Buy, Rent, and Sell: How to Profit by Investing in Residential Real Estate » (REV)

Robert Irwin is America's top real estate author and expert, as well as a consultant to lenders, investors, and brokers. He is the author of more than 50 books, including Buying a Home on the Internet, The Pocket Guide for Home Buyers, and McGraw-Hill's bestselling Tips and Traps series.

The classic guide to residential real estate profits-from Robert Irwin, America's #1 real estate expert

Updated to meet the most recent changes in the real estate market, this Second Edition of Robert Irwin's Buy, Rent, and Sell covers everything you need to know to earn big profits in real estate. Irwin shows how you can make a bundle in any real estate market by focusing on buy-and-hold strategies and tax-smart long-term investments. Perfect for first-time investors who want to play it safe, Buy, Rent, and Sell is a comprehensive guide to profitable investing whether the market is up or down.

You'll learn everything you need to know to make money buying, renting, or selling property, including how to

• Find killer bargains in any kind of market or region
• Take advantage of smart, low-money-down financing strategies
• Buy and manage rental units for long-term cash flow
• Accurately estimate property values and evaluate rental potential
• Use your properties to save thousands on taxes

Robert Irwin is America's top real estate author and expert, as well as a consultant to lenders, investors, and brokers. He is the author of more than 50 books, including Buying a Home on the Internet, The Pocket Guide for Home Buyers, and McGraw-Hill's bestselling Tips and Traps series.

Preface     xi
Getting Started
Toddy's Real Estate Opportunities     3
A Continuing Housing Shortage     5
Inflation     8
Cheap Financing     14
A Strong, but Not Too Strong, Economy     16
Plan for Success     16
Hold It or Flip It?     17
Should I Hold Properties for a Very Long Term?     18
Should I Keep My Day Job?     19
How Do I Cash Out?     20
Can Anyone Do It?     20
What Kind of Properties Should I Look For?     21
Where Are the Alligators?     22
What If I Can Flip It?     23
How Can I Flip in a Cold Market?     24
When Is It Not Really Flipping?     24
So Should I Hold It or Flip It?     25
Buying
Eleven Steps to Finding Good Properties in Any Market     29
Buy Close to Home     30
Don't Pay Market Price     31
Buy Single-Family Residential Homes (to Start)     32
Look in Better (but Not the Best) Neighborhoods     35
Always Look First for Flippable Properties     35
Look Where Tenant Markets Are Strongest     36
Buy Properties with Positive Cash Flow     37
Look for Low-Expense Properties     39
Insist on Favorable Terms     41
Always Lowball the Seller     42
Start by Converting your Own Home to a Rental     43
Identifying Breakout Bargains     45
Los Angeles: A Case Study     45
Finding the Turnaround Area     47
Getting the Seller to Work for You     51
Reasons That Motivate a Seller     52
Discovering Why a Seller Wants to Make a Move     52
Motivated Sellers in Foreclosure     55
Getting the Bargain     55
Making Lowball Offers That Stick     57
The Initial Lowball Offer     58
Knowing What the Home's True Market Value Is     59
Deciding How Much to Lowball     59
Maintaining Your Objectivity     62
Deciding How Much of Your Own Money to Put into the Purchase     63
Keeping Your Personal Financing Separate from Your Business Financing     64
Holding Back Some Cash in Reserve     65
The Bottom Line     66
Sweet Deals in Foreclosures     67
Buying Directly from a Seller in Preforeclosure     68
Buying from a Lender at a Foreclosure Auction     78
Buying from a Lender in the REO Market     79
Buying from Government Agencies     94
Buying at Auctions     103
Commodities Auctions     104
Real Property Auctions     106
Where's the Profit?     109
Auction Terms and Conditions     110
Working the Fixer-Uppers     114
Where Can I Find Good Fixer-Uppers?     115
Should I Offer Less?     119
How Much Should I Fix?     121
Will Financing Be a Problem?     122
When Should I Sell and for How Much?     123
Financing for Investors     125
Points: The Bane of Borrowers     126
Qualifying for an Investment Mortgage     127
Buying to Move In and Then Converting     130
Financing for a Flipped Property     131
Building a Bridge Loan     132
Institutional Financing     132
Seller Financing     133
Renting
It's Harder...and Easier...Than You Think     145
It's Business, Not Personal     146
A Typical Progression into Landlording     148
Valuating Property for Rental Potential     153
Location Tripled     153
How Do I Determine the Local Market?      154
How Do I Know If the House Will Make a Good Rental?     155
How Do I Know If the House Is in Rental Condition?     160
How Do I Judge the Direction of the Economy?     161
The Basic Rules for Being a Successful Landlord     163
Offer a Clean Rental     163
Pay the Water Bill     165
Know the People You're Renting To     166
Don't Try to Avoid Children or Pets     169
Don't Try to Get the Last Month's Rent     170
Rent for Less     173
Charge for a Late Payment     174
Don't Delay Fixing a Problem     175
Keep a Lookout on Your Property     176
Don't Let the Tenant Get Behind     176
Evict Only as a Last Resort     178
Raising Rents to Increase the Positive Cash Flow     180
How Much, Exactly, Is My Negative Cash Flow?     181
Can I Cut Expenses?     185
Can I Raise Rents?     187
Can I Deduct Losses from My Rental Income?     189
Getting Professional Advice     190
Preparing a Rental for Sale     191
How Do I Break the Lease?     192
What If the Tenant Simply Refuses to Leave?     193
Should I Fix Up the Property?      193
How Much Should I Spend and How Much Should I Upgrade?     195
Can I Get a Second Opinion?     195
How Do I Estimate What It Will Cost to Fix Up the Property?     196
Should I List with an Agent or Sell It Myself?     197
How Do I Find a Good Agent?     197
How Do I Sell It Myself?     198
Once I Find a Buyer, How Do I Handle Disclosures and Inspections?     201
How Do I Close the Deal?     202
Selling
Getting Your Price in Any Market     205
Making the Property Ready to Show     206
Pricing to Market     207
Getting to the Right Price     208
Getting Enough Exposure     209
The Bottom Line     211
Ready-Made Buyers     212
How Do I Find a Tenant-Buyer?     213
What Is a Delayed Purchase?     213
Where Will I Find a Delayed-Purchase Buyer?     214
Should I Use a Lease-Option?     215
Does a Lease-Option Have Risks?     218
How Do I Qualify a Tenant-Buyer?     220
Are There Additional Advantages to Using a Lease-Option?     221
Are There Additional Disadvantages to Using a Lease-Option?     221
What If I Change My Mind?      222
How to Flip Properties     223
Flipping a Property Using a Real Estate Option to Buy     223
Flipping a Property Using an Assignment     226
Using a Hidden Double Escrow: The Wrong Way to Flip a Property     232
The Right Way to Flip a Property     232
Mortgage, Appraisal, and Rebuyer Manipulation     233
Converting Equity to Cash     234
Refinancing to Buy     235
The Tax Consequences of Converting Equity to Cash     238
The Refinancing Process     240
The Bottom Line     243
Tax Advantages for the Real Estate Investor     244
Is Depreciation an Expense?     245
Does Depreciation Contribute to Loss?     246
So When I Sell, I Could Owe Some Capital Gains Taxes?     253
Is There Any Legal Way to Avoid Owing Taxes on My Profits?     254
What Type of Records Do I Need to Keep?     257
What If I Refinance?     258
Index     259