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If you do not see a second home of interest in our listings section, please contact us for our private listings or to locate your second home of choice anywhere in the world. H&M Estates has placed clients in homes in Wilmington (North Carolina), Las Vegas, San Clemente (California), Palm Desert, Palm Springs, Austin (Texas), Houston (Texas), Ventura (California), Cabo San Lucas (Mexico), Myrtle Beach (South Carolina), Upstate New York, Rochester (New York), San Antonio (Texas), Dallas (Texas), Hawaii, France, Spain, South of France, Portland (Oregon), Boise (Idaho), Coeur d’lene (Idaho), Vancuver, Baja California, Santa Barbara, San Diego, Carlsbad, Fallbrook, and Ireland.
As “LA’s Source for Second Homes”, H&M Estates has excelled at maximizing their clients’ real estate investments, either for rental properties or vacation homes worldwide. There are some crucial steps to take full advantage of a second home investment. We advise, publish quarterly second home reports and provide education. You may also find our Los Angeles and Los Feliz second home listings on the Listings section of our website.
- Choosing a Location, Location, Location – This adage is even more important due to the possibility of leasing or selling. Attracting renters is an added consideration and will affect your profit. While the house can be changed, its environment cannot be altered. Furthermore, how likely will the house appreciate and appeal to a buyer in five years? Although you may decide not to sell and use the property for a vacation home, buying in an area where the market is likely to appreciate is a smart move. Another question to consider is the long term community appeal and the likelihood of rental income.
Picking a community can be a daunting task for some investors. The H&M Estates Report on Undervalued Areas to Invest in Real Estate and The H&M Estates Report on the Best Vacation Home Cities give valuable information annually on locations for real estate investments in second, vacation or investment homes.
- Style and Condition – Beyond your own preferences, a renter’s eye should be used in evaluating a property’s layout, amenities, style and condition. How likely will the home appeal to a renter? What kind of renter do you hope to attract? Will it be a vacation or long term renter?
- Financing – The fees associated with home loans have fallen while the availability of financing options have increased. This advantageous combination effects you investment with increased cash flow and a higher return. Finding the right financing option will maximize your investment either as a rental property or a vacation home.
- Tax Law Knowledge – As a very important key to accomplishing your investment goals, you need to utilize the tax laws that will add to your return. First, you can deduct the mortgage interest on your real estate holdings. Also, the capital gains exclusion on real estate is plentiful. Finally, you can exchange properties rather freely and defer tax. We often work with your accountant to make sure you understand and make the most of the tax laws.
- Property Management and Maintenance – Depending on the proximity of the property, you may decide to do it yourself. This may or may not be a good use of your time and resources. Even though the cost of a management company does affect your bottom line, it often makes sense to hire a manager to handle marketing, leasing, maintenance, and rent collection. Before you buy a property for a vacation home or rental propety, decide which approach is more cost effective to your investment.
- Cash Reserves – Before you make any real estate investment, build up a cash reserve to cover vacancy periods or larger maintenance issues like a leaky roof. A cash reserve will help you keep a real estate investment that will appreciate and increase your tax benefits.
Call Michele Rosenbaum at (310) 351-9051 for more information on second homes in the United States and international areas.
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