You’ve made the big decision: You’re ready to buy a home! What’s next? A great first step is to receive a Pennymac BuyerReady Certification. With this certification in hand, you’ll know precisely how much you’re qualified to borrow. It’s about as close to obtaining your mortgage as possible without actually finalizing it.
Let’s explore what a BuyerReady Certification is and how it can give you peace of mind as you begin your home buying journey.
What Is a BuyerReady Certification?
The BuyerReady Certification process is Pennymac’s unique loan certification process that confirms precisely how much of a mortgage you are likely to qualify for.
Here’s how it works:
Talk to a Pennymac Loan Expert and complete a mortgage application.
Submit documents that will provide an overview of your finances. Documents typically include:
Recent pay stubs
W-2 Forms and 1099 statements
Bank statements
Statements for other assets, such as stocks, bonds, IRAs and 401ks
Additional documents related to income, like child or spousal support, rental property income or gift funds
Our underwriters will review your documents, credit history, income and debt-to-income (DTI) ratio. We’ll also consider the type of property you’re planning to purchase.
You’ll receive BuyerReady Certification confirming you are likely to be approved to borrow a designated amount, as long as certain conditions and the home meet requirements. While it’s not a loan finalization, it is a significant move in that direction. Keep in mind that a BuyerReady Certification is valid for 120 days. (If you do not find a home within that period, you can apply for a new Certification with your most current financial information.)
Begin your house hunting with confidence! You’ll know exactly which homes fit your budget and be ready to put in your offer.
How Is a BuyerReady Certification Different Than a Pre-Qualification?
As you embark on the path to homeownership, you may hear about mortgage pre-qualification. How does a BuyerReady Certification differ from mortgage pre-qualification?
While a pre-qualification also involves working with your lender to determine how much of a mortgage you can afford, BuyerReady Certification takes it further.
A BuyerReady Certification is used to provide proof of your financial ability to secure a home loan for a specific amount, given there are no materially adverse changes to your situation or to the loan requirements, and the property you want to buy is determined as eligible. It can also be seen as a conditional approval — meaning, you are likely to be approved for the loan as long as you and the property meet all of Pennymac’s conditions.
Mortgage pre-qualification is a more informal process than BuyerReady Certification. It doesn’t require any official documentation, and is therefore considered more of a ballpark estimate than a precise confirmation of the specific amount you may be able to borrow to buy a home.
The Benefits of Receiving a BuyerReady Certification from Pennymac
Obtaining BuyerReady Certification has many benefits that can help facilitate the homebuying process and make it a more positive experience.
Enjoy peace of mind as you shop for a home
BuyerReady Certification shows the maximum loan amount you would likely qualify for, so you can limit your search for homes that fit your budget. You can avoid looking and falling in love with homes out of your price range. And remember, just because you have a BuyerReady Certification for a certain dollar amount, that doesn’t mean you have to borrow the entire sum . You’ll also want to consider other expenses that come with homeownership, such as taxes, association dues and new home furnishings, so leaving some wiggle room in your monthly budget could be very useful.
Get ahead of competing buyers
Many sellers prioritize accepting offers from potential buyers who have been BuyerReady Certified over those who are only pre-qualified. It shows that you’re a serious, credible home buyer who can secure adequate funding to proceed with the purchase.
Move faster on your offer
Found a perfect home? Since you already know what you can afford, you can make an offer immediately — a big plus in a competitive market.
Expedite loan processing
Since you’ve already submitted the majority of the documentation and information you’ll need for the mortgage, your loan process can be smoother and faster.
Qualifies you for rate lock
BuyerReady Certified homebuyers qualify for Pennymac’s Lock & Shop program, which allows you to lock in a rate before locating a property. Protect yourself from future rate increases and potentially save thousands of dollars in the lifetime cost of your mortgage.*
For an estimate of how much money you may be able to borrow, check out our Pennymac mortgage calculator. And if you’re ready to start home shopping, talk to a Pennymac Loan Expert and get BuyerReady Certified today!
*Lock & Shop Program allows consumers who have a Pennymac BuyerReady Certification for a purchase loan with Pennymac to lock a rate prior to locating a property. The program requires a non-refundable fee of $595 due at the time of the rate lock. Consumers with a Pennymac BuyerReady Certification for a purchase loan with Pennymac must meet appropriate underwriting conditions to obtain a mortgage loan. Consumers may choose between a 60-day, 75-day or 90-day lock period. Consumers must initiate a mortgage loan application for a specific property and be under purchase contract for the property at least 30 days prior to lock expiration in order to extend the locked rate. All rate lock extensions are subject to Pennymac’s standard rate lock extension fees. After the rate lock and subject to favorable market conditions, consumers may be eligible for a one-time reduction in rate once the loan application for a specific property has been initiated (0.50 % maximum reduction in interest rate allowed). Eligible loan products are Conventional Fixed, Conventional ARM, FHA Fixed and VA Fixed. Program excludes Jumbo, refinance, third-party and in-process loans. Program subject to termination in Pennymac’s sole discretion and without notice.
You’re going to have to do more than just pay rent to get new digs. Get ready to fork over a security deposit before move-in day comes.
When it comes to renting, there are costs that everyone is familiar with. These include application and move-in charges, first and last month’s rent, utilities, parking, storage and so on. In particular, the security deposit is one large expenditure that’s standard for anyone who signs a lease for a rental property.
The term “security deposit” is pretty vague, though, so a lot of renters aren’t sure what it’s for. For many people, it seems like a way for the property management company to squeeze even more money out of a renter! In this article, we’ll answer all your questions related to this crucial, one-time payment. That way, you’ll be as informed as possible when it comes time to sign the lease and pay all the associated rental fees.
What is a security deposit?
A security deposit is a set amount of money that a tenant pays to a landlord before moving into a rental property. Essentially, it’s like insurance for the managers/owners to protect their property from damage. The amount of money varies by state or property. So, the payment could be one month’s rent, two months’ rent (also known as twice the amount) or another flat fee set by the property manager.
The funds are held by the manager for the duration of the lease. In fact, state laws dictate that the money must sit in a bank account. At the end of the lease, the landlord returns that money to the tenant, in part or in full, following a move-out inspection of the rental. Or, the property manager can keep it to cover damage other than normal wear and tear. If the damage costs less to fix than the security deposit, the landlord will return the remaining amount to the tenant. So, you might not lose all of the last month’s rent, but you could lose some of it.
When do I pay my security deposit?
The entire security deposit is usually paid when you sign the lease. Often, they’ll also be paying for the first months’ rent, last month’s rent and any other related costs. Tenants pay security deposits by check, money order or electronic payment.
How much is a security deposit?
In general, the amount of the security deposit will be the equivalent of one month’s rent, or maybe two. For example, if your monthly rent is $500 and your landlord requires first and last months’ rent for the deposit, you’ll need to have $1,000 on-hand for the security deposit.
Credit score can also impact how much you need to put down. Low credit scores can turn into a higher security deposit unless you have a co-signer.
Other factors, like the rental application, determine how much to charge for an apartment security deposit. A potential tenant with solid employment history and no criminal record is likely charged less. Also, the rental type and quality, state laws and local market rates all play a part. Often, states limit the security deposit amount, so that renters aren’t totally price gouged.
Why do landlords collect security deposits?
While not all property managers collect security deposits, it’s a pretty standard part of the rental agreement. Property ownership is a difficult business with significant risk, so this helps landlords cover their bottom line.
Property owners collect security deposits as a financial safeguard to protect their properties from damage or other irresponsible actions by residents. Here are some examples of what a security deposit would cover.
Property protection
Accidents happen throughout a lease. If a tenant breaks a light fixture or cracks the drywall, the cost to fix those would come out of the security deposit as they were the tenant’s fault. Knowing that they’ll be out of a hefty chunk of change if they aren’t careful incentivizes people to avoid damaging the unit. Renters who want to get their entire security deposit back should treat the apartment with care and respect.
Financial protection
Security deposits also cover any bills or rent that are delinquent at the end of the lease agreement. So, if you were behind on rent for one month and still haven’t paid that back to your landlord by end of the lease, or you have unpaid utilities on your account, they could take the amount out of the deposit.
Pet protection
If you’ll be sharing your new home with a furry best friend, chances are you’ll have to pay a pet deposit, in addition to the security deposit. This would cover any damages your pet makes to the rental, like tearing up or soiling the carpet. Some landlords will also charge a small amount in “pet rent” on top of the deposit.
What does a landlord do with a security deposit?
The security deposit is “just in case” coverage. For the duration of the lease, the funds will be kept by the landlord in a bank account that generally is separate from their business bank account.
Because of this, the security deposit may collect interest. Some state laws say that the tenant gets those earnings when the landlord returns the deposit money, but in others, the landlord retains the interest earnings. This is something to think about and confirm with your landlord before you lease the apartment.
Can my landlord make deductions from my security deposit?
Remember, a security deposit is a measure to protect the property manager, not the tenant. There are certain circumstances under which your landlord can deduct from it. Here are the most common reasons a renter won’t get the security deposit back.
There’s significant damage
Wear and tear are normal and expected, which is why it’s the landlord’s job to fix or repair things like old appliances, worn-out carpeting and mold damage. However, if you gouge a hole in the drywall or generally damage the unit in an abnormal way, it’s your responsibility to pay for repairs, and the cost of such repairs will come out of your deposit. So, if you want to get your security deposit back, treat the rental unit gently.
In most states, though, there are provisions in place to protect the tenants from having unreasonable or unnecessary dollars taken from their deposit by the landlord. For example, in California, landlords can’t withhold security deposits to pay for things like painting or carpets unless they were totally wrecked by the renter.
The landlord is also prohibited from using a deposit to fund repairs for preexisting problems in an apartment. Don’t be afraid to ask for an itemized list of repairs if you suspect something dishonest is going on.
You owe unpaid rent or fees
If you have any late fees or unpaid apartment rent at the end of your term, your landlord can take that out of your security deposit. To avoid this, pay rent on time every month, and keep an eye on related bills, as well! Avoid overpaying, though. If you put down last months’ rent at the beginning, don’t forget and double down!
You broke the lease
Sometimes, a landlord can also deduct from your security deposit if you break the contract without providing adequate notice. So, avoid this unless it’s absolutely necessary. If you can’t get around it, give your landlord as much notice as possible. Everyone appreciates a thoughtful renter.
You left the unit in a mess
Not cleaning the unit before vacating is grounds for landlords to deduct from the security deposit. That’s why it’s always a good idea to make sure the apartment is tidy before moving out.
However, renters are only required to leave the unit as clean as it was when they first moved in, so that’s what you should aim for: that it’s clean enough to move in for the next tenants. Empty the refrigerator, wipe up any big spills and otherwise “broom clean” the place. Most landlords don’t expect it to pass the white glove test but want it tidy and relatively easy for professional cleaners to handle. Don’t lose a months’ rent because you were too lazy to straighten up!
How long will it take to get my security deposit back?
This can vary by the property manager and state, but most require the landlord to return your security deposit within 30 days of the tenant vacating the premises. Your landlord will include the timeframe in your lease, so make note of that when agreeing to the lease. Also, pay attention to how your landlord will return the payment so you know what to expect when you leave your apartment.
If you’re not getting some or all of your money paid back, the property manager has to provide a written explanation detailing why, including an itemized list of deductions. In many states, they even have to provide receipts detailing repairs.
What if I don’t get my deposit back?
If you don’t get all or part of your money paid back, the simple answer is that it’s probably because your landlord had to make deductions to cover costs. If you disagree with the reasons they deducted from the deposit, there are some options for recourse.
First, before you turn over the apartment keys, take pictures of every room and closet. That way, if the manager tries to pull a fast one you’ll have photographic evidence.
Next, if you disagree with the deductions, write a demand letter to the landlord disputing them, and explain why you’re entitled to the deposit refund. Be sure to retain a copy for your files.
If you’re unable to come to a satisfactory agreement, you can file a lawsuit in small claims court, which handles cases valued at less than $10,000. This is a relatively inexpensive and relaxed court option. Or, you can turn to a professional mediator to help everyone see eye to eye.
Are there alternatives to security deposits?
Thanks to rent, application fees, security deposits and move-in charges and so on, renting is an expensive process. Luckily, there are some emerging security deposit options that cost less and are more efficient and painless for everyone involved.
Lease insurance
Increasingly, landlords are pursuing lease insurance options like LeaseLock to eliminate security deposits altogether. Similar to other types of insurance, the tenant or landlord pays a small fee (starting at $19 for LeaseLock) per month for coverage against thousands of dollars in property damage.
Pay-per-damage
Instead of dishing out a huge amount to the landlord upfront as a security deposit, some landlords choose to bill for damages on a case-by-case basis. They can only charge for damages up to the amount of a traditional security deposit, though, and a third-party company oversees the claim and process to ensure the landlord isn’t over-billing the tenant.
Surety bonds
Facilitated through a third-party bonding company, surety bonds allow renters to only pay a small fraction of the security deposit to the landlord. Because the bonding company guarantees that the tenant will pay and abide by the terms of the bond, landlords are able to accept a much smaller amount as there’s legal protection in place.
Do security deposit laws vary by state?
The short answer is yes, security deposit laws can vary widely by state. Some states do not have statutory limits, which means they don’t specify how much a landlord can charge for a security deposit. In that case, the amount is at the discretion of the landlord.
In other states, though, there’s a cap limit to what the landlord can charge for a security deposit. Many states also have strict laws regarding when to return the security deposit to the tenant after vacating the premises. Here, you can find a full run-down of security deposit laws state-by-state.
Don’t feel insecure about security deposits
Having to save and temporarily sign away a month’s rent (or more!) for a security deposit can feel scary. But it’s completely normal and is in the best interest of both parties. If you maintain the terms of your contract and don’t leave anything grossly damaged, you should get your deposit back. So, as long as you keep the parties and destructive animals to a minimum, you’re covered.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
We’re all privy to dealing with some insects or bugs in our rental property. Whether that be fruit flies, mosquitos or even ants, living pest-free requires knowing how to eliminate unwanted bugs. A common household bug, pantry moths — or Indian meal moths — are a common type of household pest that infests stored food products.
These bugs target food items found in pantries and kitchens, earning them the title of pest. Because they contaminate and damage various food products knowing how to get rid of them, is a valuable skill.
A pantry is an essential part of a kitchen, often stocked with our favorite snacks and necessary items for mealtimes. If it’s mostly full, it is tricky to spot an Indian meal moth before you notice infested food items, meaning it’s too late. Before they contaminate food, utilize this checklist to identify pantry moths.
Identifying by appearance: Pantry moths are small with a wingspan of 5/8 inch. Their coloring ranges from grey to reddish-brown, typically with a spotted pattern on the wings. It’s important to note that pantry months are more slender than traditional moths which are larger and wider in size.
Understanding the pantry moth life cycle: You may not see a moth, but you can pay attention to various life cycle phases you may notice. Female moths lay eggs near food sources or even worse, on food sources. They then grow and the larvae feed on said food sources, beginning the contamination process. The next step in the cycle is spinning a cocoon and pupating, where they then mate to lay eggs, continuing the cycle. Keeping an eye out for eggs just as much as a moth itself can help prevent the pantry moth life cycle from continuing and contaminating food.
Protecting food sources: Pantry moths eat just about anything. Common pantry pests’ favorites include grains (such as flour, rice, cereal and pasta), spices, nuts, pet foods, dried fruit and chocolate. Pantry moths can chew through stored food packaging and nest within food containers, so make sure to check inside food packaging along with these specific foods.
Eliminating pantry moths
Now that we’ve covered what to look for and how to identify pantry moths’ presence, it’s time to learn extermination methods to get rid of pantry moths. It’s essential to get rid of pantry moths the minute you notice their presence as they are notoriously known for being tricky to get rid of.
Clean and empty your pantry
This step is recommended regardless of your elimination method preference. Unfortunately, once you notice a pantry moth, pantry moth larvae or webbing, there is some infestation occurring whether big or small. Your best chance of fully ridding your pantry of this infestation is throwing away noticeably infested food.
Our recommendation is to remove all food from your pantry to thoroughly clean the shelves, paying extra attention to corners. Throw away any food sources listed above, even if it’s unclear if there are eggs or webbing around this food or packaging. Be sure to check all food thoroughly and if there’s even the smallest question, throwing it away ensures you’re getting rid of contaminated food.
Method 1: Try bay leaves
Bay leaves naturally deter pantry moths due to their smell. By placing bay leaves around and inside food containers, the scent will repel moths and prevent further infestation.
Method 2: Invest in pantry moth traps
Image source: Amazon
Pantry moth traps are a great solution for catching these pests and stopping the continuing life cycle. The traps are designed to attract moths with pheromones, catching them with ease. You can find these traps, both natural and chemical, in most hardware stores, online or in some grocery stores
Method 3: Hire pest control
If you prefer to leave it up to the professionals, that’s okay too. If you’re in a rental property or apartment, file a maintenance request or speak to your landlord for the best way to seek third-party resources. For homeowners, most exterminators or pest control companies can take care of a pantry moth infestation.
Are pantry moths harmful?
While these precautions may seem as though pantry moths are dangerous, they’re nothing more than a nuisance. There’s no risk of disease associated with the common pantry moth, however, removing them from your pantry is ideal for the longevity of your food.
Prevention is key
Preventing pantry moths from contaminating food is the best route to take in terms of pest control. It’s highly recommended to store food sources in airtight containers, made with materials that cannot be chewed through, like hard plastic or glass. Other prevention methods include organizing your pantry so your vision is clear and hiding spots are few and far between along with cleaning spilled food immediately.
So long, pantry moths
Pantry moths, while not harmful, are certainly annoying. Replacing infested food is also expensive, making prevention methods and treatment options worthwhile investments. Ensure your kitchen stays bug-free by following these practical tips; you’ll not only save money but maintain cleanliness and hygiene in arguably the place in your home where it matters the most.
Still looking for that dream kitchen to keep pest-free? Start and end your search with our list of apartments for rent.
Featured Image Source: Southern Living
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
Within those 77 Chicago neighborhoods are also unique communities and sometimes neighborhood personalities differ by block. Moving to a brand new city or even moving within the city can be a confusing and tedious exercise.
Before you start the apartment-hunting process, it’s smart to consider your budget and what’s important to you — access to public transportation, nature, Lake Michigan, nightlife, etc.
Luckily, there are tons of amazing neighborhoods in Chicago, no matter your cash flow. We’ve rounded up a list of the median rental rates for a one-bedroom Chicago apartment in the most expensive and least expensive Chicago neighborhoods.
The most expensive Chicago neighborhoods
Part of the reason these neighborhoods are among the most expensive to rent in Chicago is due to their proximity to major attractions, the presence of new apartment buildings offering luxury amenities and their locations within walking distance to the Loop and Lake Michigan.
5. Old Town: $2,804
Source: Adam Alexander Photography Photo Courtesy of Choose Chicago
It’s entirely possible to walk cobblestone streets in Chicago’s Old Town neighborhood, which also includes Michael’s Church, the oldest Victorian building in the neighborhood, and one of the only buildings that survived the Great Chicago Fire. Since it’s one of the few areas that wasn’t destroyed by the fire, several streets are intact and not part of the Chicago street grid built after the fire.
Today, the neighborhood is an active and vibrant community filled with boutiques and restaurants along Wells Street. Improv comedy troupe The Second City sits prominently at the corner of North and Wells. The area’s charm of historic homes, and walking distance to restaurants, nightlife, Lincoln Park Zoo and Lake Michigan, among other reasons, help drive up the rental rates where one can expect to pay about $2,804 per month for a one-bedroom apartment.
If those rent prices aren’t within your budget, don’t sweat it — there are plenty of other mid-price bustling neighborhoods to check out, like Lincoln Park, Lakeview and Logan Square.
4. Fulton Market: $2,842
Fulton Market Street was the meatpacking district of the city in the 1870s, when grocery shops and restauranteurs would source not only their meat but other commodities, including poultry, fish, eggs and butter. More wholesalers, including those who sold flowers, were nearby, along Randolph Street.
Today, Fulton Market’s past is barely visible since those meatpackers and food distributors have since sold their properties to make way for some of the most expensive new developments to be built in the city’s West Loop neighborhood.
While they often come with luxury amenities, a one-bedroom apartment in Fulton Market comes with a $2,842 per month price tag.
3. Streeterville: $2,939
City of Chicago Photo Courtesy of Choose Chicago
Streeterville is one of Chicago’s smallest neighborhoods, but it packs some serious punch in terms of real estate. Nestled right along Navy Pier, it has easy access to the Loop, River North and Gold Coast all at once, plus some incredible views of Lake Michigan.
The Magnificent Mile shopping district is located in Streeterville, and the area is also home to both Northwestern Memorial Hospital and Ann and Robert H. Lurie Children’s Hospital, so there’s a fair amount of hospital staff, both permanent and visiting, who live in this area.
High-end skyscrapers are the apartment buildings of choice in this neighborhood, and there are plenty of public transportation options within short walking distance. Expect to spend around $2,939 for a one-bedroom apartment in this tony neighborhood.
2. River North: $2,962
You know you’re in River North when you see the magnificent, mammoth Merchandise Mart and get a waft of chocolate from the nearby Blommer Chocolate Company. This is another neighborhood filled with gorgeous skyscrapers and five-star restaurants, and it has a particular edge on the posh nightclub scene. Many professionals who work in the Loop live in River North since it’s within walking distance, and its art gallery-laden streets are great for meandering on the weekends.
Many of the luxury apartment buildings in this area feature dedicated dog runs and dog parks within them since there aren’t many parks in this part of the city. A one-bedroom apartment is just shy of $3,000 per month.
1. Greektown: $3,069
Greektown in the West Loop is just a few blocks on Halsted, between the 290 Expressway (also known as the Eisenhower or the Ike) and Madison Street. It’s named Greektown because of the high concentration of Greeks who moved into the area and established restaurants and other businesses. Gyros and saganaki (the flaming cheese that’s often ordered as an appetizer at many Greek restaurants) were introduced to the United States by Chicago’s Greektown restaurants.
While there are a handful of Greek restaurants that still line the street, many of those have been replaced with luxury high-rises to accommodate the ever-growing West Loop demand for housing. Today, this small strip is among the most expensive when it comes to one-bedroom apartments — you can score a place for around $3,069 per month.
The cheapest Chicago neighborhoods
You’d think apartment rental rates would rise as you got closer to Lake Michigan, but that’s not always the case. There are plenty of deals to be found if you’re craving access to the lake or the lakefront trails. Not all of the cheapest Chicago neighborhoods are along Lake Michigan, but it’s worth checking out these, which are among the top five cheapest areas to rent in Chicago.
5. Buena Park: $1,350
Source: Park Shores
When you say Buena Park, people wonder if it’s part of Uptown or Lakeview and for good reason. This tiny enclave between Montrose Avenue and Irving Park Avenue butts up against Graceland Cemetery to the west and Lake Michigan to the east. Historic single-family homes (including some George Maher mansions along Hutchinson Street) dot the area and share the quiet neighborhood with high rises and apartment complexes.
The neighborhood has a very active neighborhood membership-based group with a website that provides updates on various neighborhood events and happenings. Buena Park often plays host to summertime concerts and movies, and the group usually organizes an annual outing to a Chicago Cubs home game since it’s within walking distance. If living in a quiet neighborhood on the city’s north side appeals to you, it’s possible to snag a one-bedroom apartment in Buena Park for around $1,350 a month.
4. South Shore: $1,146
Source: Chicago Park District Photo Courtesy of Chicago Park District
Former First Lady Michelle Obama grew up in South Shore and while that may be how most people from out of town learn of this South Side neighborhood, most locals know it for its close proximity to Lake Michigan, Rainbow Beach and Stony Island Arts Bank — an art gallery, media archive, gorgeous library and community center.
And while the namesake owner of Harold’s Chicken Shack may have left this earth, his name lives on with what many consider the best fried chicken. If that weren’t enough, the neighborhood is also home to the South Shore Cultural Center which includes a 65-acre park complete with a nine-hole golf course and tennis courts, a culinary center, a nature center and a number of cultural programming and classes.
It’s also located just south of Hyde Park and Woodlawn, where rents tend to be higher because of their proximity to the University of Chicago campus. South Shore allows residents to enjoy all the South Side has to offer at $1,146 per month for a one-bedroom.
3. West Ridge: $1,102
Source: 6200 Hoyne
West Ridge includes Devon Street and along this strip of West Devon is Little India, a colorful and vibrant community filled with Indian and Pakistani shops, bakeries, restaurants and other businesses. Come any time of the day and you’ll likely find a hub of activity and people double-parked.
To really enjoy all this area has to offer, don’t miss some of the liveliest nights during India and Pakistan’s respective independence day celebrations (in mid-August for each), as well as various multi-cultural festivals and the night before Ramadan ends.
Due to Little India’s density, there are more apartment buildings and condos near West Devon but there are many single-family homes throughout the West Ridge neighborhood. A one-bedroom apartment in this part of the city is around $1,102 per month.
2. Austin: $967
Source: 200 Central
Austin is such a large neighborhood in terms of geography that even locals differentiate their location by saying North Austin and South Austin. The West Side city also includes Columbus Park, a 140-acre park and what some consider landscape architect Jens Jensen’s finest work. Jensen’s work can also be enjoyed in nearby parks, including Garfield Park and Humboldt Park.
Residents also have easy access to the suburb Oak Park. Madison Street and Lake Street tend to have a high concentration of shopping and the area has several Chicago public transit (CTA) train stops, as well as Metra stops. The 290 Expressway, known as the Eisenhower, or the Ike to locals, runs through Austin, as well.
A one-bedroom apartment in Austin runs around $967 per month.
1. South Chicago: $700
South Chicago is located just south of South Shore and includes Steelworkers Park, a 16.5-acre park with a rock-climbing wall. Transforming this park into a beautiful nature area, complete with trees and walking paths so close to Lake Michigan is particularly impressive since it was formerly part of the U.S. Steel Complex known as South Works.
The area still boasts some of the least expensive apartments available in the city. A one-bedroom apartment runs around $700 per month in this area.
What is the average rent in Chicago?
According to our analysis, the average rent in Chicago is $2,395 for a one-bedroom apartment.
Finding your perfect Chicago neighborhood
For Chicagoans, rents vary by dramatically by neighborhood, even by block within a neighborhood and there are many reasons for these rent fluctuations. It pays to look around and talk to locals to help you find the perfect Chicago neighborhood and one that matches your personality, wants and needs. Regardless of where you land, in the Windy City, we’re all happy to live here.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments. Data was pulled in August 2020 and goes back for one year. We use a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Here’s everything you’ll need to know about how to rent a house, including how it’s different from apartment renting.
Maybe you have a growing family or elderly parents moving in. Perhaps you need a dedicated office or you’re craving outdoor space and more privacy than most apartment complexes offer.
If you can’t afford to buy your own home, you can upgrade your living arrangements by renting one. Still wondering how to accomplish this milestone, though? We’ll walk you through it step by step.
How renting a home is different than renting an apartment
While the renting process may be similar, there are large differences that any prospective tenants should be aware of, so their renting process runs smoothly. Navigating the local market is tricky enough, turn to this guide to delve into the must-knows for your home renting experience.
1. Your rent price will look drastically different
Before beginning your hunt for the perfect rental home, you’ll need to figure out what you can afford. Factoring in your income and recurring expenses including any loan payments, check out our helpful tool that will calculate average rents and the cost of living in major cities. You’ll notice upfront, that renting a house may be pricier, due to numerous reasons.
In addition to the monthly rent you’ll be forking over, there are other costs to consider that you may not have had to deal with as an apartment dweller. For example, things like heat, hot water, electricity, internet and satellite TV that are sometimes covered with an apartment rental will likely come straight out of your pocket when you rent a house.
Also, you might be responsible for lawn care, snow removal and other general maintenance, so if you don’t want to take care of those yourself, plan to budget for hiring out those tasks.
You’ll also need to know your credit score to see if you have to get a co-signer or guarantor — someone with good credit who would be liable for your rent if you can’t pay it. This will be added to your lease agreement should this be the case.
2. Your wants and needs will be more extensive
Once you’re clear on your budget, the fun part of researching houses for rent begins. It’s best to start by narrowing down your search to a few choice neighborhoods that offer the amenities you’re looking for, including proximity to work or your children’s schools. Due to the nature of a home (which lacks the built-in amenities an apartment has) your wants and needs for your ideal rental property will be longer.
It’s helpful to make a list of wants vs. needs to help you sort through your thoughts on your dream rental properties:
If you or your family are active or love nature, is the area close to parks and recreation centers?
Do you want a bustling neighborhood packed with restaurants, cafés and boutiques, or would you prefer a quiet, suburban environment?
Is a backyard important to you?
Do you need a garage or dedicated parking space?
Are you looking for a detached home to rent or are you okay with a townhouse?
Does the neighborhood have easy access to public transportation?
3. You’re sure to attend more tours and have more questions
Reading rental listings and taking a good look at the photos is typically not enough to determine whether a rental house might work for you.
While apartment complexes might post floor plans and room sizes online, you might not have advanced information like that with homes for rent. This means you’ll need to ask the landlord, property manager or rental property owner about many things that may not be explicitly listed:
Is the home pet-friendly?
Are appliances included, or would you need to purchase your own?
Is the house furnished? If it is, can you decide what stays or goes?
Are laundry hook-ups in place?
If utilities are not included in the monthly rent, how much can you expect to pay for heat, electricity and hot water?
Can you make decorative changes, such as painting the walls or changing light fixtures?
If there’s a backyard, can you plant a garden?
Is there a home owners association to which you will owe monthly fees?
4. Your neighborhood will be more important than ever
If you like the looks of a house for rent, and the landlord has answered questions to your satisfaction, make sure you also tour the area to get a sense of whether it would be a good fit for you and your family.
Try to speak to some potential neighbors, too: Ask them if it’s safe to walk the streets at night, whether it’s noisy and whether there are other children on the block.
It’s a good idea to visit the street both during the day and in the evening if possible. If the rental home does not have a garage or dedicated parking spot, check out whether street parking is readily available. It’s important to confirm that the right rent price takes into account the neighborhood and what it has to offer potential tenants.
5. There’s additional paperwork, like a home rental application
Paperwork for renting an apartment is a given, however, there tends to be a bit more when it comes to renting a home. Keep in mind, if the property is in a popular neighborhood in a hot real estate market, you won’t want to waste any before time letting the landlord know you’re ready to begin the application process.
Some property managers will charge you a fee between $25 to $100 before opening a file. Supply the following information to help the landlord determine if you are a good candidate to rent the house:
Your personal contact information
Proof of income. If you work full-time, pay stubs are sufficient. If you are self-employed, you can present bank statements or tax returns from the past three years. Retirees can provide proof of pension, 401(k) or bank statements.
Your guarantor’s name and contact information, if applicable
References who can vouch for your reliability and trustworthiness, such as a supervisor or former landlord
6. More rules you’ll have to adhere to
If your rental home has an HOA, you’ll need to check in with them to see if there are any regulations to follow on moving day, such as not leaving empty boxes at the curb when moving. There will likely also be regulations ranging from decorating to construction restrictions that the homeowner, in this case the landlord, will have to adhere to.
The similarities between renting an apartment and a house
There are some steps and parts of the renting process that don’t change even though the type of rental property does. There are similarities beyond the obvious of needing to pay rent and adhering to rental laws.
1. The background check
Landlords want tenants who have a steady income, a good loan repayment track record and a history of paying rent on time. Often, they will conduct a background check to assess whether they want to rent you their house.
During this part of the process, a property manager will likely want to confirm your employment, speak to the references you provided and check your credit report to see how you managed past payments.
2. The required fees such as a security deposit and first month’s rent
Some landlords will require a security deposit equivalent to a month’s rent, which would cover any damage to the property you might cause during the term of the lease. In some cases, you can either be refunded this fee when the lease is up or it goes to the last month’s rent.
You might also have to pay the first month’s rent once you sign a lease, even if you’re not moving in for a while. Sometimes, you’ll be charged a deposit for keys if you require more than one.
3. The moving process
While you won’t have to reserve an elevator to move into your rental home the way you did when you lived in an apartment, there are some things you need to organize before the big move.
For example, before you book a professional moving company, find out from the landlord if you can reserve a parking spot in front of the house where the truck can park, or whether it can back onto part of the property for easier unloading.
Once that’s done, you can concentrate on packing up and getting ready to move into your new home. Don’t forget to advise utility companies, internet and television providers and anyone else who needs to know you’re moving elsewhere.
Make sure to stay on top of details
Taking the time to research rental homes and neighborhoods and asking the right questions will make the transition from apartment living to a home rental go more smoothly.
Being organized with your paperwork and task list for moving day will provide peace of mind and fewer last-minute glitches so that you can celebrate once you’re settled into your new rental home.
And if you’re thinking about renting out your home for some passive income-generating opportunities, take a look at our rent estimator to see how much you could be earning.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
I (Mark Ferguson) will hold 4 in-person masterminds in Colorado in 2024. I love doing these because it gives people from all over the country a chance to meet, learn about each other’s business, give advice, get advice, and think outside the box. I attended a mastermind like this a few years ago and loved how much it helped my business and helped me to think bigger and consider things I have never thought of. It is easy to get stuck in your business and stuck in your ways if it is only you trying to figure everything out.
Register your Mastermind seat >>
Who is Mark Ferguson?
I will be the first to tell you that I am not for everyone. I hold these events because I feel I can offer value to people well above and beyond the cost. The people who I can help the most are go-getters, are willing to take some risks, want more than the status quo out of life, and are open-minded to new ideas.
I started in real estate in 2002 after college, where I obtained a business finance degree. I started very small painting houses, doing landscaping, and running errands for my dad who was an agent and flipped houses once in a while. Eventually, I got my real estate license, started helping with the flipping business, and still made very little money. My life changed when I took control, started cold calling banks to get foreclosure listings and started my own career. I then bought rental properties, always making sure to get awesome deals. Eventually, I built up the flipping business, bought out my dad, started my own office, and began to buy commercial and multifamily real estate. In the last few years, I started buying businesses that came with the real estate like a liquor store, laundromat, car wash, and more. Through all of this, I documented my journey through social media, YouTube, and my blog Investfourmore.com. At these masterminds I am willing to talk about anything and everything that I have done, do, or plan to do.
When are the mastermind events?
I have had a couple of these masterminds in the past but this year I wanted to go bigger and better by scheduling them well ahead of time and giving people multiple dates to attend. All of these will be held in my office Blue Steel Real Estate in Greeley Colorado. We will also be taking trips to see some of my projects (rentals, files, businesses) so I can show you exactly what I do and why. We may also look at a property for sale to show you what I look for in a deal and why.
Here are the dates:
Winter 2024: January 8th and 9th
Spring 2024: April 22nd and 23rd
Summer 2024: July 22nd and 23rd
Fall 2024: October 21st and 22nd
Register your Mastermind seat >>
How intense are these events?
When I hold a mastermind it is 2 days packed full of information and interaction. You will not just be interacting with me but with other people in the group who are real estate investors or business owners as well. We spend all day talking with each other, visiting properties, visiting my staff, and going over each other’s business so that we can all help each other do better. I also give specific training on finding deals, finding financing, and repairing and maintaining properties.
Are these serious or fun events?
I am very serious about business but I am also very laid back and know that being mad or blaming others won’t fix my problems. I am also a fan of laughing and having fun. We pack a lot of information into these events, but we also have some fun, mostly making fun of myself. These events come with meals, and time to relax as well. You don’t have to worry about offending me or making me mad because that is virtually impossible.
What is the agenda for the mastermind?
The heart of the mastermind is going over each person’s current business and plans. We will dedicate a large chunk of time to brainstorming ideas, sharing experiences, and offering support and ideas to each other. We will also take a field trip to a few of my projects including flips I am working on, businesses I own and run like the laundromats or liquor store (maybe something else if I buy something new), and some rental properties (commercial, multifamily or residential). There will also be scheduled dinners and if anyone wants a house or garage tour that is in the books as well.
Are there any discounts for the mastermind?
If you want to bring a spouse or business partner I do offer a discount for the second person as long as they are sharing the same business plan. If you want to attend multiple events there is also a discount available. Please just email me below.
How do I learn more and sign up?
Learn more and register your Mastermind seat here >>
Donations
For each ticket sold, I will donate $500 to charity. I have picked out my charity and it is Get the Facts Out Organization which helps develop and recruit students to become teachers. I am on the board of this nonprofit and it is making a massive impact on the teaching industry. The world and the US need more teachers, especially STEM teachers and this group is doing a great job tackling this growing problem.
Have questions?
Check out the registration page at investfourmore.com/mastermind.
If you have questions about the discounts mentioned or any of the details, you can also contact me here.
Are you a nurse who is looking to make extra income? Looking for the best side hustles for nurses? Whether you are looking for a part-time side gig or a full-time extra income stream, there are many ways to make extra cash as a nurse. Whether you are looking to pay off your student loans,…
Are you a nurse who is looking to make extra income? Looking for the best side hustles for nurses?
Whether you are looking for a part-time side gig or a full-time extra income stream, there are many ways to make extra cash as a nurse.
Whether you are looking to pay off your student loans, save for a vacation, retire earlier, or whatever else, there are many reasons why you may want a side hustle.
As a nurse, though, you may be wanting something that will fit into your already busy and tiring schedule.
When it comes to finding side work, there is no shortage of options for nurses. But, not all side jobs for nurses are created equal.
Related content on side jobs for nurses:
Best Side Hustles For Nurses
Medical transcription
Transcription is when you turn audio files or video content into a text document. As a medical transcriptionist, you would be converting voice recordings from doctors and others in the medical field into formal reports.
Medical transcriptionists are required to be knowledgeable about medical terminology, HIPAA, and more, which makes this a side hustle that a nurse would be somewhat familiar with.
Medical transcriptionists earn around $20 to $25 an hour.
There are also other types of transcription work that are not medical related. There are many businesses looking for transcriptionists – since general transcriptionists convert audio and video to text for virtually any industry, there really isn’t a typical client. Examples include marketers, authors, filmmakers, academics, speakers, and conferences of all types.
You can learn more at How To Become A Transcriptionist From Home.
Lactation consultant
A lactation consultant is someone who specializes in breastfeeding.
A hospital may have you on call, you may go in person to people’s homes to assist them with breastfeeding issues, you may start a website where you help families online, and more.
My lactation consultant at the hospital when I gave birth to my daughter Marlowe also happened to be a healthcare worker at the pediatrician’s office that we brought her to. So, she definitely had more than one form of income!
Night nanny
A night nanny (or sometimes called night nurse if they are a nurse) is someone who helps new parents take care of their children overnight.
You would be employed by a family, usually for a few weeks or a few months after a baby is born. You would be helping parents at nighttime so that they can get more sleep as well as learn how to take care of their new infant.
You will be changing diapers, feeding the baby, helping the baby go to sleep, and more.
A night nanny typically works 8-12 hours overnight.
Night nannies are sometimes licensed practical nurses or registered nurses, as new parents many times want the skills and expertise that a nurse has.
You may be able to find night nanny jobs through word of mouth, or on websites such as SitterCity.com or Care.com.
Telehealth nurse
Telehealth nurse jobs are in high demand and will continue to grow. A telehealth nurse is a nurse who sees patients online, such as by video or phone. You may be working part-time or full-time as a telehealth nurse.
As a telehealth nurse, you would be assisting patients with minor health problems as well as advising them if they should go to the emergency room or urgent care, for example.
A telehealth nurse may work from home (and simply require an internet connection), at a physician’s office, hospital, and more.
As a telehealth nurse, you are still required to be a registered nurse and to have passed the NCLEX examination.
Start a blog or website
I know a few nurses who have started blogs, and this is because a blog can help you make income in your spare time with a flexible schedule.
So, what is a blog? A blog is a website. A blog is content that is written on a website. It usually consists of articles, like the one you are reading right now.
Blogs can vary from person to person. You may create a blog to journal, to teach on a topic, to sell something, to tell a story, and so on. There are no exact rules about what your blog has to be used for.
You can blog about many different topics such as personal finance, travel, lifestyle, food, family, home, DIY, and more.
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
Become a caregiver
As a registered nurse, you have highly valuable skills that make you in demand for caregiving jobs, such as taking care of children and adults.
As a caregiver, you may be helping the elderly, helping people get ready for the day, taking care of them for a day, grocery shopping for them, and more.
You may be able to find caregiving jobs through word of mouth (as nurses are very desirable for these positions) or on websites like Care.com and Craigslist.
Sell printables on Etsy
A printable is a digital product that someone can download and print at home. Examples of printables include grocery shopping checklists, gift tags, candy bar wrappers, printable quotes for wall art, budget templates, and patterns.
What makes this great for a nurse looking to make extra income is that you just need to create one digital file per product, and then you can sell it an unlimited amount of times.
So, this can be a great way to make money without having to use up all of your free time outside of work.
You can sign up for this free ebook that helps you figure out where to start when it comes to selling printables on Etsy.
You can also learn more at How I Make Money Selling Printables On Etsy.
Make Canva templates
Making Canva templates is similar to selling printables – you just need to create them once, and you can sell them an unlimited amount of times.
Canva is an online graphic design website. On Canva, you can sell premade designs to other Canva users so that they can edit and customize them.
Some examples of Canva templates include ebooks, workbooks, Pinterest pins, and more.
People all around the world use Canva to help with the graphic design side of their business, and templates make their lives so much easier.
You can head to this article to learn more at How I Make $2,000+ Monthly Selling Canva Templates.
Sell stickers
Selling stickers could be stickers that you have printed out and are shipping to customers, or you may be selling stickers for them to print on their own. You would be creating your own designs on stickers and can sell them for years to come.
Stickers are extremely popular right now and will most likely be for years. Stickers are used for so many different reasons, and you don’t need a lot of equipment to start a sticker business.
You don’t need graphic design skills either – this is something that you can learn quickly and even teach yourself.
You will need a cutting machine (perhaps you already have a Cricut cutting machine?), a printer, sticker paper, and ink to get started.
You can learn more at How To Make $1,000+ A Month Selling Stickers Online.
CPR instructor or First Aid instructor
As a CPR instructor or First Aid instructor, these may be classes that you are hired to teach part-time. It may just be a few hours a week and you would be teaching others CPR and First Aid.
There are classes for those who are expecting a child, prepping for the wilderness, for employees in all industries, and even classes for those who are getting into sailing (I personally have taken these sailing classes!).
Rent out spare rooms or a home
You may be able to earn extra income by renting out a spare bedroom or by investing in rental property to rent out in whole (such as an apartment or a house).
You can learn more at How This Woman In Her 30s Owns 7 Rental Homes.
Rent out your stuff
There are other things you can rent as well.
Renting out your stuff can feel somewhat passive, and if you’re not using it then it may make perfect sense for you.
Here is a list of things to rent out and which platforms are best:
Home bakery
You may be able to make extra cash by making baked goods at home.
In fact, I know someone who is a nurse, and on the side, she decorates and sells amazing-looking cookies for events. She started out decorating cookies simply as a hobby, and people started asking if they could hire her to make specialty cookies for baby showers, weddings, and more. This is now a side hustle for her that she loves.
You can learn more about this topic at How To Make Extra Money By Starting A Home Bakery. Here, you’ll learn about the equipment needed to start a bakery, food laws, tips on pricing your baked goods, and more.
I also recommend reading How I Earned Up to $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!) if you are wanting to make dog treats.
Pet sit
With this, you may be watching pets in your own home or the pet’s home, or you may be walking them during the day, playing with them when the owners are gone, giving them their medicine, feeding them, and more.
While it would most likely be hard to be a pet sitter or pet walker on a day when you have a nursing shift, this may be something that you can schedule for on your days off, as you can pick your days and hours by selecting clients that best fit your schedule.
If you’re interested in watching pets in your home, Rover is a platform where you can list your services and find clients.
Become a virtual assistant
A virtual assistant is an assistant who works from their own home (instead of in person).
As a virtual assistant, you may find part-time or full-time work, and you may be able to be flexible with your hours. I have virtual assistants and they all have flexible hours, which can be great for someone who is a nurse and may not be able to work on days when they have a long shift.
As a virtual assistant, you may be helping a company manage their social media, scheduling appointments, managing their email inbox, data entry, and more.
You can learn more at How To Earn $10,000 Each Month From Home as a Virtual Assistant.
Start a TikTok account
I follow a few TikTok accounts that are all about being a nurse, and they are very informative and entertaining. Or, you can start a TikTok that’s not related to being a nurse at all!
There are over 1.5 billion users on TikTok and many people are able to earn an income on this social media platform doing many different things.
From personal finance tips to comedy, day in the life to travel, and more, there are many different topics you can cover on your own TikTok account through making social media content.
Learn more at How To Make Money On TikTok.
Begin a YouTube channel
As a YouTuber, you may decide to start a channel about being a nurse, or about anything else!
There are many different types of YouTube channels out there.
A great positive of starting a YouTube channel is that, like blogging, you can create your own schedule, and work only on the days that you want. So, it does not have to interfere with your schedule as a nurse.
You can learn more at How I Grew From 0 Subscribers To Over $100,000 On YouTube In Less Than One Year.
Cosmetic nurse
As a cosmetic nurse, such as an aesthetic nurse injector, you may be working in a doctor’s office or medical spa.
You may be doing injections, photofacials, microneedling, and more.
Resell items online
If you are looking for a flexible job as a nurse, one to look into may be reselling items online, such as on Craigslist, eBay, or Facebook Marketplace. There are many other online marketplaces as well.
Plus, it’s something that anyone can start because many of us own things that we could probably sell.
My friend Stacy Gallego was a nurse who resold items in her spare time. She made over $100,000 in sales by flipping used items too and actually retired as a nurse so that she could pursue her flipping side hustle full-time! You can read more about her story at How I Made $100,000 Selling Used Items.
Stacy learned how to build a flipping business from my other friends Melissa and Rob. They are the flipping experts! Some of the best items that they’ve resold include:
Something they bought for $10 and flipped for $200 just 6 minutes later
A security tower they bought for $6,200 and flipped for $25,000 just one month later
A prosthetic leg that they bought for $30 at a flea market and sold for $1,000 on eBay the very next day
A lift that they found in the trash (and asked the owner for permission to take) that they sold online for $7,500
They have a helpful free webinar, Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days, I recommend checking out.
Tutor
As a tutor, you can help a nursing student with their nursing degree, pass an examination, and study for a certificate, for example.
To become an online tutor, you can simply create a tutor profile on a tutoring platform, create a listing on Fiverr, reach out to people that you know, and more.
Learn more at The Best Online Tutoring Jobs – A Flexible Way To Make More Money.
Freelance write
Freelance writing is when you write for different clients, such as a website, magazine, and more.
Many people start with no previous experience, so this can be a great one to begin for you.
Plus, as a freelance writer, you can create your own schedule and take on as many or as few clients as you would like, so you can determine how much money and time you want to spend on this side hustle.
You may be able to become a health writer or write about any of the other thousands of topics out there.
You can learn more in the article How To Become A Freelance Writer.
Mystery shop
Mystery shopping won’t be a huge source of extra income, but it can be something that you can do whenever you have some spare time. There’s not a huge commitment to this either, which can be great if you are looking for something flexible.
Another positive of mystery shopping is that there are mystery shops that can be conducted both in person, online, and on the phone.
As a mystery shopper, you would get paid to evaluate companies from when you walk through the door to after you get your receipt. Or, you may be evaluating how they answer the phone when you pretend that you are a customer inquiring about a service that they offer.
The company has no idea that you are a mystery shopper – this is so that the company can truly evaluate how they are doing and see what they need to improve.
As a mystery shopper, you may be completing mystery shops for clothing stores, department stores, restaurants, car dealerships, salons, amusement parks, and more.
You can learn more at How To Become A Mystery Shopper.
Join a focus group
There are many market research companies that pay people like you and me to share their opinions. Companies then use these opinions and feedback to improve their products and services.
Sometimes focus groups are looking for a specific person too, such as a healthcare professional or someone who uses medical devices. Or, they may be looking for anyone who works in any field.
User Interviews pays very well for market research studies. Over 2,000 studies are launched each month and they have paid over 72,000 participants in the last year.
Pinterest, Spotify, Macy’s, Home Depot, Trip Advisor, and more all use User Interviews to gather feedback from users about their latest products, apps, and websites.
Participants can earn $50 to $100 per hour or more for sharing their opinions and feedback. The average pays over $60.
You can learn more in my User Interviews Review.
Similar to this, there are many paid online surveys you can take as well. These will pay much lower than a focus group, though.
Immunization nurse
An immunization nurse is a nurse who gives vaccines, such as flu shots. You may be working part-time or full-time, such as at a travel vaccine clinic or curbside clinic.
Immunizations will always be around, which means that there will always be a demand for immunization nurses.
Camp nurse
As a camp nurse, you would typically be working in the summer (because that is when camps usually take place). A camp may last a few days or even weeks or months.
You may be taking care of campers, such as doing first aid.
Many camps go without medical professionals because they are unable to find a nurse to fill the role – so there is a demand for camp nurses.
Sign up for extra nursing shifts
This one is the most common as a nurse, so I saved it for almost last. As a nurse, you may have the option to work overtime and make extra money.
Since you are already in the profession, this may be the easiest to get started with.
Travel nurse
Okay, so this is not a side hustle, but I do think it’s somewhat related enough to include in this article!
A travel nurse may be able to earn more than $3,000 per week. They tend to make much more than a nurse who has a permanent job at a hospital or other facility.
Travel nurses are RNs working short-term positions at healthcare facilities. Whenever there are nursing shortages, which happen often in the medical profession, travel nurses help healthcare facilities fill these roles.
I have had several friends become travel nurses, and I’ve also met a few travel nurses while traveling.
Travel nurse jobs usually last around 3 months and can come with many benefits, and they also tend to pay quite well.
Recommended reading: 25 Best Travel Jobs To Make Money Traveling
Common questions about nurse side hustles
Below, I answer some common questions that you may have about side hustles for nurses.
How can nurses earn extra from home?
There are many ways that a nurse can earn extra money from home. This may include:
Medical transcription
Telehealth nurse
Answering medical surveys
Blogger
Freelance health writer
Selling printables
Rental real estate
Creating a nurse TikTok
Medical coding
And so much more.
Can nurses be entrepreneurs?
Yes, nurses can definitely become entrepreneurs. There are many options above, such as starting your own lactation consultant business, a night nurse business, becoming a health coach, and more.
Can a nurse have more than one job?
As a nurse, you may be working 3 days a week, which leaves you with 4 days off each week.
This may lead you to wonder – can you work two jobs as a nurse?
Yes, you may be able to work two jobs as long as you can realistically fit them both into your schedule.
As a nurse, though, you are working long hours. So, while you do have more free days than average, you would want to make sure that you are able to manage a good work-life balance.
How to make 6 figures as a nurse?
There are many ways to make over $100,000 each year as a nurse.
To start off – where you live can greatly impact your salary as a nurse, as some areas will pay more.
Other ways to increase your income as a nurse are to get into travel nursing, enter a specialty (such as becoming a certified registered nurse anesthetist or nurse practitioner), work overtime, and of course start a side hustle.
What can a nurse do as a side hustle?
Whether you are looking for a part-time or full-time gig, there are many different side hustles for nurses to fit your schedule so that you can make extra money.
As a nurse, you have skills, training, and expertise that are highly desirable in many different jobs and fields, which can allow you to earn a high income.
There are many different jobs that a nurse can do. Some of the best side jobs may include:
Medical transcription
Lactation consultant
Night nanny / Night nurse
Telehealth nurse
Blogger
Caregiver
Printables designer
Templates maker
Sticker designer
CPR instructor
First Aid instructor
Real estate investor
Baker
Pet sitter
Virtual assistant
TikToker
YouTuber
Cosmetic nurse
Reseller
Tutor
Freelance writer
Mystery shopper
Focus group participant
Immunization nurse
Camp nurse
And more.
What do you think are the best side hustles for nurses?
These streets will make you feel brand new. Big lights will inspire you.
The Big Apple is one of the most iconic places on Earth. New York City residents even go as far as to associate the concrete jungle with who they are as a person. With world-class museums, accessible public transportation, delicious restaurants, influential theatres and many famous landmarks, the city is truly a tourist’s paradise.
But while visiting is fun, moving to New York City may feel overwhelming. Between apartment hunting, navigating steep annual rent and the various boroughs of the city, the city feels like no other city.
In this guide, we’ll break down what you need to know before you pack your bags and set off to become a New Yorker.
Moving to New York: the complete Big Apple overview
New York City is the most populous city in the United States. Thinking of the city might conjure up images of the Empire State Building, the Statue of Liberty and the bright lights of Broadway.
However, there’s much more to the city than the tourist hotspots. New York City is divided into five boroughs: Manhattan, Brooklyn, Queens, the Bronx and Staten Island. Each has a distinctive personality, with different cultural influences and attractions.
While each area is different, here are some key figures to give you a glimpse of the city overall.
Population: 8,500,000
Population density (people per square mile): 29,302.6
Median income: $70,663
Average studio rent: $4,264
Average one-bedroom rent: $5,367
Average two-bedroom rent: $7,914
Cost of living index: 100
Popular neighborhoods in New York
Between all five boroughs, New York City has hundreds of neighborhoods to explore. But don’t let this intimidate you. They’re all connected by New York’s world-famous transit system, so you can peruse them at your leisure. Here are a few of our favorite neighborhoods to get you started.
Astoria: Astoria is located in Queens, just across the river from Manhattan’s Upper East Side. This charming neighborhood is made up of low-rise buildings and small businesses, giving it a more suburban feel than you might expect in the big city.
Riverdale: Who said you couldn’t get beautiful green spaces in New York City? Riverdale, located above Manhattan in the Bronx, is known for its natural landscapes. With Van Cortlandt Park, Wave Hill and stunning Hudson River views, this quiet residential neighborhood is ideal for New Yorkers who still want to enjoy the great outdoors.
West Village: The West Village, located in downtown Manhattan, perfectly encapsulates the New York you know from your favorite movies and TV shows. This charming spot is tucked inside the larger Greenwich Village. It features tree-lined streets, historic brownstones and plenty of well-preserved historical landmarks from the neighborhood’s bohemian past.
Upper East Side: The Upper East Side offers excellent residential options and world-famous cultural sites. Located between Central Park and the East River, the neighborhood offers plenty of places to get outside and explore. The Upper East Side is also home to Museum Mile, where more than a dozen art and history museums await.
Williamsburg: Williamsburg is a great example of New York’s diversity. The Brooklyn neighborhood has long been a place where cultures blend, with plenty of eclectic dining, art and entertainment options. It’s also known for its family-friendly atmosphere with parks and tree-lined streets.
The pros of moving to New York
New York, the city that never sleeps, holds a unique place in the hearts of its residents. There’s no place in the world quite like New York City and few cities that even come close to comparable. Here are just a few of the reasons that people love living in this city.
A true cultural melting pot
More languages are spoken in NYC than in any other American metro. With its long, rich immigration history, the city hosts a colorful blend of traditions, cuisines and lifestyles. Especially through the distinct boroughs of New York City, which each have its own unique personality and cultural identity.
From the vibrant energy of Manhattan to the artistic ambiance of Brooklyn, the historical charm of Queens, the green serenity of the Bronx and the island spirit of Staten Island, no matter where you go in New York, you’ll always have the opportunity to learn about a different culture.
No car required
New Yorkers love to complain about their subway system. However, even they secretly know they have it better than most people in the other cities. New York City’s subway serves more than 400 stations, making it a breeze to get where you need to be.
The subway map shows the subway also connects to numerous bus lines, ferry stops and commuter trains, giving riders even more options. From the Upper West Side to Staten Island, the subway is the easiest way to get around your new city.
There’s always something to do
Getting bored in NYC just might be impossible. The city boasts hundreds of restaurants, bars, museums, theaters and places to shop. New York City also has excellent parks, scenic riverfront trails and even beaches. Whether your ideal Saturday is spent at the Metropolitan Museum or taking a subway ride to walk the Brooklyn Bridge, you will never run out of places to explore.
The cons of moving to New York City
Of course, no city is perfect. Here are a few downsides that you should consider before you move to New York.
The high cost of living
New York City is one of the most expensive cities in America. Here, you can expect everything from your monthly rent to your groceries to cost a bit more. Space is also at a premium, so even expensive rentals tend to be smaller than what newcomers might be used to. Even your security deposit will be a tad pricier than you are probably used to.
It’s hard to avoid the crowds
NYC is the most densely populated city in America. As such, it can be hard to avoid the crowds when you’re out and about. Neighborhoods in midtown and downtown Manhattan can get particularly packed, so plan accordingly. Consider neighborhoods like Staten Island and Brooklyn when opting for a less densely populated area in New York, with all the same perks and amenities.
The realities of big-city living
Living in any big city can take some getting used to and New York is no exception. The city can be noisy, dirty and downright overwhelming. If you’re coming from a smaller city or town, New York may feel like a different planet. It’s best to visit the Big Apple during your apartment hunt to really get a feel for the space and pace of the city.
How to get started on your move to New York
New York is a city that’s in constant motion. But for the people who live here, no place feels more like home. If you’re ready to make New York your home, we’re here to guide you every step of the way. Find your perfect New York City apartment here, and get ready for your journey to the city that never sleeps.
Methodology
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments. Data was pulled in October 2023 and goes back for one year. We use a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
Population and income numbers are from the U.S. Census Bureau. Cost of living data comes from the Council for Community and Economic Research.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
Many people are lured into the world of real estate investing by stories of millionaires who started their journey with no money down or no steady employment. But the reality is that making money in real estate isn’t easy; a good credit score, investment capital and steady income can help in the beginning.
You’ll also need to grasp the nuances of the local real estate market and learn how to manage financial aspects such as cash flow and property taxes. While real estate buying, selling, and renting may not be much like a game of Monopoly, it is possible to earn steady side income, supplement your retirement, or even build a full-time real estate investment business with the right tools, knowledge, and patience.
Unlike mutual funds, the stock market, cryptocurrency or many other investments, real estate is tangible. Real estate is a concrete asset—one can see, touch, and even reside in. That gives investors a sense of security. However, it also creates unique challenges.
Managed well, the stability and passive income from rental properties can be a safety net against more volatile investments.
This guide is here to clarify the process for beginners. It aims to empower you to make informed decisions, reduce risks, and lay a strong foundation for your real estate investing journey.
Benefits of Investing in Real Estate
The allure of real estate goes beyond the mere ownership of tangible assets. It presents a robust suite of financial benefits that have the potential to amplify wealth and provide stability in uncertain times. As we navigate the advantages, it becomes evident why many seasoned investors prioritize real estate in their portfolios.
Steady and Passive Income
Real estate investing, especially in rental properties, stands out for its potential to provide a consistent revenue stream. When you own a rental property, the monthly or quarterly distributions from tenants contribute to steady income, which can safeguard your finances against unexpected events or economic downturns.
This consistency contrasts with the often erratic nature of the stock market, which can fluctuate daily based on global events, company performances, and other factors. Additionally, for those aiming to attain financial freedom, the passive income generated from real estate can be a step closer to achieving that goal. Over time, as the mortgage payment decreases or remains static, rental rates may rise, increasing your monthly cash flow.
Appreciation Potential
Every investor dreams of their assets appreciating, and real estate often doesn’t disappoint. While there can be periodic downturns in the real estate market, historical trends suggest that properties generally gain value over the long run.
This means that not only can investors benefit from rental income, but they can also potentially see substantial gains when they choose to sell the property.
Tax Benefits
Navigating the world of taxes can be intricate, but real estate investors often find several advantages here. The ability to deduct mortgage interest and property taxes from taxable income can be a significant financial boon.
Furthermore, strategies like depreciation allow real estate investors to offset rental income, reducing their tax burden. Consulting with a financial advisor can help investors maximize these benefits and understand other potential tax advantages, such as 1031 exchanges or deductions related to property management.
Diversification
The saying “don’t put all your eggs in one basket” is sound investment advice. Diversification is a fundamental strategy to mitigate risks. By adding real estate to an investment portfolio, investors introduce a separate asset class that doesn’t directly correlate with the stock market or mutual funds. This can provide a buffer, ensuring that a downturn in one sector doesn’t wholly derail an investor’s financial trajectory.
Leverage
Leverage, in the context of real estate investing, refers to the ability to use borrowed capital to increase the potential return on an investment. When you purchase property with a mortgage loan, you’re often putting down only a fraction of the property’s total cost, while still reaping the benefits of its entire value in terms of appreciation and rental income.
This magnifies the return on investment, as the gains and income generated are based on the property’s total value, not just the down payment. It’s a powerful tool but should be used wisely. Over-leveraging or not accounting for potential rental vacancies can turn leverage into a double-edged sword.
Types of Real Estate Investments
As one dives deeper into the world of real estate, it becomes evident that this asset class is multifaceted, with various avenues to explore and invest in. The right choice often depends on an investor’s goals, risk tolerance, budget, and expertise. Here’s a closer look at some prominent types of real estate investments:
Residential Properties
Residential properties cater to individuals or families. They range from single-family homes to duplexes, triplexes, high-rise buildings with apartments, and other multi-unit properties. You may encounter the term “MDU” or “MUD,” which stand for multi-dwelling unit or multi-unit dwelling, to describe anything more than a single family home, or SFR (single family real estate).
Investing in residential real estate, especially the SFR market, is often a beginner’s first step due to its familiarity and the perpetual demand for housing. While these properties can be a reliable source of rental income, investors should be prepared for the challenges tied to property management, tenant turnover, and ongoing maintenance.
Commercial Real Estate
When one thinks of skyscrapers lining city horizons or sprawling office parks in suburban locales, that’s commercial real estate. These properties are tailored to businesses, and can include complete corporate headquarters or individual offices.
Commercial leases often run longer than residential ones, offering the potential for stable, long-term rental income. However, the entry point can be higher, with larger down payments and a more extensive due diligence process. Additionally, commercial real estate values can be closely tied to the business environment of the locality.
Industrial
Industrial real estate encompasses properties like warehouses, distribution centers, and manufacturing facilities. They’re integral to business operations, ensuring products move efficiently from manufacturers to consumers.
Investing in this sector can offer substantial rental yields, especially if the property is strategically located near transportation hubs. However, the nuances of industrial real estate, such as zoning laws and environmental concerns, necessitate a more in-depth understanding than residential or commercial sectors.
Retail
This sector includes shopping malls, strip malls, and standalone stores. What’s unique about retail real estate is that leases sometimes include a provision where the landlord gets a percentage of the store’s profits, termed as “percentage rent.”
In a thriving commercial area, retail properties can be quite profitable, with long-term leases and the potential for appreciating property values. However, investors should be mindful of shifts in consumer behavior and the evolving retail landscape, especially with the rise of e-commerce.
Multi-Purpose Commercial
A new breed of commercial real estate has emerged to compete with the growth of e-commerce. Multi-purpose commercial spaces blend housing units with office space and retail, often adding hospitality and entertainment venues.
Typically, these spaces are the domain of large real estate investment and property management firms. But if you invest in commercial office space or retail, you will be competing with these multi-purpose properties for tenants, so they are worth acknowledging.
Real Estate Investment Trusts (REITs)
For those not keen on direct property ownership, REITs present an attractive alternative. These are companies that own, operate, or finance income-producing real estate across various sectors. What makes REITs distinctive is that they’re traded on stock exchanges, similar to stocks.
By investing in a REIT, you’re buying shares of a company that manages a portfolio of properties, thus gaining exposure to real estate without the hassles of property management. Moreover, by law, REITs are required to distribute at least 90% of their taxable income to shareholders, leading to potentially attractive dividend yields. However, it’s essential to remember that like all publicly traded entities, REITs can be subject to market volatility.
9 Ways to Invest in Real Estate
Investing in real estate can seem tricky for beginners. But, with time and patience, anyone can master it. Focus on simple investment methods first to get to know your local property scene, meet experienced investors, and learn how to handle money wisely. As you learn and grow, you can dive into more complex investment options.
Here are some great ways for beginners to start in real estate:
1. Wholesaling
Acting as the bridge between property sellers and eager buyers, this method primarily focuses on securing properties at a rate below the prevailing market value. The secured contract is then transferred to an interested buyer, ensuring a margin for the wholesaler.
2. Prehabbing
Unlike intensive property renovations, prehabbing is about amplifying a property’s appeal through minimalistic enhancements. These properties, once given their facelift, usually attract investors with a keen eye for larger renovation projects.
3. Purchasing Rental Properties
An avenue promising consistent returns, this involves acquiring properties to lease them out. For those not inclined towards the intricacies of landlord duties, there’s always the option of hiring seasoned property management professionals.
4. House Flipping
A strategy that has garnered significant attention, house flipping involves a cycle of purchasing, upgrading, and promptly reselling properties, aiming for a profit. The emphasis is on swift transactions and keen market acumen.
5. Real Estate Syndication
Envision a collective where like-minded investors come together, pooling both resources and expertise. Such collectives venture into large-scale property acquisitions, and the ensuing profits or rental incomes are distributed among the participants.
6. Real Estate Investment Groups (REIG)
Primarily, these are conglomerates that steer their operations around real estate investments. By amassing capital from a plethora of investors, they dive into acquisitions of sizeable multi-unit residences or commercial holdings.
7. Investing in REITs
Real Estate Investment Trusts (REITs) revolve around the ownership and meticulous management of properties that yield income. However, investors don’t have to handle the management themselves. Instead, participants can relish the benefits of the real estate sector without the responsibilities of direct property ownership.
8. Online Real Estate Platforms
A fusion of technology with real estate, these platforms seamlessly connect potential investors with vetted property developers. This synergy enables backers to finance promising property ventures and, in exchange, enjoy periodic returns that encompass interest.
9. House Hacking
A blend of homeownership and investment, house hacking is about maximizing the potential of a multi-unit property or a single-family home. Investors live in one segment while leasing out the remaining portions. This dual approach can significantly reduce or even negate monthly housing expenses, serving as an excellent introduction to the world of property management for novice investors.
6 Steps to Get Started in Real Estate Investing
Starting on the path of real estate investing requires careful planning, due diligence, and a methodical approach to ensure that your investments are sound and have the potential for fruitful returns. Whether you’re dreaming of becoming a millionaire real estate investor or merely looking to diversify your investment portfolio, following a structured process can be the key to success. Here’s a step-by-step breakdown:
1. Assess Your Financial Health
Every investment journey should begin with introspection. As an aspiring real estate investor, it’s essential to have a clear understanding of your current financial standing. Ask yourself questions like:
How much capital am I willing to invest?
What are my short-term and long-term financial goals?
Do I have an emergency fund set aside?
Evaluating your risk tolerance is equally crucial. Some might be comfortable flipping houses, while others might prefer the steadiness of rental properties. Consulting a financial advisor at this stage can provide insights tailored to your financial health, enabling you to make informed decisions as you proceed.
2. Dive Deep into Market Research
Knowledge is power in the world of real estate. The local market can be significantly different from national or even statewide trends. Delve deep into understanding:
The demand for rental properties in your target area.
The average property values and rental rates.
The historical appreciation rates.
Any upcoming infrastructure projects or urban development initiatives.
Furthermore, familiarize yourself with real estate terminology. Phrases like “cap rate,” “loan-to-value,” and “operating expenses” will become a regular part of your vocabulary. The better informed you are, the more confidently you can navigate your investments.
3. Assemble Your Real Estate Team
No investor is an island. Success in the real estate business often hinges on the strength and expertise of your team. Look for professionals with a proven track record and positive reviews. Your team might include:
Real estate agents who understand the investor’s perspective.
Property managers to streamline tenant interactions and maintenance.
Lawyers specializing in real estate transactions.
Accountants familiar with the tax implications of real estate investments.
4. Explore Financing Options
The path to acquiring a property is paved with various financing methods. Traditional mortgages are common, but the real estate industry offers other mechanisms like:
Hard money loans.
Private money loans.
Real estate syndication where multiple investors pool resources.
Seller financing.
Each of these has different pros and cons, interest rates, and repayment terms. Understand each deeply to determine which aligns best with your financial strategy.
5. Analyze Potential Properties
The crux of real estate investing is ensuring that the numbers make sense. Before purchasing, assess the property’s potential for generating rental income. Break down:
Monthly mortgage payments
Property taxes
Maintenance costs
Potential vacancy rates
Your goal should be a positive cash flow, where the monthly income from the property (rent) exceeds all these expenses.
6. Negotiate and Close the Deal
Once you’ve zeroed in on a property, the negotiation phase begins. Here, understanding the property’s market value, any existing damages or repair needs, and the local real estate market dynamics can give you an edge.
When it comes to closing, be aware of all associated costs. These might include inspection fees, title insurance, and escrow fees. Being well-informed can help you negotiate these fees and ensure that you’re not overpaying.
Risks and How to Mitigate Them
Like any investment, real estate comes with its set of challenges and uncertainties. The difference between successful real estate investors and those who falter is often the ability to anticipate risks and prepare for them. Here’s an exploration of some prevalent risks in real estate and actionable steps to manage them:
1. Market Fluctuations
Real estate markets can be volatile, with property values rising and falling based on a myriad of factors.
Mitigation: To protect against market downturns, it’s essential to buy properties below their market value. Conducting comprehensive research and seeking expert investment advice can help investors make informed decisions. Remember, real estate is often a long-term game, so a short-term dip can be offset by long-term appreciation.
2. Unexpected Repairs and Maintenance
Properties can often come with surprises, from plumbing issues to roof repairs.
Mitigation: Regular property inspections can catch potential problems before they become major expenses. Setting aside a buffer fund specifically for maintenance can also cushion the financial blow of unforeseen repairs.
3. Vacancy Periods
There might be periods where your property remains unoccupied, leading to loss of rental income.
Mitigation: Properly vetting and building a good relationship with tenants can lead to longer lease periods. Diversifying your investment properties across different areas can also help, as vacancy rates might vary from one location to another.
4. Legal and Tax Implications
Real estate investors can sometimes find themselves entangled in legal disputes or facing unexpected tax bills.
Mitigation: Regular consultations with a tax professional or attorney familiar with the real estate industry can keep investors informed and protected.
Long-term Strategy and Growth
Real estate investing is not just about making a quick buck; it’s about building lasting wealth. Adopting a long-term perspective and continuously refining your strategy can pave the way for consistent growth in the real estate industry. Here’s how:
1. Define Your Real Estate Identity
Are you more comfortable with a buy-and-hold strategy, where properties are retained for long-term growth and steady rental income? Or do you thrive on the excitement of flipping houses, where properties are bought, renovated, and sold for profit? Understanding your preference can help tailor your investment strategy.
2. Reinvestment is Key
For those adopting a buy-and-hold strategy, reinvesting the rental income can substantially grow your real estate portfolio. By channeling profits into purchasing additional properties, investors can benefit from compounded growth.
3. Diversify Your Portfolio
As you gain experience, consider diversifying across various real estate sectors. Branching out into commercial real estate or exploring real estate investment trusts (REITs) can provide additional avenues for income and growth.
4. Continue Your Education
The real estate industry is continually evolving. By staying updated on market trends, attending seminars, and networking with other real estate professionals, you can adapt your strategy and seize new opportunities as they arise.
5. Scale Strategically
A real estate empire begins with just one property. With time, dedication, and a sound strategy, it’s possible to grow your holdings into a substantial full-time income. As you scale, ensure you’re not overextending; always prioritize the quality of investments over quantity.
Key Tips for Beginners
Embarking on a journey into real estate investing can be thrilling, yet the complexities of the industry can sometimes overwhelm beginners. Simplifying the learning curve is essential for novice investors to make informed decisions and find success. Here are some pivotal tips to guide those just starting out:
1. Start Small and Scale Gradually
Many millionaire real estate investors began their journey with a modest property. Purchasing a smaller, more manageable property as your first investment can help you navigate the nuances of the real estate business without being overwhelmed. As you gain confidence and experience, you can then venture into bigger and more diverse properties to scale your portfolio.
2. Prioritize Education
The world of real estate is vast and ever-evolving. Leverage online real estate platforms to learn about market trends, investment strategies, and financing options. Additionally, joining real estate investment groups can be invaluable. These groups not only provide mentorship but also offer opportunities to share resources, insights, and deals with other investors.
3. Location is Crucial
In the real estate realm, location often takes precedence over the type or condition of a property. A mediocre house in a prime location can fetch better returns than a grand mansion in a less desirable area. Research local market dynamics, neighborhood amenities, future development plans, and other location-specific factors before making an investment decision.
4. Networking is Key
Surrounding yourself with knowledgeable people can fast-track your learning process. By connecting with seasoned real estate investors, you can gain insights from their experiences, avoid common pitfalls, and even discover potential partnership opportunities. Attend local real estate seminars, join investor forums online, and participate actively in real estate conferences to grow your network.
5. Stay Updated and Adapt
The real estate industry is not static. Market conditions, property values, and investment strategies can change. Being adaptable and staying updated on industry trends will ensure you remain ahead of the curve and can capitalize on new opportunities.
6. Always Conduct Due Diligence
Before diving into any real estate transaction, thorough due diligence is imperative. From understanding property taxes and zoning laws to estimating potential repair costs and evaluating tenant profiles, leaving no stone unturned will protect you from potential setbacks.
8 Terms Beginner Real Estate Investors Should Know
Venturing into real estate can feel like you’ve entered a world with its own language. Don’t worry; everyone feels this way at the start. Knowing basic real estate terms can help you communicate confidently and make informed decisions.
Dive into these essential terms every beginner should grasp:
Appreciation: Appreciation is the increase in the value of a property over time. It’s one of the primary ways real estate investors make money, especially in growing markets. Appreciation can result from factors like inflation, increased demand, or improvements made to the property.
Capitalization rate (cap rate): Think of the cap rate as a tool to gauge the potential return on a property. It’s a percentage derived from comparing a property’s net operating income to its current market price.
Cash flow: This term captures the money dance – what’s coming in and what’s going out. In the context of rental properties, it means the rental earnings minus all the costs. Positive cash flow indicates you’re earning more than you’re spending.
Equity: Equity represents the value of ownership in a property. It’s calculated by taking the market value of the property and subtracting any outstanding mortgage or loans against it. As an investor pays down their mortgage or if the property appreciates in value, their equity in the property increases. This equity can be tapped into for various financial needs or reinvested.
Leverage: This term refers to the concept of using borrowed money, often in the form of a mortgage, to invest in real estate. It allows investors to purchase properties with a small down payment and finance the remainder. When used correctly, leverage can amplify returns, but it can also increase the risk if property values decline.
Net operating income (NOI): Simplified, NOI is the profit made from a property after deducting all operational costs. It’s your rental income minus all the expenses, showing the true earning potential of a property.
Real estate owned (REO): An REO property is one that didn’t sell at a foreclosure auction and is now owned by the bank. These properties are often sold at a lower price because banks aim to sell them quickly, making them attractive to investors.
Return on investment (ROI): In simple terms, ROI measures the bang you get for your buck. It’s calculated by comparing the profit you made to the amount you invested. The higher the ROI, the better your investment performed.
Conclusion
Real estate investing offers an avenue to diversify your portfolio, generate steady income, and potentially achieve long-term growth. With due diligence, a clear strategy, and the right team, beginners can successfully navigate the complexities of the real estate industry and lay the foundation for a prosperous investment journey. Remember, every millionaire real estate investor started with their first property. Your journey is just beginning.
The United States, as has most of the world, has made stricter and stricter building codes over the years. However, the United States does not have any national building codes the states or local cities make their own rules. I have found the states or areas with the strictest building codes also have the highest prices. The harder it is to build or repair homes, the more expensive they become because people stop building, and when they do build, they have to raise the price for it to make sense. So what areas have the strictest building codes in the US?
How do building codes change over time?
100 years ago there were basically no building codes. Anyone could build whatever they wanted, wherever they wanted with some minor restrictions. Over time, the government decided that houses and commercial properties were not safe enough and there needed to be standards set for construction and even repairs. Some cities, states, and counties choose to have stricter codes than others and the federal government has let local governments make those decisions.
You can see how building codes have changed over time by looking at houses built in different eras. 100 years ago some houses were built with amazing carpentry and we often hear “they don’t build them like they used to”. There were also many houses that were built like shacks that have since fallen down. I have bought many of those shacks as a real estate investor and am surprised many of those houses lasted as long as they did.
You can see improvements in houses by looking at houses from different eras. Houses that are 100 years old may not have any windows in the basement where egress windows are now required. Houses from 50 years ago had very little insulation whereas houses now are required to have a minimum amount. You used to be able to put three layers of shingles on a roof and now most areas only allow one. Areas close to the coast may require hurricane glass and reinforced structures.
The stricter building codes make houses safer and more energy efficient but they also make them more expensive.
What areas do not have building codes?
Believe it or not, there are still some areas in the US that do not have building codes! These states do not have building codes:
Alabama
Arizona
Colorado
Illinois
Mississippi
Missouri
North Dakota
Tennessee
Texas
West Virginia
Wyoming
While these states do not have standard building codes, the local cities and counties usually do. I live in Colorado and while there is no standard building code for the entire state, Denver and Boulder have some of the strictest building codes in the nation. Louisville, where the Marshall Fires occurred in 2021 requires fire sprinkler systems in all new houses although they did remove that requirement for houses destroyed in the fire!
Here are some counties without building codes (from https://offgridgrandpa.com/states-and-counties-with-no-building-codes/):
Delta County in Colorado
Montezuma County in Colorado
Arcosanti Urban Laboratory in Arizona
Brewster County in Texas
Wonder Valley in California
Marfa County in Texas
Terlingua Texas
Miller County Missouri
In these areas, you might be able to get away with building whatever you want as long as you are not in a city with more strict codes but remember codes can always change!
Do you need to get building permits?
What areas have the strictest building codes?
I found it interesting but not surprising that the areas with the strictest building codes tend to have the highest prices. When you look at the list below the most strict areas are definitely the most expensive as well.
You can read up on how they made the list and what the numbers mean here: https://realestate.wharton.upenn.edu/wp-content/uploads/2022/04/w835.pdf
Why do tougher building codes make it more expensive to build?
You will find that the most expensive places in the world and the US tend to have the strictest building codes. It is not real estate investors that push up prices as many people claim, it is the government. The harder it is to build and repair houses, the more expensive they are going to be when they are built. The harder it is to build houses, the fewer houses that will be built which will also cause an imbalance in the housing market driving prices up even further. You will also find fewer investors in these areas because it is hard to build, expensive to own, and a pain to do business in those areas.
Conclusion
Building codes do make houses safe and more energy efficient but they also make houses more expensive at a time when houses are becoming less and less affordable. If you are pushing for stricter building codes and more energy-efficient homes, you are also pushing for higher prices. While homes in the US seem to be out of range for many people thanks to high-interest rates, remember the US actually has the 5th most affordable housing in the world.