Ultimate Bolivar County Real Estate Investing Guide for 2024

BRRRR means “Buy, Rehab, Rent, Refinance, Repeat”. If you desire to increase your investments, the BRRRR is a proven strategy to follow. It is required that you be able to obtain a “cash-out” refinance for the system to work.

You enhance the worth of the property above the amount you spent acquiring and rehabbing the property. Then you borrow a cash-out mortgage refinance loan that is based on the higher property worth, and you extract the balance. You purchase your next asset with the cash-out capital and start all over again. You buy additional houses or condos and continually grow your rental revenues.

After you’ve created a significant list of income generating assets, you might choose to allow someone else to manage your operations while you collect recurring net revenues. Discover Bolivar County real property management professionals when you go through our list of experts.

Factors to Consider

Population Growth

Population increase or fall tells you if you can count on reliable results from long-term real estate investments. If you see strong population growth, you can be confident that the area is attracting potential renters to it. The community is attractive to companies and workers to locate, find a job, and create families. Growing populations develop a dependable tenant mix that can handle rent increases and home purchasers who assist in keeping your investment asset prices high.

Property Taxes

Real estate taxes, maintenance, and insurance expenses are investigated by long-term rental investors for calculating costs to assess if and how the investment will pay off. Rental homes situated in steep property tax markets will provide smaller profits. Excessive property tax rates may predict an unstable city where costs can continue to expand and should be treated as a red flag.

Price to Rent Ratio

Price to rent ratio (p/r) is a market signal that informs you the amount you can predict to demand for rent. If median home prices are steep and median rents are weak — a high p/r, it will take more time for an investment to repay your costs and attain profitability. A higher price-to-rent ratio informs you that you can demand less rent in that location, a small one tells you that you can charge more.

Median Gross Rents

Median gross rents let you see whether a city’s lease market is reliable. Median rents should be increasing to justify your investment. If rental rates are being reduced, you can eliminate that market from consideration.

Median Population Age

The median population age that you are looking for in a strong investment market will be near the age of employed people. This may also show that people are moving into the community. If you see a high median age, your source of tenants is reducing. A thriving economy cannot be sustained by aged, non-working residents.

Employment Base Diversity

Accommodating numerous employers in the area makes the market less unstable. When working individuals are employed by only several significant businesses, even a minor interruption in their business could cause you to lose a great deal of renters and increase your risk substantially.

Unemployment Rate

High unemployment equals fewer tenants and an unsteady housing market. Unemployed citizens can’t be clients of yours and of other businesses, which causes a domino effect throughout the market. Those who continue to keep their workplaces may discover their hours and salaries reduced. Current renters might become late with their rent in this scenario.

Income Rates

Median household and per capita income rates help you to see if enough desirable renters reside in that market. Increasing salaries also inform you that rental fees can be hiked over the life of the rental home.

Number of New Jobs Created

A growing job market equals a steady stream of renters. The employees who fill the new jobs will be looking for a residence. This enables you to acquire additional rental real estate and replenish existing vacant units.

School Ratings

School quality in the area will have a strong impact on the local real estate market. Employers that are considering moving need high quality schools for their employees. Relocating companies relocate and draw potential tenants. Homebuyers who relocate to the region have a beneficial influence on home prices. For long-term investing, search for highly respected schools in a potential investment location.

Property Appreciation Rates

The essence of a long-term investment method is to hold the asset. You want to know that the chances of your investment increasing in market worth in that location are promising. Subpar or shrinking property value in a community under consideration is unacceptable.

A short-term rental is a furnished residence where a renter lives for less than four weeks. Short-term rental owners charge a steeper rate per night than in long-term rental properties. Because of the high number of tenants, short-term rentals need more frequent care and cleaning.

Short-term rentals are used by people on a business trip who are in the region for several days, those who are relocating and want short-term housing, and excursionists. House sharing platforms like AirBnB and VRBO have encouraged countless property owners to join in the short-term rental industry. This makes short-term rentals a good approach to pursue residential real estate investing.

Short-term rental landlords necessitate dealing personally with the occupants to a greater extent than the owners of annually leased properties. This means that property owners face disagreements more frequently. Consider protecting yourself and your portfolio by joining any of real estate law experts in Bolivar County MS to your team of experts.

Factors to Consider

Short-Term Rental Income

You need to determine the amount of rental revenue you’re targeting according to your investment strategy. A community’s short-term rental income rates will quickly reveal to you when you can anticipate to accomplish your estimated income figures.

Median Property Prices

Meticulously evaluate the budget that you can spare for additional investment assets. To see if an area has opportunities for investment, investigate the median property prices. You can tailor your real estate search by estimating median prices in the location’s sub-markets.

Price Per Square Foot

Price per sq ft provides a basic idea of property values when analyzing comparable properties. When the designs of prospective properties are very different, the price per square foot may not give a valid comparison. If you take note of this, the price per square foot can provide you a broad estimation of real estate prices.

Short-Term Rental Occupancy Rate

A look at the area’s short-term rental occupancy levels will show you whether there is demand in the district for additional short-term rentals. A location that needs more rental units will have a high occupancy level. When the rental occupancy levels are low, there is not much place in the market and you should search in a different place.

Short-Term Rental Cash-on-Cash Return

A short-term rental’s cash-on-cash return will inform you if the purchase is a good use of your money. You can compute the cash-on-cash return by taking your Net Operating Income (NOI) and dividing it by the cash you are putting in. The result is a percentage. If an investment is lucrative enough to repay the amount invested promptly, you will have a high percentage. Lender-funded investment ventures will show higher cash-on-cash returns as you will be spending less of your own funds.

Average Short-Term Rental Capitalization (Cap) Rates

Average short-term rental capitalization (cap) rates are largely used by real estate investors to evaluate the worth of rental properties. An investment property that has a high cap rate and charges average market rental prices has a strong market value. Low cap rates show higher-priced investment properties. The cap rate is determined by dividing the Net Operating Income (NOI) by the listing price or market value. The answer is the yearly return in a percentage.

Local Attractions

Short-term renters are often tourists who visit an area to enjoy a recurring special activity or visit tourist destinations. Individuals come to specific locations to enjoy academic and athletic activities at colleges and universities, be entertained by competitions, support their kids as they participate in kiddie sports, have fun at annual fairs, and stop by theme parks. At certain periods, places with outdoor activities in the mountains, seaside locations, or alongside rivers and lakes will draw a throng of people who need short-term rental units.

To fix and flip a residential property, you need to pay less than market price, perform any required repairs and upgrades, then sell the asset for better market value. Your estimate of improvement expenses has to be precise, and you have to be able to acquire the unit for less than market worth.

Investigate the housing market so that you know the exact After Repair Value (ARV). Locate a market that has a low average Days On Market (DOM) metric. Selling real estate without delay will help keep your costs low and guarantee your profitability.

So that homeowners who have to unload their property can easily find you, promote your status by utilizing our catalogue of the best real estate cash buyers in Bolivar County MS along with the best real estate investment firms in Bolivar County MS.

In addition, team up with Bolivar County real estate bird dogs. Specialists in our catalogue specialize in procuring desirable investment opportunities while they are still under the radar.

Factors to Consider

Median Home Price

The market’s median home price will help you determine a suitable neighborhood for flipping houses. If values are high, there may not be a consistent source of fixer-upper houses in the area. You must have cheaper real estate for a profitable deal.

When you see a sharp drop in property values, this could signal that there are possibly homes in the city that qualify for a short sale. You will be notified concerning these possibilities by joining with short sale processors in Bolivar County MS. Discover more concerning this kind of investment explained in our guide How Difficult Is It to Buy a Short Sale Home?.

Property Appreciation Rate

Are property market values in the city on the way up, or going down? You need a city where real estate values are steadily and continuously on an upward trend. Property prices in the city need to be increasing regularly, not abruptly. You may end up buying high and selling low in an hectic market.

Average Renovation Costs

Look carefully at the potential renovation spendings so you’ll understand if you can reach your projections. The way that the local government processes your application will affect your investment too. To draft an on-target budget, you will need to find out whether your plans will be required to use an architect or engineer.

Population Growth

Population growth is a strong gauge of the reliability or weakness of the location’s housing market. Flat or decelerating population growth is an indication of a feeble environment with not a lot of purchasers to validate your effort.

Median Population Age

The median residents’ age can also show you if there are adequate homebuyers in the region. The median age mustn’t be less or more than that of the usual worker. Workers can be the individuals who are active homebuyers. Older individuals are planning to downsize, or move into senior-citizen or retiree neighborhoods.

Unemployment Rate

You want to have a low unemployment rate in your potential location. An unemployment rate that is lower than the country’s median is a good sign. If the local unemployment rate is less than the state average, that is a sign of a strong investing environment. Jobless people cannot acquire your real estate.

Income Rates

The citizens’ income statistics inform you if the community’s economy is stable. When home buyers acquire a house, they usually need to get a loan for the purchase. Home purchasers’ eligibility to qualify for financing depends on the level of their income. The median income data will tell you if the location is ideal for your investment efforts. Specifically, income increase is crucial if you prefer to scale your business. To keep up with inflation and rising building and material expenses, you should be able to regularly mark up your purchase prices.

Number of New Jobs Created

The number of jobs created on a consistent basis tells if salary and population increase are feasible. More people acquire houses when their community’s financial market is creating jobs. Experienced skilled employees taking into consideration buying a house and settling prefer moving to regions where they won’t be unemployed.

Hard Money Loan Rates

Real estate investors who work with rehabbed residential units regularly utilize hard money financing instead of regular loans. Hard money financing products enable these purchasers to move forward on current investment ventures right away. Find the best private money lenders in Bolivar County MS so you can compare their charges.

Someone who needs to know about hard money financing products can find what they are and how to use them by reading our guide titled What Is Hard Money Financing?.

In real estate wholesaling, you search for a residential property that real estate investors may count as a good investment opportunity and sign a sale and purchase agreement to purchase it. When a real estate investor who needs the property is found, the sale and purchase agreement is assigned to them for a fee. The real estate investor then finalizes the transaction. The real estate wholesaler doesn’t sell the property itself — they simply sell the purchase agreement.

Wholesaling depends on the participation of a title insurance firm that is okay with assigned real estate sale agreements and understands how to work with a double closing. Find Bolivar County wholesale friendly title companies by reviewing our list.

To understand how real estate wholesaling works, study our informative article What Is Wholesaling in Real Estate Investing?. When pursuing this investing strategy, list your company in our list of the best home wholesalers in Bolivar County MS. This will help your future investor purchasers find and call you.

Factors to Consider

Median Home Prices

Median home values are essential to spotting communities where houses are being sold in your real estate investors’ purchase price point. A community that has a good source of the marked-down investment properties that your clients require will show a lower median home price.

A fast downturn in housing prices could lead to a considerable number of ’upside-down’ homes that short sale investors look for. This investment method often provides multiple particular perks. Nevertheless, it also raises a legal liability. Gather more details on how to wholesale a short sale property with our thorough instructions. Once you’ve determined to attempt wholesaling these properties, make certain to engage someone on the directory of the best short sale law firms in Bolivar County MS and the best real estate foreclosure attorneys in Bolivar County MS to assist you.

Property Appreciation Rate

Property appreciation rate completes the median price statistics. Investors who need to liquidate their properties later, like long-term rental investors, need a location where property values are increasing. Declining purchase prices indicate an unequivocally weak rental and housing market and will chase away real estate investors.

Population Growth

Population growth figures are a predictor that real estate investors will analyze carefully. When the community is growing, new housing is needed. There are a lot of individuals who lease and plenty of customers who buy houses. When a population isn’t growing, it doesn’t require additional housing and investors will look in other locations.

Median Population Age

A robust housing market necessitates individuals who start off renting, then shifting into homebuyers, and then moving up in the housing market. To allow this to happen, there needs to be a strong workforce of potential renters and homeowners. A place with these features will display a median population age that matches the working citizens’ age.

Income Rates

The median household and per capita income show constant growth over time in locations that are favorable for investment. Increases in lease and sale prices must be backed up by growing income in the area. Investors want this if they are to meet their anticipated returns.

Unemployment Rate

Real estate investors will pay close attention to the region’s unemployment rate. Renters in high unemployment communities have a tough time making timely rent payments and some of them will miss payments completely. Long-term investors will not acquire real estate in an area like this. Investors cannot depend on tenants moving up into their houses if unemployment rates are high. This is a concern for short-term investors buying wholesalers’ agreements to fix and flip a home.

Number of New Jobs Created

The number of jobs appearing per year is a crucial component of the residential real estate framework. Additional jobs created lead to an abundance of employees who need places to rent and purchase. Whether your purchaser base consists of long-term or short-term investors, they will be drawn to an area with regular job opening generation.

Average Renovation Costs

An indispensable factor for your client real estate investors, especially fix and flippers, are renovation expenses in the location. Short-term investors, like home flippers, won’t make money when the purchase price and the repair expenses amount to more money than the After Repair Value (ARV) of the house. Give preference to lower average renovation costs.

Acquiring mortgage notes (loans) pays off when the loan can be purchased for a lower amount than the remaining balance. When this occurs, the investor becomes the client’s mortgage lender.

Loans that are being paid on time are called performing notes. They earn you stable passive income. Non-performing notes can be rewritten or you could buy the property for less than face value by conducting foreclosure.

At some time, you might create a mortgage note portfolio and find yourself needing time to manage it by yourself. At that juncture, you might need to utilize our directory of Bolivar County top loan portfolio servicing companies and redesignate your notes as passive investments.

When you find that this strategy is a good fit for you, include your firm in our list of Bolivar County top real estate note buying companies. Appearing on our list puts you in front of lenders who make desirable investment possibilities accessible to note buyers such as yourself.

Factors to consider

Foreclosure Rates

Low foreclosure rates are a signal that the market has opportunities for performing note investors. High rates could signal opportunities for non-performing note investors, however they have to be cautious. But foreclosure rates that are high can indicate a weak real estate market where getting rid of a foreclosed unit could be challenging.

Foreclosure Laws

Successful mortgage note investors are thoroughly well-versed in their state’s regulations concerning foreclosure. They will know if their law requires mortgage documents or Deeds of Trust. You might have to receive the court’s okay to foreclose on a mortgage note’s collateral. You merely have to file a notice and proceed with foreclosure steps if you’re working with a Deed of Trust.

Mortgage Interest Rates

Acquired mortgage loan notes contain an agreed interest rate. This is a major factor in the profits that you earn. Mortgage interest rates are crucial to both performing and non-performing note buyers.

Traditional lenders price dissimilar mortgage interest rates in various locations of the country. Mortgage loans issued by private lenders are priced differently and can be higher than traditional mortgage loans.

Successful investors regularly check the interest rates in their community set by private and traditional mortgage firms.

Demographics

If note investors are choosing where to buy notes, they will review the demographic statistics from considered markets. Note investors can interpret a lot by estimating the extent of the populace, how many residents have jobs, the amount they make, and how old the citizens are.
Note investors who prefer performing notes choose communities where a high percentage of younger residents maintain higher-income jobs.

The same market could also be good for non-performing note investors and their exit strategy. If non-performing note buyers have to foreclose, they will have to have a stable real estate market to sell the collateral property.

Property Values

The greater the equity that a borrower has in their property, the more advantageous it is for you as the mortgage lender. If the property value is not significantly higher than the mortgage loan amount, and the lender decides to foreclose, the collateral might not generate enough to repay the lender. The combination of mortgage loan payments that reduce the mortgage loan balance and annual property value appreciation raises home equity.

Property Taxes

Normally, mortgage lenders collect the property taxes from the homeowner every month. When the taxes are payable, there needs to be adequate funds in escrow to take care of them. If loan payments are not being made, the mortgage lender will have to choose between paying the property taxes themselves, or the taxes become delinquent. If a tax lien is filed, it takes a primary position over the your loan.

If property taxes keep rising, the homebuyer’s loan payments also keep increasing. This makes it tough for financially strapped homeowners to meet their obligations, and the mortgage loan could become delinquent.

Real Estate Market Strength

Both performing and non-performing note buyers can be profitable in a strong real estate environment. It’s critical to understand that if you have to foreclose on a collateral, you won’t have difficulty receiving a good price for it.

A strong real estate market may also be a potential environment for initiating mortgage notes. This is a strong stream of income for experienced investors.

A REIT, or Real Estate Investment Trust, is a business that makes investments in income-producing properties. This was initially done as a way to empower the regular investor to invest in real estate. Many investors today are capable of investing in a REIT.

Investing in a REIT is known as passive investing. The liability that the investors are taking is distributed within a group of investment assets. Investors can unload their REIT shares whenever they want. One thing you cannot do with REIT shares is to select the investment assets. The properties that the REIT selects to purchase are the properties your funds are used to buy.

Real estate investment funds are basically mutual funds focusing on real estate companies, including REITs. Any actual property is owned by the real estate companies, not the fund. This is an additional method for passive investors to spread their portfolio with real estate without the high entry-level cost or exposure. Fund members may not receive usual distributions the way that REIT participants do. Like other stocks, investment funds’ values grow and drop with their share price.

You can locate a fund that specializes in a particular category of real estate firm, such as residential, but you cannot suggest the fund’s investment real estate properties or markets. You have to depend on the fund’s directors to determine which markets and real estate properties are picked for investment.