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Decision Time: Are You a Landlord or Investor?

Decision Time: Are You a Landlord or Investor?

All property owners are investors, but not all of them are landlords. What’s the difference? The amount of time and control is gained or lost, depending on the role(s) you embrace. The property investment market and rental industries are changing. The role you choose will be affected. Here is some helpful information to help you decide if you are debating if you want to be a landlord or investor. 

First, an investor

Every investment property owner is an investor first. Investors are entrepreneurs looking to expand an income portfolio by purchasing properties in which others will live or work. They risk financial losses and reap the benefits of tax breaks for small businesses.

If an investor chooses to remain an investor, they leave the mundane details of everyday property ownership to professional property managers. The alternative requires much more investment of self, time, and patience.

Then, a landlord

Those who manage their investment properties take on the title of a landlord, and that’s an entirely different proposition. Strict investors give up some control of their properties but also benefit from a symbiotic relationship with professional property managers whose wealth of knowledge and resources make things easier for the investor.

Those property management fees may seem hefty at first glance, but choosing to forgo hiring a property manager leaves you to deal with the daily headaches of marketing, leasing, property repairs and maintenance, rent collection, the legal considerations for evictions, and more. It’s a distinction worth researching before investing in a property because every property manager, whether professional or the investor who chooses to manage his investment property,  knows that being a landlord is very different from the hands-on responsibilities of property management.

Landlord or investor: Class A Management is here to help

If you’d prefer to remain an investor and reap the benefits without the headaches, contact Class A Management today and let us handle the day-to-day operations and maintenance details. We know what it takes for properties to succeed so investors maximize their returns. Call us today at 817-295-5959 or e-mail

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Multifamily vs. Single-family Investments: 5 Reasons Multi Wins

Multifamily vs. Single-family Investments: 5 Reasons Multi Wins

If you’ve decided to purchase a rental income property, but you’re wavering between the single-family and multifamily, you’ve come to the right place. In a head-to-head comparison, there are five simple reasons why a property investment with multiple units yields higher gains over the life of your investment:

1. More tenants lead to greater income potential.

Multifamily properties naturally require more renters, which leads to more rent collected. Also, vacancies aren’t a 100 percent income loss like with a single family. While more tenants also mean more need for maintenance and solid property management, building a great team from the beginning lessens any potential headaches.

2. Younger generations want apartments.

Younger generations don’t want to mess with maintenance, a house, or a yard. They’re also looking for amenities that only apartment communities offer. Apartment living is a primary choice for recent graduates and young professionals.

3. Multifamily communities appeal to downsizing Baby Boomers.

For many of the same reasons as their younger counterparts, Boomers want apartments as they downsize from their high-maintenance family homes. In growing numbers, these young-at-heart retirees choose communities that offer amenities, convenience, and community, over retirement communities.

4. Multifamily requires on-site staff.

That’s not a negative. On-site staff means a core group of trained professionals will handle all maintenance and business aspects of your investment property. That’s a win for property owners. Building a reliable property management team reduces your day-to-day responsibilities. You can sit back, relax, and let your investment work for you.

5. Per rental unit, multifamily is a better deal.

If you were to purchase 150 single-family rental units, you’d pay a pretty penny for that investment. Multifamily offers an efficiency of scale in a compact package and can compete price-wise with even one single-family property any day. This means you’ll get a quicker and more substantial return on investment, and that’s what it’s all about.

Class A Management Multifamily and Single-Family Investment Process

The Class A Management team is here to walk you through the investment process and property management lifecycle, including:

  • assessment 
  • due diligence
  • purchase decision, and 
  • everything that follows

Contact us today to learn more about building or expanding your investment portfolio through multifamily income properties. 

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Property Investment Opportunities in A Growing Industry

Property Investment Opportunities in A Growing Industry

The demand for multifamily living continues to increase. High demand is good news for those involved in investment property ownership and management. In addition to continued high occupancy, on a national level, industry experts predict the nation will need an additional 4.3 million multifamily units by the year 2035. The current demand for new multifamily units is 266 thousand per year just to meet demand. 

What does this mean for property investment opportunities in Texas? 

Texas property investment opportunities and industry overview

Texas is home to 16 major cities. Each of these cities has a unique local property investment market. The one thing they all have in common is their significant contributions to a heavy statewide industry. 

The multifamily housing industry in Texas currently represents:

  • 4 million residents
  • 2.27 million apartment homes
  • $8.3 billion contributed to the Texas economy

“Now is a great time for current investment property owners and those wishing to invest for the first time,” states Cathy Fontana, owner and CEO of Class A Management. “We closely monitor all aspects of the Texas investment property industry. New construction and community expansion projects are creating good opportunities to expand your investment.” 

Class A Management actively works with clients to positively leverage high industry demand to maximize investor returns. 

Find the information you need with Class A Management

To meet current industry demands, 47 thousand new units across Texas must enter the market. Dallas and Fort Worth markets need to contribute 19 thousand of those units to meet yearly local demand. 

For over four decades, our team of multifamily industry experts has continued to provide unparalleled service for both investors and residents. By closely watching industry and market trends and accurately interpreting relevant data, Class A Management skillfully manages your current investment holdings and presents opportunities for potential investment expansion. Our team makes assessments and conducts due diligence, providing you with the information you need to make investment decisions. Once you decide to expand your property investment portfolio, we will be with you through the whole acquisition process with our brokerage and development services, then provide productive property management. 

Contact us to discover all the data associated with the communities where you have investments, then discuss how this data helps identify the best investment opportunities for your local market. 

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Who You Need to Know When You Own Investment Properties

Investment Properties

Real estate investing is about having patience and making the right choices. It starts with making the right purchase decision, and those choices continue as you build relationships and leverage the expertise of trusted professionals. When it comes to owning investment properties, just like in so many other areas of life, it all comes down to who you know.

Real estate attorneys
A real estate attorney can be a make-or-break decision in a real estate transaction. These professionals help draft, review and manage the real estate documentation, including contracts and titles. The legal guidance from the real estate attorney is critical to ensuring the transfer (i.e. purchase or sale of a property) is legally binding and in your best interest.

Tax experts

Having the right tax expert in your corner during a property investment transaction could save you thousands. Do your research when it comes to hiring. This includes seeking referrals, reading reviews and even getting a second opinion when it seems necessary.

Staying on top of maintenance and repairs can also save you thousands. It’s necessary to manage a maintenance checklist for things like plumbing, HVAC, electricity, etc. consistently. If not managed properly, the cost compounds as damages and their side effects quickly add up. Finding and employing a trusted and well-reputed handyman or handywoman is the key to avoiding such a mess.

Property Management Companies
A property management company is a one stop shop. It handles the prospects and the tenants, and will take care of a host of services. These include: consulting services, including brokerage and assessment; development services, including contract management and disposition; administrative management, including tracking and monthly statements, collection services, and financial management; and maintenance services, including interior and exterior repairs and operations, lease management, and application screening.

Need a trusted property management company in your corner? Contact Class A Management today.

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Financing a Rental Property: What are Your Options?

Financing a rental property

By Anthony Gilbert, REALTOR, Seattle, WA

It’s no secret that investing in real estate can be a smart decision. Still, for those looking to break into the world of renting out properties for income, there’s that first challenging obstacle to get over: financing. Getting approved for financing on one’s first rental property can sometimes be an ordeal, but by being aware of your options and ultimately choosing the one that best suits your needs, you’ll be on your way to managing your first rental property in no time.


Obviously, paying cash for a rental property is the most cost-effective and convenient option—but it’s also not very realistic for most investors just getting started. Still, for those who have the means, paying cash for an investment property can yield a number of benefits

For starters, paying cash means not having to jump through the hoops involved in getting approved for financing from a bank or other lender, which is a little tougher for non-primary residences. And of course, with no loan, there is also no interest being accrued on money borrowed. This, in turn, frees up cash to make renovations on the property and pay for other routine maintenance as a landlord.

Finally, making a cash offer on an investment property automatically gives you a competitive advantage against any other offers that might be on the table.


For those who are just getting started with their first rental property investment, an owner-occupy approach may be best for financing. With this approach, you take out a traditional mortgage (usually a 30-year mortgage) just as you would if you were buying a home that you planned to live in yourself for many years. From there, you live in the property for the required 12-month minimum before turning around and renting the property out for a profit.

The best thing about this option is that, even after you’re no longer living in the property itself, you’re still able to enjoy the original loan terms, including your interest rate. One thing to keep in mind with this type of financing, however, is that it’s not practical if you want to hold multiple rentals at once.

Bank Loan

If cash or owner-occupy aren’t viable options, a conventional bank loan may be worth exploring. When you opt for a conventional bank loan, you will generally be expected to put about 30% down on a rental property. However, the nice thing about this option is that when you take out a bank loan for an investment property, most banks will factor in estimated rental income from the space into the debt-to-income rations they use to determine your interest rate and other loan terms. This, along with having a decent credit score, can help to reduce interest rates and ensure reasonable terms on a loan.

Private Loan

For those with less-than-perfect credit or those who want to save on closing costs, shopping around with private lenders may be a smart option. Because private lenders can set their own loan qualification requirements, it’s generally easier to get approved for a private loan than a conventional bank loan. Furthermore, interest rates usually tend to be lower on these loans because the repayment terms are shorter—meaning you’ll pay off your loan sooner and pay less in interest when all is said and done.

Knowing the options available to you when seeking financing for a rental property is important. By keeping these options in mind and assessing your own current financial situation, you’ll ultimately be able to make the smartest and most cost-effective choice for your first residential investment property. If you’re still unsure what’s right for you, consider speaking with a financial advisor, rental property management company or real estate professional.

About Anthony

Anthony is a full-time real estate broker with Coldwell Banker Danforth, located in Seattle, Washington, and specializes in working with clients in the Eastside Seattle communities of Bellevue, Redmond, Kirkland, Issaquah, Sammamish, Snoqualmie Ridge, Fall City and North Bend, located in the picturesque foothills of the Cascade mountains. 

He takes great pride being in-tune with both the professional and human element in every real estate transaction, and truly enjoys helping clients through the entire home-buying and/or selling process.