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7 Tips for Staging Your Home

By: G. M. Filisko Published: March 19, 2010 Make your home warm and inviting to boost your home’s value and speed up the sale process. The first step to getting buyers to make an offer on your home is to impress them with its appearance so they begin to envision themselves living there. Here are … Continue reading “7 Tips for Staging Your Home”

By: G. M. Filisko

Published: March 19, 2010

Make your home warm and inviting to boost your home’s value and speed up the sale process.

The first step to getting buyers to make an offer on your home is to impress them with its appearance so they begin to envision themselves living there. Here are seven tips for making your home look bigger, brighter, and more desirable.

1. Start with a clean slate.

Before you can worry about where to place furniture and which wall hanging should go where, each room in your home must be spotless. Do a thorough cleaning right down to the nitpicky details like wiping down light switch covers. Deep clean and deodorize carpets and window coverings.

2. Stow away your clutter.

It’s harder for buyers to picture themselves in your home when they’re looking at your family photos, collectibles, and knickknacks. Pack up all your personal decorations. However, don’t make spaces like mantles and coffee and end tables barren. Leave three items of varying heights on each surface, suggests Barb Schwarz of Staged Homes in Concord, Pa. For example, place a lamp, a small plant, and a book on an end table.

3. Scale back on your furniture.

When a room is packed with furniture, it looks smaller, which will make buyers think your home is less valuable than it is. Make sure buyers appreciate the size of each room by removing one or two pieces of furniture. If you have an eat-in dining area, using a small table and chair set makes the area seem bigger.

4. Rethink your furniture placement.

Highlight the flow of your rooms by arranging the furniture to guide buyers from one room to another. In each room, create a focal point on the farthest wall from the doorway and arrange the other pieces of furniture in a triangle around the focal point, advises Schwarz. In the bedroom, the bed should be the focal point. In the living room, it may be the fireplace, and your couch and sofa can form the triangle in front of it.

5. Add color to brighten your rooms.

Brush on a fresh coat of warm, neutral-color paint in each room. Ask your real estate agent for help choosing the right shade. Then accessorize. Adding a vibrant afghan, throw, or accent pillows for the couch will jazz up a muted living room, as will a healthy plant or a bright vase on your mantle. High-wattage bulbs in your light fixtures will also brighten up rooms and basements.

6. Set the scene.

Lay logs in the fireplace, and set your dining room table with dishes and a centerpiece of fresh fruit or flowers. Create other vignettes throughout the home — such as a chess game in progress — to help buyers envision living there. Replace heavy curtains with sheer ones that let in more light.

Make your bathrooms feel luxurious by adding a new shower curtain, towels, and fancy guest soaps (after you put all your personal toiletry items are out of sight). Judiciously add subtle potpourri, scented candles, or boil water with a bit of vanilla mixed in. If you have pets, clean bedding frequently and spray an odor remover before each showing.

7. Make the entrance grand.

Mow your lawn and trim your hedges, and turn on the sprinklers for 30 minutes before showings to make your lawn sparkle. If flowers or plants don’t surround your home’s entrance, add a pot of bright flowers. Top it all off by buying a new doormat and adding a seasonal wreath to your front door.

How to Clean and Care for Your Home’s Siding

By: John Riha Published: November 7, 2013 Cleaning your home’s siding every year and keeping it in good repair extends the life of any siding and heads off replacement costs. With a bit of preventative maintenance, your home’s siding could be trouble-free for 50 years or more. And that means you won’t have to replace … Continue reading “How to Clean and Care for Your Home’s Siding”

By: John Riha

Published: November 7, 2013

Cleaning your home’s siding every year and keeping it in good repair extends the life of any siding and heads off replacement costs.
With a bit of preventative maintenance, your home’s siding could be trouble-free for 50 years or more. And that means you won’t have to replace siding as often.
Cleaning siding removes the dirt and mildew that shortens the life of siding. A clean house protects your investment, too. Some real estate appraisers say good curb appeal can add 5%-10% to the value of your house.

Cleaning All Types of Siding

All types of siding benefit from an annual cleaning to remove grit, grime, and mildew. Cleaning an average-sized house may take you and a friend every bit of a weekend. Here’s how to do it:

1. Start with a bucket of warm, soapy water. Mix 1/2 cup trisodium phosphate (TSP, available at grocery stores, hardware stores, and home improvement centers) with 1 gallon of water.

2. Divide your siding into 10-foot sections. Scrub each section using a soft-bristled brush attached to a long handle. Work from bottom to top to avoid streaking, and rinse often. (For two-story homes, you’ll be using a ladder, so keep safety foremost.)

What’s a Professional Cleaning Cost?

If you don’t have the time — or the inclination — you can have your house professionally cleaned for $300-$500. A professional team will use a power washer and take less than a day.

You can rent a power washer to do the job yourself for about $75/day, but beware if you don’t have experience with the tool. Power washers can strip paint, gouge softwoods, loosen caulk, and eat through mortar. Also, the tool can force water under horizontal lap joints, resulting in moisture accumulating behind the siding.

A siding professional has the expertise to prevent water penetration at joints, seams around windows and doors, and electrical fixtures.

Inspecting Siding for Damage

All siding: Siding is vulnerable to water infiltration where it butts against windows, doors, and corner moldings. Look for caulk that has cracked due to age or has pulled away from adjacent surfaces, leaving gaps. Reapply a color-matched exterior caulk during dry days with temperatures in excess of 65 degrees for maximum adhesion.

Wood siding: Check for chipped or peeling paint, and cracked boards and trim.

Stucco: Be on the lookout for cracks and chips.

Brick: Look for crumbling mortar joints.

You’ll want to repair any defects before cleaning. The sooner you make repairs, the better you protect your house from moisture infiltration that can lead to dry rot and mold forming inside your walls.

Repairing Wood, Vinyl, and Fiber-Cement Siding

Repairs to wood, vinyl, and fiber-cement siding require the expertise to remove the damaged siding while leaving surrounding siding intact. Unless you have the skills, hire a professional carpenter or siding contractor. Expect to pay $200-$300 to replace one or two damaged siding panels or pieces of wood clapboard.

Repairing Brick and Mortar

Crumbling and loose mortar should be removed with a cold chisel and repaired with fresh mortar — a process called repointing. An experienced do-it-yourselfer can repoint mortar joints between bricks, but the process is time-consuming. Depending on the size of the mortar joints (thinner joints are more difficult), a masonry professional will repoint brick siding for $5-$20/sq. ft.

Efflorescence — the powdery white residue that sometimes appears on brick and stone surfaces — is the result of soluble salts in the masonry or grout being leached out by moisture, probably indicating the masonry and grout was never sealed correctly.

Remove efflorescence by scrubbing it with water and white vinegar mixed in a 50/50 solution and a stiff bristle brush. As soon as the surface is clear and dry, seal it with a quality masonry sealer to prevent further leaching.

Persistent efflorescence may indicate a moisture problem behind the masonry. Consult a professional building or masonry contractor.

Repairing Stucco

Seal cracks and small holes with color-matched exterior acrylic caulk. Try pressing sand into the surface of wet caulk to match the texture of the surrounding stucco. Paint the repair to match.

To repair larger holes and cracks, you may want to call in a pro who’s familiar with stucco work. A professional charges $200-$1,000 for a repair job, depending on the size of the damage. Repainting the patch to match your siding will be up to you.

Removing Mildew

Stubborn, black spotty stains are probably mildew. Dab the area with a little diluted bleach — if the black disappears, it’s mildew. Clean the area with a solution of one part bleach to four parts water. Wear eye protection and protect plants from splashes. Rinse thoroughly with clean water.

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7 Landscaping Mistakes That Wreck Curb Appeal

By: Lisa Kaplan Gordon Published: September 9, 2013 Don’t let badly designed or maintained landscaping wreck your home’s curb appeal. Here are pitfalls to avoid. Clumsy, neglected, and hodgepodge landscaping not only hurts your home’s curb appeal, it can cut the value of your property and make it harder to sell. Real estate appraisers say … Continue reading “7 Landscaping Mistakes That Wreck Curb Appeal”

By: Lisa Kaplan Gordon

Published: September 9, 2013

Don’t let badly designed or maintained landscaping wreck your home’s curb appeal. Here are pitfalls to avoid.
Clumsy, neglected, and hodgepodge landscaping not only hurts your home’s curb appeal, it can cut the value of your property and make it harder to sell.
Real estate appraisers say bad landscaping is a buyer turnoff that can increase the number of days a property languishes on the market, which also hurts prices.
“I’ve been with clients who won’t even go into a house because of the bad landscaping outside,” says Mack Strickland, a Chester, Va., REALTOR® and appraiser.
Even more important, bad landscaping is a downer that hurts the way you see and enjoy your home.
Don’t let bad landscaping happen to you. Here are the seven landscaping mistakes that bust, rather than boost, your home’s curb appeal.
1. Planting Without A Plan
Some landscaping choices, such as a line of begonias, will last a season; others, like trees, can last a lifetime. So, take time to plan and plot a yard that gives you maximum enjoyment and curb appeal.
For the design challenged, landscape architects are worth the investment ($300-$2,500 depending on yard size). They will render elevations of your future yard, and provide plant lists so you can install landscaping yourself.
Related: How to Create a Landscaping Plan on a Budget
2. Too Much Togetherness
Yes, planting in clusters looks way better than installing single plants, soldier-like, throughout your yard. But make sure your groups of perennials, shrubs, and trees have plenty of room to spread, or they’ll look choked and overgrown. Also, over-crowded landscaping competes with itself for food and water, putting the clusters at risk, especially during drought.
Google how high and wide the mature plant will be, and then combine that info with the spacing suggestions on planting labels. At first, garden beds of young plants will look too airy and prairie-like. But within three years, your beds will fill in with room to grow.
Remember: First year it sleeps, second it creeps, third it leaps.
3. Zoning Out
Don’t be seduced by catalog plants that look gorgeous on paper but aren’t suited to your hardiness zone. You’ll wind up with plants that die prematurely, or demand winter covers, daily watering, and other intensive efforts to keep them alive and well.
Check plant labels to see which hardiness zones are best for your plants.
4. More of the Same
Resist the design temptation to carpet-bomb your yard with your favorite plant or shrub, which will create a boring, monochromatic landscape. Worse, your yard will look great when your fave flowers bloom, then will look drab the rest of the year.
Mix things up and strive for four-season color. For example, combine spring-blooming azaleas with summer-blooming roses and autumn-blazing shrubs — such as burning bushes (Euonymus alatus). For winter color, try the red osier dogwood (Cornus stolonifera), a hardy shrub that sports bright-red branches in winter.
Related:
9 Winter Plants that Dazzle Even in Snow
Winter Gardening: Plants that Provide Beauty All Year Round
5. Refusing to Bury Your Dead
Nothing wrecks curb appeal faster than rows of dead or dying shrubs and perennials. So quickly remove your dearly departed landscaping from your front and side yards.
Spent plants that lived their natural lives are good candidates for a compost pile — if you grind them first, they’ll decompose faster. But if your landscaping succumbed to disease or infestation, it’s best to inter them in black plastic bags, then add to the trash.
6. Weeds Gone Wild
Weeds not only wreck the look of your landscaping, they compete with pricey vegetation for water and food. Weeds also can shorten the life of brick, stone, and pavers by growing in mortar cracks.
The best way to stop weeds is to spread a pre-emergent about three weeks before weed seeds typically germinate. If you can’t stop them from growing, at least get rid of weeds before they flower and send a zillion weed seeds throughout your yard.
7. Contain Those Critters
Deer, rabbits, and other backyard pests think your landscaping is an all-you-can eat buffet, leaving you with denuded branches and topless perennials.
If you’ve got a critter problem:
Plant deer- or rabbit-resistant varieties. Your local extension agent can provide a list of green things critters won’t eat in your area.
Install an electric fence around landscaping you want to protect.
Spray plants with critter repellent. After a hard rain, spray again.

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5 Awesomely Easy Landscaping Projects

By: Dave Toht Published: February 26, 2013 Ramp up your curb appeal with cool landscaping projects you can easily pull off in a weekend. Project #1: Install Rigid Flower Bed Edging The setup: A crisp edge where the lawn meets the flower beds looks great and eases mowing. Opt for rigid edging — the flexible … Continue reading “5 Awesomely Easy Landscaping Projects”

By: Dave Toht

Published: February 26, 2013

Ramp up your curb appeal with cool landscaping projects you can easily pull off in a weekend.
Project #1: Install Rigid Flower Bed Edging

The setup: A crisp edge where the lawn meets the flower beds looks great and eases mowing. Opt for rigid edging — the flexible plastic stuff looks amateurish from day one.
Use a charged garden hose to lay out a smooth curve.

Tip: A “charged” garden hose full of water makes for a smoother, kink-free curve; charge up by turning on the spigot but leaving the sprayer off.

With the hose as your guide, use a lawn edger or spade to cut away excess sod and make an incision for the edging. Tap in the edging with a rubber mallet and add the stakes. Trim the edging with a hacksaw, using a speed square to mark for cuts.

Specs and cost: Steel — $1.25 per lineal foot; aluminum — $2.25 plf; rigid plastic or fiberglass — $1.65 plf.

Tools: Garden hose, flour or powdered chalk, lawn edger or spade, shovel, speed square, hacksaw, rubber mallet, hammer.

Time: 1 day to edge a typical yard.
Read on for more easy landscaping projects:
Add an Earth Berm
Build a Wall for a Raised Bed
Install a Flagstone Path
Add a Brick Tree Surround
Project #2: Add an Earth Berm
The setup: Create an eye-catching front yard feature by shaping a few cubic yards of topsoil into an undulating berm. Topped off with mulch, groundcover, and bushes, a berm adds interest and buffers street noise.

Use a charged hose to outline the berm. Remove sod a couple of feet in from the perimeter. Add a few mounds, but max out at 3 feet high.

Specs and cost: Three cubic yards of soil is enough for a good-sized berm. Expect to pay $15-$20 per cubic yard and $15–$60 for delivery — a total of $60-$120.

Tip: Don’t be tempted by those bags of topsoil at the home center: At $2.50 per cubic foot, a cubic yard (27 cubic feet) will end up costing you $67.50.

Have a cubic yard of mulch dropped off as well ($15–$20). A dozen periwinkle starts, plus a few boxwood bushes and evergreens, will set you back another $140.

Total for an 18-foot-long berm: $215–$280.

Tools: Wheelbarrow, spade, shovel, garden rake, trowel.

Time: A day to form the berm, another half-day for planting and mulching.
Project #3: Build a Wall for a Raised Bed
The setup: A stacked flagstone wall for your raised beds has an old-world look that mellows any landscape. Best of all, you don’t have to be stonemason to build one.

Begin by laying out the wall with stakes and mason’s line. Tamp a level bed of sand for the first course. As you add courses, stagger joints at least 3 inches. Set each course back ¼-inch so the wall leans backward slightly. Once finished, back the wall with landscaping fabric before filling with topsoil.

Specs and cost: Choose a stone of consistent thickness. Flagstone might be limestone, sandstone, shale — any rock that splits into slabs. A ton of 2-inch-thick stone is enough for a wall 10 feet long and 12 inches high.
Cost: About $300 for stones and sand.

Tip: Permanent retaining walls should be backed by pea gravel for drainage. In some locations, walls taller than 3 feet high require a building permit.

Tools: Stakes and mason’s line, spade, shovel, a 2-by-4 that’s 8 feet long, a 4-foot level, garden rake, tamper.

Time: 1 day for a 10-foot-long wall that’s 12 inches high.

Want to see some cool retaining walls? Check out our slideshow, 8 Retaining Wall Ideas.

Project #4: Install a Flagstone Path
The setup: For a welcoming addition to your yard, add a flagstone pathway. Use a charged garden hose to mark a meandering path about 3 feet wide. Arrange flagstones within the path so they are 2–4 inches apart and mark their location with sprinkled flour.

Tip: Sprinkling flour over the stones creates a “shadow” outline on the ground. When you remove the stones, you’ll have perfect outlines for cutting away the sod.

Cut away 3–4 inches of sod beneath each stone, add a layer of sand, and level the flagstones as you place them.

Specs and cost: For a 40-foot path about 3 feet wide, plan on 2 tons of flagstones and about a cubic yard of coarse sand. Cost: About $550.

Tools: Garden hose, flour, spade, trowel, level.

Time: 1 day for a 40-foot path.

Want more detail? Get the inside scoop on our start-to-finish DIY paver project.

Project #5: Add a Brick Tree Surround
The setup: Installing a masonry surround for a tree eases mowing and looks great. All it takes is digging a circular trench, adding some sand, and installing brick or stone.

Tip: To create a nice, even circle around the base of your tree, tie a big loop of rope around your tree. Adjust the length of the loop so when you pull it taut, the free end is right where you’d like the outer edge of the surround to be. Set your spade inside the loop with the handle plumb — straight up and down. Now, as you move around the tree, the loop of rope keeps the spade exactly the same distance from the base of the tree, creating a nice circle.

Use the spade to cut into the sod all the way around the tree. Remove the rope, and dig out a circular trench about 8 inches deep and 6 inches wide. Add a layer of sand. Set bricks at an angle for a pleasing saw-tooth effect or lay them end-to-end. Fill the surround with 2–4 inches of mulch.

Curious what trees to plant? Our popular slideshow tells you which trees you should never plant in your yard.

Specs and cost: This is an instance where buying small quantities of materials at the home center makes sense. Brick pavers cost 50 cents-$1 each — figure about 20 pavers per tree. A bag of mulch, enough for one tree, costs $2.50.

Tools: Rope, spade, trowel.

Time: About 3 hours per tree.

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How to Deduct Your Mortgage Interest & Equity Loan Costs

By: Richard Koreto Published: December 21, 2012 Deducting mortgage interest, as well as interest on home equity loans and HELOCs, can save money on taxes. Deducting mortgage interest is a great tax benefit that can make home ownership more affordable. Your first mortgage isn’t the only loan that qualifies, either. In many cases, you can … Continue reading “How to Deduct Your Mortgage Interest & Equity Loan Costs”

By: Richard Koreto

Published: December 21, 2012

Deducting mortgage interest, as well as interest on home equity loans and HELOCs, can save money on taxes.

Deducting mortgage interest is a great tax benefit that can make home ownership more affordable. Your first mortgage isn’t the only loan that qualifies, either. In many cases, you can also deduct interest on home equity loans, second mortgages, and home equity lines of credit, or HELOCs.

You need to itemize your return to reap the benefits of these deductions. Calculations can be complicated, so consult a tax adviser.

Know your loan limits

A good place to check out what you can deduct before you borrow is the chart on page 3 of IRS Publication 936. It’ll walk you through the requirements you must meet to deduct all of your home loan interest.

The first hurdle you’ll run into is the total amount of your loan or loans. In general, individuals and couples filing jointly can deduct interest on loans up to $1 million ($500,000 if you’re married and filing separately). The money must have been used for acquisition costs — that is the cost to buy, build, or substantially improve a home, explains Scott O’Sullivan, a certified public accountant with Margolin, Winer & Evens in Garden City, N.Y. Any interest paid on loan amounts above the $1 million threshold isn’t deductible.

The same $1 million limit applies whether you have one home or two. Buying a vacation home doesn’t double your loan limits. And two homes is the max; you can’t deduct a mortgage for a third home. If you have a mortgage you took out before Oct. 13, 1987, you have fewer restrictions on claiming a full deduction. The calculations for “grandfathered debt” can get complex, so get help from a tax professional or refer to IRS Publication 936.

Whatever you do, don’t forget that you can also deduct the points and fees associated with a first or second mortgage when you initially buy your home, says Jeff Rattiner, a CPA with JR Financial Group in Centennial, Colo. If you refinance the same house, you have to deduct those costs over the entire term of the loan. If you refinance again, you can deduct all the costs from the earlier refi in the year you take out the new loan.

Spend loan proceeds wisely

The other limitation comes into play when you take out a home equity loan or HELOC, even if you don’t use the proceeds to buy, build, or improve your home. In that case, you can deduct interest on up to $100,000 ($50,000 if married filing separately) on outstanding home equity debt. This loan limit also applies in a cash-out refi, in which you refinance and take out part of the equity you’ve built up as cash, says John R. Lieberman, a CPA with Perelson Weiner in New York City.

That means if you decide to take out a $115,000 home equity loan to buy that Porsche, you can deduct the interest on the first $100,000 but not on the $15,000 that exceeds the limit. Use the same $115,000 to add a new bedroom, however, and the full amount is allowable under the $1 million cap. Keep in mind, though, that the $115,000 gets added into the pot of whatever else you owe on your other home loans. In many cases, points and loan origination costs for HELOCs are deductible.

Consider this simplified scenario: You borrow $250,000 against your home at 8% interest. That means you’ll pay $20,000 in interest the first year. Spend the $250,000 on home improvements, and all of the interest is deductible. Spend $150,000 on improvements and $100,000 on your kids’ college tuition, and all the interest is still deductible.

But spend $100,000 on improvements and $150,000 on tuition, and the improvement outlays are deductible, though $50,000 of the tuition expense isn’t. That’ll cost you $4,000 in interest deductions. Preserve the $4,000 deduction by coming up with the extra money for tuition from another source, perhaps a low-interest student loan or by borrowing from a retirement plan. For someone in a 25% bracket, a $4,000 deduction lowers taxes by $1,000, plus applicable state income taxes.

Beware the dreaded AMT

Even if you’ve followed all the loan limit rules, you can still get stuck paying tax on mortgage interest. How come? It’s all thanks to the Alternative Minimum Tax. Congress created the AMT, which limits or eliminates many deductions, as a way to keep the wealthy from dodging their fair share of taxes.

Calculating the AMT can be complex, but if you make more than $75,000 and have several kids or other deductions, you might well be subject to it. Problem is, if you fall into the AMT group, you may not be able to deduct interest on a home equity loan, even if the loan falls within the $1 million/$100,000 limit. If you’re subject to the AMT and borrow money against the value of your home, you’ll have to use it to buy, build, or improve your place, or you may not have a chance to deduct the interest, says Rattiner, the Colorado CPA.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.

The Best IRA You Didn’t Know About

By: Richard Koreto Published: December 21, 2012 If you can accept tradeoffs, real estate makes a great retirement plan: Put a rental property into an IRA, play by IRS rules, and grow your investment tax-free until retirement. When you put a rental property (a house, condo, land, or even commercial property) in an IRA, you … Continue reading “The Best IRA You Didn’t Know About”

By: Richard Koreto

Published: December 21, 2012

If you can accept tradeoffs, real estate makes a great retirement plan: Put a rental property into an IRA, play by IRS rules, and grow your investment tax-free until retirement.

When you put a rental property (a house, condo, land, or even commercial property) in an IRA, you don’t owe taxes on the income it earns while your retirement account grows. Here’s how it works:

You use $100,000 that’s already in an IRA account to buy a rental home. (In this example, we’re assuming for simplicity this is the full price. You can get a mortgage for real estate inside an IRA, but there are special rules. More on that later.)

The rent is $500 a month. Every year, your investment property earns $6,000 less expenses of $3,000, netting you $3,000 per year.

You keep that $3,000 inside your real estate IRA each year. Prudent, conventional investments allow it to grow at about 3% a year.

In 20 years, you turn 59½ and can start taking money out of your IRA.

You’ll have about $82,000 in your investment account (compounding $250 per month for 20 years) and the house will be worth about $180,000 (assuming home prices rise 3% a year and you never raise the rent).

Pretty sweet.

3 IRA Real Estate Rules of Thumb

Just like a traditional IRA, you have to follow the IRS rules about what you can and can’t do with it. Since it’s easier to accidentally break the rules than if you just have stocks or mutual funds, and the IRS hasn’t given a lot of guidance, work with a qualified financial adviser, CPA, or attorney who specializes in tax issues.

As you sift through the details, keep three rules of thumb in mind and you’ll be fine:

1. Everything in the IRA stays in the IRA. The real estate, and any income it generates, stays inside the IRA — at least until you turn 59½, when you can legally start taking out money.

2. Everything outside the IRA stays outside the IRA. No money from accounts other than this IRA can be used to buy or improve IRA-held real estate, or pay the property’s mortgages, taxes, and insurance.

3. You’re always one step removed from your IRA real estate. You can’t live in it. Do it and the IRS says, “Hey, you’re enjoying your retirement account before you retire.” That’s like pulling cash out of your IRA before you reach the magic age of 59½. And that means penalties. Also, only non-related contractors can work on it, and they must be paid with IRA cash. Likewise, if you sell the property before you turn 59½, keep the money in the IRA or you’ll pay penalties and taxes for early withdrawal.

The Downsides

1. Say good-bye to typical home tax deductions. Your house is already inside a tax-advantaged account, so you don’t get to deduct the mortgage interest or other expenses. If you pay cash for the property, that’s no big deal. But if you have a mortgage, mortgage interest is a big deduction to lose.

2. What if your property doesn’t generate a profit every year — perhaps the tenant is late on payments or the property is vacant for periods of time? You’ll need a cushion in your account to draw on.

3. You can’t deduct losses, such as from storms, because the property is in an IRA. Similarly, if the property is sold for a loss, you can’t deduct that. And when you take money out of the real estate IRA, it’s taxed as income. But when you own the property outright and sell it, the profit comes under the rules for cap gains, which means your profit is likely excluded from tax.

More Fine Print

Get a custodian. The companies that run typical IRAs avoid exotica like real estate. You’ll need a specialized company to help run a “self-directed” IRA where you put your rental property. Self-directed means you take more responsibility for your investment than you would typically. Here are a few custodians that let you expand into self-directed options like real estate, in addition to typical IRA investments.

Equity Trust

Pensco

Provident

Sterling

The self-directed IRA isn’t a different animal, really. All the advantages and rules of a traditional IRA apply. And since you’ll need IRA cash to manage your IRA real estate, it’s much simpler (although not legally mandatory) for you to have all IRA holdings — real estate, money market, stocks, mutual funds — with one custodian in a single self-directed account.

Costs are comparable to a traditional IRA, but as with any investments, fees can vary, as can charges for services. It pays to shop around — ask potential custodians for free breakdowns.

Pay for upkeep out of the real estate IRA.

Repairs: If your rental isn’t making enough money to cover repair costs like leaky faucets or broken furnaces, tough luck. You can’t pay for the repairs out of your own pocket.

Upgrades: A DIY upgrade is verboten because you’re contributing something of value (your labor) to the IRA, says Kevin Worthley, a financial planner who specializes in retirement planning. Still, if you personally fix a faulty electrical outlet, for example, you could argue that you aren’t adding to the house’s value, merely maintaining it, so that should pass muster with the IRS.

So does that mean you can never fix up your IRA house? You can turn it into a palace if you want — but you can’t do it yourself. Hire contractors, and pay all their fees from inside the IRA. If you have $1 million inside your IRA, go right ahead and buy a $500,000 house and spend $250,000 to improve it, leaving yourself a plentiful cushion. But you can’t spend one dime out of your regular income or personally do anything more elaborate than change a washer in the faucet.

Solution: Keep a cash cushion in your real estate IRA to cover unexpected repairs and vacancies. How much? Think of what you do for your primary residence and match it for your rental. Make a list of the costs of your rental taxes, mortgage, and upkeep if you have to go for an extended period without a tenant.

Get a special real estate IRA mortgage. If you’re not planning to buy a rental property outright with existing IRA funds, you’ll need a non-recourse loan. That literally means the bank has no (or virtually no) recourse if you default. If you stop making payments on a non-recourse loan because your IRA runs out of cash, the bank can’t force you to pay the mortgage with non-IRA money. (That would break the law by commingling regular funds with IRA funds.)

Since a non-recourse loan is a bigger risk for a bank, it will want a 30% or larger down payment (from your IRA account, not your personal bank account), and you’re going to pay a higher interest rate by several points than you would for your regular home loan.

Other than that, the mortgage works like any other:

Instruct your custodian to draw checks from cash inside your IRA to the bank.

Or have the custodian set up a regular electronic transfer. The custodian will also do this for real estate taxes and insurance.

As long as the IRS sees that all home-related payments come out of the IRA account, you’re fine.

So What Happens When I Retire?

At 70½, you must start taking a certain minimum out of your IRA regularly, so you need enough cash on hand to pay yourself. Make sure you have this cushion well before you hit 70½. You can also sell the IRA house and put the cash into a more liquid investment.

Here’s another option: When you turn 59½, you can legally take your house out of your IRA. The investment that generated tax-free income all these years is now your cozy retirement cottage. Of course, you have to pay income tax on the home’s value, but if you sold your primary house, you now have the cash to do that, so you’re set for your golden years.

Or, at 59 1/2 you can create a series of deeds that gradually transfer your house to you personally while leaving some of it in your IRA, before you actually move in. This stretches out your income tax liabilities because you’re basically taking only a piece of your house out of the IRA each year. You need a lawyer and title company to do this, but if you want to avoid a large tax bill in your first residence year, it’s worth it.

11 Ways to Create a Welcoming Front Entrance for Under $100

By: Cara Greenberg Published: November 5, 2012 Wouldn’t it be nice to approach your home’s entrance with a grin instead of a grimace? Take our tips for beating a clear, safe, and stylish path to your front door. First impressions count — not just for your friends, relatives, and the UPS guy, but for yourself. … Continue reading “11 Ways to Create a Welcoming Front Entrance for Under $100”

By: Cara Greenberg

Published: November 5, 2012

Wouldn’t it be nice to approach your home’s entrance with a grin instead of a grimace? Take our tips for beating a clear, safe, and stylish path to your front door.
First impressions count — not just for your friends, relatives, and the UPS guy, but for yourself. Whether it’s on an urban stoop or a Victorian front porch, your front door and the area leading up to it should extend a warm welcome to all comers — and needn’t cost a bundle.

Here’s what you can do to make welcoming happen on the cheap.
1. Clear the way for curb appeal. The path to your front door should be at least 3 feet wide so people can walk shoulder-to-shoulder, with an unobstructed view and no stumbling hazards. So get out those loppers and cut back any overhanging branches or encroaching shrubs.

2. Light the route. Landscape lighting makes it easy to get around at night. Solar-powered LED lights you can just stick in the ground, requiring no wiring, are suprisingly inexpensive. We found 8 packs for under $60 online.

3. Go glossy. Borrow inspiration from London’s lovely row houses, whose owners assert their individuality by painting their doors in high-gloss colors. The reflective sheen of a royal blue, deep green, crimson, or whatever color you like will ensure your house stands out from the pack.
Related: Pictures of 10 Great Value-Add Exterior Paint Jobs

4. Pretty up the view. A door with lots of glass is a plus for letting light into the front hall — but if you also want privacy and a bit of decor, check out decorative window film. It’s removable and re-positionable, and comes in innumerable styles and motifs. Pricing depends on size and design; many available for under $30.

A way to get the look of stained glass without doing custom work or buying a whole new door: Mount a decorative panel on the inside of the door behind an existing glass insert, $92 for an Arts and Crafts-style panel 20-inches-high by 11-inches-wide.

5. Replace door hardware. While you’re at it, polish up the handle on the big front door. Or better yet, replace it with a shiny new brass lockset with a secure deadbolt. Available for about $60.

6. Please knock. Doorbells may be the norm, but a hefty knocker is a classic that will never run out of battery life, and another opportunity to express yourself (whatever your favorite animal or insect is, there’s a door-knocker in its image).

7. Ever-greenery. Boxwoods are always tidy-looking, the definition of easy upkeep. A pair on either side of the door is traditional, but a singleton is good, too. About $25 at garden centers. In cold climates, make sure pots are frost-proof (polyethylene urns and boxes mimic terracotta and wood to perfection).

8. Numbers game. Is your house number clearly visible? That’s of prime importance if you want your guests to arrive and your pizza to be hot. Stick-on vinyl numbers in a variety of fonts make it easy, starting at about $4 per digit.

9. Foot traffic. A hardworking mat for wiping muddy feet is a must. A thick coir mat can be had at the hardware store for less than $20. Even fancier varieties can be found well under $50.

10. Go for the glow. Fumbling for keys in the dark isn’t fun. Consider doubling up on porch lights with a pair of lanterns, one on each side of the door, for symmetry and twice the illumination. Many mounted lights are available well under $100.

11. Snail mail. Mailboxes run the gamut from kitschy roadside novelties masquerading as dogs, fish, or what-have-you to sober black lockboxes mounted alongside the front door. Whichever way you go, make sure yours is standing or hanging straight, with a secure closure, and no dings or dents. The mail carrier will thank you.

Read more: http://members.houselogic.com/articles/front-door-entry-ideas/preview/#ixzz34BpUGQRN

5 Things You Forgot to Clean in Your Bathroom

By: Lisa Kaplan Gordon Published: March 30, 2012 Your bathroom, one of the rooms you clean most, hides areas that rarely see a scrub brush. It’s time to tackle these 5 nasty spots you probably forgot. If you can’t remember the last time you cleaned your bathroom, we don’t want to know what’s living in … Continue reading “5 Things You Forgot to Clean in Your Bathroom”

By: Lisa Kaplan Gordon

Published: March 30, 2012

Your bathroom, one of the rooms you clean most, hides areas that rarely see a scrub brush. It’s time to tackle these 5 nasty spots you probably forgot.

If you can’t remember the last time you cleaned your bathroom, we don’t want to know what’s living in your tub. Probably, a host of staphylococcus, the skin infection bacteria that, a recent study showed, more frequently grows in tubs than in garbage cans.

But we presume you or someone else regularly swishes out the toilets, wipes out the tubs and sinks, and mops your bathroom flooring.

But you may be missing some critical areas. With the help of Kristi Mailloux, president of Molly Maid, we’ve compiled a list of 5 bathroom spots home owners often forget to clean:

1. Showerheads: A warm white vinegar bath will get rid of mineral deposits, making your low-flow showerhead flow even lower. Let the showerhead soak for about 20 minutes, then poke a paperclip into shower head holes still clogged. Scrub with an old toothbrush, then rinse and repeat if necessary.

2. Toilet bases: Mildew can grow on the caulking around the base of your toilet. Spray with white vinegar or disinfecting household cleaner, then scrub with a hard-bristled brush. Dry thoroughly.

3. Shower curtains: Clean soap scum and mildew from plastic shower curtains by tossing them into your washer on the gentle and cold (never hot!) water cycle, with detergent and ½ cup vinegar. If mildew is present, add ½ cup of bleach instead of vinegar. Toss a couple of large towels into the machine to act as scrubbers. Hang curtains back on your shower curtain rod, spread them out, and let them drip-dry. If you turn on the bathroom fan, they’ll dry faster.

4. Drains: We don’t usually pay much attention to drains until they’re clogged. But all year your hair, toothpaste, shampoo, and conditioner are building up in sink and tub drains. Remove the stopper — unscrew the shower drain — and clear away obvious gunk, like hair and soap. Soak the drain in vinegar to clear away mineral deposits. Then, pour boiling water, or a mixture of ½ cup white vinegar and ½ cup baking soda, down the drain, which will bubble away crud sticking to pipes.

5. Medicine cabinet: Throw out prescription and over-the-counter drugs you no longer need or want. But don’t dump them down the drain, where they become part of the watershed, or into the trash, where anyone can fetch them out. Instead, take them to a local collection site, often at police or fire stations. Or check U.S. Drug Enforcement Administration’s National Take Back Initiative’s website for dates and sites for their next collection.

Bonus tip: Just for the fun of it, launder those powder room towels you won’t let anyone use. And be sure to clean out your dryer’s lint filter when you’re finished.

Read more: http://members.houselogic.com/articles/cleaning-the-bathroom/preview/#ixzz34RrK2WMw

Guide to Paint Sheens

By: Pat Curry Published: March 25, 2011 Choosing the right paint sheen is almost as overwhelming as choosing your paint color. This guide will help you get it right. There’s a basic rule of thumb to follow when choosing paint sheens: The higher the sheen, the higher the shine — and the higher the shine, … Continue reading “Guide to Paint Sheens”

By: Pat Curry

Published: March 25, 2011

Choosing the right paint sheen is almost as overwhelming as choosing your paint color. This guide will help you get it right.

There’s a basic rule of thumb to follow when choosing paint sheens: The higher the sheen, the higher the shine — and the higher the shine, the more durable it will be.

Flat paint has no shine; high-gloss is all shine. In between are eggshell, satin, and semi-gloss, each with its own practical and decorative job to do. Here’s how to choose the right paint sheen for your painting job.

Paint sheen infographic

High Gloss

The most durable and easiest to clean of all paint sheens, high-gloss paint is hard, ultra-shiny, and light-reflecting. Think appliance-paint tough.

High gloss is a good choice for area that sticky fingers touch — cabinets, trim, and doors. High-gloss, however, is too much shine for interior walls. And like a Spandex dress, high gloss shows every bump and roll, so don’t skimp on prep work.
Practical application: kitchens, door, and window trim
Durability: very high

Semi-Gloss

Good for rooms where moisture, drips, and grease stains challenge walls. Also great for trim work that takes a lot of abuse.
Practical application: kitchens, bathrooms, trim, chair rails
Durability: high

Satin

Has a yummy luster that, despite the name, is often described as velvety. It’s easy to clean, making it excellent for high-traffic areas. Its biggest flaw is it reveals application flaws, such as roller or brush strokes. Touch-ups later can be tricky.
Practical application: family rooms, foyers, hallways, kids’ bedrooms
Durability: high

Eggshell

Between satin and flat on the sheen (and durability) scale is eggshell, so named because it’s essentially a flat (no-shine) finish with little luster, like a chicken’s egg. Eggshell covers wall imperfections well and is a great finish for gathering spaces that don’t get a lot of bumps and scuffs.
Practical application: dining rooms, living rooms
Durability: medium

Flat or Matte

A friend to walls that have something to hide, flat/matte soaks up, rather than reflects, light. It has the most pigment and will provide the most coverage, which translates to time and money savings. However, it’s tough to clean without taking paint off with the grime.
Practical application: adults’ bedrooms and other interior rooms that won’t be roughed up by kids
Durability: medium-low

Related: 6 Must-Have Painting Tools

Tips For Choosing the Right Sheen

If your paint color is dark and rich but you don’t want a super shiny effect, step down at least one level on the sheen scale. That’s because the darker and richer the paint color is, the more colorant it has, which boosts sheen. Ditto if you’re painting a large, sun-washed, or imperfect wall. The higher the sheen, the more defects will show.

Adding sheen also adds to the cost, usually an extra dollar or two per gallon as you step up on the sheen scale.

How to Choose Paint Colors

Using Bold Color to Personalize Your Home

Read more: http://members.houselogic.com/articles/paint-sheen-guide/preview/#ixzz34Rl22LEs
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Repair Walls to Give Rooms A Fresh Face

By: Jane Hoback Published: January 14, 2011 Sooner or later you’ll repair walls that make rooms look worn out. Erasing dings, dents, and scuffs is an easy fix. We’ll show you how. Repair walls filled with dents, dings, and scuffs, and you’ll make rooms look young and fresh and maintain the value of your home. … Continue reading “Repair Walls to Give Rooms A Fresh Face”

By: Jane Hoback

Published: January 14, 2011

Sooner or later you’ll repair walls that make rooms look worn out. Erasing dings, dents, and scuffs is an easy fix. We’ll show you how.

Repair walls filled with dents, dings, and scuffs, and you’ll make rooms look young and fresh and maintain the value of your home. Fortunately, repairing walls is a good weekend warrior project. Here’s how to fix your home’s face in a hurry.

Patch drywall to smooth walls

A putty knife, Spackle, or joint compound can repair wall damage that ages a room.

Dents and dings: A quart of Spackle ($11) and a putty knife can fill dozens of small wall indentations. Spackle adheres to painted walls better than joint compound, though it takes a bit longer to dry. Cut wall repair time by thoroughly wiping away excess Spackle.

Fist-sized holes: Joint compound is your best bet when covering the mesh or drywall patches that cover big holes. You’ll need at least two thin coats of compound and fine grit sandpaper to blend repairs into the rest of the wall.

Nail pops: Nail pops travel in packs: Rarely do you see just one. To repair walls pocked with pops, hammer the popped nail back into the wall or pull it out with a needle-nose pliers; refasten the drywall to the nearest stud with a couple of screws, then fill dents with two or three coats of joint compound. Sand until smooth and flush with the rest of the wall, then repaint.

Remove marks for a clean start

Microfiber cloths are little miracles that erase the evidence of a childhood well spent, drawing on and caroming off walls. To get rid of scuff marks and fingerprints:
Spray an all-purpose cleaner onto the cloth (never directly onto walls to avoid drips) and swipe the scuff. (Test a hidden spot to make sure the cleaner doesn’t take off paint with the mark.)
Pour a little dish soap onto a damp cloth and wipe the mark.
Dip a sponge into an earth-friendly and slightly abrasive paste of dish soap, baking soda, and water, and gently scrub grime.
To repair walls decorated with crayon marks, dab toothpaste onto a towel or toothbrush and scrub marks.
Use Mr. Clean Magic Eraser ($3), the best instant wall cleaner around. Wet and wring the eraser before attacking scuffs.

Touch up what you can’t wipe out

Prepare for inevitable touch-ups by keeping leftover paint or at least recording the paint number and/or formula (paint names change). Don’t have the original? Scrape off a little and ask your paint store to match it.

For touch-ups, use the same type of brush or roller the original painter used. Feather the paint from the outside borders in.

If touch-ups stand out, paint the entire wall, making sure to paint corner to corner and avoid splatters onto the ceiling and adjacent walls.

Read more: http://members.houselogic.com/articles/repair-walls-give-rooms-fresh-face/preview/#ixzz34RkRTZHk