Ultimate Easley Real Estate Investing Guide for 2024

A long-term wealth growing system that involves Buying a home, Rehabbing, Renting, Refinancing it, and Repeating the procedure by spending the cash from the refinance is called BRRRR. BRRRR is a method for repeated growth. This strategy hinges on your capability to extract money out when you refinance.

The After Repair Value (ARV) of the rental needs to equal more than the total purchase and renovation expenses. Then you take the equity you generated from the property in a “cash-out” refinance. This capital is placed into one more investment asset, and so on. This program assists you to repeatedly expand your assets and your investment income.

When an investor holds a large portfolio of investment homes, it seems smart to employ a property manager and establish a passive income source. Find one of the best investment property management firms in Easley SC with a review of our comprehensive directory.

Factors to Consider

Population Growth

Population expansion or shrinking tells you if you can depend on strong results from long-term real estate investments. If you find strong population growth, you can be sure that the community is pulling likely renters to it. The area is desirable to companies and working adults to locate, work, and create families. A growing population constructs a stable foundation of tenants who will stay current with rent raises, and a vibrant property seller’s market if you want to liquidate any assets.

Property Taxes

Real estate taxes, just like insurance and maintenance spendings, can be different from place to place and should be considered cautiously when predicting possible returns. Investment property located in excessive property tax communities will provide less desirable returns. If property tax rates are unreasonable in a given area, you will want to look in a different location.

Price to Rent Ratio

The price to rent ratio (p/r) is a comparison of median property prices and median rental rates that will signal how much rent the market can handle. How much you can demand in a region will determine the amount you are willing to pay based on the number of years it will take to recoup those costs. The lower rent you can charge the higher the price-to-rent ratio, with a low p/r illustrating a stronger rent market.

Median Gross Rents

Median gross rents let you see whether a city’s rental market is strong. Median rents must be growing to warrant your investment. If rents are being reduced, you can scratch that market from consideration.

Median Population Age

Median population age in a strong long-term investment market must mirror the normal worker’s age. You’ll discover this to be true in communities where people are moving. A high median age means that the existing population is retiring with no replacement by younger people relocating there. An active economy cannot be sustained by retired individuals.

Employment Base Diversity

A varied employment base is what a smart long-term rental property investor will look for. When there are only one or two dominant hiring companies, and one of such moves or goes out of business, it will cause you to lose paying customers and your asset market prices to decline.

Unemployment Rate

High unemployment equals fewer renters and an unsafe housing market. Historically successful companies lose customers when other employers retrench workers. Workers who continue to have jobs may discover their hours and salaries cut. Even tenants who have jobs will find it challenging to pay rent on time.

Income Rates

Median household and per capita income level is a beneficial indicator to help you discover the communities where the tenants you prefer are residing. Your investment calculations will include rental charge and asset appreciation, which will rely on salary augmentation in the market.

Number of New Jobs Created

An expanding job market translates into a steady supply of tenants. The people who fill the new jobs will have to have a place to live. Your objective of leasing and acquiring additional real estate needs an economy that can create new jobs.

School Ratings

Local schools can cause a huge effect on the property market in their city. Well-rated schools are a requirement of companies that are considering relocating. Relocating employers bring and attract potential renters. New arrivals who are looking for a home keep home market worth up. Good schools are a key ingredient for a strong property investment market.

Property Appreciation Rates

Real estate appreciation rates are an integral portion of your long-term investment plan. Investing in properties that you aim to hold without being positive that they will rise in market worth is a formula for failure. Low or decreasing property value in a city under examination is unacceptable.

A short-term rental is a furnished unit where a renter resides for shorter than one month. Short-term rental businesses charge a steeper price a night than in long-term rental business. With renters not staying long, short-term rentals have to be repaired and cleaned on a continual basis.

House sellers standing by to close on a new home, tourists, and business travelers who are stopping over in the city for about week like to rent a residence short term. House sharing portals like AirBnB and VRBO have encouraged a lot of residential property owners to get in on the short-term rental industry. Short-term rentals are regarded as an effective way to jumpstart investing in real estate.

Vacation rental owners require dealing directly with the occupants to a greater degree than the owners of annually leased properties. As a result, owners manage problems regularly. You may want to cover your legal liability by working with one of the good Easley real estate attorneys.

Factors to Consider

Short-Term Rental Income

Initially, determine the amount of rental income you should have to meet your anticipated profits. A community’s short-term rental income rates will quickly reveal to you if you can predict to reach your estimated rental income levels.

Median Property Prices

When buying investment housing for short-term rentals, you must know the amount you can allot. The median price of real estate will show you if you can manage to be in that community. You can narrow your property hunt by evaluating median prices in the city’s sub-markets.

Price Per Square Foot

Price per square foot can be impacted even by the look and floor plan of residential units. When the styles of prospective properties are very different, the price per sq ft might not give a correct comparison. Price per sq ft can be a quick way to analyze several sub-markets or properties.

Short-Term Rental Occupancy Rate

The ratio of short-term rental properties that are presently rented in a city is vital knowledge for an investor. When the majority of the rental units are filled, that community demands more rental space. If the rental occupancy levels are low, there isn’t enough space in the market and you should look in a different place.

Short-Term Rental Cash-on-Cash Return

Cash-on-cash return is a means to estimate the value of an investment. Divide the Net Operating Income (NOI) by the total amount of cash invested. The return comes as a percentage. High cash-on-cash return shows that you will recoup your capital faster and the investment will earn more profit. Financed ventures will have a stronger cash-on-cash return because you’re using less of your money.

Average Short-Term Rental Capitalization (Cap) Rates

Average short-term rental capitalization (cap) levels are commonly utilized by real property investors to calculate the worth of rental units. Basically, the less money an investment property costs (or is worth), the higher the cap rate will be. Low cap rates reflect higher-priced real estate. You can obtain the cap rate for potential investment property by dividing the Net Operating Income (NOI) by the Fair Market Value or purchase price of the residential property. The percentage you receive is the investment property’s cap rate.

Local Attractions

Big festivals and entertainment attractions will entice visitors who will look for short-term rental units. Vacationers come to specific places to attend academic and sporting events at colleges and universities, be entertained by competitions, support their kids as they compete in fun events, party at annual carnivals, and drop by amusement parks. At certain times of the year, places with outdoor activities in the mountains, oceanside locations, or along rivers and lakes will bring in lots of people who require short-term housing.

When an investor acquires a property cheaper than its market value, fixes it so that it becomes more attractive and pricier, and then sells it for revenue, they are referred to as a fix and flip investor. The keys to a lucrative fix and flip are to pay less for the home than its full value and to correctly calculate the amount needed to make it marketable.

Analyze the prices so that you know the accurate After Repair Value (ARV). Find an area that has a low average Days On Market (DOM) indicator. As a “house flipper”, you’ll need to liquidate the upgraded home immediately in order to avoid maintenance expenses that will reduce your returns.

To help motivated residence sellers discover you, enter your firm in our directories of property cash buyers in Easley SC and real estate investment firms in Easley SC.

In addition, work with Easley bird dogs for real estate investors. Experts in our catalogue focus on procuring desirable investment opportunities while they’re still unlisted.

Factors to Consider

Median Home Price

The market’s median housing value could help you spot a good community for flipping houses. Modest median home prices are an indicator that there should be a steady supply of houses that can be purchased below market worth. This is a fundamental ingredient of a fix and flip market.

When your investigation shows a sudden decrease in house market worth, it might be a heads up that you will discover real property that meets the short sale requirements. You will hear about possible investments when you join up with Easley short sale negotiation companies. You’ll learn more data about short sales in our article ⁠— What Does Short Sale Mean in Buying a House?.

Property Appreciation Rate

Dynamics relates to the trend that median home prices are going. Fixed upward movement in median values indicates a robust investment environment. Accelerated price surges could show a market value bubble that isn’t sustainable. Buying at an inappropriate period in an unsteady market condition can be devastating.

Average Renovation Costs

You will want to evaluate construction expenses in any potential investment area. The way that the local government goes about approving your plans will have an effect on your investment too. To create a detailed financial strategy, you’ll want to understand whether your construction plans will be required to use an architect or engineer.

Population Growth

Population information will inform you if there is steady demand for real estate that you can sell. Flat or declining population growth is a sign of a sluggish environment with not an adequate supply of purchasers to justify your investment.

Median Population Age

The median residents’ age is a variable that you may not have considered. The median age in the region needs to equal the one of the regular worker. Individuals in the regional workforce are the most dependable real estate purchasers. People who are about to depart the workforce or are retired have very particular residency requirements.

Unemployment Rate

If you see a community that has a low unemployment rate, it is a strong indication of profitable investment prospects. An unemployment rate that is less than the nation’s median is a good sign. If the city’s unemployment rate is lower than the state average, that’s an indicator of a strong economy. To be able to acquire your repaired property, your potential clients are required to have a job, and their customers too.

Income Rates

The residents’ wage levels tell you if the community’s economy is stable. The majority of individuals who purchase a home need a mortgage loan. To be issued a mortgage loan, a home buyer can’t spend for housing a larger amount than a specific percentage of their salary. The median income indicators will show you if the city is preferable for your investment plan. You also need to have incomes that are growing consistently. If you need to raise the price of your residential properties, you need to be sure that your customers’ income is also rising.

Number of New Jobs Created

The number of jobs created on a consistent basis tells if income and population increase are sustainable. A larger number of people purchase houses if their region’s financial market is generating jobs. Competent skilled employees looking into buying a house and deciding to settle prefer moving to areas where they won’t be out of work.

Hard Money Loan Rates

Investors who sell rehabbed properties often use hard money financing rather than regular loans. Hard money financing products enable these buyers to move forward on current investment projects immediately. Research Easley hard money loan companies and compare lenders’ costs.

In case you are inexperienced with this loan product, understand more by using our guide — Hard Money Loans Guide for Real Estate Investors.

Wholesaling is a real estate investment approach that requires finding properties that are desirable to real estate investors and signing a purchase contract. When a real estate investor who wants the residential property is spotted, the purchase contract is assigned to the buyer for a fee. The real estate investor then finalizes the purchase. The real estate wholesaler doesn’t sell the property — they sell the contract to purchase one.

Wholesaling hinges on the participation of a title insurance firm that is okay with assigned contracts and knows how to work with a double closing. Look for title services for wholesale investors in Easley SC in our directory.

Our in-depth guide to wholesaling can be viewed here: A-to-Z Guide to Property Wholesaling. As you go with wholesaling, include your investment venture in our directory of the best investment property wholesalers in Easley SC. This will let your future investor customers locate and reach you.

Factors to Consider

Median Home Prices

Median home prices in the community will show you if your preferred price range is viable in that city. Lower median purchase prices are a solid sign that there are enough properties that might be bought under market worth, which real estate investors need to have.

A sudden decline in property prices could be followed by a large number of ’upside-down’ homes that short sale investors hunt for. Wholesaling short sales regularly carries a collection of particular perks. Nevertheless, it also presents a legal risk. Discover details concerning wholesaling a short sale property from our comprehensive explanation. When you’re keen to start wholesaling, search through Easley top short sale lawyers as well as Easley top-rated property foreclosure attorneys directories to discover the best counselor.

Property Appreciation Rate

Median home market value changes clearly illustrate the housing value in the market. Some investors, such as buy and hold and long-term rental landlords, notably want to find that home market values in the area are expanding consistently. A weakening median home price will indicate a weak leasing and home-buying market and will exclude all sorts of investors.

Population Growth

Population growth figures are an indicator that real estate investors will consider carefully. When they see that the population is expanding, they will decide that additional housing is required. There are many people who rent and more than enough customers who purchase real estate. If a region is shrinking in population, it doesn’t need more housing and investors will not invest there.

Median Population Age

A strong housing market needs people who start off renting, then moving into homebuyers, and then moving up in the residential market. This necessitates a vibrant, constant labor force of individuals who feel optimistic to buy up in the residential market. An area with these features will display a median population age that is equivalent to the wage-earning adult’s age.

Income Rates

The median household and per capita income show consistent growth historically in cities that are good for investment. When renters’ and homeowners’ incomes are improving, they can handle rising lease rates and residential property purchase costs. Property investors stay away from places with unimpressive population income growth indicators.

Unemployment Rate

Investors whom you offer to close your contracts will regard unemployment rates to be a significant bit of insight. Late lease payments and lease default rates are worse in places with high unemployment. This upsets long-term real estate investors who need to rent their residential property. High unemployment builds concerns that will prevent people from buying a home. Short-term investors will not risk getting pinned down with a house they cannot liquidate easily.

Number of New Jobs Created

Understanding how often new job openings are created in the area can help you determine if the house is positioned in a good housing market. Job formation signifies more workers who need a place to live. Long-term real estate investors, such as landlords, and short-term investors such as flippers, are attracted to cities with strong job production rates.

Average Renovation Costs

An essential consideration for your client investors, especially fix and flippers, are renovation costs in the community. The price, plus the expenses for improvement, should be lower than the After Repair Value (ARV) of the property to ensure profit. Give priority status to lower average renovation costs.

Note investing professionals buy debt from lenders if they can obtain it for a lower price than the outstanding debt amount. The debtor makes remaining payments to the investor who is now their current lender.

When a loan is being repaid on time, it is thought of as a performing note. Performing notes are a repeating provider of cash flow. Non-performing mortgage notes can be rewritten or you can acquire the collateral at a discount through a foreclosure procedure.

Someday, you could have a large number of mortgage notes and require more time to handle them on your own. If this develops, you could pick from the best loan servicing companies in Easley SC which will make you a passive investor.

If you conclude that this strategy is perfect for you, include your name in our list of Easley top promissory note buyers. Joining will make you more noticeable to lenders offering desirable opportunities to note buyers like yourself.

Factors to Consider

Foreclosure Rates

Performing loan investors seek regions with low foreclosure rates. High rates might indicate opportunities for non-performing mortgage note investors, however they should be cautious. The locale should be robust enough so that note investors can complete foreclosure and unload properties if necessary.

Foreclosure Laws

Investors need to know their state’s laws concerning foreclosure before buying notes. Are you dealing with a Deed of Trust or a mortgage? A mortgage dictates that you go to court for authority to start foreclosure. You only need to file a public notice and initiate foreclosure steps if you are using a Deed of Trust.

Mortgage Interest Rates

The mortgage interest rate is indicated in the mortgage notes that are acquired by note investors. This is an important element in the investment returns that lenders achieve. No matter the type of note investor you are, the mortgage loan note’s interest rate will be critical to your forecasts.

The mortgage rates charged by conventional lending companies are not identical everywhere. Private loan rates can be a little more than conventional rates considering the higher risk dealt with by private lenders.

Successful investors continuously check the rates in their market set by private and traditional mortgage companies.

Demographics

If mortgage note buyers are determining where to buy notes, they research the demographic indicators from considered markets. It’s critical to determine if a sufficient number of citizens in the neighborhood will continue to have reliable employment and wages in the future.
A youthful expanding market with a strong employment base can contribute a reliable revenue stream for long-term note investors hunting for performing notes.

Note investors who seek non-performing mortgage notes can also take advantage of strong markets. A resilient regional economy is prescribed if they are to find homebuyers for collateral properties they’ve foreclosed on.

Property Values

Mortgage lenders like to see as much equity in the collateral as possible. When the value is not much more than the loan amount, and the mortgage lender wants to foreclose, the collateral might not realize enough to payoff the loan. As loan payments reduce the balance owed, and the market value of the property increases, the homeowner’s equity increases.

Property Taxes

Normally, lenders accept the house tax payments from the borrower each month. By the time the taxes are due, there needs to be sufficient funds in escrow to take care of them. If the borrower stops performing, unless the mortgage lender pays the taxes, they won’t be paid on time. If property taxes are delinquent, the government’s lien jumps over all other liens to the front of the line and is satisfied first.

If a region has a record of increasing tax rates, the combined home payments in that market are steadily growing. This makes it tough for financially weak borrowers to stay current, and the loan could become delinquent.

Real Estate Market Strength

An active real estate market having strong value appreciation is beneficial for all kinds of note buyers. The investors can be assured that, when need be, a defaulted property can be sold for an amount that makes a profit.

Growing markets often generate opportunities for private investors to make the first loan themselves. For successful investors, this is a valuable portion of their investment strategy.

A trust that owns income-generating properties and that sells shares to the public is a REIT — Real Estate Investment Trust. This was initially done as a way to allow the typical person to invest in real property. REIT shares are economical for the majority of investors.

Investing in a REIT is one of the types of passive investing. REITs handle investors’ risk with a diversified collection of real estate. Investors are able to liquidate their REIT shares whenever they choose. But REIT investors do not have the option to choose specific investment properties or locations. The assets that the REIT decides to buy are the ones your funds are used to buy.

A Real Estate Investment Fund is a mutual fund that owns stocks of real estate firms. The fund doesn’t hold properties — it owns shares in real estate firms. Investment funds may be an inexpensive way to combine real estate properties in your appropriation of assets without avoidable exposure. Funds aren’t required to distribute dividends like a REIT. Like other stocks, investment funds’ values rise and decrease with their share market value.

You can pick a fund that focuses on a predetermined kind of real estate you are knowledgeable about, but you do not get to determine the geographical area of each real estate investment. Your choice as an investor is to choose a fund that you believe in to oversee your real estate investments.