Here, I collect the best articles each week in real estate and personal finance. If you have an article that you'd like to submit, please comment below or email me on the contact page.
The Landlord’s Guide to State & Federal Rental Application Laws
Kind of boring, but it's an important topic!
This article does a great job of breaking down some of the do's and don'ts of taking rental applications.
Overall, I do like the article but I think it needs to be fleshed out in some areas, especially about taking animals.
The article says that emotional support animals and service dogs need to be accepted, but therapy pets do not. Many people might be asking - what's the difference between an emotional support animal and a therapy animal?
That's the key difference. Emotional support dogs are to there to provide support for people with disabilities which are protected under HUD.
Therapy pets are for people with other issues that are not legally classified as disabilities.
What is the Average Profit on a House Flip?
A lot of you have have read somewhere that the average profit on a flip is $66,000 approximately.
I know I've seen that number thrown around a lot of places and I always wondered what I must have done wrong back when I used to do some flips.
The reality is, this number is the Gross Profit, which is simply the difference between the purchase price and selling price. It is not the net profit. It's more accurately called the gross margin.
Gross profit margins are important to consider in any business, because it's about how much room you have to play with on a sale.
For example, Tiffany's has a gross margin of about 55%, informational products are about 90%. For house flipping, gross margins are much lower, generally 25-30% (if people are following the 70% rule, less if they aren't).
Then you still need to subtract operating costs, rehab, selling costs, carrying costs, etc.