real estate investing isnt

MSN Money - The real risks of investing in real estate MSN Home Hotmail My MSN Sign In Money S earch MSN Money: Help Home News Banking Investing Planning Taxes My Money Portfolio Loans Insurance Investing Home Portfolio Markets Stocks Funds ETFs Commentary Brokers CNBC TV MSN Money Insight Jubak's Journal SuperModels Start Investing Strategy Lab Company Focus Mutual Funds Street Patrol Other Views Contrarian Chronicles TheStreet.com Resources Commentary Index Decision Centers Start Investing Mutual Funds Find Hot Stocks Simple Strategies Power Tools Investing For Income Real Estate Related Links Expert Picks Market Dispatches CNBC Stock Picks Message Boards Print-friendly version Send this to a friend Research any REIT Find top-performing mutual funds Sortable database of SEC filings Find stock winners with our screener Personal finance bookshelf Find It! Article Index Finance Q&A Tools Index Site Map The Basics The real risks of investing in real estate advertisement With prices soaring, real estate looks tantalizing -- but the margin of error is shrinking. Forget the get-rich-quick plans. Pay attention to the numbers. By Kiplinger's Personal Finance Magazine For Derrik Dyka, the biggest obstacle to successful real estate investing isnt a meltdown in property values or tenants who wreck an apartment or dont pay their rent. "Its overconfidence," says Dyka, a 34-year-old Minneapolis investor who turns old apartments into new condominiums. If youre expecting to cash in on the 21st centurys first gold rush without breaking a sweat, it would be wise to take Dykas words to heart. The margin of error for making money in real estate is closing fast. Its not surprising that real estate tempts so many Americans today. Over the past five years, home prices have soared and rags-to-riches tales abound. But so much real estate has become so expensive that Real Estate Research Corp. in Chicago reports that many real estate pros say now is a better time to sell than buy. As San Diego real estate investor Chuck Wise observes about the area where he operates, todays buyers are like "lambs being shorn." Start investing with $100. Explore our new ETF center. Of course, that doesnt mean that all deals are doomed to fail. But it does mean that its time for would-be investors to pay more attention to the perils of owning property, not just the potential profits. Watch your cash flow The most common entree into real estate investing is the single-family house. Investors bought almost one-fourth of all homes sold in 2004, according to the National Association of Realtors. If youre one of those buyers and your income from that property (after taxes) exceeds your expenses by $100 or $200 a month, youre in good shape. But because prices and property taxes are so high in many areas, and theres so much competition for attractive rental properties, its increasingly difficult to find deals that generate enough income to more than cover your expenses -- whats called positive cash flow. In areas such as the leafy suburbs of New York City and Boston, where a modest three-bedroom house can easily cost $600,000, theres no way you can collect enough rent to cover the steep property taxes and payments on a $500,000 mortgage. Figure monthly out-of-pocket expenses of more than $3,000, if not $4,000. The pool of renters who will pay that much is small. Related news and commentary on MSN Money • Nothing quick about getting rich with real estate • Do you have what it takes to be a landlord? • Don't bite off too much house • How to find a good investment property • 7 creative ways to buy your first house • Decision Center: Home financing So be ready to set your sights lower and get your hands dirty. Instead of a well-located home in pristine condition, look for a fixer-upper off the beaten track for maybe $150,000 that you can rent for $1,000 a month. The numbers work if youre willing to spend weekends, say, painting the walls and, if youre capable, making repairs that would otherwise require professional help. The hidden profit from home improvements is why "ugly real estate often makes more money than the nice stuff," says Kelley Pace, head of Louisiana State Universitys real-estate research institute. Mind the cap You can quickly figure out whether a house or condo is likely to generate positive cash flow. For more complex properties, such as a small office building or retail space, check the cap rate, a single number that can tell you if youre overpaying. The cap rate -- cap is short for capitalization -- is a propertys net operating income as a percentage of its price. The figure is real estates version of a bond yield. If a property sells for $500,000 and generates net income of $50,000 (rents minus expenses), the cap rate is 50,000 divided by 500,000, or 10%. The lower the cap rate, the more you pay for each dollar of annual income. In 2000, the average cap rate on commercial property in the U.S. was 10%. Since then, because of relentless price appreciation, the average cap rate has sunk to 8%. That alone suggests that wringing further gains out of commercial property is unlikely. If you want to invest in a commercial property, aim for a purchase price that results in a 10% cap rate. But remember that the cap rate also depends on how much you collect in rent. Ask the broker for details about the tenants leases, including how rents compare with those of other nearby properties and when the leases are up for renewal. The property should come with an information packet that is more like a stock prospectus than a real estate agents fact sheet on a single-family house. If necessary, hire a property inspector. Then take all the information to a lawyer who specializes in real estate. If you have any doubts about the property, walk away. Page 1 of 2 Story continues on next page Fund data provided by Morningstar, Inc. © 2005. All rights reserved. Quotes supplied by ComStock , an Interactive Data company. MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances. © 2005 Microsoft MSN Privacy Legal Advertise Feedback Help

Investment Property Consumer Focus:

FCIC - Consumer Focus -- SITE SEARCH: Books Resources 1-888-8 PUEBLO (1-888-878-3256) Home Consumer Focus Archive Owning a Second Home or Investment Property Consumer Focus: Owning a Second Home or Investment Property Owning a Second Home or Investment Property For various reasons, the idea of owning a second home or investing in property is on many people's minds nowadays. Some dream of having a second home in a more moderate climate. Others, wishing to diversify their investments, are considering real estate because of continued record low mortgage interest rates. If you're interested in the idea, but not sure how to get started, we've assembled some helpful information. Second Home or Investment Property? Criteria Looking Around The Transaction Additional Responsibilities Financing Other Resources E-mail this Information to A Friend Other Topics in the Consumer Focus Archive Top Second Home or Investment Property? The process will be simpler and smoother if you can make some decisions about your lifestyle, needs, and plans for the property at the beginning. Generally, if you're looking for a place to spend the winters for several months at a time or to take frequent weekend getaways, then you're most likely considering the purchase of a second home. However, if you're looking to generate income or diversify your investments, then you're looking to purchase investment property. Check our web site later this month for more information regarding investment property and how to be a landlord. The information below pertains primarily to buying a second home. In either case, you're entitled to different types of tax deductions depending on how you treat the property. Criteria The criteria defining a second home are fairly loose. A second home doesn't necessarily mean a "house." It could be a condominium, a recreational vehicle , or even a boat. Basically, for your second property to be considered a second home by the IRS, it needs to have sleeping accommodations and cooking and toilet facilities. A second home qualifies for the home mortgage interest deduction, just like your primary residence, because you're using the home for personal purposes during the year. Many folks have second homes that are part rental. The catch is that your personal use needs to exceed 14 days or 10 percent of the time it was rented, whichever time length is greater. In addition, if you rent your home for fewer than 15 days a year, and personally use it for more than 15 days a year, you do not need to declare any rental income. Everyone's circumstances are unique. Consult a tax professional regarding deductibility. Top Looking Around Do you want to buy a second home in your favorite vacation area , or a weekend spot not more than a few hours' drive away, but don't know what the market's like? You might want to do some research on the web using Realtor.com or visiting the web sites of the individual real estate companies in the area where you wish to purchase a property. Some real estate-related web sites allow you to tailor your search you select such as price, number of bedrooms/baths, type of home, or location sorted by zip code. If you're considering this home to be your future retirement home, then you also should consider additional factors such as the annual climate. Weather.com allows you to view monthly climatic averages for cities around the country. You also might look for information and articles discussing cost of living or " best places to live for retirees" from groups such as the AARP. The Transaction You'll probably want to work with a local realtor to help with the transaction, especially if you're considering an out-of-state purchase. A knowledgeable realtor should be aware of important factors that could affect your decision. For instance, if the locale you're considering has development restrictions, like those involved with historic districts where strict design, remodeling, or building codes may be enforced. In addition, the agent will do much of the legwork for you and ensure that all the bases are covered during the transaction. Just as you did when you purchased your primary residence, you should still have the property inspected. Take the effort to know your rights . Top Additional Responsibilities Remember, owning a second home is just that-with all the associated responsibilities and expenses that it brings. Check individual state web sites for property taxes. How much maintenance are you willing to take on? If you're not willing to take on a lot of extra maintenance and yard work, consider buying a condo and hiring a property management company. Of course you'll need insurance. In some areas, you may be surprised by the rates you'll need to pay for homeowners insurance . Coastal areas usually have higher premiums due to hurricane risk, and you may need to buy a separate flood insurance policy as well. Financing Just as you did when you bought your primary residence, be sure to have your financial affairs in order before you even begin looking. Get a copy of your credit report and be sure there are no errors, which could delay or hurt your financing options. Also, be prepared to meet some stricter criteria to get the loan. This is because your finances will be stretched more thinly once you take on that second mortgage. Top Other Resources This is just a brief overview. For more information check out these resources: Read these publications online or order them from FCIC: FairCredit Reporting How toBuy a Home With a Low Down Payment How toBuy a Manufactured (Mobile) Home HUDHome Buying Guide Looking for the Best Mortgage-Shop, Compare, Negotiate Twelve Waysto Lower Your Homeowners Insurance Costs Publications available for orderingfrom the Housing Page Publications available for orderingfrom the Money Page Websites*: Department of Housing and UrbanDevelopment Federal Trade Commission Federal Reserve Board FirstGov.gov Public Broadcasting Service AARP Bankrate.com Insurance Information Institute Money.CNN.com NewRVer.com Prudential Realtor.com SmartMoney.com Tax Foundation Weather.com * Names of resources and organizations included in this online article are provided as examples only, and their inclusion does not mean that they are endorsed by the Federal Citizen Information Center or any other Government agency. Also, if a particular resource or organization is not mentioned, this does not mean or imply that it is unsatisfactory. *If you click on these links, you are leaving FCIC's website. Please bookmark us before you leave so you can return easily. FCIC is not responsible for the content of these websites. Top Enjoy this month's Focus? Share this information with a friendand spread the word! Enterrecipient's e-mail address: We will not retain or use this information for any other purpose. For more information on other popular consumer issues check out FCIC's Consumer Focus Archive . Top Import Notices - Site Map - Text Version This service isprovided by the Federal Citizen Information Center of the U.S. General Services Administration . If youhave a comment or question, e-mail us .

Rental Property

IREM IREM, CPM, ARM, Real estate manager, Property manager, Institute, Real estate management, Real estate, Real estate careers, Real estate jobs, Real estate management jobs, Real estate management careers, Journal, Property Management, Real estate associations, Commercial real estate, Residential real estate, Real estate research, Certified property manager, Residential managerIREM, CPM, ARM, Real estate manager, Property manager, Institute, Real estate management, Real estate, Real estate careers, Real estate jobs, Real estate management jobs, Real estate management careers, Journal, Property Management, Real estate associations, Commercial real estate, Residential real estate, Real estate research, Certified property manager, Residential managerIREM, CPM, ARM, Real estate manager, Property manager, Institute, Real estate management, Real estate, Real estate careers, Real estate jobs, Real estate management jobs, Real estate management careers, Journal, Property Management, Real 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Buy property via the

UK Property & Housing Market News & Websites, Estate Agents; House Buying and Car Buying Websites UK Property Search Websites Mortgages & Building Societies Property News & Media Home RightMove.co.uk UK Housing Market Find A Property.com UK property search Fish4Homes AssertaHome.com www.Property Finder.com Net House Prices.com Search for sales prices of UK property Up My Street.co.uk Find out what your property is worth, and what's going on in your area, including schools UK.Real Estate.Yahoo.com Buy it Privately.com private property sales directory New-Homes-Direct.com off plan property, buy to let property IRED.com International Real Estate Digest Prime Location.com Home buying, selling, renting and investing Moves.co.uk Office and household removals Abbey Self Storage Business and private storage services Good Migrations.co.uk Moving planner; advice; estate agents; local information HBF.co.uk The House Builders Federation - the trade federation for private house builders in England and Wales UK Property & Housing Market News Find a Property/news | NewsNow.co.uk | BBC Nationwide | Hometrack | Land Registry Google News | MSN Newsbot | Yahoo News Royal Institution of Chartered Surveyors Net House Prices.com Property Entrepeneur.co.uk Details of worldwide properties in high growth areas Council of Mortgage Lenders (CML) UK Property Shop.co.uk National directory of estate agents Property Live.co.uk UK House Market Your Mortgage.co.uk Includes advice on mortgage types, buying to let, moving checklist, property price calculator BBC Homes/.../ UK property price guide PrimeLocation.com Houseweb.com Rent, buy, or sell property within the UK Home Check.co.uk Advice for home owners and buyers about potential hazards such as flooding and subsidence Homeclick.co.uk Buy property via the internet without the need for an estate agent Pickfords.co.uk Domestic and international removals The National Federation of Builders National House Building Council (NHBC) Royal Institute of Chartered Surveyors (RISC) Inside Housing.co.uk From Inside Housing magazine BBC.co.uk/homes DIY SOS | House Invaders | Big Strong Boys | To Buy or Not to Buy | Trading Up | Life Laundry | Sunday Home and Garden | Changing Rooms Channel4.com/4 homes Property Ladder | House In The Sun | The Property Chain | Relocation Relocation | Room For Improvement | Grand Designs International Real Estate Directory.com Worldwide directory of estate agents, builders, relocation consultants and more The Move Channel.com UK property information / UK property proces UK Property Guide Homes-Exchange.com Private central London homes and apartments for rent and sale Buying Property in Spain I am Moving.com Free change of address service The Big Yellow.co.uk Storage services Estate Agency News.co.uk latest developments affecting the residential market Mortgages & Building Societies menu/top Money Supermarket Financial products compared Money.MSN.co.uk More financial websites... Charcol Online.co.uk Mortgages-Online.co.uk Your Morgage.co.uk Find.co.uk/mortgages Complete A-Z of UK websites for mortgages, covering lenders and brokers Mortgage Point.co.uk Mortgages 2 homes.co.uk Apply for a mortgage online, even with adverse or bad credit Money Supermarket Britannia.co.uk Cheshire Building Society Coventry Building Society.co.uk Cumberland Building Society Darlington Building Society Derbyshire Building Society Dudley Building Society Dunfermline Building Society Ecology Building Society Furness Building Society Hinckley and Rugby Building Society Ipswich Building Society Kent Reliance Building Society Lambeth Building Society Leeds & Holbeck Building Society Leek United Building Society Loughborough Building Society Manchester Building Society Mansfield Building Society Market Harborough Building Society Marsden Building Society Melton Mowbray Building Society Mercantile Building Society National Counties Building Society Nationwide Building Society Newbury Building Society Newcastle Building Society Norwich and Peterborough Building Society Nottingham Building Society Portman Building Society Principality Building Society Progressive Building Society Scarborough Building Society Scottish Building Society Skipton Building Society Stafford Railway Building Society Staffordshire Building Society Stroud & Swindon Building Society Swansea Building Society Teachers Building Society Tipton & Coseley Building Society Universal Building Society West Bromwich Building Society Woolwich.co.uk Yorkshire Building Society

Denver Real Estate

Real Property Records The Official Site of the City and County of Denver Home About Denver Elected Officials Safety Neighborhoods Employment Doing Business Online Services Search or View Directory 48 ° Scattered Clouds Real Property Records Date last updated: Friday, December 23, 2005 The Denver Assessor's Office is pleased to provide you with Internet access to Denver real property data. You can obtain information about a property in Denver by entering the property address, or the property's parcel identification number. Please be aware that the Denver Assessor's Office makes every effort to provide the most current and accurate information possible on this Internet site. No warranties, expressed or implied, are provided for the data herein, or for its interpretation. Due to the normal lag time between the sales of properties and the time that those transactions are recorded and reported to the Assessor's Office, some transactions may not be reflected in this database. IS NOT TYPICALLY USED FOR ADDRESSES THAT ARE IN THE NORTHERN HALF OF THE CITY. FOR EXAMPLE, 5200 FEDERAL IS LOCATED IN THE NORTHERN SECTION OF DENVER, BUT IT IS NOT ACTUALLY CALLED NORTH FEDERAL. THUS, UNLESS YOU ARE CERTAIN THAT THE PROPERTY YOU ARE SEARCHING FOR IS FORMALLY DESIGNATED AS NORTH , YOU SHOULD NOT ENTER NORTH IN YOUR DATA SEARCH. //-- Please select a criteria by which to search: Search by address Search by name-- Search by parcel number " title="Submit" id=submit1 name=submit1 -- -- -- Printer Friendly Version Email This Page Select Category: Resident Visitor Business Address/Intersection: -- Contact Us Search Site Info return to the top