All Forum Posts by: Ryann Kluthe

This is a great discussion to start so that we can all see example of what has gone on with the Omaha market the later half of 2017. Thank you Shawn! I think 2% in Omaha in a good area is VERY hard to find. I've personally never heard a reference to the "2% rule". I've always just heard a reference to the "1% rule" In my opinion, 1% is the bare minimum you should be willing to invest in.  Of course there are so many other factors such as areas with higher tax levy, getting personal financing with higher interest rates, housing that has monthly assessments, areas that require flood insurance, all these things can throw off the simple 1% rule depending on the property. I think the important thing to remember is, so long as other factors remain the same, rental prices will always go up with inflation. You may only get 1% but if you raise your rent 3% each year, your cash flow will increase every year. Almost any investment in real estate that starts off at 1% will be a good investment in the future.

Here are a few that I assisted with in 2017:

(1) On Cuming between 35th-46th

(2) all single family

(3)  $1250, $1300, $1500

(4) $105k, $115k, $120k

(5) 1.2%, 1.1%, 1.25%

(1) Benson

(2) single family

(3) $1315

(4) $125,000 + $,500 in repairs and updates

(5) 1%

Advantages of owner financing are the seller will probably get a higher price than if the buyer brought their own financing. Also, seller financing will probably get the seller a better intrest rate than another type of investment would. With seller financing the seller will not have to pay large amounts of closign costs like they most likely would with a lender financed buyer. Also, the seller will no longer be responsible for repairs. There are tax breaks for the seller in seller financing also since there is less income received each year.

Sellers may want to use that specific title company because they have lower fees or because they have a relationship with them and know the process will go faster. From what I know and have experienced it is the buyer's choice of title company.

You may be interested in this link from the NAR website (National Association of Realtors):

http://realtormag.realtor.org/law-and-ethics/law/article/2013/03/respa-rules-agents

John Thedford has an interesting idea I kind of like but that might not work for you since your lease is already in place. My rent is due on the 1st of the month with a 5 day grace period before charging a late fee. I think if you have a talk with the tenant about their pay periods and explain to them you are giving the 5 day grace period to make it work for both sides, they shouldn't take advantage and start paying on the 10th. I've only charged one late fee with this 5 day grace period in place.