Have you ever had a service company to your home to repair something and find out that it really wasn't "broken"?  It probably conjured up ambivalent feelings of joy that it wasn't something serious and frustration that you had to pay a service call for something so simple.

Before you call the repairman next time, keep these things in mind to see if it is something simple: 

• Disposer not working - check to see if the reset button has been thrown.  It is usually on the bottom of the disposer.  If the disposer is making a humming sound, the blades may be stuck.  While the disposer is turned off, use a wooden broom handle as a lever to gently rotate the blades.  Remove the broom handle and turn on the disposer to see if it works properly.
• Air conditioner not working - check to see if a breaker has thrown on your electric panel.  You might need to flip the breaker completely off and flip it back on.
• Electrical outlets not working - Electrical plugs in bathrooms or outside, especially on a porch or patio, are many times connected to a ground fault interrupter.  The GFI will be a wall outlet and it may be located in the garage.  Locate the outlet and reset the button that may have tripped.
• Clogged drain - a simple way to correct a slow or clogged drain is to use the water pressure from a garden hose.  You'll need a helper to turn on the water full-blast once you have safely placed the hose in the drain and are holding a hand-towel around the hose to direct the water to the drain.  Be prepared to tell your helper to turn off the water when needed.

Whether it's preparing a home to market or arranging repairs required by the sale, REALTORS® know reputable, reasonable and reliable service contractors.  We're here to share our contacts with you to help make home ownership better.

© 2012 Pat Zaby, Inc. | This article cannot be reprinted or republished without written permission.  InTouch is available to republish the article by direct mail, social media or blog.

Rental homes can be the IDEAL investment in today's market because they offer a much higher rate of return than alternatives without the volatility of ups and downs in the stock market.  

IDEAL serves as an acronym to identify the advantages of rental properties:

• Income from the monthly rent contributes to paying the expenses and a return on the investment
• Depreciation is a non-cash deduction that contributes tax shelter
• Equity grows monthly as the mortgage amortizes due to some of each payment being applied to principal
• Appreciation is achieved as the value of the property goes up
• Leverage can increase the return on investment by using borrowed funds to control a larger asset

Every year, it seems like the same things are on the list but this could be the year you really do invest in a rental home.

Rents are climbing, home prices are cheap and mortgage rates are low for even non-owner occupied properties.  A $125,000 home with 20% down payment can easily have a $300 to $500 monthly cash flow after paying all of the expenses.

There are lots of investment strategies that work but one that is easy to understand and execute is to stay with below average price range homes in predominantly owner-occupied neighborhoods.  These properties will appeal to the broadest range of tenants while you hold them and buyers when you're ready to sell.

Single family homes offer an opportunity to borrow high loan-to-value mortgages at fixed rates for long terms on appreciating assets with tax advantages and reasonable control

This is the year to make some real progress on your resolutions.  First, invest some time learning about rental properties by attending a FREE webinar on January 4th at 7:00 PM Central time by national real estate speaker Pat Zaby.  Click here to register.

What's keeping you from taking advantage of the low prices and mortgage rates available today?  Concerned that you may need to sell in a few years and won't be able to get your equity out of your home?

Suppose a buyer purchases a home and finds out that they need to move in two years.  Instead of selling the home, they could convert it to a rental.  It's possible that it could have a positive cash flow even with the small down payment.  In most cases, the conversion would not accelerate the mortgage.

The price of homes and low interest rates combined with a very strong rental market in most areas has attracted a lot of investors.  Non-owner occupied mortgages generally require 20-30% down payment compared to a 3.5% down payment for a FHA owner occupant.

The following example looks at a home that might have been purchased as a principal residence and then converted to a rental at the end of two years.  There are certainly lots of variables to consider but the high indicated rate of return merits closer examination of the possibilities.

For the buyer who has good credit and ample funds for down payment and acquisition costs, there may never be as good a time to buy a home as now.  For the buyer who is concerned that they might have to move in the near future, converting it to a rental might make a great investment opportunity.

© 2011 Residential Finance Consultant | This article cannot be reprinted or republished without written permission.  Subscription service is available to republish the article by direct mail, social media or blog.

Carbon monoxide is colorless, odorless and toxic.  It's called the "silent killer" in homes because some victims are not even aware that the deadly condition exists. 

Homeowners must be concerned about unmaintained furnaces, water heaters and appliances that can produce the deadly gas.  Other sources could include leaking chimneys, unvented kerosene or gas space heaters and even exhaust from cars operating in an attached garage.

The Environmental Protection Agency suggests the following to reduce exposure in the home:

• Keep gas appliances properly adjusted
• Install and use an exhaust fan vented to the outdoors over gas stoves
• Open flues when fireplaces are in use
• Do not idle car inside garage
• Have a trained professional inspect, clean and tune-up central heating systems annually