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Month: September 2016

Do You Need a Residential Concierge?

Do You Need a Residential Concierge?

Vacation Rental Home Property Investment

What to consider before hiring a professional residential property manager.

Investing in a residence is a thoughtful process, even if you already own a primary home. Same is true when hiring a residential property manager. If you’ve owned one home or multiple properties, hiring a property manager is an important decision. It might not be right for everyone. However, there are certain things you might consider to help you decide if enlisting the services of a professional is the best choice for you.

1. Where is the residential investment property located?

The distance between your primary residence and the investment property can be a major factor in determining whether hiring a professional home manager is the right choice. The greater the distance, the greater the challenge it is to manage. Time zones can make a big difference between having a delay or a timely repair in an emergency and. If your primary residence is miles away from your rental property it can be difficult manage complaints as well as emergency and maintenance issues.

If you prefer to be hands on, you should consider that the cost and your traveling time to the property may outweigh the cost of hiring a professional property manager. It may even save you money in the long term.

2. Can you afford your time to manage residential investment property?

Some investors work full time. If this is your situation, and you have your family and primary residence to care for, you might not have the capacity to give the investment property the attention it needs. Having a successful residential property, that brings return on your investment, may depend on hiring a professional residential property manager.

We are well aware that time is money. When you consider that managing a property takes time, you may realize that your time is more valuable than hiring a professional to manage the daily, weekly, and monthly obligations of home property management.

3. Look at Your Experience Before Hiring a Property Manager

If real estate is your investment and you are not experienced in property management, then hiring an professional home property manager might be a good decision. Some homeowners found that “learning on the go” can be frustrating and costly.

Home investors don’t always have the time to vet contractors. Homeowners will find that hiring the wrong repairman or contractor can reduce your potential income very quickly. Other location related errors such not understanding local property and housing regulations may also lead greater costs and wasted time.

4. Are you willing to hand over the responsibility to a residential property manager?

If you plan to rent your investment property, residential property managers can be managing everything from collecting rent to filing taxes for the property. They can be assigned to pay bills and coordinate housekeeping, landscaping, and pool services. They may even serve as concierge for tenants.

The question you need to consider is, are you ready to give a manager that much responsibility over your investment? They may be a professional residential property manager with the necessary experience, the question remains do they have passion for your investment property? The passion you feel will help them gain your trust.

All of us at Diamond Head Living, LLC hope that the considerations we offered in this post will help you. It’s a very personal choice, and hiring an outside manager may be the right choice for you.

investment Home’s Big Hollywood Story

investment Home’s Big Hollywood Story

Malibu sign

The story of  how a child star made a huge profit reads like a slow moving Hollywood script – until you get to the big ending! In 1969, 11-year old “Brady Bunch” child star, Eve Plumb, invested $55,300 into the purchase of a Malibu beach house. Plumb played middle child, Jan, in the family sitcom from 1969-1974. Over the years, the 600 square-foot Malibu vacation rental home, probably considered a good deal, was occasionally used by Plumb and her family.

The initial 1969 investment probably translates to about $362,609.78 in today’s currency value. Although preliminary remodel plans were drawn, the investment property was never renovated. Over the years the house mostly just sat vacant, except for the occasional vacation rental or family vacation use.

Vacation Rental Home’s Big Ending

Then the big finale for Plumb was the decision to sell the vacation rental home and in doing so she made more than 10 times her original investment! Last month, the original $55,300, or $362,609.78 in today’s currency value, was sold for $3.9 million. The details can be found in the article written in realtor.com click to read the article.

‘Brady Bunch’ Star Sells Malibu Home for Massive Profit

by David K. Li, published on August 18, 2016, realtor.com

Here’s a story, of a lovely lady—who made a bunch of money selling her Malibu beach house.

Former child star Eve Plumb, who played Jan on the “Brady Bunch,” pocketed $3.9 million by selling the house that she bought for just $55,300 as an 11-year-old in 1969, according to real-estate records.

The buying power of $55,300 in 1969 is worth about $362,609.78 in today’s economy, according to the Consumer Price Index, meaning Plumb got more than 10 times her original investment.

The cozy five-room, 600-square-foot cottage off the Pacific Coast Highway comes with a stretch of private shoreline in secluded Escondido Beach.

The house—where Mom always said you shouldn’t play ball inside, unless Joe Namath drops by—was originally listed for $4.15 million four months ago. Plumb’s real-estate agents insisted, though, that the final $3.9 million figure isn’t a disappointment…click to read the article.

This Vacation Rental Home’s Big Hollywood Story was no disappointment for Eve Plumb and her family. It shows how time, the virtue of patience, and just enough upkeep (not renovation) for investment property can yield a massive profit from an original purchase!

Let us know if you have a Hollywood story you would like to share!

Vacation Homes Uniquely Wright

Vacation Homes Uniquely Wright

Wright Waimea, HI home

Have you ever wondered what it would be like to live in a home designed by American architect, Frank Lloyd Wright? The best-known homes might be out of reach for most of us (Wright’s Cooke House in Virginia Beach is on the market for about $3M). But there are plenty of now-so-well known homes designed by the prolific architect that are now vacation rental homes. They might be uniquely “Wright” for your vacation, or at least a nightly rental.

It seems like it would be amazing to spend a night or even a vacation in a home designed by the iconic American architect. In his design treatment, Wright recognized and respected the natural beauty specific to a location. From the East Coast to Hawaii, Wright’s homes touch the landscape with his unique design sense of integration. He wove the natural beauty of each location into the design of the structure, creating what appears to be a unity between nature and home. The effect of his work is truly remarkable.

Wright Vacation Rental Homes

In an article recently published by Curbed, it is suggested that vacationers add some architecture to their vacation. Of course there are some fairly weighty price tags associated with a getaway like this, including a $450 cleaning fee for one-time housekeeping during a 7-day stay. But there are certain aesthetic perks that probably outweigh the hefty price. It should be noted that Laundry facilities and detergents are provided in the home for guests to use. Additional housekeeping services can be purchased for a fee.

Again, it’s about architecture and aesthetics. Wright’s organic architectural design principles allow natural light into the homes by virtue of skylights and panoramic windows that also invite natural ventilation.

In the September 1, 2016 article written for Curbed, author Megan Barber offers a list of 11 vacation rental homes designed by Frank Lloyd Wright.

11 Frank Lloyd Wright homes that you can rent right now

As one of America’s most prolific and renowned architects, Frank Lloyd Wright is best known for buildings like Fallingwater, Taliesin West, and the Hollyhock House. But hundreds of lesser-known homes are still standing. If you can’t afford to buy a Wright home—like this lakefront residence currently on the market for $2.75M in Virginia Beach—don’t despair. A growing number of the illustrious architect’s homes are available for nightly rentals.

With an emphasis on simplicity, natural beauty, and integration into the surrounding landscape, Wright’s homes offer up the perfect vacation retreat. From a Montana cabin built in 1906 to a stunning Hawaiian residence originally designed in 1954, we’ve rounded up 11 Frank Lloyd Wright homes you can rent right now. Read the full article…

Vacation Rental Home Decorating Ideas

Vacation Rental Home Decorating Ideas

Videos from other homeowners can be helpful, especially when you need home decorating ideas for a vacation rental home.

The video from Grig Stamate is short and packed full of good ideas. Hope you enjoy!

So many good home decorating ideas for vacation rental homes. Come back to this post to revisit the video as often as you like.

Tips For Buying Second Homes and Other Investment Properties

Tips For Buying Second Homes and Other Investment Properties

When buying investment property, would you consider a vacation rental home to be a good choice?  Yes, when you have reliable home property management services in place. Consider the following tips we found from Forbes

Three Things That Make A Great Real Estate Investment

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You need to make some smart choices upfront when buying investment property.

Pays a Fair Cash-on-Cash Return
You need to pro forma your deals and buy cash flow-positive properties that earn you decent returns – not those prize properties that are negative.

Isn’t Too Risky an Investment
All real estate is extremely high risk
if you want to own real estate, consider simply taking fee simple title in your own name – or an entity you wholly own – to the properties you purchase. In addition, you must do the proper due diligence, analyze, test, review reports, etc., to make a lower risk real estate decision.

Doesn’t Require a Lot of Time or Managing
You can earn more but some properties just require way too much time and management to make them smart investments. Examples include vacation rentals, low quality properties in bad areas, college rentals, etc. Nice boring properties rented for as long as possible to decent credit profile tenants seem to take the least time to manage.

You need to do some hard work, research, read up, and make smart, educated decisions to acquire the best real estate investments!

A reliable home manager is a professional who understands how important your investment is to you, and is committed to maintaining your property’s value. One of the best tips for buying vacation homes as investment properties is to have the home property management services in place to save you time, to help maximize your return on investment and to minimize risk.
What are your concerns? Perhaps they can be alleviated by dependable home property management services.