are a key component to the financial success of these funds. A good property management company lets the investors focus on what they do best-making the next deal.

When it comes to managing your single family residential properties, Octazon Management has got you covered. Octazon is here to help bring you peace of mind by effectively managing any and all of your property needs. We provide you with the best service possible; managing your properties efficiently with advanced technology that allows us to stay connected and maintains transparency with our clients.

With Octazon, rest easy, because we bring order to residential property ownership.

Call us 888-324-9528 or email us at info@octazon.com today.

Check us out @ www.octazon.com

Now Is A Great Time to Invest In Single Family Homes

Are you wondering if now is a good time to invest in single family homes? The answer is yes! Investing in single-family homes has become big business.

While Florida has had it share of suffering in the real estate market due to record foreclosures and a weak economy, it also left many people running to rent houses instead of buying due to their credit and other financial obstacles.  For an investor this translates as a good time to purchase single family homes and rent them out.  Mom-and-pop outfits, investment firms, hedge funds, private equity partnerships and real estate investors have all become big buyers of single-family homes- so why not you?

According to CNNMoney, Miami is one of the top 10 cities with the highest rent spikes in 2012, with a year-over-year rise of 10.8%, vacancy rate of 4% and median monthly rent of $1,900.

Additionally, J.P. Morgan Chase & Co. expects U.S. home prices to rise 3.4% up to 9.7% depending on certain economic growth factors.

So stop sitting on the sidelines and start buying your properties and put in tenants.  Invest in single family homes and see returns. When the economy improves to the point where your renters can afford to buy again, sell and maximize your investment.

Being an investor is one thing- but being a landlord is a distraction.

When it comes to managing your residential properties, Octazon Management has got you covered. Our full-service property management company can handle everything from maintenance and landscaping to screening potential residents and even marketing and advertising your properties online.

Octazon is here to help bring you peace of mind by effectively managing any and all of your property needs. We provide you with the best service possible, managing your properties efficiently with advanced technology that allows us to stay connected with, and maintain transparency with, our clients.

With Octazon, rest easy, because we bring order to residential property ownership.

Call us 888-324-9528 or email us at info@octazon.com today.

Check us out @ www.octazon.com

“Single Family Residential – REO – Multifamily”

How property management can bring value to your investments

Hiring a property management company may seem like an added, and maybe even unnecessary, expense. But, a property management company can actually increase the value of your investment, increasing your profit.

One of the ways in which this is achieved is by reducing repair costs. Property management companies oversee the maintenance and repair of your properties and usually have a network of skilled and cost-effective repairmen at their disposal. In addition, good property managers focus on prevention, reducing the instances of repeat repairs due to mistakes.

Property management companies can help owners set competitive rental rates and are also great at finding, attracting and screening the best tenants, which lowers your vacancy rate and increases the likelihood of longer stays and a lower eviction rate. Better tenants mean more rental payments. Property Management companies can also add value through their handling of the leasing process, move in and move out process and rental collection Property managers also understand landlord-tenant law and the Fair Housing Act, which greatly reduces the risk of costly lawsuits and helps to retain happy tenants.

Those are just some of the ways in which property management companies can help increase the value of your investments. Contact us to find out more!

About Octazon:

Whether you own a few properties or hundreds of properties in Florida, Octazon Management, LLC is here to bring order and simplify property ownership and management. We can help you manage any and all of your properties. Call us 888-324-9528 or email us info@octazon.com today.