Author Archives: rickbassett

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Every Rental House is like a small 401(k)

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Savings interest rates have been hovering around 1% for the past 10 – 12 years, while inflation has been exceeding 5% per year for the past two years. The stock market has had its ups and downs, some sectors have done well and others have gotten clobbered.

It’s difficult for most of us to figure out how to grow a nest egg without getting it being eaten up by inflation, devaluated by the sudden whims of the stock market, and erosion by the numerous fees on investments vehicles.

After the great recession (circa 2008) our company started going all-in on Rental Houses, buy-fix-hold-rent, in particular, is our flavor of choice but we will also do buy-hold-rent of turnkey properties if the numbers make sense.

We’ve come to look at each rental property like a small 401(k) retirement saving account. Of course, rental houses aren’t actual 401(k)’s but when acquired and managed properly they can provide significant long-term savings benefits such as appreciation, monthly cash-flow, cash-out ability as well as several short-term and long-term tax advantages.

There are at least 5 potential areas to profit from with a rental house investment:

  • Appreciation – the increase in value of the home over time
  • Monthly Cash Flow – the amount of money left over each month, or each year after paying all expenses such as mortgage, taxes, insurance, property management, repairs..etc.
  • Cash Out Ability – the equity over 30% of market value in a rental property can be unlocked/withdrawn in certain conditions by refinancing.
  • Annual Tax Savings –  being able to claim legitimate business expenses against the property, taking generous depreciation deductions, and extending the SALT (State and Local Tax) deduction limit are some of the most popular tax savings methods available to Real Estate investors.
  • Long-Term Tax Savings – capital gains treatment, 1031 exchanges, and tax-deferred retirements accounts are some of the long-term tax savings vehicles available to real estate investors.

Not all properties will always realize all of these potential benefits as real estate investors often have different wealth-building objectives and tax situations. It’s always helpful to seek the advice of attorneys and accountants who are well versed in real estate investing before taking the plunge.

One of the things that tend to hold would-be investors back is Fear of Tenants, as there is no shortage of bad tenant stories. Attracting, selecting, and retaining quality tenants, providing and enforcing a strong lease, and dealing with repairs on a timely basis are key to operating a successful rental property.

Bassett Property Management takes the stress out of the day-to-day tenant side of the business by providing management services to their clients. Visit our website at http://www.bits.ws to learn more.

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3320 Dixwell Ave North Haven, CT 06473

This fully furnished short-term rental apartment includes all utilities & wifi. This one-level ranch apartment was recently updated and is conveniently located in the Ridge Road section of North Haven. Just 5.1 miles to Yale-New Haven Hospital.

Included in the lease: Electric, Gas Heat, Wifi, Water, Trash (tenants must take trash cans to the curb), Sewer. Tenant pays: Renters Insurance, utilities over the $200/mo budget (budget should be sufficient)

Tenants bring linens (sheets, towels, pillows, comforters) extra Wifi TVs (one TV is included in the living room) – linen package is available for an extra $200 per stay.

This apartment is 750 sq/ft. The primary entrance to this apartment is on the right side of the house. 2 parking spaces are included, which are in front of the apartment. This is Non-smoking property

Fear of Missing Out (FOMO) Home Buying

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Spring Renovation Time

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Ideas for accent walls

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An accent wall can totally transform a room, taking it from boring and drab to bold and exciting. Accent walls create a new focal point for your space, add liveliness and contrast, and are typically a very inexpensive DIY project.

The starter accent wall

You can easily add an accent wall to your room in one afternoon by applying a new paint color. Deep blues and bright oranges are common choices for accent walls but choose a color that will complement your existing decor and overall design aesthetic.

Interesting textures

Bright, contrasting paint is a good starting point, but there are other options for accent walls that are even more eye-catching and distinct. Floor-to-ceiling wood planks can make your home seem both rustic and modern all at once and provide a natural, outdoors-inspired feel. It’s more work than simply painting a wall, but it’s still relatively inexpensive. You can source the wood from pallets on Craigslist and stain it yourself before attaching it to your wall. It takes a little extra elbow grease, but it’s worth the effort.

Patterns, murals, and more

Paint and wood are bold enough on their own to transform a room, but they’re still pretty subtle compared to other accent wall options. A chalk paint accent wall is a creative idea for any room and makes for some fun moments when you’re entertaining. There are also endless options for wallpaper and stenciling if you want some patterns or you can get really bold with a mural or oversized art print.