FBS Property Management eNewsletter for Independent Rental Owners & Serious R.E. Investors in Hemet, CA

FBS
Property Management eNewsletter for Independent Rental Owners &
Serious R.E. Investors by Neil Fjellestad and Chris DeMarco

We
often get asked whether it is viable to purchase an individual condo or
detached single home as an investment operating the property as a
rental home. Then there are those that are currently in this position as
they move from their current residence. Should they rent it out or go
ahead and sell even if the sale won’t achieve their goals? Their real
estate agent is often recommending a sale and the owners are concerned
whether this investment strategy as a rental can work over the long
term.

Our four decades of real estate experience gives us a
unique perspective which is very direct and transparent. Well located
real estate should be owned as a long term investment since it is the
safest, most productive method for average people to build wealth. We
also believe that property should be kept rented in order to make a long
term hold possible since rent collected is helping to keep the property
well maintained and paying down loan principal. Eventually the property
will be debt free and the rent can become an excellent safe source of
additional retirement income for the investor. We have taught and
utilized this realistic real estate doctrine for decades while keeping
our clients on track with comprehensive advisory services and “best
practices” property management.

So keeping our experience in mind
and the fact that FBS currently operates rental property in 69 zip
codes throughout the SD region we are encouraged by the latest findings
coming out of the research department of Zillow. The following was
published on August 15, 2014:

Homeowners are faced with two
options when choosing to move up the property ladder: sell the old home
or rent it out. According to a new report from Zillow, homeowners might want to think twice before selling if they live in these 10 cities

“When
deciding if they should sell their home or rent it out, most
mom-and-pop landlords are primarily concerned with whether or not they
can cover their mortgage payment each month – they simply can’t absorb
monthly losses like professional investors,” said Zillow Chief Economist
Stan Humphries.

“However, the greatest returns are
actually in markets like San Jose and San Francisco where there are
short-term monthly losses, but the long-term earned equity makes them
the best markets to invest in,” Humphries added.

Nationally, the Zillow Rent Index has increased 2.5% since June 2013 and 9.1% since June 2011.

And
on a local level, the Zillow Rent Index has gone up as much as two to
three times that amount over the past year in rental hotspots such as
metro Chicago (6.3%) and San Francisco (11%).

These are the top ten markets in the country identified as those most likely to incur long-term financial gain (long-term
monthly profit is defined as follows: This includes home equity gains,
tax benefits and the difference between monthly rental income and
mortgage payments after holding onto the property for six years on the
median home)

10. Honolulu: $2,512

9. Sacramento, California: $2, 694

8. Seattle: $2,861

7. Boston: $3,009

6. New York: $3,179

5. Riverside, California: $3,659

4. San Diego, California: $4,165

3. Los Angeles: $4,328

2. San Francisco: $6,078

1. San Jose, California: $8,927

Please shop and compare; not just price but services and expertise. We
have built a healthy San Diego business out of advising independent
real estate investors, acquiring and managing rental properties for
clients while providing superior housing alternatives for qualified
renters. We’ve accomplished all of this daily for longer than four
decades and currently operate rental properties (houses, condos and
apartments) in 69 zip codes throughout the region. Our rental vacancies
change daily. Take a peek today
www.fbs-pm.com/rentals

If you’re a qualified renter you deserve to be treated like the preferred customer you are.
Educate yourself
www.RentSenseBlog.com

If
you’re a local rental owner now you hold a winning ticket if you want a
preferred retirement. A preferred retirement includes a personal
residence plus rental properties held without debt and managed by
professionals. This financial condition allows you some important
lifestyle choices where you live and how you live. The ONLY challenge
according to Warren Buffet? Comprehensive and constant professional
management of your rental business. The solution in San Diego is
complete property advisory and management services by FBS.

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