| The fastest growing commodity in the
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| | plus the monthly cost of maintaining the
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| United States is real estate. In 2005, it
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| | property plus the cost of the landlord
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| increased in value by 12% compared to
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| | plus a profit for the owner.
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| other goods and services that increased
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| | Sometimes an investor may choose to buy
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| by only 4.5%. With such a high return on
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| | an apartment building or condominium
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| their investment, many people are
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| | complex and rent the individual units
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| purchasing real estate instead of stocks
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| | out. Here the formula for determining the
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| and bonds.
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| | monthly rent should be the monthly cost
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| Some investors choose to invest in run
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| | of the loan divided by the number of
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| down properties. They buy for a low price
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| | units for rent plus the monthly cost of
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| and hope to sell for a higher price once
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| | maintaining the property plus the cost of
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| the necessary improvements to the house
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| | a landlord plus a profit for the owner.
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| and yard are made. Many investors choose
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| | If any units are vacant, the owner must
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| to do the repairs themselves, saving on
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| | make up the difference in the loan
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| labor costs. Others hire contractors to
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| | payment owed that month. This can be
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| do the work. Either way, it is expected
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| | quite expensive if the units remain
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| that the cost of repairing the home will
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| | vacant over time or the number of vacant
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| increase its value. The new value is
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| | units grows in number.
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| anticipated to exceed the original cost
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| | There are times when the housing market
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| plus the cost of repairs. If the owner
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| | has slid. This is called the bubble
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| can rapidly sell the property, he/she can
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| | effect. Prices go up until, at last, they
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| recoup their investment, make a profit
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| | burst like a bubble and begin to decline.
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| and move on to another real estate
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| | This can be a serious problem if you have
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| purchase.
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| | all your money tied up in real estate. If
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| Other investors purchase properties that
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| | you were depending on your new property
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| are vacant and require little repair to
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| | to earn enough equity to make you a
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| make them marketable. These houses can be
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| | profit and the value of the property
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| resold or rented out. Here the owner has
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| | fails to increase or decreases, you may
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| made the decision that the investment
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| | be in financial trouble. Make sure in
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| will be reimbursed over time. The monthly
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| | advance that you can make your monthly
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| rent on the property must exceed the
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| | payments. You should not depend entirely
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| owner's monthly payment on the loan. In
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| | on the equity to make your payments.
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| the case of property rentals, the owner
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| | Financial experts suggest that, if you
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| assumes responsibility for maintaining
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| | don't have to sell the property and you
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| the property. He/she will act as the
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| | can make the payments, don't sell. Wait
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| landlord, collect the monthly rent, make
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| | it out and see if property values rise
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| any necessary repairs, and handle the
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| | again.
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| paperwork for obtaining tenants. If the
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| | Financial experts say that an informed
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| owner does not have the time to invest in
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| | consumer will know what is happening in
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| being the landlord, he/she can pay
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| | the market place and be prepared for it.
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| another person or real estate agency to
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| | Instead of borrowing again to meet the
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| act on his/her behalf. This saves the
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| | downturn in real estate, they recommend
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| owner time and aggravation but it costs
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| | that you cut back on your expenses where
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| money to pay the substitute landlord a
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| | you can. Use the extra money to step up
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| salary. This has to be figured into the
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| | payments and reduce the amount of the
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| rental price. Thus the monthly rent
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| | loan.
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| should be the monthly cost of the loan
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