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A Guide to Owning a Rental Property

Wednesday, January 29, 2020
by The Hat Team


Owning a rental property can be a great way to make money.  But to be successful at it, you need to do your homework first and make sure you know what you’re getting yourself into.  Here are some tips to help you get started:

  1. Choose an experienced Realtor.  Finding the right agent is critical to successfully capitalize on real estate investments.  You want to find someone who has the knowledge to make the process easier for you.  They should have awareness of location, value, and return on investment. Your agent really should be an investor, too. That first-hand knowledge and experience will be invaluable to you going forward.
  2. Location, location, location!  Research what areas are declining and which ones are on the rise before deciding where to purchase an investment property. If large retailers such as Lowe’s or Home Depot are setting up shop there, it’s probably a good place to invest because big chains do a lot of research before moving in. How to Pick the Ideal Location for Investment Properties
  3. If you plan to invest with a partner, make sure you have a partnership agreement drawn up to protect all parties in case something happens.  Relationships can sour and expensive mistakes can happen. Making early decisions about how to handle bad situations will help prevent catastrophic results.
  4. Be prepared to invest for the long term.  When you hold onto a property for a long time, you can manage expenses and income easier and use the money to pay the mortgage.
  5. Be picky about renters. If you are going to rent to students or rent rooms to different people verses to a family, you may need special permits, depending on where you live. Educate yourself about rules and regulations for renting out your property. Landlord and Tenant Rights in Alabama
  6. If you have more than three properties you’re renting out, you would benefit from hiring an experienced property manager. It can be overwhelming when you are trying to take care of multiple homes (including your own!). A property manager will handle repairs and minor problems for tenants. They will help find new tenants as well.  Just keep in mind that property managers usually get around 10% of the monthly rent.

Being a landlord isn’t always easy.  But with the right investment, it can be very rewarding!

If you are in the market to invest in real estate in the Montgomery area, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: thebalance.com

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The Tax Advantages of Owning a Home

Thursday, January 23, 2020
by The Hat Team


Owning a home is part of the “American Dream”.  Working hard, saving money, finding the right house, and going through the mortgage process all pays off when you move into your own home and begin to enjoy the perks that come with what is likely to be your largest financial investment.  Some of those perks come in the form of tax breaks. And with tax season around the corner, it’s time to educate yourself about those tax breaks. You might be surprised to discover that many of your biggest home-related expenses are often tax deductible. Here are the top four tax breaks for homeowners:

  1. MORTGAGE INTEREST

The most significant tax break you’ll get is a mortgage interest deduction, which is nice since a huge part of your monthly mortgage payment goes towards paying off interest for a while after your purchase.All the interest you pay during the tax year will be deductible. However, if you own properties with mortgage balances over a million dollars, the IRS will limit your deductible interest.If you own a second home, your interest for that home is also deductible as long as you are residing there part of the year.If you stay there less than 14 days out of the year or less than 10% of the number of days you rent it out, the IRS may consider it a residential rental property, and in that case, you will not be able to take an interest deduction. Mortgage Interest Deduction

  1. REAL ESTATE TAXES

Another large deduction you get to make as a homeowner is on your property taxes. As a homeowner, you will always have to pay some form of real estate tax.  If you have an escrow account, which most mortgages do, it means you have been paying a portion of your property tax bill for the year as part of your monthly mortgage payment.  At the end of the tax year, your lender will send you a statement, which will tell you what you have paid in taxes and interest and how much went into your escrow account to be used toward taxes.  You will be able to deduct the amount your lender paid from your escrow toward taxes. Escrow

  1. POINTS

When you purchase a home, you have the option to pay mortgage points to your lender to lower your interest rate.A point is typically 1% of the loan price, so if you bought or built a new home that cost $300,000 and you paid your lender for one origination point, this should enable you to deduct the $3,000 in closing costs paid from your taxes for the year of the home purchase.

  1. ENERGY TAX CREDITS

Making improvements to the energy efficiency of your home will not only save you money on energy costs, it may also help you qualify for a tax credit. Tax credits can be better than tax deductions as they are a dollar-for-dollar savings no matter what tax bracket you are in.Things like upgrading windows, roofing, appliances and more with energy efficient equipment will often count toward a tax credit. But since the IRS does change things from year to year, be sure to check with them beforehand so you will know what tax credits you qualify for.

Become a homeowner this year and take advantage of these tax credits! If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500! 

Photo Credit: tmcfinancing.com

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Don’t Try This at Home! Hire a Professional!

Wednesday, January 15, 2020
by The Hat Team


One of the perks of being a homeowner is that you can make changes to your home to suit your own needs and desires.  Some home improvements are simple DIY projects you can accomplish in a weekend, but others are a little more complicated and should be handled by professionals.  In fact, some home improvement projects can be downright dangerous and it is in your best interest to hire someone who knows what they are doing! While DIY projects might save you some money, hiring a professional to complete the following might save your physical and mental health:

  • Adding Skylights - This project not only requires that you stand on a slanted roof, it also means lifting a very heavy window and placing it properly.  In addition, if a skylight is not installed by a professional, chances are great that you will end up with leaks.
     
  • Tree Trimming - We’re not talking about removing small limbs from a tree.  We are talking using a chain saw to do some major cutting.  If you have never used a chain saw, you may not be prepared for how it can kick back, causing injury.  Also, you will be taking a risk in climbing to reach the parts of the tree you are attempting to remove.  And anyone on the ground could be hurt with branches falling. Professional tree companies have trained employees who can trim and/or remove trees safely. Top Tree Services in Montgomery
     
  • Replacing a Water Line - Unless you’re a plumber, you should probably not attempt to replace a water line on your own.  There is too much at stake. It is crucial to have properly sweated joints, and unless you’re handy with a blowtorch, you will need a professional plumber to be sure it’s done properly. Otherwise you might end up with leaks, which in turn can cause black mold and in worst case collapsing walls and/or floors.
     
  • Updating Your Circuit Breaker Panel - This is a complicated task that requires the knowledge that only a trained electrician will have. Only a trained electrician with years of experience will understand electrical systems and the needs of your home. Should I Update My Electrical Panel?
     
  • Removing Walls - It looks like so much fun on the home improvement shows, doesn’t it?  People with sledgehammers and goggles knocking down walls - how hard can it be?  But is the wall you’re removing a load bearing wall? If it is, you need to have a way to support the structure or you will risk the danger of collapse.  If you are not 100% sure about what you are doing, it’s best to hire a professional who does!
     
  • Installing Windows - This is another project that requires specific knowledge to get it right. Windows need to be properly seated and sealed or they will not sufficiently work and you will be no better off than you were with old windows.  It is not easy to install windows and this is a job better left to professionals.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: 123rf.com

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2492 Le Ruth Ave: Move-in Ready in Midtown!

Wednesday, January 15, 2020
by The Hat Team

2492 Le Ruth Ave, Montgomery, Al 36106

MLS# 467485 

2 Bedrooms | 1 Bathroom | 1,153 sqft | Pineview

Adorable move-in ready home located in Midtown! Meticulously maintained with fresh paint, beautiful hard wood floors and ALL NEW windows that let in natural light, this house is perfect for a first time home buyer or an investor. Covered patio and large fenced in back yard. Located on a quiet cul-de-sac and just minutes from shopping, restaurants, Cloverdale and I-85. Great buy for popular Midtown! 

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2026 Gorgas Street: Charming move-in ready cottage in the heart of Midtown!

Wednesday, January 15, 2020
by The Hat Team

 

2026 Gorgas Street, Montgomery, Alabama 36106

MLS# 467503

3 Bedrooms | 2 Bathrooms | 1,635 sq ft | Forest Park

 

Charming move-in ready cottage in the heart of Midtown! This warm and inviting home has been updated throughout while retaining all of the cozy charm, including high ceilings, beautiful hard wood floors and crown molding. Separate living and dining rooms, master bedroom with en suite bath with double vanity, updated kitchen with lots of cabinets and even a laundry room! Great brick patio with fire pit that's perfect for entertaining. Large fenced in back yard with huge storage/workshop. Check it out today! 

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2243 Winona Ave: Adorable Capitol Heights Cottage!

Wednesday, January 8, 2020
by The Hat Team

2243 Winona Ave, Montgomery AL 36107

MLS# 467481 

3 Bedrooms | 1 Bathroom | 1,492 sq ft | Capitol Heights

Come tour this adorable Capitol Heights cottage before someone beats you to it! Inviting screen porch is the perfect place to relax and unwind on the swing or in a cozy chair. Living room is plenty big, and classic glass French doors separate it from the spacious formal dining room. Big eat-in kitchen is all original, and while quite functional, offers you the opportunity to update to your personal taste. Wide central hallway takes you to three good sized bedrooms and a hall bath, plus laundry area including washer and dryer! Deck off the back of the house is another place to enjoy the outdoors, overlooking the pretty back yard and detached workshop/storage building. Priced right, and would make a great rental property to begin or add to your investment portfolio. 

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A Time to Sell

Wednesday, January 8, 2020
by The Hat Team


Selling your home is a huge decision and one that should not be made impulsively.  If you are thinking about selling, but you’re not sure if you should, here are some signs to look for that will indicate that now is a good time to sell:

  • Space is an issue.  Has your family grown since you bought your current home?  Do you have multiple people sharing bedrooms and bathrooms?  If your house is bursting at the seams, it might be time to let it go and find something a little bigger.  Alternatively, perhaps you have too much space.  If you bought the home when your family was large and now you are an empty nester, you may be ready to downsize.
     
  • Neighbors are selling homes successfully.  If houses are selling like hotcakes in your neighborhood and your neighbors are making tidy profits on their sales, then that’s a cue that you should contact a Realtor to find out what your home is worth on the current market.
     
  • Interest rates are low. When interest rates are low it is an advantage to sellers because a larger pool of eligible buyers can be expected.  Add to that the fact that the current inventory of homes for sale is low, and you have a seller’s market that will make your home even more desirable to prospective buyers.
     
  • Remodeling won’t be worth it.  Maybe you want to stay in your current home and you think that remodeling is the answer.  But will the expense of remodeling to fulfill your wants and needs be worth it in the long run?  Will it add value to your home?  While you might have to do some updates to prepare your home for sale, if the market favors sellers, you might be better of selling and finding a new home to suit your needs.
     
  • You’re confident the market is strong.  It’s important to educate yourself about what’s going on in the current real estate market before you decide to put your house on the market.  An experienced Realtor can help you understand the market and determine if now is the time to sell your house. 2020 Real Estate Trends: What You Need to Know

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

Photo Credit: goldencircleadvisors.com

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Don’t Let Winter Make You Blue

Thursday, January 2, 2020
by The Hat Team


It’s the time of year when everything just seems “blah”.  The holidays are over and winter looms before us…long and cold.  Many of us leave for work during the dark morning and don’t arrive home until the dark of night.  It can be depressing.  Really.  Scientifically.  Depressing.  Per Psychology Today, Seasonal Affective Disorder (also called SAD) is a type of depression that follows the seasons.  The most common type of SAD is winter depression.  Scientists believe that SAD may be related to changes in the amount of daylight we experience.  It is estimated that this disorder affects 10 million Americans, with another 10 to 20 percent suffering from a milder form of SAD.  It’s more common in women than men and symptoms usually begin around age 20.  Some people suffer symptoms so severely that they affect quality of life and 6% of people with SAD require hospitalization.  But don’t despair!  While SAD is a legitimate illness that should be taken seriously and treated, many of us experience a mild form of “winter blues” that we can beat on our own.  Here is a list of scientifically backed ways to “beat the winter blues”:

  1. Make your environment brighter. Thirty minutes of light exposure can be as helpful as an antidepressant. Open your blinds, sit near a window and on sunny days, get outside! And if these options aren’t available, try light therapy. The 8 Best Light Therapy Lamps of 2020
     
  2. Make healthy eating choices. Certain foods like chocolate, asparagus, spinach, blueberries and oranges are known to enhance your mood and relieve anxiety.
     
  3. Simulate dawn. If you’re suffering with SAD, you may be finding it difficult to get up in the morning, especially if it’s still dark outside. A study showed that a dawn simulator, a device that makes the lights in your bedroom gradually get brighter over a set period of time, can serve as an antidepressant and make it easier to get out of bed in the morning. 6 Best Dawn Simulators
     
  4. Exercise. A Harvard University study showed that walking fast for 35 minutes a day, five days a week or 60 minutes a day, three days a week can significantly reduce symptoms of depression. And for SAD, exercising in brightly lit environments is even better!
     
  5. Listen to music.  Research has shown that listening to upbeat, cheerful music can improve your mood and reduce anxiety.
     
  6. Plan a vacation.  Research shows that although it might be months before you actually go, simply planning a vacation causes a significant increase in overall happiness.
     
  7. Lend a helping hand. Volunteering to help others is great way to improve your mental health and increase satisfaction in life.
     
  8. Spend time outside.  Even when it’s cold, the benefits of spending time outdoors are numerous. Time spent outdoors can improve focus, improve symptoms of SAD and reduce anxiety.

So, don’t let the winter blues get you down.  Take steps to lift your spirits and spring will be here before you know it!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

Photo Credit: parklandmedicalcenter.com

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