Over the past year we have been managing more and more properties in the Suburbs with purchase prices north of 200K. Most of those homes being purchase within the last 5 years. In the current market they would loose money if they were to sell.

So what do you do when you have to move for work or its time for a upgrade or downgrade the size of your home. Your income has changed but letting a home go into foreclosure and ruining your credit is not something you want to experience. Also buying that next home now most likely will have you getting a great deal. however paying to mortgage payments can takes it toll on any person or family in this economy regardless of the financial position. While renting is not for everyone some of our clients think of it as a Duck Tape to hold something together. While not the most attractive thing it has its advantages and helps until a final solution is found.

Having a Licensed Real Estate Company who deals with Rentals on a daily basis is something to consider.

Many Real Estate Companies are starting to offer Property Management Services. (Some full service others just assisting in placing a tenant). What separates us from them is we have been doing property management since our doors opened in 2006 before the market crashed. At that time most of our properties were in the city area with about 10% outside city limits. Over the past 2 Years over 50% of our new clients have homes Outside of the City of Akron and Canton. We also take it one step beyond and stand behind our tenant screening and guarantee that if the tenant we find and place in your unit fails to fulfill there initial lease up to 1 year and a new tenant needs to be found we waive that rental fee since we believe we did not do our job in the first place therefore you should not have to pay for a service to be down twice. (As far as I know we are the only one in our market area to offer this type of Guarantee Click the Property management tab on the left to see a full list of all our services and prices!!!)

With many of our new properties renting over $1,00o per month to qualified tenants we are finding a solid market for these homes.

Currently we have about 10 properties available for rent. ranging from 1 bedroom apartment’s near the university of Akron for $325 to a 5 bedroom Home in a Golf Course Community in Green for $1,500 a month.

Our most popular home is the $1,500 a month property. With Many people who just don’t have the credit to purchase a home due to past mistakes and are just looking for a nice stop along the way of rebuilding there lives to those who Prefer to rent and not deal with any other surprise expenses. Renting a nicer home is proving much more popular. While For Rent signs in many upper neighborhoods are not common (or allowed) you may still see the typical Real Estate Sign. We just leave off the For Sale Part and just put up the basic Office sign and contact info.

Already have a agent who you listed the home with? Have them give us a call we work with them to rent your house while you build equity and then return the listing to them so they may sell it down the road when you build enough equity or the market rebounds enough for you to sell and not take a loss. We also have referral programs to other agents.

Thinking about a Lease with Option? Another great tool in this market. We will touch on that in our next Post.

Do you owe more than your home is worth in todays market  compaired to other homes in the area? let us help you build equity so you can sell it down the road.

Working with a Realtor already? NO PROBLEM have them call us directly. We work with many area Realtors and can temporally manage your property until a time comes when you have the equity built up to sell or the prices in your area start to rise. Then you Agent will step back in and work with us to sell your property.

We are a full service real estate company that specializes in Property Management. We take the pain out of being a landlord. No Calls at 3am. no more taking time out of your day to show your house, or do maintenance. We work with many contractors to get your properties fixed quickly at competitive rates with quality workmanship. In most cases we can rent the house for more than your mortgage payment and cover all expenses associated with management and maintenance. You also can get tax benefits with right offs and deductions for many expenses (see your tax preparer or accountant for your specific situation)

These are tips I have heard and compiled a list. Note if the property can be kept warm do so. This is just in case the heat goes out and home freezes. A cost you don’t want to deal with. Also note many homes will start cracking and paneling will bow if the temp goes below 55 Degrees. Moisture can also be a problem

(our recommended range is between 55-60 degrees)

Tools you may need

1.       Monkey Wrench

2.       Crescent Wrench

3.       Channel Locks

4.       Wire Cutters

5.       Painters Tape

6.       Hammer

7.       Screw Driver (Flat & Phillip Head)

8.       Sharpie

9.       20 Foot Garden Hose

10.   4-5 Gallons of non-toxic RV Antifreeze Fluid (Pink stuff)

11.   Small Plastic Cup

12.   One Gallon Bucket

13.   Rubber Gloves

14.   Optional (Wet/Dry Shop Vac) If power I on) or air compressor

Steps to Winterize

1.       Shut of water before meter. (City Water) prefer to be off at street.

2.       Shut off power to Pump (Well)

3.       Turn on All Faucets in house. (lets water Drain)

4.       Disconnect water meter (well) so water can drain out.

5.       Turn off Hot water Tank & Drain (using Garden Hose to Floor Drain)

6.       Flush all Toilets (hold handle down until tank is empty)

7.       Use cup to remove as much water from toilet bowl (gloves are used here)

8.       Pour one Gallon of fluid in tank of toilet. Then flush toilet (this will run it through the system)

9.       Go to all the sinks, showers and tubs and use ½ gallon each per drain. (kitchen sinks have only one Trap so one side is usually good)

10.    Don’t forget the laundry room.

11.    Pour one gallon into floor drains in basement.

This service can be done by many contractors/plumbers. Expect the prices to vary from $50-$500 Depending on the home and what all needs done. (If the house is vacant and someone is not checking on it daily this should be performed. You never know when the furnace/heat could stop working.

WE DO NOT GUARANTEE ANYTHING HERE. FOR YOUR INFORMATION ONLY!!!

We assist many homeowners who recently moved or acquired another home and are unable to sell of a price acceptable to them.  We step in to lease the property and help build your equity so you can sell at a later date or turn it into a monthly income.

Even if you are working with a Realtor have them give us a call. We can put a package together with them and give your property double the availability.

We work with many other Real Estate Companies. Since not all Offices offer property management we can work with them to extend there services.

We manage a wide range of properties from Single Family homes to 2,3,4 unit buildings as well as Condo’s and Small Commercial. We are also expanding into Apartment Complexes.

Call us today for more information.

Joseph Pekar ext 100

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Open Houses, New Listings, Anouncements, Current Real Estate News, Tax Credit News, etc.

Who Gets What?
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount. 

What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sale price of $800,000.

What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible. As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?
The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed. According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession;
2. Right to obtain legal title upon full payment of the purchas price;
3. Right to construct improvements;
4. Obligation to pay property taxes;
5. Risk of loss;
6. Responsibility to insure the property; and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:
• They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”).
• They do not use the home as your principal residence.
• They sell their home before the end of the year.
• They are a nonresident alien.
• They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In the Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.

As Always, this is a Tax Ruling. Please consult a Tax Accountant for your scenario.