Investment Homes In Scottsdale Arizona

If you plan to become a landlord through investment homes, do your homework before you buy to find out what type of homes are in most demand in the area.How to become a landlord with investment home rentals

Talk to rental agents. An agent who handles a large number of rentals can tell you what type of full-time or vacation homes renters are looking for.
Read newspaper classifieds to determine which types of properties seem to be most popular, and how much they are renting for during the different seasons.
If the area attracts a lot of senior citizens, one-level living may be the best choice, or at least a house with the main living quarters on the first floor. Avoid homes where renters must climb stairs to reach the entrance.
Look for a property within a reasonable distance of shopping and area attractions.
Before buying investment homes in a development, make sure the restrictive covenants allow rentals.
Talk to an accountant to verify that the income you can realistically expect to receive is appropriate for the purchase price of investment properties and the projected maintenance fees.
What to look for when purchasing investment homes as vacation homes

Make sure the investment homes are within 10 minutes to the attractions (for example, the most popular vacation homes in Orlando are close to theme parks).
Vacationers will expect a screened and heated swimming pool.
Look for a home that is easy to maintain. Ceramic tile is easy to maintain, has a classy appearance and will survive wear and tear better than carpet.
A pool Jacuzzi, or jacuzzi bath tub is a nice features.
The more privacy the yard provides, the better. People like to sunbathe on their vacations. Water views and conservation area are always a plus.
Larger homes of four to five bedrooms are designed to accommodate more than one family. Having a fully functional kitchen is important, as these customers will be looking to save money on daily maid service or restaurant dining.
Turning investment properties into a businessProperty management companies come in two types – those that manage the property and those that rent and manage the property.

Management services: hire individuals to do repairs, property key disbursement and retrieval, make phone service available 24 hours a day for problems that arise and are responsible for the general inspection of the property.
Rental and management services: include all of the above, as well as advertising and finding renters for the property and handling rental payments.
Monthly expenses and additional costsYour monthly expenses will generally include the following:

property maintenance company
pool maintenance
lawn care
pest control
electricity service
water service
trash pickup
cable service
phone service
Internet service
Additional costs will generally include the following:

property taxes
advertising and marketing fees
cleaning fees at the end of a rental period

The Paradigm Shift That Altered The Odds of Investing

This picture speaks MORE than a thousand words… Looking at the chart (link at the bottom) of the S&P 500 index from 1960 to 2013, it doesn’t take a rocket scientist to recognize that the early 90′s was clearly an inflection point of some new trend-setting phenomenon or paradigm shift relative to investing. In my opinion, this is the point where the rational investing paradigm of old morphed almost overnight into the irrational speculative paradigm we’ve all witnessed the past 20 years. Over these past two decades, this shift has proven extremely beneficial and profitable for Wall Street, the financial services industry and all those working in it… but unfortunately, not so for investors. We investors that put all the money in, assume all the risk and pay fees for someone to manage our investments, have experienced little if anything in the way of creating, accumulating and more importantly, preserving wealth over the past decade or longer.So what changed? Did the odds really shift in favor of the financial services industry? Do we as investors stand a chance to achieve our lifetime financial goals if this is the new norm?In the beginningBack in the 1980′s, a new technology platform began to impact the world in a very profound way and quickly found its way into almost every aspect of our lives. The Age of Technology; computers, internet and smart phones were brought to our desktops, homes and palms, fundamentally enhancing our work efficiencies/effectiveness, personal lives and forms of communication and entertainment. There were so many benefits to embrace and it was and continues to be almost beyond the realm of comprehension. But, with all good things, there is a down side, those people that take advantage of others and businesses that manipulate the system for their direct benefit.Play ballIn the mid to late 90′s, the vast majority of Baby-Boomers, including myself, and many Gen X investors, got sucked into this initial irrational speculative paradigm chasing every “hot” tech stock, tech fund and/or tech manager that the financial services industry could muster. It was almost as if we couldn’t lose. Easy wealth seemed to abound all around us and the rationalization was the value provided by this new “tech industry” had forever changed the investment landscape. The financial services industry had convinced us that this rapid and unprecedented creation of wealth could never end, even though there were no fundamentals to support that claim, and we as investors desperately needed to capture our fair share of it… which we all too willingly did. But as we all now know and history teaches us, speculative bubbles of this irrational type burst, and when this irrational tech bubble did, the consequences inflicted on investors were quick, harsh, and wiped out massive amounts of personal wealth over a few short years. The investor’s wounds were deep, painful and long-lasting… but not for the financial services industry.Lesson learned by investors, right? Wrong.”Their Game” EvolvesTake another look at the chart. In 2003, the markets sharply rebounded and soon, the financial services industry and its massive marketing machine were busy selling a whole new set of highly irrational and speculative products to investors, none of which sounded or looked anything like the words stock or bond. Consider some of the products created by this industry and sold to investors from 2003 to 2008; Collateralized Debt Obligations, Auction Rate Securities, Credit Default Swaps, Mortgage Backed Securities and Structured Investment Vehicles to name a few… and all with the same promise of huge returns that we as investors couldn’t afford not to invest in, even though no one could explain what these products were, how they worked or what the risks were. That wasn’t important and consequently investors again got sucked into playing this game of the financial services industry. The irrational speculation paradigm had again reared its ugly head and the financial services industry was laughing all the way to the bank knowing, this new self serving serpent was again working to benefit and reward their industry, Wall Street and those working in it with huge profits and bonuses… all at the expense of all investors.In his 2012 best-selling book; Markets Never Forget… But People Do, Ken Fisher details how investors never seem to learn from past mistakes and blindly believe the financial services industry when told… “but this time it’s different.”And so in 2008, the irrational speculative Housing Bubble burst and for a second time in less than 10 years, investors lost trillions of dollars in personal net worth and wealth, most losing 50% or more of their life’s savings. This bubble has proven a disaster for the Baby boom generation as they were on the verge of retirement when this bubble burst and time is no longer on their side to recover. Now, this generation is facing decisions they never thought possible; working later in life, lowering their standard of retirement, working part-time to supplement their income or… as is evidenced today, taking even greater risks with their limited wealth in more irrational speculative investments.Time to repackageGame over? Hardly if the S&P 500 chart and today’s market hype/euphoria are any indication. It’s as if we’re in a new short-term recurring speculative cycle every few years; build wealth only to lose it from 1995-2003, build wealth only to lose it from 2003-2009, and now from 2009 to today, we have seen the markets move to all-time highs for no rational reasons, only irrational. Consider the following; we’ve been mired since 2009 with a stagnant low-growth economy, high unemployment and the Federal Reserve continuing to pump billions of dollars a month into our economy just to keep our economy afloat while devaluing our dollar… and… Wall St, private-equity firms and hedge funds have once again turned to riskier but more lucrative bets such as leveraged loans, a lightly regulated stepsibling to junk bonds. These leveraged loans became popular before the 2008 collapse, nearly disappeared right afterwards, but are now back in vogue and “hot” with volumes exceeding the pre-crisis levels of 2007.This market run-up, as in past bubbles, has no foundation to sustain itself whatsoever, but investors are pouring money back into it at a time when the next bubble is most vulnerable to bursting. Just as with the past two bubbles, most investors bought into the markets at or near the highs when euphoria was greatest and, after the bubbles burst, sold low when the emotional pain of loss overcame them personally. Buy high… sell low is not a winning investment strategy, only a strategy the financial services industry and their marketing machine has successfully leveraged to encourage investors to play.Are you willing and can you afford to lose 50% of your wealth if you’re a first time investor? What if you have been investing for more than five years, can you again afford such a loss for the second or worse yet, a third time?Are you willing to accept this cycle of feast then famine? Who has been and continues to be the primary beneficiary of this paradigm shift? Is this the best investors can expect? Is there any alternative to revert the paradigm back to rational investing?”Their game” exposedHere’s what I’ve learned over my 30 plus years investing and more specifically, the past 18 years and feel compelled to share with my readers. It is my opinion and one based on factual evidence, that this new irrational speculative paradigm shift, or intentional market manipulation as I prefer to call it, is nothing more than a new game that was solely created by the financial services industry, for the direct benefit of the financial services industry and at the sole expense of their clients, we the investors.I now refer to this new game as “their game.” “Their game” can easily be characterized as follows:Totally self-serving
Rife with conflicts-of-interest
Higher and more undisclosed fees
Providing less value
Lack of Risk Management to preserve/protect wealth from massive market meltdowns
Legal confiscation of wealth via fees
SEC, Finra, State Divisions of Securities, etc. protection
Little if any legal fiduciary responsibility
A massive and extremely effective marketing machine that preys on investor’s emotionsStill alive and wellI’ve come to realize the following; the paradigm of rational investing that my parents taught me and had worked for decades is still alive and well today but only for those investors with the disciple to tune out the “noise” of Wall Street and that choose to no longer follow blindly the hype of sales reps masquerading as financial professionals with self-serving interests.The paradigm of investing has indeed shifted and investors now have a choice of playing the game of the financial services industry, what many investment legends like John Bogle, Warren Buffet, Peter Lynch, Larry Swedroe and David Swenson to name a few, consider an absolute loser’s game, or, playing a winner’s game as an informed self-empowered investor where the odds can easily and simply be shifted back in the favor of we investors.In next month’s article, I’ll be focusing on a couple of the above questions; Is this the best investors can expect and is there any alternative to revert the paradigm back to rational investing? The intent will be to define a winner’s game and what immediate actions the average investor can take to shift the odds of wealth creation and preservation back in their favor.S&P Historical Chart link;