Ultimate Atchison County Real Estate Investing Guide for 2024

BRRRR is an abbreviation of “Buy, Rehab, Rent, Refinance, Repeat”. BRRRR is a strategy for continuous growth. A crucial part of this strategy is to be able to get a “cash-out” refinance.

The After Repair Value (ARV) of the home has to total more than the complete acquisition and rehab expenses. Then you receive a cash-out mortgage refinance loan that is calculated on the larger value, and you withdraw the balance. You use that money to acquire another rental and the process starts again. You purchase more and more houses or condos and constantly expand your lease revenues.

When your investment real estate collection is big enough, you can delegate its management and receive passive income. Find Atchison County property management companies when you go through our directory of professionals.

Factors to Consider

Population Growth

Population growth or shrinking shows you if you can count on strong returns from long-term real estate investments. If you see vibrant population growth, you can be certain that the region is pulling potential tenants to it. The location is desirable to companies and workers to move, work, and have households. An expanding population creates a certain foundation of renters who will survive rent raises, and a vibrant seller’s market if you want to liquidate any assets.

Property Taxes

Real estate taxes, similarly to insurance and upkeep costs, can vary from place to place and have to be considered cautiously when predicting potential returns. Rental homes situated in steep property tax cities will have lower profits. If property taxes are excessive in a particular market, you will prefer to search somewhere else.

Price to Rent Ratio

The price to rent ratio (p/r) is a signal of how much rent can be charged in comparison to the purchase price of the asset. If median real estate prices are high and median rents are small — a high p/r — it will take longer for an investment to recoup your costs and achieve good returns. The lower rent you can charge the higher the p/r, with a low p/r indicating a better rent market.

Median Gross Rents

Median gross rents show whether a community’s lease market is strong. Median rents must be growing to warrant your investment. If rental rates are being reduced, you can eliminate that community from deliberation.

Median Population Age

Median population age will be similar to the age of a usual worker if a location has a consistent supply of renters. If people are migrating into the area, the median age will not have a problem staying at the level of the labor force. When working-age people are not venturing into the city to replace retiring workers, the median age will increase. A thriving economy cannot be sustained by aged, non-working residents.

Employment Base Diversity

A varied employment base is what an intelligent long-term investor landlord will search for. When there are only a couple dominant hiring companies, and either of such moves or closes shop, it can lead you to lose renters and your property market prices to decline.

Unemployment Rate

It is not possible to have a reliable rental market if there is high unemployment. People who don’t have a job will not be able to pay for goods or services. This can cause too many retrenchments or reduced work hours in the location. Remaining renters may become late with their rent payments in such cases.

Income Rates

Median household and per capita income rates help you to see if a sufficient number of suitable renters dwell in that region. Increasing wages also show you that rental prices can be increased over the life of the investment property.

Number of New Jobs Created

An expanding job market produces a steady supply of tenants. An environment that produces jobs also boosts the number of stakeholders in the housing market. Your plan of leasing and buying additional rentals requires an economy that can produce more jobs.

School Ratings

The status of school districts has an undeniable impact on real estate prices throughout the community. Employers that are interested in moving require outstanding schools for their workers. Moving employers relocate and draw potential renters. Homeowners who come to the region have a beneficial effect on real estate market worth. You can’t run into a vibrantly soaring housing market without quality schools.

Property Appreciation Rates

Real estate appreciation rates are an indispensable element of your long-term investment strategy. Investing in properties that you are going to to keep without being certain that they will appreciate in market worth is a recipe for failure. Subpar or shrinking property value in an area under consideration is not acceptable.

A short-term rental is a furnished apartment or house where a renter resides for shorter than 30 days. The nightly rental prices are usually higher in short-term rentals than in long-term ones. With tenants moving from one place to the next, short-term rental units need to be repaired and cleaned on a consistent basis.

Average short-term tenants are people on vacation, home sellers who are buying another house, and people traveling for business who need something better than hotel accommodation. Regular real estate owners can rent their houses or condominiums on a short-term basis via sites such as AirBnB and VRBO. This makes short-term rental strategy a good method to try real estate investing.

Destination rental unit landlords necessitate dealing directly with the renters to a larger extent than the owners of longer term rented units. That results in the owner having to regularly handle complaints. Consider handling your exposure with the help of one of the top real estate attorneys in Atchison County KS.

Factors to Consider

Short-Term Rental Income

Initially, determine how much rental income you should earn to meet your anticipated profits. Understanding the average amount of rental fees in the city for short-term rentals will allow you to select a profitable location to invest.

Median Property Prices

Carefully assess the budget that you are able to spare for new real estate. The median market worth of real estate will show you whether you can manage to be in that area. You can also utilize median market worth in particular sections within the market to pick cities for investing.

Price Per Square Foot

Price per sq ft can be impacted even by the design and layout of residential properties. If you are comparing similar types of property, like condominiums or separate single-family homes, the price per square foot is more consistent. It may be a quick way to compare different communities or homes.

Short-Term Rental Occupancy Rate

A look at the city’s short-term rental occupancy rate will inform you if there is an opportunity in the market for more short-term rentals. If the majority of the rentals are full, that location necessitates additional rentals. When the rental occupancy rates are low, there isn’t much demand in the market and you need to search in a different place.

Short-Term Rental Cash-on-Cash Return

Cash-on-cash return is a method to calculate the profitability of an investment. Take your expected Net Operating Income (NOI) and divide it by your investment cash budget. The result will be a percentage. High cash-on-cash return demonstrates that you will get back your capital more quickly and the purchase will be more profitable. Financed purchases can show higher cash-on-cash returns as you’re utilizing less of your own funds.

Average Short-Term Rental Capitalization (Cap) Rates

Average short-term rental capitalization (cap) rates are commonly employed by real property investors to evaluate the market value of rentals. An income-generating asset that has a high cap rate and charges average market rental rates has a high market value. Low cap rates signify more expensive real estate. The cap rate is calculated by dividing the Net Operating Income (NOI) by the asking price or market value. This shows you a percentage that is the annual return, or cap rate.

Local Attractions

Short-term renters are often travellers who come to a location to enjoy a recurring major activity or visit unique locations. This includes major sporting events, youth sports contests, schools and universities, large auditoriums and arenas, carnivals, and theme parks. Outdoor scenic spots like mountainous areas, rivers, coastal areas, and state and national nature reserves will also bring in future tenants.

To fix and flip a residential property, you need to pay lower than market price, handle any necessary repairs and improvements, then liquidate the asset for higher market price. The essentials to a lucrative investment are to pay a lower price for the house than its present market value and to accurately compute the budget you need to make it sellable.

It’s important for you to understand how much properties are going for in the community. Find an area that has a low average Days On Market (DOM) indicator. Disposing of real estate immediately will keep your costs low and ensure your revenue.

Help motivated real estate owners in locating your business by featuring your services in our directory of Atchison County real estate cash buyers and Atchison County property investors.

Additionally, search for real estate bird dogs in Atchison County KS. These specialists concentrate on skillfully uncovering lucrative investment ventures before they come on the marketplace.

Factors to Consider

Median Home Price

The region’s median housing price could help you spot a desirable neighborhood for flipping houses. You’re hunting for median prices that are low enough to hint on investment possibilities in the market. This is a basic element of a fix and flip market.

When area data shows a sudden drop in real estate market values, this can indicate the accessibility of possible short sale properties. You will be notified about these opportunities by working with short sale processors in Atchison County KS. Discover more regarding this sort of investment detailed in our guide How to Buy a Home on Short Sale.

Property Appreciation Rate

The movements in property values in an area are crucial. Stable increase in median values articulates a robust investment market. Real estate prices in the region need to be growing regularly, not quickly. Purchasing at the wrong moment in an unstable market can be catastrophic.

Average Renovation Costs

A thorough study of the community’s construction expenses will make a huge impact on your market selection. The time it takes for getting permits and the municipality’s rules for a permit request will also affect your plans. You have to know whether you will have to use other experts, such as architects or engineers, so you can be prepared for those spendings.

Population Growth

Population growth is a strong indication of the reliability or weakness of the location’s housing market. Flat or reducing population growth is an indication of a poor market with not enough purchasers to justify your risk.

Median Population Age

The median population age is a clear sign of the presence of desirable home purchasers. When the median age is the same as the one of the typical worker, it’s a positive sign. A high number of such people demonstrates a significant pool of homebuyers. Older people are preparing to downsize, or relocate into senior-citizen or assisted living neighborhoods.

Unemployment Rate

While researching a city for real estate investment, look for low unemployment rates. The unemployment rate in a future investment market needs to be lower than the country’s average. A positively solid investment city will have an unemployment rate lower than the state’s average. If they want to acquire your improved property, your potential clients have to have a job, and their clients as well.

Income Rates

Median household and per capita income rates advise you whether you will see enough home purchasers in that community for your homes. When property hunters buy a property, they usually have to borrow money for the purchase. To get a home loan, a home buyer cannot be spending for monthly repayments more than a certain percentage of their income. You can figure out based on the city’s median income whether many individuals in the region can manage to buy your homes. Particularly, income increase is critical if you need to scale your business. To keep up with inflation and rising construction and material costs, you have to be able to regularly adjust your purchase prices.

Number of New Jobs Created

Finding out how many jobs are created per year in the area can add to your assurance in an area’s real estate market. More residents purchase houses if their area’s economy is adding new jobs. Additional jobs also entice wage earners relocating to the location from other districts, which further reinforces the property market.

Hard Money Loan Rates

Real estate investors who sell upgraded homes regularly utilize hard money loans rather than conventional financing. This strategy lets investors complete desirable ventures without hindrance. Locate the best private money lenders in Atchison County KS so you may review their costs.

If you are unfamiliar with this loan product, learn more by studying our article — How Does a Hard Money Loan Work in Real Estate?.

Wholesaling is a real estate investment approach that entails finding homes that are appealing to investors and putting them under a purchase contract. When an investor who needs the residential property is found, the sale and purchase agreement is sold to the buyer for a fee. The real estate investor then finalizes the purchase. The wholesaler does not sell the residential property itself — they just sell the purchase agreement.

The wholesaling method of investing includes the engagement of a title firm that grasps wholesale transactions and is knowledgeable about and active in double close purchases. Find title companies for real estate investors in Atchison County KS in our directory.

Discover more about how wholesaling works from our extensive guide — Real Estate Wholesaling 101. As you go about your wholesaling business, put your firm in HouseCashin’s list of Atchison County top wholesale real estate investors. This will help any likely customers to see you and get in touch.

Factors to Consider

Median Home Prices

Median home values are essential to finding areas where homes are selling in your investors’ price point. A community that has a substantial pool of the below-market-value properties that your customers need will have a low median home purchase price.

Accelerated deterioration in real estate market worth might result in a lot of properties with no equity that appeal to short sale investors. Wholesaling short sale properties often carries a list of unique perks. But it also raises a legal liability. Learn about this from our guide Can You Wholesale a Short Sale?. Once you are ready to begin wholesaling, search through Atchison County top short sale real estate attorneys as well as Atchison County top-rated foreclosure attorneys directories to find the best counselor.

Property Appreciation Rate

Median home value trends are also critical. Many investors, like buy and hold and long-term rental investors, notably need to see that home market values in the market are increasing over time. A declining median home price will indicate a weak leasing and home-buying market and will turn off all kinds of real estate investors.

Population Growth

Population growth data is something that investors will analyze carefully. When they see that the community is growing, they will presume that more housing units are needed. Real estate investors understand that this will include both rental and purchased residential units. A location with a declining community will not interest the real estate investors you want to purchase your purchase contracts.

Median Population Age

Real estate investors need to participate in a robust real estate market where there is a considerable source of renters, newbie homebuyers, and upwardly mobile locals moving to better homes. In order for this to happen, there needs to be a stable employment market of potential renters and homeowners. A market with these attributes will display a median population age that matches the wage-earning person’s age.

Income Rates

The median household and per capita income show steady growth historically in cities that are ripe for real estate investment. When tenants’ and home purchasers’ incomes are expanding, they can handle surging rental rates and home prices. That will be critical to the property investors you are looking to reach.

Unemployment Rate

Real estate investors will carefully evaluate the area’s unemployment rate. Delayed lease payments and lease default rates are higher in cities with high unemployment. Long-term investors won’t purchase real estate in a market like this. High unemployment creates problems that will prevent interested investors from buying a home. Short-term investors won’t take a chance on being stuck with real estate they can’t liquidate easily.

Number of New Jobs Created

The number of jobs produced on a yearly basis is a crucial part of the housing picture. More jobs appearing attract a large number of workers who require places to lease and purchase. Long-term investors, such as landlords, and short-term investors such as flippers, are gravitating to communities with consistent job appearance rates.

Average Renovation Costs

Rehab spendings will be critical to many real estate investors, as they normally purchase inexpensive neglected homes to fix. When a short-term investor renovates a property, they want to be prepared to liquidate it for a larger amount than the entire sum they spent for the acquisition and the improvements. Seek lower average renovation costs.

Investing in mortgage notes (loans) pays off when the mortgage note can be acquired for a lower amount than the face value. The debtor makes subsequent mortgage payments to the mortgage note investor who has become their current lender.

Loans that are being paid as agreed are called performing notes. Performing loans earn repeating cash flow for you. Note investors also buy non-performing mortgage notes that the investors either re-negotiate to help the debtor or foreclose on to buy the collateral less than market value.

One day, you might have a lot of mortgage notes and necessitate additional time to oversee them without help. At that time, you might want to use our list of Atchison County top loan servicers and reclassify your notes as passive investments.

When you choose to take on this investment method, you should put your venture in our list of the best promissory note buyers in Atchison County KS. When you do this, you will be discovered by the lenders who promote profitable investment notes for purchase by investors like you.

Factors to consider

Foreclosure Rates

Investors searching for stable-performing loans to buy will prefer to find low foreclosure rates in the region. If the foreclosure rates are high, the city may still be desirable for non-performing note buyers. However, foreclosure rates that are high often signal an anemic real estate market where getting rid of a foreclosed house could be difficult.

Foreclosure Laws

It is necessary for note investors to study the foreclosure laws in their state. Some states require mortgage paperwork and others require Deeds of Trust. A mortgage requires that you go to court for approval to foreclose. A Deed of Trust allows you to file a public notice and proceed to foreclosure.

Mortgage Interest Rates

Mortgage note investors acquire the interest rate of the loan notes that they buy. Your mortgage note investment return will be affected by the interest rate. Regardless of the type of mortgage note investor you are, the loan note’s interest rate will be important to your calculations.

The mortgage loan rates quoted by conventional lending institutions are not identical everywhere. The stronger risk taken on by private lenders is accounted for in bigger loan interest rates for their loans in comparison with conventional loans.

Mortgage note investors ought to consistently know the up-to-date market interest rates, private and traditional, in possible note investment markets.

Demographics

When note investors are determining where to purchase notes, they review the demographic indicators from potential markets. The market’s population growth, employment rate, job market increase, pay levels, and even its median age hold usable information for you.
Performing note investors need clients who will pay as agreed, generating a consistent income source of loan payments.

Note buyers who look for non-performing notes can also take advantage of dynamic markets. When foreclosure is required, the foreclosed property is more easily liquidated in a strong real estate market.

Property Values

As a mortgage note investor, you must look for borrowers that have a cushion of equity. When you have to foreclose on a mortgage loan with little equity, the foreclosure auction may not even repay the amount invested in the note. As loan payments reduce the balance owed, and the value of the property appreciates, the borrower’s equity goes up too.

Property Taxes

Payments for real estate taxes are typically paid to the mortgage lender simultaneously with the loan payment. The lender pays the property taxes to the Government to make certain the taxes are paid on time. If loan payments are not current, the lender will have to either pay the taxes themselves, or they become past due. When property taxes are delinquent, the government’s lien leapfrogs any other liens to the front of the line and is satisfied first.

If a municipality has a record of increasing property tax rates, the total house payments in that market are consistently increasing. This makes it tough for financially weak borrowers to stay current, and the mortgage loan could become delinquent.

Real Estate Market Strength

Both performing and non-performing note buyers can thrive in a good real estate market. It is good to know that if you need to foreclose on a collateral, you won’t have trouble obtaining an acceptable price for the collateral property.

Mortgage note investors also have a chance to make mortgage loans directly to homebuyers in stable real estate regions. For veteran investors, this is a useful segment of their business plan.

A REIT, or Real Estate Investment Trust, is a company that makes investments in income-generating assets. Before REITs were created, investing in properties was considered too expensive for many investors. REIT shares are economical for the majority of people.

REIT investing is a kind of passive investing. Investment liability is diversified across a group of properties. Shareholders have the capability to sell their shares at any time. Something you cannot do with REIT shares is to select the investment real estate properties. Their investment is confined to the properties chosen by their REIT.

A Real Estate Investment Fund is a mutual fund that owns stocks of real estate companies. The fund doesn’t hold real estate — it holds shares in real estate businesses. This is an additional method for passive investors to spread their portfolio with real estate avoiding the high startup cost or liability. Whereas REITs must disburse dividends to its participants, funds don’t. The value of a fund to an investor is the projected increase of the worth of its shares.

Investors can choose a fund that focuses on specific categories of the real estate industry but not particular areas for each property investment. Your choice as an investor is to pick a fund that you rely on to supervise your real estate investments.