When you’re ready to sell, thoughts of what is wrong with your house, the desire to sell your home for a higher price may motivate you to make the repairs on your own to save money. Remember too, when you are selling, the disclosure form awaits, and you will need to advise the new owners of all of the work or face possible legal and financial consequences down the road. So if you’d like to avoid what could be a costly mistake and potentially life-threatening situations, it may be worth hiring a professional to get the job done right.
Additionally, should something go wrong, your insurance company might not cover the damage should you make the repairs yourself or hire a local handyperson. Therefore, before any work proceeds, it’s essential to review your policy and consider the value of hiring a professional and having a paper trail for your insurance adjuster.
Read on to discover four major repairs to avoid when selling your house in Orange County.
While changing a light switch may be perfectly safe, when done correctly, significant electrical issues are top on our list of repairs to avoid when selling your house in Orange County for good reason; it’s one of the most dangerous and could cost someone their life. In addition, the slightest error in the installment could potentially cause a fire.
Besides the common issues with drain clogs, you should avoid plumbing repairs when selling your house in Orange County. Not only is there a severe threat of damage to your home from a newly formed fountain spewing out of your kitchen pipes or upstairs plumbing soaking through the ceiling, but you’ll also end up paying the plumber to repair the damage. Not only that, you’ll still need the original plumbing problem resolved.
Without exception, you should hire a professional to make any foundation repairs when selling your house in Orange County because the foundation upon which the home sits is integral to the structural stability of the building. A mistake in making a foundation repair could take months or years to finally reveal itself, usually when it’s much too late to make a simple fix. While it may appear to be just a tiny crack to you, the eyes of an expert are always required, along with specialized equipment and processes to protect your home from extreme damage.
While it may appear to be a simple matter of hammering in a few shingles, you shouldn’t attempt roofing repairs when selling your house in Orange County. Regrettably, it is easy to make simple mistakes working on a roof that can cause heavy structural damage or cause leaks. Often homeowners will attempt to buy leak-stopping miracles at a local hardware store and delay proper repairs, which only adds to the final expense of getting the job done right. Unfortunately, without the appropriate equipment and no knowledge of proper safety protocol, many homeowners have fallen and been seriously injured in accidents while undertaking roof repairs.
Selling directly to Pellego can help you avoid repairs altogether when selling your house in Orange County!
Pellego saves you time; why wait out the repair process before you sell? At Pellego, we guarantee our closing date, which can be in a matter of a few days or weeks.
Pellego saves you money, there is no need to worry about the repairs, we buy houses as-is and pay cash. Pellego will make you an offer you’ll agree is fair, detailing what you would profit if you have the repairs made so that you can compare which best suits your circumstances. Contact Pellego at (949) 625-4533 today!
Your efforts towards growing your real estate portfolio allow you to live life on your terms in your golden years through passive income. Multi-family properties provide an excellent opportunity towards this end; however, single-family homes and multi-family properties are two entirely different ball games. Just as with the profits, so too are the cost of mistakes multiplied by the number of units; for this reason, you must educate yourself thoroughly.
Read on to learn more about what investors need to know about buying multi-family properties in Orange County.
Winning Formula
Real estate investing is about the numbers, and there are specific mathematical formulas investors need to know before buying multi-family properties in Orange County to hold a winning hand. You’ll need to familiarize yourself with these tried and true equations that have brought wealth to many Orange County investors just like you. Your cap rate and net operating income are the only numbers you need to determine if the property is a good value for your investment dollar on paper. Naturally, the property manager should be more than forthcoming with all required records to run your calculations. Working with a professional investor like those at Pellego will help you make successful investments.
Due Diligence
However, now is not the time to skip steps; hire a professional for an inspection and an environmental assessment of the site before buying multi-family properties in Orange County. You should also review a market survey for the property. Investors should personally inspect the property as well and conduct a thorough walk-through of each unit. If you cannot do so, you need someone to represent your interests. You can count on experienced professional investors like those at Pellego and their team of industry pros to protect your real estate investment portfolio.
Money Matters
Buying multi-family properties in Orange County can save investors money. The number of units in a specific multi-family property can significantly affect your financing, as lenders consider a business investment; therefore, the property’s financial potential is the basis for any loan. Let’s face it; it makes portfolio growth much simpler when you only need to go through the lending process once for several units. There are also tax benefits specific to multi-family properties; depending on the number of units, you can live in one of the units to eliminate your housing expenses. Finally, while having a vacant single-family home can make a significant dent in your monthly cash flow, having several units producing income from one investment can lessen the blow when there is a vacancy.
Scaling
Investors also save time and money by buying multi-family properties in Orange County because of shared expenses spread across the units, such as all being under one roof, which is also time-saving with one repair fixing many units. You also save time and cut expenses because you only need to work with one manager for several tenants. Multi-family properties also have the bonus of additional cash flow streams, such as soda machines, laundry facilities, and the like. Finally, professional investors like those at Pellego make owning multi-family properties easy, with a full-service team that can handle it all.
If you’re looking for real estate investments to diversify and grow your portfolio, Pellego has the information investors need to know about buying multi-family properties in Orange County. At Pellego, we take the time to listen to your goals, and we have the team to make your investment dreams come true. In addition, the professional investors at Pellego are happy to answer any questions you may have or help you with any concerns, with absolutely no obligation. Contact Pellego at (949) 625-4533 today to learn more!
Your real estate investment business and your properties care are crucial to you, making hiring a property manager feel much like rolling the dice with your future. Just as you should meet your potential tenants in person as part of your screening process to ensure the best experience, you should interview your potential property manager and ask questions about the types of properties they’ve previously managed.
Researching their background for yourself can also serve to help you make the right decision. Great property managers are worth their weight in gold; to get recommendations you can rely on, start asking around among your network of fellow property investors. In addition, it can be helpful to have a checklist to guide you to the best property manager. For example, here are five signs to look for in a great Orange County property manager.
Experience is one sign of a great Orange County property manager. Over years of working with vendors who provide maintenance, repairs, and other service providers for properties, an experienced property manager brings along a team of the most qualified professionals to care for your property. In addition, an experienced property manager should have systems in place that will keep them organized despite the multitasking required to keep on top of maintenance problems and marketing screening and eviction of troublesome tenants, scheduling vendors, and bookkeeping duties.
A professional manager understands that whatever happens to your property ultimately falls onto their head. Therefore, professionals don’t procrastinate; they tackle trouble head-on and stay proactive in their management style, understanding that avoiding issues before they become emergencies is most efficient. Professionals also tend to think long-term and set goalposts to mark achievements with a forward-looking frame of mind.
Professionalism also requires patience when things aren’t going right with tenants, vendors, or any number of stressful situations that can arise when managing property. A true pro remains cool under the worst of circumstances and emergencies. Property managers who are quick on their feet and can find creative solutions while always keeping the best interest of your investment in mind are a sure sign of a great Orange County property manager.
Let’s face it; it is always better to work smart, not hard, and utilizing the latest advances in technology helps you stay competitive and shows you have hired a great Orange County property manager. In addition, property managers who take the initiative to educate themselves further in their profession, including remaining tech-savvy in an ever-evolving world of apps, can benefit you significantly.
Last but not least of importance, the ability to communicate well is a vital sign of a great Orange County property manager. A top-notch property manager wants the return on your investment to be the highest possible. Towards that end, they will keep an eye on market trends, upcoming zoning changes, or plans for Orange County growth to keep you updated on the most current information, serving to improve your bottom line further. In addition, tenants tend to be happier overall when your property manager has good communication skills, which equates to lower vacancy rates and turnovers, which is financially beneficial.
Pellego has a highly experienced team that displays all of the signs of great Orange County property managers. Pellego values your tenants and will work day and night to meet their needs. We treat your investments as if they were our very own at Pellego; we listen to your management goals. At Pellego, our reputation in the industry proves we are the cream of the property management crop; our professionals do what it takes to rise above the rest. Contact Pellego at (949) 625-4533 today!
Looking for the best tax tips when selling your property in Orange County? Look no further. Nobody likes to find out they missed a chance to save potentially thousands of dollars while diversifying your portfolio. If you’re selling your property, it is well worth your while to follow a system to organize your business paperwork. You should always work with a tax professional experienced with investment properties and put in the work required to take advantage of the tax benefits available when you file your return.
To ensure you keep everything you’re entitled to by law, and realize the most in savings on your taxes, take a moment to examine these five tax tips for property sellers in Orange County.
Our first tax tip for sellers in Orange County is special savings accounts for real estate investors. These accounts help you save money when you sell. As a result, you may defer the taxes or have zero tax liability. These individual retirement accounts or IRAs include 1031 exchanges, health savings accounts, Solo 401k, and self-directed IRA accounts. So while there are plenty of rules and regulations, you can grow your real estate investment portfolio while enjoying more of the returns on your investments.
When you sell an investment and make a profit, this is known as capital gains, which brings us to our next tax tip for property sellers in Orange County. Using the exemption for capital gains, you could pay no gains tax on the sale. The amount of capital gains on the property is dependent on the time you’ve owned the property and your filing status. Current law requires living in the property as the owner two of the last five years and have owned the property 24 months to realize savings in taxes. You can use the exemption once every two years. There are limits on these exemptions. You must stay on top of current laws and work with a professional to avoid errors and realize the best savings.
You can deduct the costs involved in selling your property. Among the allowable expenses for homeowners are deductions for your property taxes and any interest paid on your mortgage debt. Check current tax laws for the current limits on these deductions. Be sure to follow guidelines in determining if your expenditure is for routine maintenance or a repair, while both are deductible. They are treated differently in the tax laws. Improvements required for the sale of the home may be deductible. Watch your timing on this expense. Carefully tracking expenses will help with this tax tip for property sellers in Orange County, allowable deductions.
Our tax tip regarding passive income for property sellers in Orange County is to take advantage of the passive income deduction; in other words, you don’t physically work to earn this income. In addition, under specific rules, the pass-through deduction allows you to deduct 20 percent of business income.
Property sellers in Orange County can deduct depreciation, which is the loss of value to the structure over time. So naturally, the IRS has a checklist for this deduction that filers must meet as well.
The experienced professionals at Pellego work full time to keep on top of any changes that affect property sellers in Orange County. In addition, at Pellego, let us show you how these tax tips add up to help provide the best income for the properties we manage. And if you’re you looking for an investment property? Pellego has a steady inventory available.
Why not find out how we can help you build your investment portfolio in Orange County? We’re happy to answer any questions with no obligation. Contact Pellego at (949) 625-4533 today!
While not the typical investment that comes to mind, the benefits of the short-term rental property sector of the market merit further investigation. Investors are wise to continually educate themselves on market news, keeping their business riding on top of the wave of real estate investing, with an eye towards the future.
Societal changes created more desirability for the unique features of short-term rentals brings a result, this transformation has come to the attention of investors.
We’ll explore five things you should know about investing in Orange County short-term rental property.
The growth of technology within real estate and consumers who are savvy in using online apps, making it easy to find a property that suits their needs for their visit perfectly, has combined to create a growing trend in Orange County short-term rental property. The industry is multiplying as vacationers and visitors of today have come to expect a more private and home-like atmosphere than noisy hotels packed full of guests. Moreover, guests appreciate the special touches that make the stay more personal, often becoming return visitors.
Due to the nature of more desirable times of year in Orange County short-term rental property, or even more desirable days, like weekends, the general wear and tear effects are lessened by fewer actual occupied days. Turnover costs can be expensive and time-consuming on more long-term rentals, creating a more extended downtime with a vacant unit. Prepping for new tenants typically includes deep cleaning and painting. However, the work required often goes beyond repainting; tenants can add a great deal of wear to a unit in a year that they’ve settled into over a more extended period.
While occupied for a lower actual number of days, the rental rate for a Orange County short-term rental property is much higher per day and more than makes up for the difference in days occupied. In addition, landlords can adjust rates for holidays and other high-demand days on the calendar. You can also require minimum stays, which ensures your bottom line, even if the occupants don’t need the unit for that length of time. As a bonus, you can block off a limited number of prime days per year for yourself, being sure to follow the tax guidelines for vacation investment properties.
Risk management is as important as due diligence when you set out to plan your real estate investment strategy. By spreading your investments across many areas of real estate, you build a safety net to protect your income. As an emerging sector in Orange County, short-term rental properties offer a fantastic opportunity for diversifying your real estate portfolio. The potential tenants for these properties are as diverse as the properties themselves. In addition, there is a wide range of price points among properties suitable for short-term rentals, making it an excellent way for new investors to get started.
Owning Orange County short-term rental property is attractive because it offers the benefits of tax deductions for operating expenses. So naturally, costs for maintaining and refurbishing an investment property are also deductible. Be sure that you keep excellent records and receipts in an orderly fashion. Hiring a property manager and owning your investment business as an LLC carries significant advantages. As always, you have to play by the rules of the tax guidelines, but the work is well worth the effort to improve your income for your rental property.
The pros at Pellego are ready to help you with your Orange County short-term rental property needs. Pellego has properties available and offers management services; we make investing easy. Contact Pellego today at (949) 625-4533.
Renting to own a home in Orange County, or any city for that matter, isn't a new concept... but the whole process of "renting to own a house" is a process that most people have questions about.
Well, you're in the right place!
This article will walk you through what to look for if you're looking for Orange County rent to own houses.
A lot of people who are deciding whether they should just rent or "rent to own" look at the whole rent to own / lease option process in the wrong way. Don't look at it like you're looking for a house to rent for a little bit. Of course, you should find a house that is one you'd love to live in for a longer period of time (no less than 5 years).
Why?
Because with rental houses, you know it's a temporary thing... so you'll settle for a house that is less than ideal.
But since you're really looking to get a house to live in for years and years with a rent to own... it should be one that you can see your family in for years.
Yes, you're renting a "rent to own" house... but you should choose a house you'd be glad to live in for years just in case you do exercise the purchase option at the end of the lease term.
Not all rent to own houses in Orange County have the same contract that goes with them. So make sure to find out the terms of the rental agreement and the terms of the purchase option as well. Usually, the monthly rent tends to be a bit higher with a rent to own agreement vs. a normal rental agreement... because you're basically paying a premium for the ability to potentially purchase that house at a pre-determined price in the future. There's a lot of value in that.
But with rent to own agreements, you should also have some flexibility that protects you. Make sure there are no fees for not exercising the purchase option at the end of the agreement.
Also, clarify with the owner of the house on who will pay for things during the rental term like...
Get it all in writing who's in charge of these kinds of things during the rental term.
One of the big benefits of a Orange County rent to own home is the ability to lock in a home at a set price well in advance of you having to purchase it.
With a rent to own house contract, you agree on a monthly rental rate... a term of that rental (usually 12-24 months)... and a purchase price at a future date.
Because of this the purchase price usually doesn't come at a discount for you... but, if you buy in the right Orange County California neighborhood (one that is increasing in value)... you could be earning instant equity if you decide to purchase the home at the end of your rental term.
If you still have questions about the rent to own process just call us anytime at (949) 625-4533.
And if you want to be put on our local Orange County Rent To Own Home List click the link below to see what's available.
Why rent when you can own in Orange County California? Great question! If you're looking for Orange County houses for rent you may want to consider your other options as a potential homeowner in the Orange County area.
Most locals who are looking for homes to rent in Orange County are likely looking at renting as their only option because of things like…
- Bad credit (and can't get a traditional bank loan to purchase a home)
- Not enough funds for a large downpayment on the Orange County home you want to live in
- … or you're just used to renting and didn't know there were other options.
If you haven't heard of "renting to own" a home (some call it a "lease option"), you're not alone.
But the "rent to own" concept isn't new.
In fact, renting to own has become really common for many things, including furniture, electronics, cars, and more.
And the rent to own concept for houses has been around for decades as well.
You can check out more info here on our website to learn more about renting to own a Orange County home… but in basic terms a rent to own home is…
… Simply a home where the owner of the house allows you to rent the house, with an option at the end of the rental term to purchase the house at a price you and the owner agree upon ahead of time.
You're not obligated to purchase the home… but the seller is obligated to sell you the home at that pre-determined price if you choose to purchase it at the end of the rental term.
There are a few big benefits to Orange County rent to own home programs like ours that can help many Orange County area residents to become homeowners.
Usually, there's something causing people to choose to rent over buying.
If your credit is preventing you from getting a bank loan to buy a home, a rent to own program can give you the time and assistance to improve your credit during the rental term… so at the end of the rental term, you can hopefully qualify for a bank loan and buy the home!
Or for many people, the issue is the downpayment. If you just don't have the money you'd need to put down on the house you'd want to live in… many times you can find rent to own programs with houses in the exact neighborhoods you want to live in… with much much lower move in fees… and even sometimes guidance in helping you build up the down payment needed during the rental term in the rent to own agreement.
In the end, if you're looking for Orange County houses for rent… before you go and rent another house you may want to explore our Orange County Rent to Own Program to see if it's right for you.
Renting to own isn't for everyone… but if it's the best fit for you this could be your chance to get out of the "rental rat race" and into a home of your own that you actually eventually own.
For more information on our local Rent To Own Home (lease option) program submit the form on the top right of this page, or give us a call anytime at (949) 625-4533.
So, you're looking for a place to rent in Orange County?
As you've already seen… there are a lot of options in the Orange County area for housing.
All the way from apartments in Orange County to rental houses in Orange County… condos… mobile homes, and more.
But if you're struggling to decide if you want to rent an apartment or a house… check out our tips below on the "pros and cons" of renting a local apartment vs. the pros and cons of renting a local house. (also, see our blog post on pros and cons of Rent to Own Programs for more detailed info >)
There are lots of great apartments in Orange County.
You've probably found new apartment complexes with all kinds of amenities like a swimming pool, gym, rec area, and all kinds of other perks.
And you've probably come across some bare-bones apartments that just gave you 4 walls and not much else.
So here are some Pros for renting local apartments:
Here are some Cons of renting local apartments:
- You have neighbors sharing walls with you (sometimes on 3 sides of you)
- The stairs: If you get an upstairs apartment it can be a pain getting your furniture in and out
- Parking lot dings: If you've lived in a large apartment complex where you're parking in a shared parking lot… you've likely experienced a ding or two from your neighbors on your car.
- Usually, you don't get a yard that is just for you (if you do, it's usually very very small)
Here are some Pros for renting local houses:
Here are some Cons for renting local houses:
In the end, I can't say that local Orange County apartments are better than houses to rent or not.
It's really down to your preference of what you want.
If you want more space and room to roam (without having to share walls with neighbors)… then renting a house will be the route you want to go.
If you're looking for lots of options, a lower price, and extra amenities like a pool… take a look at the local apartments.
Or, the 3rd option for you is a local Orange County rent to own home program.
Check out this page on our website that walks you through what a rent to own home (lease option) home is.
If you're interested in seeing the local Orange County rent to own homes that are available click the link below to get on the list and see available homes.
Or call us at (949) 625-4533 anytime to ask us questions and see if our Orange County Rent To Own Program is right for you!
This question comes up again and again… and honestly, the answer this question has changed in recent years based on new laws enacted that affect what a home owner can do when they're selling their house under a rent to own agreement.
One of the big benefits of owning a house is that you (hopefully) earn equity as you make payments and pay down the mortgage.
One thing many home owners don't take into account is that really during the first 5 years (or more) the majority of your mortgage payment to the bank is interest… and very little of your payments for the first 5 years actually goes to pay down the principal and earn you equity.
But on the flip side, the 2nd half of your mortgage is usually where the majority of your equity is earned since most of those payments go to the principal.
When you do a lease option / rent to own home in Orange County there are various types of arrangements you can choose to take… but the most common is this:
In the old days of lease options / rent to own agreements, a home owner was allowed to let a portion of the monthly rental payment be applied to the purchase price as a pre-paid down payment.
This was great for everyone!
It helped the tenant buyer earn money off of the purchase each month they made a payment… and it helped the house owner sell the house more often at the end of the rent to own agreement since now the tenant had some "equity" in the deal.
But in recent years a bill was passed in Washington D.C. called the Dodd Frank Act that has placed restrictions on rent to own programs… and has limited the ability to apply rental payments to the end purchase of the home.
One of the great benefits of renting to own a Orange County house is that you get the ability to have the home seller agree to sell you the house for a price you agree upon today.
And the beauty is… if the market does really well during your rental term and the house goes up in value a lot… the seller can't raise the price on you.
So whatever home value growth happened during your rental term over and above the sales price… that's your equity!
No, but just make sure that when you're negotiating the rent to own agreement that you really do a bit of research and see if the area the house is in has a good chance of increasing in value or not. Then base the purchase option price on that.
Before we wrap this article up… you may have the question of whether you HAVE TO buy the house at the end of the rental term.
The answer is no. If you decide you just don't want to (or can't) buy the house at the end of the rent to own agreement… you can just continue to rent if the owner will allow it or you can leave. You're not bound to purchase the house. However, the seller is bound to sell you the home at the predetermined price as long as you followed the contract terms (i.e. - you didn't miss payments, you weren't evicted from the house because of a breach of the rental agreement, etc. etc.).
If you're looking to get more info about our local Orange County Rent To Own Homes Program… simply give us a phone call at (949) 625-4533 or fill out the form on this website to see our current LIST OF AVAILABLE RENT TO OWN HOMES here >>
A really common question and concern from people looking at renting to own a Orange County house is "are you required to buy the house in a rent to own home contract ?" at the end of the rental term.
As an example…
… lets say you found a great Orange County rent to own home and agreed on an attractive rent to own agreement (lease option) with the seller that looked like this…
- $10k upfront
- $1,800/mo
- $200k purchase price option at the end of the 24 month rental agreement
Under that example, you have the opportunity to purchase the home for $200k within 24 months (often times you can purchase the home BEFORE the rental agreement ends with no problem).
If the 24 months comes up and you're just not ready to purchase the home… but you still love the home and want to live there still… just connect with the seller and see if they're willing to offer you an extension on the rent to own contract.
Often times, if you've been a great renter and show a genuine intent to buy the house… the seller will work with you (it's in everyones best interest).
If the 24 months comes up and you're just not ready to buy and you don't want to stay in the house… you can move out and not purchase the house… usually with no penalty.
If you choose not to buy the house, the time you spent in the home is treated just like a rental... since you didn't exercise your option to purchase the home.
That's the key distinction you need to be clear on with rent to own home programs.
That there are two parts to the agreement...
If you decide not to buy the home... you're just deciding not to exercise your option to purchase the house... and everyone walks away looking at that past time as a rental.
Make sense?
Really it gives you as the rental tenant / buyer great flexibility in the deal. If you want to buy the home... you can at a set agreed upon price. If you choose not to... no biggie!
That about does it for this article 🙂
... check out our Orange County rent to own house program on this website and see our available rent to own / lease option homes by clicking the link below.
