October 5, 2022

Buy Now or Rent Longer?

5 Questions to Answer Before Purchasing Your First Home

Deciding whether to jump into the housing market or rent instead is rarely an easy decision – especially if you’re a first-time homebuyer. But in today’s whirlwind market, you may find it particularly challenging to pinpoint the best time to start exploring homeownership. 

 

A real estate boom during the pandemic pushed home prices to an all-time high.1 Add higher mortgage rates to the mix, and some would-be buyers are wondering if they should wait to see if prices or rates come down.

 

But is renting a better alternative? Rents have also soared along with inflation – and are likely to continue climbing due to a persistent housing shortage.2 And while homebuyers can lock in a set mortgage payment, renters are at the mercy of these rising costs for the foreseeable future.

 

So, what's the better choice for you? There’s a lot to consider when it comes to buying versus renting. Luckily, you don’t have to do it alone. Reach out to schedule a free consultation and we'll help walk you through your options. You may also find it helpful to ask yourself the following questions:

 

 

  1. How long do I plan to stay in the home?

 

You'll get the most financial benefit from a home purchase if you own the property for at least five years.3 If you plan to sell in a shorter period of time, a home purchase may not be the best choice for you.

 

There are costs associated with buying and selling a home, and it may take time for the property’s value to rise enough to offset those expenditures.

 

Even though housing markets can shift from one year to the next, you’ll typically find that a home’s value will ride out a market’s ups and downs and appreciate with time.4 The longer you own a property, the more you are likely to benefit from its appreciation.

 

Once you’ve found a community that you’d like to stay in for several years, then buying over renting can really pay off. You’ll not only benefit from appreciation, but you’ll also build equity as you pay down your mortgage – and you’ll have more security and stability overall.

 

Also important: If you plan to stay in the home for the life of the mortgage, there will come a time when you no longer have to make those payments. As a result, your housing costs will drop dramatically, while your equity (and net worth) continue to grow.

 

 

  1. Is it a better value to buy or rent in my area?

 

If you know you plan to stay put for at least five years, you should consider whether buying or renting is the better bargain in your area.

 

One helpful tool for evaluating your options is a neighborhood’s price-to-rent ratio: just divide the median home price by the median yearly rent price. The higher the price-to-rent ratio is, the more expensive it is to buy compared to rent.5 Keep in mind, though, that this equation provides only a snapshot of where the market stands today. As such, it may not accurately account for the full impact of rising home values and rent increases over the long term.

 

According to the National Association of Realtors, a typical U.S. homeowner who purchased a single-family existing home 10 years ago would have gained roughly $225,000 in equity — all while maintaining a steady mortgage payment.6

 

In contrast, someone who chose to rent for the past 10 years would have not only missed out on those equity gains, but they would have also seen U.S. rental prices increase by around 66%.7

 

So even if renting seems like a better bargain today, buying could be the better long-term financial play.

 

Ready to compare your options? Then reach out to schedule a free consultation. As local market experts, we can help you interpret the numbers to determine if buying or renting is the better value in your particular neighborhood.

 

 

  1. Can I afford to be a homeowner?

 

If you determine that buying a home is the better value, you’ll want to evaluate your financial readiness.

 

Start by examining how much you have in savings. After committing a down payment and closing costs, will you still have enough money left over for ancillary expenses and emergencies? If not, that’s a sign you may be better off waiting until you’ve built a larger rainy-day fund.

 

Then consider how your monthly budget will be impacted. Remember, your monthly mortgage payment won’t be your only expense going forward. You may also need to factor in property taxes, insurance, association fees, maintenance, and repairs.

 

Still, you could find that the monthly cost of homeownership is comparable to renting, especially if you make a sizable down payment. Landlords often pass the extra costs of homeowning onto tenants, so it’s not always the cheaper option.

 

Plus, even though you’ll be in charge of financing your home’s upkeep if you buy, you’ll also be the one who stands to benefit from the fruits of your investment. Every major upgrade, for example, not only makes your home a nicer place to live; it also helps boost your home's market value.

 

If you want to buy a home but aren’t sure you can afford it, give us a call to discuss your goals and budget. We can give you a realistic assessment of your options and help you determine if your homeownership dreams are within reach.

 

 

  1. Can I qualify for a mortgage?

 

If you’re prepared to handle the costs of homeownership, you’ll next want to look into how likely you are to get approved for a mortgage.

 

Every lender will have its own criteria. But, in general, you can expect a creditor to scrutinize your job stability, credit history, and savings to make sure you can handle a monthly mortgage payment.

 

For example, lenders like to see evidence that your income is stable and predictable. So if you’re self-employed, you may need to provide additional documentation proving that your earnings are dependable. A lender will also compare your monthly debt payments to your income to make sure you aren’t at risk of becoming financially overextended.

 

In addition, a lender will check your credit report to verify that you have a history of on-time payments and can be trusted to pay your bills. Generally, the higher your credit score, the better your odds of securing a competitive rate.

 

Whatever your circumstances, it’s always a good idea to get preapproved for a mortgage before you start house hunting. Let us know if you’re interested, and we’ll give you a referral to a loan officer or mortgage broker who can help.

 

  Want to learn more about applying for a mortgage? Reach out to request a copy of our report: “8 Strategies to Secure a Lower Mortgage Rate”

   

 

  1. How would owning a home change my life?

 

Before you begin the preapproval process, however, it’s important to consider how homeownership would affect your life, aside from the long-term financial gains.

 

In general, you should be prepared to invest more time and energy in owning a home than you do renting one. There can be a fair amount of upkeep involved, especially if you buy a fixer-upper or overcommit yourself to a lot of DIY projects. If you’ve only lived in an apartment, for example, you could be surprised by the amount of time you spend maintaining a lawn.

 

On the other hand, you might relish the chance to tinker in your very own garden, make HGTV-inspired improvements, or play with your dog in a big backyard. Or, if you’re more social, you might enjoy hosting family gatherings or attending block parties with other committed homeowners.

 

The great thing about owning a home is that you can generally do what you want with it – even if that means painting your walls fiesta red one month and eggplant purple the next.

 

The choice – like the home – is all yours. 

 

 

HAVE MORE QUESTIONS? WE’VE GOT ANSWERS

 

The decision to buy or rent a home is among the most consequential you will make in your lifetime. We can make the process easier by helping you compare your options using real-time local market data. So don't hesitate to reach out for a personalized consultation, regardless of where you are in your deliberations. We'd be happy to answer your questions and identify actionable steps you can take now to reach your long-term goals.

 

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

 

 

Sources:

1.     CNN - 
 https://www.cnn.com/2022/08/11/homes/home-prices-second-quarter/index.html

2.     NPR - https://www.npr.org/2022/07/14/1109345201/theres-a-massive-housing-shortage-across-the-u-s-heres-how-bad-it-is-where-you-l

3.     Bankrate - 
 https://www.bankrate.com/mortgages/5-year-real-estate-rule/

4.     Federal Reserve Bank of St. Louis -
 https://fred.stlouisfed.org/series/MSPUS

5.     National Association of REALTORS - https://www.nar.realtor/blogs/economists-outlook/price-to-rent-ratios-by-state-from-2014-2019

6.     National Association of REALTORS -
 https://www.nar.realtor/blogs/economists-outlook/single-family-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years

7.     Statista - 
 https://www.statista.com/statistics/200223/median-apartment-rent-in-the-us-since-1980/

What Makes a Great Long-Term Rental Property? A Checklist for Smart Investors

September 4, 2025
Real estate continues to dominate as America's favorite long-term investment strategy. For the 12th consecutive year, 37% of Americans consider real estate the top investment choice—nearly doubling stocks at just 16%. 1 This isn't just sentiment; investors are putting their money where their beliefs are, purchasing 13% of all homes sold in 2024. 2 The truth is, real estate offers unique advantages that traditional investments can't match. A rental property provides multiple income streams, delivering monthly rent payments while simultaneously building equity and appreciating in value. Plus, leverage amplifies returns: Even if you put down 20%, you’ll benefit from 100% of the property's appreciation gains. Tax advantages, such as depreciation and deductible expenses, can further boost profitability. 3 When executed wisely, rental properties can deliver steady cash flow today and significant wealth tomorrow. But success starts with preparation—knowing how rentals make money, who is best suited to invest, what to look for, and where to start. How Rental Properties Build Wealth Great rental properties create wealth through three primary channels that work together to compound returns over time: Cash Flow represents net monthly income after expenses. The formula: Total rent minus all expenses (mortgage, taxes, insurance, maintenance, management fees, etc.). A duplex renting for $3,300 monthly with $2,700 in expenses generates $600 monthly positive cash flow—money for profit or reinvestment. Appreciation refers to property value increases over time. Historically, U.S. home prices have risen approximately 3-5% annually. 4 A 5% annual appreciation on a $300,000 house adds $15,000+ to your equity annually from market gains alone. Equity growth also occurs as mortgage payments reduce loan principal. Ideally, tenant rent effectively covers these payments, so tenants are purchasing the property for you incrementally. If $500 monthly goes toward principal, you gain $6,000 in equity annually. The total return combines all three elements. While individual components might not create overnight wealth, together they compound impressively for patient investors. Who Should Invest in Rentals? Rental property investing isn’t for everyone. The most successful investors tend to share a few traits: Long-term wealth builders with financial stability and risk tolerance typically succeed. Investment properties require substantial down payments (typically 20-30%) plus cash reserves for maintenance and vacancies. You need stable finances with emergency funds before investing, as real estate is illiquid. 5 Detail-oriented, patient investors often find the greatest success. Nearly 90% of real estate investors encounter challenges—bad tenants, unexpected repairs, or incorrect pricing. 6 Smart investors educate themselves and analyze numbers carefully before buying. Hands-on, resourceful owners who can handle basic maintenance, repairs, and tenant management themselves also have an advantage. These investors can save thousands each year on property management and service fees, boosting overall returns. If you align with these traits, rental property investing can be a powerful tool for building lasting wealth. Where to Begin Your Investment Journey The first step is to contact an investment-savvy real estate agent. We can be an invaluable partner in finding and securing great properties by offering: Access to off-market deals that you can’t find on your own. We have extensive networks and can sometimes help you uncover properties before they are publicly listed. Expert market knowledge to help you choose the right property. We know which neighborhoods, property types, and home features are the most desirable to renters in our area. Deal analysis assistance to maximize your returns. We can help you estimate cash flow, cap rates, and return on investment. Ongoing network support that extends beyond closing. We maintain networks of reliable contractors, property managers, investor-friendly lenders, and insurance brokers. With the right guidance from day one, you can move forward with confidence and start building a portfolio that works for you. Your Rental Property Evaluation Checklist Not all rental properties offer equal investment potential. Smart investors use systematic criteria to identify truly great opportunities: Location & Market Analysis Location determines everything—tenant quality, rental demand, and appreciation potential. Focus on areas with strong rental demand near employment centers, universities, or transit systems ensuring steady tenant pools. Research local vacancy rates carefully. High neighborhood vacancy signals low demand, while low vacancy allows rent increases. Investigate safety and school quality—properties in low-crime areas with good schools attract stable, long-term tenants. 5 Evaluate regional economic trends beyond immediate neighborhoods. Growing employment opportunities drive housing demand. Research major employers that are expanding but avoid areas dependent on single industries. Check government infrastructure plans—new transit or development projects can boost values, but excessive new development might increase competition. 5 Financial Analysis Perform detailed cash flow analysis for every potential property. Calculate expected rent and subtract all expenses: mortgage payments, property taxes, insurance, HOA fees, management costs, maintenance reserves (budget 10% of rent), and vacancy allowances. The “1% rule” provides a quick assessment—monthly rent should equal at least 1% of purchase price plus any necessary repairs. Therefore, a $200,000 home should rent for at least $2,000 monthly. 5 Run sensitivity analysis: What happens if rents drop 5% or expenses increase 10%? Great properties remain profitable under various conditions. Property Condition & Carrying Costs Physical condition directly impacts returns. Older homes with outdated systems may require frequent, costly repairs. 7 Schedule professional inspections focusing on major components: roof, foundation, electrical, plumbing, and HVAC systems. Consider property layout—standard configurations like 3-bedroom/2-bathroom homes appeal to broader tenant bases than unusual layouts. Factor in capital expenditure timelines for major items needing replacement every 15-30 years. Research property tax rates and insurance costs carefully. Some areas have taxes so high that even nice properties won't generate profit. Get insurance quotes before purchasing, especially for properties in flood zones or disaster-prone areas requiring expensive additional coverage. Property Type Selection For most investors, single-family homes, condominiums, or townhomes offer the best starting point. Single-family homes typically attract longer-term tenants who treat the property as their home, resulting in steadier income. 5 Unless you’re planning to use your property as a short-term or vacation rental, avoid highly specialized properties like luxury mansions or tiny studios targeting niche markets with higher vacancy risks. “Bread and butter” 2-4 bedroom homes in middle-class neighborhoods form successful long-term rental portfolio foundations. 5 Due Diligence Requirements Verify all numbers independently. Research comparable rents for similar nearby properties ensuring realistic projections. 7 Check sales comparables to avoid overpaying. Schedule professional inspections and read reports thoroughly—unexpected problems can transform great deals into money pits. Understand local landlord-tenant laws covering eviction processes and deposit rules. Consult professionals, as needed, for valuable guidance. If this checklist seems overwhelming, don’t worry! We can help with each of these items. By following this checklist, we’ll separate high-performing rental opportunities from costly mistakes and position you for long-term success. BOTTOM LINE Great rental properties aren't found by chance—they're identified through systematic evaluation. Properties that build lasting wealth combine healthy cash flow, solid locations, sound physical condition, and strong growth potential. Success requires patience, proper analysis, and the right team. While markets fluctuate, well-chosen properties consistently reward investors through income, appreciation, and equity growth creating real wealth over time. Ready to start building wealth through rental property investment? The fundamentals we’ve outlined provide your foundation, but local market expertise and deal analysis make the difference between mediocre and exceptional investments. Let's discuss how these principles apply to current opportunities in your target market. Sources 1. Gallup - "Real Estate Still Best Investment" - https://news.gallup.com/poll/660161/stocks-fall-gold-rises-real-estate-best-investment.aspx 2. Realtor.com Research - "Investor Report June 2025" - https://www.realtor.com/research/investor-report-june-2025/ 3. Investopedia - "Real Estate vs. Stocks" - https://www.investopedia.com/investing/reasons-invest-real-estate-vs-stock-market/ 4. Redfin Blog - "Average home appreciation per year" - https://www.redfin.com/blog/average-home-appreciation-per-year/ 5. Investopedia - "10 Factors to Consider When Buying an Income Property" - https://www.investopedia.com/articles/mortgages-real-estate/08/buy-rental-property.asp 6. Clever Real Estate Survey - "Residential Real Estate Investing in 2024" - https://listwithclever.com/research/residential-real-estate-investing-2024/ 7. Investopedia - "5 Ways to Value a Real Estate Rental Property" - https://www.investopedia.com/articles/mortgages-real-estate/11/how-to-value-real-estate-rental.asp

10 Hidden Home Maintenance Tasks That Could Save You Thousands

August 6, 2025
As a homeowner, you’re likely diligent about the basics—mowing the lawn, touching up paint, and cleaning regularly. But what about the critical home maintenance tasks you don’t see every day? Research shows that home maintenance frequently takes a backseat, even with the best intentions. In fact, a recent survey found that 60% of homeowners have postponed necessary maintenance or repairs, while 40% admit to paying for a major home repair that could have been avoided with better upkeep. 1 Still, it’s not just about avoiding costly emergencies—it’s also about maximizing the return on your biggest investment. According to research by Thumbtack, homeowners who do put in the extra care are rewarded: Well-maintained homes sell for an average of 10% more. 2 Let’s explore 10 often overlooked home maintenance tasks and how they can save you thousands in long-term costs. 1. Gutter Cleaning: Your First Line of Protection Clogged gutters can cause water to overflow and seep into your home’s foundation, attic, or siding. Left unchecked, this can lead to foundation damage, rot, and even flooding. The real cost of neglect: While professional gutter cleaning averages $162 nationally (up to $390 for multi-story homes), water damage repair costs can add up—averaging $5,100 for foundation damage and $4,300 for a flooded basement. 3,4,5 Your action plan: Clean gutters at least twice annually—in spring and fall. Use a gutter scoop or hose to remove debris. Consider investing in gutter guards to reduce future clogs. This small task prevents major structural damage and prolongs the life of your home’s exterior. 2. HVAC Filter Replacement: Small Task, Major Impact A dirty HVAC filter reduces airflow, causes your system to work harder, and increases energy use. It can also lead to health concerns from trapped contaminants circulating in your home’s air. 6 The hidden costs: A neglected filter can lead to clamped-up coils, furnace failures, and sometimes a complete system replacement costing $4,000-$12,000. 6 Your maintenance routine: Replace filters every 1–3 months, depending on filter type, usage, and the number of pets in your home. Opt for MERV 8–13 filters for efficiency and air quality balance. 7 Schedule full-system annual servicing ($175–$550) to catch hidden issues early. 8 This simple task saves on energy bills (15-20% according to the Department of Energy) and extends your HVAC system’s lifespan. 8 3. Water Heater Flushing: Preventing Sediment Buildup Over time, sediment accumulates in your water heater tank, reducing efficiency and shortening the unit's lifespan. Left unchecked, this buildup can cause leaks or complete tank failure. The financial reality: Regular flushing prevents early replacement and may be required to maintain your water heater’s warranty. 9 You can do it yourself or hire a professional for around $160. 10 Your annual process: Turn off power and water supply to the unit Attach a hose to the drain valve and empty the tank completely Check your anode rod; it may need to be replaced every 3–5 years. This simple routine extends your water heater’s life and preserves energy efficiency. 4. Dryer Vent Cleaning: A Critical Safety Task Lint buildup in dryer vents doesn’t just reduce drying efficiency—it’s one of the leading causes of house fires in the U.S. 11 They also force your dryer to work harder and longer for each load. The cost factor: Professional dryer vent cleaning costs about $144 nationwide, while fire-related damage can run into the tens of thousands. 12 Your safety protocol: Clean dryer vents every six months using a brush kit, or call in a professional. Replace plastic ducts with rigid metal ones, which resist lint clogs. Monitor drying times—longer than usual may signal a blockage. This potentially life-saving task improves both safety and appliance efficiency. 5. Refrigerator Coil Cleaning: The 35% Energy Drain Your refrigerator’s coils help expel heat. When coated in dust, they force the compressor to work harder, increasing energy bills and shortening appliance lifespan. The efficiency impact: Dirty coils can increase energy use by up to 35% and, over time, can lead to costly repairs or replacement. 13 Your simple solution: Check your manufacturer’s guidelines; many recommend cleaning every six months. Locate coils behind or at the bottom of the unit and use a vacuum or coil brush to remove dust and debris. Keep condenser fan areas unobstructed. This $0 DIY task can trim your electricity bill—and prevent early breakdown. 6. Garage Door Lubrication: Prevents Costly Repairs A squeaky garage door means friction—and friction leads to wear on moving parts, costly spring damage, and failed openers. The mechanical reality: A new garage door opener can cost between $350-$1000 installed, but a can of lubricant only costs about $10. 14 Your annual routine: Check the manufacturer’s guidelines to choose the right lubricant for your garage door. Prioritize safety: Ensure the door is fully closed and cut the electricity. Check for any signs of damage before proceeding, and call in a pro if needed. 15 This simple task eliminates squeaks and avoids expensive mechanical repairs. 7. Sump Pump Testing: Your Basement's Guardian Your sump pump quietly protects your basement from water damage—but it needs testing to ensure it works when you need it most. The flood prevention factor: Sump pump failure during a storm can result in thousands of dollars in cleanup costs. 5 Your quarterly test: Pour water into the pit to ensure the float triggers the pump. Confirm pump and drainage are working correctly. Clean the inlet screen once per year to avoid clogs. This 10-minute check gives peace of mind and avoids major flood damage. 8. Chimney Cleaning: Preventing House Fires According to the National Fire Protection Association, the leading cause of home heating fires (30%) is a dirty chimney. 16 The fire prevention imperative: Professional cleaning costs between $100-$350 and is crucial for anyone burning wood. 17 The cost of ignoring this task includes chimney repairs and fire damage that can devastate homes. Your annual safety check: Hire a certified chimney sweep for inspection and cleaning, if needed. Use only seasoned wood to reduce creosote buildup. Install a chimney cap to block debris and critters. Professional chimney maintenance is a non-negotiable safety investment. 9. Roof Inspection: Protecting Your Shelter Your roof endures a lot—storms, sun, pests—and while damage may start small, it can become unbelievably costly if ignored. The structural stakes: A professional inspection averages $239, but some roofers will offer one for free. 18 Roof repair costs have surged 28.47% year-over-year. 19 A new roof now costs $9,500 on average. 20 Your inspection process: Twice per year, perform a DIY inspection for missing shingles, cracked flashing, and sagging areas. Check your attic for stains or leaks after rainfall. Consider a professional inspection every 1-2 years, depending on your risk factors. 18 Early intervention prevents thousands in repairs and helps retain resale value. 10. Water Pressure Monitoring: Protecting Your Plumbing Many homeowners never check their home’s water pressure, but levels above 80 psi can damage pipes, appliances, and fixtures throughout your home, leading to premature failures and leaks. The pressure problem: Water pressure that’s too high can damage your pipes and lead to expensive repairs or flooding. Pressure that’s too low can impact the performance of your faucets and appliances. 21 Your annual check: Use a water pressure gauge connected to an outdoor faucet. Ideal pressure: 40-60 psi. Install a regulator if it runs high. Monitor for sudden changes that could signal a plumbing issue. 21 This small check helps you avoid hidden damage to your entire plumbing system. Creating Your Home Maintenance Schedule Rather than reacting to emergencies, create a proactive plan. Here's a maintenance chart that puts it all in one place:

Real Estate Market Update: What Mid-Year Indicators Mean for Your Next Move

July 1, 2025
As we reach the midpoint of 2025, the U.S. housing market stands at a critical juncture. The frenzy of the pandemic-era real estate boom has long since cooled, but in its place we’re seeing a market searching for balance. Higher mortgage rates, cautious buyers, and rising home inventory are combining to reshape what it means to buy or sell a home in today’s climate. “The housing market is at a turning point,” says Nadia Evangelou, senior economist and director of real estate research at the National Association of Realtors. 1 This turning point brings both challenges and opportunities. Whether you’re buying, selling, or just keeping a close eye on the market, understanding these evolving trends is essential. In this comprehensive market update, we examine four key factors influencing today's housing market and provide actionable strategies for navigating these evolving conditions.