Need to tap into your Rental property?
Investment Properties are hotter than ever with all the current Short Sales anf Foreclosures going in the market.
So now that you captured a rental property and are utilizing a stable rental income for quite some time now, it has come to attention than an unxepected financial need arises and have to decide if tapping into your investment property is worthwhile.
Analyzing your Rental income, Mortgage and Rental Lease
There's 3 main factors come into play with your Rental are as follows
- Rental Mortgage: - Does your investment property have a mortgage tied to it? If so how much is the current mortgage.
- Rental Income: - Now after paying the mortgage and all the other expenses that comes into play, how much does your Rental Income bring forth as a profit, if any?
- Rental Lease: - Here's the big "R". What are you charging for your Rent? Is this outdated, is there room to grow?
ABC is easy as 123
So lets put all the factors into play, shall we. Let's say for example:
You need an extra $25,000 for a much needed College Tuition for your Son/Daughter.
You have a $50,000 mortgage at $375 and $500 Rental Income on your investment property.
You spoken with your Mortgage Expert :) and the Extra 25k will put your new mortgage at $560
Uh-Oh your new Mortgage is higher than your Rental Income, Don't Despair, it's time to check if it's time to upgrade your Rent.
Afterall we are in a HOT HOT HOT rental market!!
Rentometer
I actually stumbled upon this site using stumbledupon, its a real cool site that randomly stumbles websites linked to your preferences.
This website is FREE to use and you can use this tool to see if you are charging to little for rent and seeing what the other rental properties in your area are going for.
The website is a mashup with Googlemaps data, feeded rental listings via the net and other rental listing websites out there.
The website can be found here http://www.rentometer.com/ and is very easy to use, just put in your address and the search results will display a meter indicating where you rank in Rental income and also displays the Googlemap to click on markers near your property to get individual results, cool right?
So there you have it, your very own free tip tool to find out if you need to hike up your rental price, and for the previous example, lets say you found that properties in your area are renting for about $600, there you go a Win/Win Situation :)
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