Your primary home insurance provides financial security by insuring your house, possessions, and assets. Homeowners’ insurance for a second home does the same.
The primary distinction is that second homes typically have higher home insurance rates due to a higher risk of claims.
The same coverage is included in homeowner’s insurance for second homes as for your primary residence, but due to the higher risk of insurance claims, vacation homes are typically more expensive to insure.
On today’s episode, we discuss our tips for house flipping. Most people are aware of the HGTV version that shows a complete home remodel in a 1-hour episode. This conversation helps to peel back the layers and walk-through the financial and physical aspects that are crucial to executing a flip. Listen to learn the steps and processes to know what homes and locations to invest in, how to plan ahead for taxes, and what projects make a home more valuable.
IN THIS EPISODE:
[01:01] What is a house flip and how to find the best location for your flip?
[07:10] What’s involved in a flip: Financial and physical aspects.
[11:49] Taxes and whether to sell vs rent your newly remodeled property.
[15:27] What projects make a house more valuable and whether to invest as an individual, with a partner, or as a team?
[21:45] How important is staging a house before you sell it?
[26:35] Learn from others who have flipped before.
The key to flipping is knowing the market and the right locations. Then look for low priced homes in those trending neighborhoods.
The more you can do on your own without hiring a contractor, the lower your cost is to do the home improvement, which means the more likely that you’re going to be able to make more money on the flip.
There are five key financial elements to consider doing a flip: purchase price, remodel investment amount, remodel timeline, estimating sell price, and lastly taxes.
Owning rental property is a time-tested way for investors to consistently earn passive income. For most first-time investors, that means buying a single- or multi-family home and charging tenants a monthly rent.
But owning a rental property involves more than finding a tenant and cashing a rent check every month. Landlords have responsibilities and legal obligations you must follow. You also want to make a smart purchase from the start that will give you the best return on your investment.
Here’s a quick guide to buying a rental property as a first-time rental property investor.
When you buy a rental property, you expect to make money off of it. You may profit from this home in a variety of ways rather than just through the monthly rent. You could profit as well if the property’s value rises.
When the value of your home rises, so does your net worth. You’ll have more positive cash flow, which you may spend to acquire even more assets.
If you believe you can improve on it with your design, feel free to do so! If the home’s value rises significantly, however, you may also consider reselling it for a greater profit.
Renting can be frustrating for folks who love to decorate. You might want nothing more than to add a coat of brilliantly-colored paint or hang that gorgeous oil painting that you love so much, but the thought of losing your security deposit also makes your wallet scream.