Ultimate Chase County Real Estate Investing Guide for 2024

The abbreviation BRRRR is a description of a long-term investment plan — Buy, Rehab, Rent, Refinance, Repeat. This is a way to expand your investment assets rather than buy one investment property. An important part of this plan is to be able to take a “cash-out” mortgage refinance.

The After Repair Value (ARV) of the property needs to total more than the total buying and renovation costs. Then you borrow a cash-out mortgage refinance loan that is based on the higher value, and you withdraw the difference. You buy your next investment property with the cash-out money and do it anew. You acquire additional houses or condos and continually increase your rental revenues.

If an investor owns a substantial portfolio of investment properties, it is wise to pay a property manager and create a passive income stream. Locate Chase County property management firms when you go through our list of professionals.

Factors to Consider

Population Growth

The growth or shrinking of the population can tell you whether that city is desirable to landlords. An increasing population often signals active relocation which equals additional tenants. Businesses consider such a region as an appealing area to relocate their company, and for workers to relocate their families. This means stable tenants, more rental income, and more likely homebuyers when you want to unload your asset.

Property Taxes

Real estate taxes, similarly to insurance and maintenance spendings, may vary from place to place and have to be looked at cautiously when estimating possible profits. Excessive spendings in these categories threaten your investment’s returns. Locations with excessive property tax rates are not a stable situation for short- or long-term investment and need to be bypassed.

Price to Rent Ratio

The price to rent ratio (p/r) is an illustration of how much rent can be collected in comparison to the market worth of the asset. How much you can charge in a market will affect the amount you are willing to pay depending on the number of years it will take to pay back those costs. The less rent you can collect the higher the p/r, with a low p/r showing a more robust rent market.

Median Gross Rents

Median gross rents are a critical illustration of the stability of a lease market. Search for a continuous expansion in median rents year over year. You will not be able to reach your investment predictions in a city where median gross rents are dropping.

Median Population Age

Median population age in a good long-term investment environment should mirror the typical worker’s age. You’ll learn this to be true in areas where people are relocating. A high median age shows that the existing population is retiring with no replacement by younger workers moving there. This isn’t promising for the forthcoming economy of that region.

Employment Base Diversity

A diverse employment base is something a smart long-term rental property investor will look for. When there are only one or two major employers, and one of them relocates or closes shop, it can lead you to lose renters and your asset market rates to decrease.

Unemployment Rate

You will not be able to have a secure rental income stream in a locality with high unemployment. Historically successful companies lose clients when other employers retrench people. The still employed workers could find their own paychecks marked down. This may result in late rent payments and lease defaults.

Income Rates

Median household and per capita income will tell you if the renters that you need are residing in the area. Your investment planning will use rental rate and property appreciation, which will be based on salary augmentation in the market.

Number of New Jobs Created

The vibrant economy that you are searching for will be producing a high number of jobs on a regular basis. The people who fill the new jobs will require a place to live. This allows you to buy additional lease properties and fill existing vacant units.

School Ratings

Community schools can make a huge impact on the housing market in their location. Companies that are considering moving want top notch schools for their employees. Relocating employers relocate and draw prospective tenants. New arrivals who purchase a place to live keep real estate market worth up. Highly-rated schools are a key ingredient for a vibrant real estate investment market.

Property Appreciation Rates

High real estate appreciation rates are a prerequisite for a viable long-term investment. Investing in assets that you are going to to maintain without being certain that they will increase in market worth is a blueprint for failure. You do not need to take any time navigating communities with depressed property appreciation rates.

Residential properties where renters reside in furnished spaces for less than four weeks are referred to as short-term rentals. Short-term rental businesses charge a steeper rate a night than in long-term rental business. These properties could need more periodic upkeep and tidying.

Home sellers standing by to move into a new house, excursionists, and corporate travelers who are staying in the area for about week prefer renting apartments short term. Regular real estate owners can rent their houses or condominiums on a short-term basis with platforms like AirBnB and VRBO. A simple approach to enter real estate investing is to rent a property you already keep for short terms.

Destination rental unit owners necessitate dealing one-on-one with the renters to a greater degree than the owners of yearly rented units. That results in the investor being required to frequently manage grievances. You might need to defend your legal exposure by hiring one of the good Chase County real estate attorneys.

Factors to Consider

Short-Term Rental Income

You must calculate the range of rental income you’re searching for according to your investment calculations. A community’s short-term rental income levels will promptly show you when you can assume to achieve your projected income figures.

Median Property Prices

When purchasing investment housing for short-term rentals, you have to know the amount you can spend. The median values of property will show you if you can afford to be in that location. You can calibrate your real estate search by analyzing median prices in the location’s sub-markets.

Price Per Square Foot

Price per square foot gives a basic idea of property prices when analyzing similar properties. A home with open entrances and high ceilings cannot be contrasted with a traditional-style property with bigger floor space. If you take this into account, the price per sq ft may provide you a general idea of property prices.

Short-Term Rental Occupancy Rate

The percentage of short-term rental properties that are currently tenanted in a community is crucial information for an investor. A region that needs new rentals will have a high occupancy level. Low occupancy rates communicate that there are more than enough short-term units in that city.

Short-Term Rental Cash-on-Cash Return

Cash-on-cash return is a means to determine the value of an investment. Take your projected Net Operating Income (NOI) and divide it by your investment cash budget. The resulting percentage is your cash-on-cash return. High cash-on-cash return means that you will regain your investment more quickly and the investment will have a higher return. Funded ventures will have a higher cash-on-cash return because you will be investing less of your cash.

Average Short-Term Rental Capitalization (Cap) Rates

Average short-term rental capitalization (cap) rates are generally used by real property investors to assess the worth of investment opportunities. A rental unit that has a high cap rate as well as charging typical market rental rates has a strong value. When investment real estate properties in a region have low cap rates, they generally will cost too much. The cap rate is calculated by dividing the Net Operating Income (NOI) by the asking price or market value. The percentage you will get is the investment property’s cap rate.

Local Attractions

Big festivals and entertainment attractions will attract tourists who want short-term housing. Vacationers visit specific places to attend academic and athletic activities at colleges and universities, be entertained by competitions, cheer for their children as they compete in kiddie sports, have fun at yearly carnivals, and go to amusement parks. At certain times of the year, places with outside activities in the mountains, coastal locations, or alongside rivers and lakes will bring in large numbers of people who need short-term rental units.

To fix and flip a residential property, you have to pay lower than market price, make any required repairs and improvements, then liquidate the asset for higher market worth. To get profit, the investor needs to pay lower than the market value for the house and determine how much it will cost to fix it.

You also need to evaluate the resale market where the home is positioned. You always want to analyze how long it takes for real estate to sell, which is shown by the Days on Market (DOM) information. To successfully “flip” a property, you need to liquidate the repaired house before you are required to shell out funds maintaining it.

Assist motivated real estate owners in locating your company by featuring your services in our directory of Chase County all cash home buyers and top Chase County real estate investing companies.

Also, hunt for bird dogs for real estate investors in Chase County KS. These specialists concentrate on rapidly finding profitable investment opportunities before they come on the market.

Factors to Consider

Median Home Price

Median property price data is a valuable benchmark for evaluating a prospective investment location. If values are high, there might not be a reliable reserve of run down real estate in the location. You have to have lower-priced houses for a profitable deal.

If your review indicates a quick drop in real estate market worth, it could be a sign that you’ll discover real estate that meets the short sale criteria. You will hear about potential opportunities when you join up with Chase County short sale specialists. Learn more about this type of investment by reading our guide What Is the Process for Buying a Short Sale Home?.

Property Appreciation Rate

The changes in real estate values in a city are very important. Fixed increase in median prices articulates a robust investment market. Housing market values in the market need to be increasing consistently, not rapidly. You may end up buying high and liquidating low in an unsustainable market.

Average Renovation Costs

A comprehensive study of the community’s renovation costs will make a substantial difference in your market selection. The time it will take for acquiring permits and the municipality’s requirements for a permit request will also affect your decision. You have to know whether you will be required to hire other professionals, like architects or engineers, so you can get prepared for those costs.

Population Growth

Population statistics will tell you whether there is an expanding need for homes that you can supply. Flat or decelerating population growth is an indicator of a weak market with not an adequate supply of purchasers to validate your risk.

Median Population Age

The median population age is a simple sign of the availability of preferred home purchasers. It should not be less or higher than the age of the regular worker. Employed citizens can be the individuals who are qualified homebuyers. The requirements of retired people will most likely not be included your investment venture plans.

Unemployment Rate

While researching a region for investment, look for low unemployment rates. It should definitely be less than the nation’s average. If it is also less than the state average, that is even more desirable. Jobless people cannot acquire your property.

Income Rates

The citizens’ wage statistics can brief you if the region’s financial market is strong. When home buyers buy a property, they usually have to obtain financing for the purchase. Home purchasers’ ability to get issued financing relies on the size of their income. The median income stats show you if the area is beneficial for your investment endeavours. Scout for areas where the income is increasing. To keep pace with inflation and soaring building and supply costs, you need to be able to periodically mark up your purchase rates.

Number of New Jobs Created

The number of jobs generated per annum is vital insight as you consider investing in a particular region. An expanding job market means that more people are receptive to buying a home there. Additional jobs also entice people migrating to the area from elsewhere, which additionally reinforces the real estate market.

Hard Money Loan Rates

Investors who sell renovated houses regularly use hard money funding rather than regular mortgage. This strategy allows them complete profitable ventures without hindrance. Find the best private money lenders in Chase County KS so you may match their fees.

People who are not experienced concerning hard money loans can discover what they should understand with our resource for newbies — What Is a Hard Money Lender in Real Estate?.

Wholesaling is a real estate investment approach that entails scouting out properties that are appealing to real estate investors and putting them under a sale and purchase agreement. However you do not close on the home: once you have the property under contract, you get an investor to take your place for a price. The real estate investor then finalizes the acquisition. The wholesaler doesn’t sell the property — they sell the rights to buy one.

Wholesaling relies on the assistance of a title insurance company that is experienced with assignment of purchase contracts and knows how to work with a double closing. Locate title companies for real estate investors in Chase County KS that we selected for you.

To understand how real estate wholesaling works, look through our informative guide How Does Real Estate Wholesaling Work?. As you select wholesaling, add your investment company in our directory of the best wholesale real estate companies in Chase County KS. This will let your potential investor purchasers locate and call you.

Factors to Consider

Median Home Prices

Median home values in the area will tell you if your ideal purchase price range is viable in that location. A place that has a large supply of the marked-down residential properties that your customers need will show a lower median home purchase price.

A sudden decrease in real estate prices might be followed by a hefty selection of ’upside-down’ houses that short sale investors hunt for. This investment strategy regularly carries multiple particular advantages. However, it also presents a legal liability. Discover details concerning wholesaling a short sale property with our extensive article. Once you’ve chosen to attempt wholesaling short sale homes, make certain to hire someone on the directory of the best short sale law firms in Chase County KS and the best real estate foreclosure attorneys in Chase County KS to advise you.

Property Appreciation Rate

Property appreciation rate completes the median price data. Many investors, like buy and hold and long-term rental investors, particularly want to find that home prices in the area are increasing consistently. A declining median home price will illustrate a poor rental and housing market and will exclude all sorts of investors.

Population Growth

Population growth statistics are something that investors will consider thoroughly. An increasing population will require new residential units. Real estate investors realize that this will include both leasing and purchased housing units. A market that has a dropping population does not attract the investors you want to purchase your contracts.

Median Population Age

A good housing market for real estate investors is agile in all aspects, particularly tenants, who turn into home purchasers, who move up into larger homes. In order for this to take place, there needs to be a strong workforce of prospective renters and homebuyers. If the median population age mirrors the age of employed locals, it shows a reliable property market.

Income Rates

The median household and per capita income demonstrate steady growth continuously in areas that are ripe for investment. Increases in lease and asking prices will be backed up by improving salaries in the area. Real estate investors stay out of places with declining population salary growth figures.

Unemployment Rate

The location’s unemployment rates will be an important point to consider for any future wholesale property purchaser. High unemployment rate forces more tenants to make late rent payments or miss payments altogether. This upsets long-term investors who need to lease their residential property. High unemployment builds uncertainty that will keep people from buying a property. Short-term investors won’t risk being pinned down with a unit they can’t liquidate without delay.

Number of New Jobs Created

The frequency of jobs created per year is a critical component of the housing framework. People relocate into a community that has fresh jobs and they need a place to live. No matter if your client supply is comprised of long-term or short-term investors, they will be attracted to a location with regular job opening production.

Average Renovation Costs

Updating expenses have a strong impact on a real estate investor’s profit. When a short-term investor flips a house, they have to be able to dispose of it for a higher price than the combined sum they spent for the acquisition and the improvements. Below average repair costs make a region more profitable for your priority clients — rehabbers and other real estate investors.

This strategy means obtaining debt (mortgage note) from a lender at a discount. The debtor makes future payments to the investor who is now their new lender.

Performing notes mean loans where the homeowner is always on time with their payments. They earn you long-term passive income. Note investors also buy non-performing mortgage notes that the investors either restructure to assist the borrower or foreclose on to acquire the property below actual worth.

Eventually, you may accrue a group of mortgage note investments and not have the time to manage the portfolio by yourself. At that point, you may want to use our directory of Chase County top home loan servicers and reassign your notes as passive investments.

Should you decide that this model is a good fit for you, put your name in our directory of Chase County top real estate note buying companies. Showing up on our list places you in front of lenders who make lucrative investment possibilities available to note investors such as you.

Factors to consider

Foreclosure Rates

Performing loan purchasers prefer communities with low foreclosure rates. If the foreclosures happen too often, the region may still be desirable for non-performing note investors. The neighborhood needs to be robust enough so that investors can foreclose and resell collateral properties if required.

Foreclosure Laws

It is important for mortgage note investors to know the foreclosure laws in their state. They’ll know if their state dictates mortgage documents or Deeds of Trust. While using a mortgage, a court will have to allow a foreclosure. A Deed of Trust authorizes the lender to file a public notice and continue to foreclosure.

Mortgage Interest Rates

Acquired mortgage notes come with a negotiated interest rate. Your mortgage note investment return will be influenced by the interest rate. No matter which kind of note investor you are, the note’s interest rate will be important for your predictions.

Conventional lenders charge different mortgage interest rates in different parts of the US. Private loan rates can be moderately more than traditional mortgage rates because of the larger risk taken on by private mortgage lenders.

A mortgage loan note investor ought to be aware of the private as well as conventional mortgage loan rates in their areas all the time.

Demographics

A market’s demographics statistics assist note investors to focus their efforts and effectively distribute their resources. It is important to determine if enough citizens in the neighborhood will continue to have stable jobs and incomes in the future.
Note investors who prefer performing mortgage notes hunt for places where a high percentage of younger individuals maintain good-paying jobs.

Non-performing mortgage note investors are interested in comparable indicators for other reasons. If non-performing note buyers need to foreclose, they’ll require a vibrant real estate market in order to sell the repossessed property.

Property Values

Mortgage lenders want to find as much equity in the collateral property as possible. If you have to foreclose on a mortgage loan with lacking equity, the sale may not even pay back the balance invested in the note. As loan payments lessen the balance owed, and the market value of the property increases, the homeowner’s equity increases.

Property Taxes

Escrows for house taxes are most often sent to the lender along with the loan payment. When the taxes are due, there should be sufficient funds in escrow to handle them. If loan payments are not being made, the mortgage lender will have to choose between paying the taxes themselves, or the property taxes become past due. If a tax lien is put in place, the lien takes a primary position over the mortgage lender’s loan.

If a municipality has a history of growing tax rates, the total home payments in that region are regularly growing. Overdue clients may not have the ability to maintain rising payments and could stop making payments altogether.

Real Estate Market Strength

A stable real estate market with strong value growth is good for all categories of mortgage note buyers. Since foreclosure is a crucial component of note investment planning, increasing property values are key to finding a good investment market.

A vibrant market might also be a profitable place for creating mortgage notes. This is a strong source of income for accomplished investors.

A trust investing in income-generating real estate properties and that sells shares to the public is a REIT — Real Estate Investment Trust. Before REITs appeared, real estate investing used to be too expensive for the majority of investors. The average person has the funds to invest in a REIT.

Shareholders in such organizations are entirely passive investors. REITs manage investors’ risk with a diversified group of real estate. Shares can be sold when it’s convenient for the investor. Participants in a REIT aren’t allowed to advise or submit properties for investment. You are confined to the REIT’s collection of properties for investment.

A Real Estate Investment Fund is a mutual fund that possesses stocks of real estate businesses. The fund does not own properties — it holds interest in real estate businesses. Investment funds may be a cost-effective method to incorporate real estate in your allocation of assets without unnecessary exposure. Real estate investment funds are not required to pay dividends unlike a REIT. The benefit to you is created by changes in the value of the stock.

You can choose a fund that focuses on a predetermined type of real estate you are expert in, but you don’t get to select the market of each real estate investment. As passive investors, fund members are happy to let the directors of the fund make all investment choices.