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If you’re a cash-challenged home buyer, a lease-to-own agreement may be a way to buy a home and accumulate a down payment. A lease-option also gives you a chance to check out the neighborhood and occupy the home before you decide whether you want to buy it.
Generally speaking, there are two ways by which you can get positive cash flow from the ownership of a rental property. One situation is when the capitalization rate of your property is higher than the annual loan constant with the loan-to-value ratio or LTV calculated at 70 to 80%. The other way is when the LTV is at an unusually low figure, such as 60% or lower.
Renting commercial real estate is a huge responsibility and it certainly needs a lot of thinking on your part. The rules of commercial real estate lease are tight and it addresses each and every aspect of the lease. If you’ve ever rented commercial space, you know that finding a property and negotiating lease terms is serious business.
With the real estate and housing markets in turmoil recently, you might expect the rental market to follow suit. "Not so," says realtor Diane Clark of Parsippany, N.J.