The Eagle's View

Did you know that there is a HUD (U.S. Department of Housing and Urban Development) program available to teachers and law enforcement officers to purchase homes for half-price?!

The "Teacher Next Door" and "Officer Next Door" programs can be a great help for people in the teaching and law enforcement professions. There are some hoops to jump through and some restrictions such as:

• Homes must be in designated redevelopment areas


• You must live in the home for 3 years to get the full price reduction


• You have to bid on and win a home


• Your contract has to be submitted immediately after winning a bid


• You must pay your real estate agent yourself, HUD doesn't compensate your agent the way most typical sellers do.

I have gone through the process before and understand how it works and if you can benefit from either program. Contact me if you want to learn more.

If you live in Highlands Ranch you probably remember about a year ago when a registered violent sex offender named Michael Christopher Carroll moved into the 1700 block of Mountain Maple Avenue in Highlands Ranch. I think one of the biggest concerns to residents was that the neighborhood not only has many childen but is also very close to Thunder Ridge High School and Mountain Ridge Middle School. Not the best place in the world for someone who has a record of sex offenses on children to live.

Furthermore, some residents felt that the salability and value of their homes were negatively affected by having Carroll as a neighbor.

Well as of October 18, 2005 Carroll is no longer a Highlands Ranch resident. He has relocated to Florida and registered himself in Key West.

Carroll was one of the more high-profile sex offenders to live in Highlands Ranch, but there are others and you can learn about them at the National Sex Offender Public Registery.

It's no secret that owning rental properties can be a great long-term investment strategy. I know people who have put their kids through college, bought retirement homes, and started new business ventures with the income from rental properties. Sometimes, when you want to move to a new home, it makes sense to rent your home instead of selling it. But before you do, consider the following:

• What is the rental market like where you live? Will you be able to find a renter that will pay enough each month to cover your mortgage (if you have one) and if not, can you afford the difference?


• Can you afford to pay a mortgage on your primary residence and on your rental property if it's not rented out?


• Will you be able to manage the property yourself or will you need to hire a property management company that will cost around 8 percent of your rental price?


• Can you afford the maintenance required with a rental property? Renters are not always as respectful to the property as you would like and it's entirely possible that you will need to re-paint and/or re-carpet a home after one renter leaves and before another takes his place.

When you rent a property and hold it for many years, at selling time you could collect a sizable profit. But keep in mind that unless you live in the rental home as your primary residence for two of the past five years you will probably incur a capital gains tax of around 20 percent unless you do a 1031 Exchange.

If you would like to know more about rental properties, 1031 Exchanges, or listing your home for sale, contact me and I would be happy to discuss the matter further.