Advantage Inspection Service, was on HGTV’s “My First Place”. A young couple was moving to Phoenix, Arizona and purchasing their first home. Watch David Swartz from Advantage Inspection Service give this young couple the run down on their first home.

David Swartz from Advantage Inspection Service in Phoenix, AZ was called upon by these first time home buyers on HGTV’s show, My First Place.

Diahann Lassus wasn’t interested in becoming a landlord. As a certified financial planner by trade, she has watched the housing market fall and fall and fall some more. She heard stories of short sales and foreclosure deals but never put herself into the mix.

That is until earlier this year, when Lassus spotted a foreclosure sale sign on the lawn of a three-bedroom ranch home in the Bonita Springs, Fla., development where she already owns a house. She saw an opportunity.

Lassus, who also is a certified public accountant, is more financially savvy than the typical home buyer. But before she bid on a distressed property, she knew she needed to learn more about the current market.

“I’ve really never had the desire to get involved in buying investment properties before,” says Lassus, who splits her time between Florida and New Jersey. “I did a very extensive analysis prior to making my first offer.”

If you’re thinking of buying a home, Lassus’ recent experience offers a helpful case study of how to navigate the foreclosure market.

Here’s what you need to know.

Investigate Your Own Finances

About 4.5 percent of all homes were in foreclosure nationwide at the end of March, according to the Mortgage Bankers Association. Florida, Nevada and New Jersey topped the list with the highest foreclosure rates. Of course, that news isn’t good for the economy, but if you’re in a solid financial position, buying a home or a second home as an investment property could be good for your portfolio — if you buy smart.

Simply put, it’s a numbers game. Before you start looking at properties, make sure you can afford a home and contact a lender to get pre-qualified for a mortgage.

“Banks are looking for a fast close in the foreclosure market,” Lassus says. “If you are ready to go with a mortgage, you are in a much better position to negotiate.”

Be prepared to shop around for a loan. Some lenders are very cautious about financing a home in a foreclosure-laden area, and others won’t finance investment properties in certain locales. If you’re able to pay cash, you’re in a stronger position during negotiations, Lassus says.

Your cash is important for more than the purchase price, especially if you’re buying an investment property. You’ll need extra money for repairs, maintenance and to cover monthly bills if you’re unable to find a renter.

“Anyone buying property today needs to make sure they have the cash reserve to carry the property for a long time,” Lassus says.

If you normally maintain three to six months’ of living expenses in an emergency fund, you’ll need even more available if you’re carrying an additional property. (As you build your emergency reserves, consider these smart places to park your cash.)

Read the rest of this article at Secondact.com.

We all take it for granted that each bedroom will have a window. Few understand the reasons and requirements for windows in bedrooms. Natural light and ventilation, mandatory in current building standards, is easily accommodated with a window. Equally as important, a bedroom must have a second means of escape in the event of an emergency. This standard is most often met with the installation of a window. Specific dimensions of the window opening exist to not only ensure that the occupant can escape, but also to allow a firefighter with his equipment on to enter.

Some older homes were built before there were any egress window requirements. Many more homes were built when the egress window net free opening size was much smaller. Yet even newer homes often lack proper egress windows. Some interior spaces were changed into family rooms or offices (which didn’t require egress windows) then later converted into bedrooms (which now do require them).

The following is a summary of current bedroom egress window requirements:

• Must be a minimum of 20″ wide and 24″ high.
• Must have at least 5.7 sq.ft. (821 sq.in.) minimum clear opening.
• Window sill must be no higher than 44″ from the finished floor.
• Security bars, if present, must have approved quick release hardware and not require any tools or keys to operate them.

Minimum sizes to meet the bedroom egress requirement of common window styles in this region:

• Horizontal sliding windows must be at least 48″ square in overall rough opening dimension to provide a 20.5″x42″ net opening.
• Single hung (vertical sliding) windows must be at least 37″x57″ in overall rough dimension to provide a 34″x24.5″ net opening.
• Casement (crank style) windows must be at least 29″x42″ in overall rough dimension to provide a 22.5″x36.5″ net opening.

A good home inspector will point out non-compliant egress window situations. Explaining this information to a buyer can be challenging. Think of it this way; if you buy a classic car you do so knowing it does not have airbags. It would be unreasonable to expect the seller to install airbags in the classic car. Similarly, if upgrades are desired, it would normally be the responsibility of the buyer to make any changes.

When our real estate market “cycles” through a downturn, the result is often an increase in foreclosure rates among homeowners. Clearly, a foreclosure is a very sad and distressing event for the homeowner. Lenders also feel the pain and build up a portfolio of REO properties (real estate owned). Properties are often sold at auction as a result of foreclosure. Sophisticated real estate investors, however, view foreclosures in another entirely different light — as an opportunity.

A thorough inspection is critical on foreclosed properties for several reasons. It is possible that the homeowner did not properly maintain the property as finances became strained. In some cases, an angered homeowner may cause both obvious and hidden damage to the property. It is not uncommon to see missing or damaged fixtures, appliances and components at a foreclosure property.

Lenders and the eventual homebuyers have an incentive to get a comprehensive home inspection. Some lenders may opt for a very simple pre-assessment that only serves to give them information about how to make the property “presentable” for a sale. This is not a full home inspection and cannot be relied upon for determining the actual property condition. In an auction setting, the buyer may only get the opportunity to hire a home inspector to give a limited assessment just before the auction. In this case, a follow-up comprehensive inspection is needed after the home is obtained.

It is often a challenge to get the utilities turned on before the inspection. Persistence is needed in dealing with the banks as you arrange for the inspection. Don’t give up and by all means have the home inspected. Who knows how many thousands of dollars it could take to repair an undiscovered defect.