Ultimate Greeley County Real Estate Investing Guide for 2024

The term BRRRR is a description of a long-term rental strategy — Buy, Rehab, Rent, Refinance, Repeat. When you plan to expand your investments, the BRRRR is a good strategy to use. It is required that you are qualified to receive a “cash-out” refinance loan for the plan to be successful.

When you are done with rehabbing the house, its value should be higher than your combined acquisition and rehab costs. The investment property is refinanced using the ARV and the difference, or equity, comes to you in cash. This money is placed into the next property, and so on. You purchase more and more houses or condos and constantly expand your lease revenues.

If an investor has a large collection of investment properties, it seems smart to hire a property manager and designate a passive income source. Find one of the best investment property management companies in Greeley County KS with the help of our complete list.

Factors to Consider

Population Growth

Population rise or shrinking signals you if you can count on sufficient returns from long-term property investments. When you see robust population growth, you can be sure that the community is pulling potential renters to the location. The region is appealing to employers and employees to locate, work, and have households. Rising populations develop a strong renter mix that can afford rent growth and home purchasers who assist in keeping your investment property prices up.

Property Taxes

Real estate taxes, ongoing upkeep spendings, and insurance directly hurt your returns. Excessive spendings in these areas jeopardize your investment’s bottom line. If property tax rates are excessive in a particular city, you probably need to look in another place.

Price to Rent Ratio

Price to rent ratio (p/r) is a market signal that tells you how much you can anticipate to demand as rent. If median real estate values are strong and median rents are small — a high p/r — it will take longer for an investment to recoup your costs and attain good returns. The lower rent you can charge the higher the price-to-rent ratio, with a low p/r signalling a better rent market.

Median Gross Rents

Median gross rents are an accurate barometer of the acceptance of a rental market under consideration. You are trying to find a market with consistent median rent growth. You will not be able to reach your investment targets in a market where median gross rents are dropping.

Median Population Age

Median population age in a dependable long-term investment environment should show the usual worker’s age. This could also illustrate that people are relocating into the city. If you see a high median age, your source of tenants is going down. This isn’t advantageous for the forthcoming financial market of that location.

Employment Base Diversity

A higher amount of enterprises in the area will increase your prospects for strong profits. If your tenants are concentrated in a few major companies, even a small issue in their business could cause you to lose a great deal of tenants and raise your liability significantly.

Unemployment Rate

You won’t enjoy a secure rental income stream in a market with high unemployment. Out-of-job citizens are no longer clients of yours and of related companies, which produces a domino effect throughout the community. The still employed people may find their own incomes cut. This may cause delayed rents and lease defaults.

Income Rates

Median household and per capita income stats let you know if an adequate amount of preferred renters dwell in that location. Improving salaries also tell you that rental fees can be raised over your ownership of the investment property.

Number of New Jobs Created

The more jobs are regularly being produced in a region, the more stable your renter source will be. A higher number of jobs mean a higher number of renters. Your plan of renting and purchasing additional real estate requires an economy that will create enough jobs.

School Ratings

Local schools can have a significant influence on the real estate market in their locality. Companies that are considering moving require high quality schools for their workers. Relocating employers bring and attract potential renters. Recent arrivals who need a home keep housing market worth strong. Good schools are a vital ingredient for a strong property investment market.

Property Appreciation Rates

The foundation of a long-term investment strategy is to hold the asset. You have to ensure that the odds of your property going up in value in that neighborhood are likely. You do not want to allot any time inspecting regions showing below-standard property appreciation rates.

A furnished house or condo where renters live for less than 4 weeks is referred to as a short-term rental. Long-term rentals, like apartments, charge lower payment per night than short-term rentals. With tenants fast turnaround, short-term rental units need to be maintained and sanitized on a regular basis.

Short-term rentals are mostly offered to individuals traveling on business who are in the region for a few days, those who are migrating and want transient housing, and people on vacation. Any homeowner can transform their home into a short-term rental with the assistance offered by online home-sharing platforms like VRBO and AirBnB. This makes short-term rentals a feasible approach to endeavor residential property investing.

Vacation rental landlords require working one-on-one with the tenants to a larger degree than the owners of annually leased units. As a result, landlords manage problems regularly. Think about protecting yourself and your assets by adding one of lawyers specializing in real estate law in Greeley County KS to your network of professionals.

Factors to Consider

Short-Term Rental Income

Initially, find out the amount of rental revenue you must earn to reach your estimated profits. An area’s short-term rental income rates will quickly tell you if you can predict to accomplish your projected income range.

Median Property Prices

You also have to determine how much you can bear to invest. Scout for cities where the budget you count on is appropriate for the existing median property prices. You can calibrate your area survey by looking at the median market worth in particular sub-markets.

Price Per Square Foot

Price per sq ft gives a general picture of values when analyzing comparable units. A house with open foyers and high ceilings can’t be contrasted with a traditional-style property with more floor space. It can be a fast way to analyze multiple sub-markets or properties.

Short-Term Rental Occupancy Rate

The number of short-term rental units that are presently filled in a location is vital information for a future rental property owner. A high occupancy rate signifies that an additional amount of short-term rentals is wanted. If landlords in the community are having problems filling their current properties, you will have trouble filling yours.

Short-Term Rental Cash-on-Cash Return

To determine whether you should put your cash in a specific property or area, calculate the cash-on-cash return. Divide the Net Operating Income (NOI) by the total amount of cash used. The percentage you get is your cash-on-cash return. When a project is lucrative enough to reclaim the capital spent fast, you’ll receive a high percentage. Sponsored investment ventures will yield stronger cash-on-cash returns because you’re spending less of your own capital.

Average Short-Term Rental Capitalization (Cap) Rates

Average short-term rental capitalization (cap) rates are commonly utilized by real estate investors to evaluate the value of investment opportunities. In general, the less a property will cost (or is worth), the higher the cap rate will be. Low cap rates show more expensive properties. You can obtain the cap rate for potential investment real estate by dividing the Net Operating Income (NOI) by the Fair Market Value or purchase price of the residential property. The percentage you get is the property’s cap rate.

Local Attractions

Short-term renters are commonly individuals who come to a location to attend a recurring important event or visit unique locations. If an area has places that periodically hold must-see events, such as sports arenas, universities or colleges, entertainment halls, and adventure parks, it can draw visitors from other areas on a constant basis. At particular times of the year, locations with outdoor activities in mountainous areas, oceanside locations, or alongside rivers and lakes will attract large numbers of tourists who want short-term residence.

The fix and flip approach involves buying a house that needs improvements or renovation, creating additional value by upgrading the property, and then liquidating it for a higher market worth. To keep the business profitable, the investor has to pay less than the market worth for the property and know the amount it will cost to fix it.

It’s vital for you to be aware of what properties are going for in the market. Select a city with a low average Days On Market (DOM) indicator. Selling the home immediately will keep your expenses low and ensure your returns.

To help distressed residence sellers locate you, enter your business in our catalogues of companies that buy homes for cash in Greeley County KS and property investment companies in Greeley County KS.

Also, team up with Greeley County property bird dogs. These specialists specialize in quickly discovering lucrative investment prospects before they come on the open market.

Factors to Consider

Median Home Price

Median real estate value data is a valuable benchmark for evaluating a potential investment environment. If purchase prices are high, there might not be a stable source of run down real estate in the market. This is an essential element of a successful rehab and resale project.

When your examination shows a rapid decrease in real property market worth, it may be a heads up that you will uncover real estate that meets the short sale criteria. You will find out about potential investments when you team up with Greeley County short sale negotiators. Find out how this happens by reading our explanation ⁠— How Do You Buy a House in a Short Sale?.

Property Appreciation Rate

The shifts in real property values in an area are critical. You have to have an area where property values are constantly and consistently on an upward trend. Housing purchase prices in the city need to be growing regularly, not rapidly. Acquiring at an inopportune moment in an unsteady environment can be devastating.

Average Renovation Costs

Look closely at the potential rehab costs so you will know whether you can achieve your targets. Other spendings, like permits, can inflate expenditure, and time which may also turn into additional disbursement. If you need to show a stamped set of plans, you will have to include architect’s rates in your expenses.

Population Growth

Population growth is a solid indication of the potential or weakness of the area’s housing market. Flat or declining population growth is an indicator of a sluggish market with not a lot of buyers to justify your risk.

Median Population Age

The median population age is a contributing factor that you might not have thought about. The median age in the region must equal the age of the usual worker. Workers are the people who are probable home purchasers. Individuals who are preparing to depart the workforce or are retired have very particular housing requirements.

Unemployment Rate

While assessing an area for investment, keep your eyes open for low unemployment rates. It must certainly be less than the US average. If the area’s unemployment rate is lower than the state average, that is an indication of a desirable investing environment. If they want to acquire your fixed up property, your prospective buyers need to work, and their customers as well.

Income Rates

Median household and per capita income numbers show you if you will find qualified purchasers in that location for your residential properties. When property hunters purchase a home, they normally need to obtain financing for the home purchase. Home purchasers’ eligibility to get issued a mortgage depends on the size of their wages. Median income can let you determine if the typical home purchaser can buy the homes you are going to list. Search for places where wages are growing. When you want to raise the asking price of your homes, you have to be certain that your home purchasers’ salaries are also going up.

Number of New Jobs Created

Finding out how many jobs are generated annually in the area adds to your confidence in a city’s economy. Residential units are more easily liquidated in a region with a strong job market. Fresh jobs also entice people relocating to the location from another district, which further invigorates the real estate market.

Hard Money Loan Rates

Real estate investors who work with renovated houses regularly employ hard money funding instead of regular loans. This allows them to quickly purchase desirable assets. Look up Greeley County hard money lenders and compare financiers’ fees.

Investors who are not well-versed in regard to hard money financing can learn what they need to understand with our resource for newbie investors — What Is a Hard Money Lender in Real Estate?.

Wholesaling is a real estate investment approach that involves scouting out homes that are desirable to investors and putting them under a sale and purchase agreement. A real estate investor then “buys” the contract from you. The seller sells the property to the real estate investor instead of the real estate wholesaler. The wholesaler does not sell the property — they sell the rights to buy it.

This strategy includes employing a title company that’s experienced in the wholesale contract assignment procedure and is capable and willing to manage double close purchases. Look for title companies that work with wholesalers in Greeley County KS that we collected for you.

Our in-depth guide to wholesaling can be read here: Ultimate Guide to Wholesaling Real Estate. As you conduct your wholesaling business, put your name in HouseCashin’s list of Greeley County top wholesale real estate investors. That way your desirable customers will know about your location and reach out to you.

Factors to Consider

Median Home Prices

Median home values in the area will inform you if your ideal purchase price point is achievable in that market. Lower median purchase prices are a good indication that there are plenty of homes that might be purchased for lower than market value, which investors prefer to have.

Rapid deterioration in real property prices might lead to a lot of homes with no equity that appeal to short sale property buyers. This investment plan often provides numerous uncommon perks. However, be cognizant of the legal risks. Get more details on how to wholesale a short sale with our extensive guide. When you want to give it a go, make sure you have one of short sale attorneys in Greeley County KS and property foreclosure attorneys in Greeley County KS to confer with.

Property Appreciation Rate

Median home market value changes clearly illustrate the home value in the market. Real estate investors who plan to sell their properties later on, such as long-term rental landlords, want a market where residential property market values are increasing. Both long- and short-term real estate investors will avoid a region where residential purchase prices are depreciating.

Population Growth

Population growth data is something that your potential investors will be aware of. A growing population will need additional housing. There are more people who rent and additional customers who purchase homes. When an area is declining in population, it doesn’t necessitate additional residential units and investors will not look there.

Median Population Age

A strong housing market prefers people who start off leasing, then transitioning into homeownership, and then buying up in the residential market. This takes a robust, consistent labor force of residents who feel optimistic enough to go up in the real estate market. When the median population age matches the age of wage-earning citizens, it indicates a strong real estate market.

Income Rates

The median household and per capita income will be rising in a vibrant real estate market that investors want to operate in. Increases in rent and purchase prices will be sustained by improving income in the market. That will be important to the investors you are trying to attract.

Unemployment Rate

The city’s unemployment rates will be a vital point to consider for any potential contract buyer. High unemployment rate prompts more tenants to pay rent late or miss payments altogether. Long-term investors won’t purchase a property in a city like that. Tenants can’t transition up to ownership and current homeowners can’t put up for sale their property and go up to a more expensive home. This can prove to be hard to reach fix and flip investors to purchase your buying contracts.

Number of New Jobs Created

Understanding how soon additional job openings are generated in the community can help you determine if the house is situated in a reliable housing market. Additional jobs appearing draw plenty of employees who need properties to lease and buy. Long-term real estate investors, like landlords, and short-term investors like rehabbers, are gravitating to places with impressive job creation rates.

Average Renovation Costs

Updating costs have a strong effect on a rehabber’s profit. When a short-term investor repairs a house, they need to be prepared to resell it for more money than the entire expense for the purchase and the improvements. The less you can spend to rehab a property, the better the location is for your potential contract buyers.

This strategy involves buying a loan (mortgage note) from a lender for less than the balance owed. This way, the investor becomes the lender to the original lender’s debtor.

Loans that are being paid as agreed are called performing notes. Performing loans are a repeating provider of passive income. Note investors also obtain non-performing mortgages that the investors either rework to assist the borrower or foreclose on to acquire the collateral below market value.

Ultimately, you might produce a group of mortgage note investments and not have the time to manage the portfolio without assistance. At that juncture, you may need to use our directory of Greeley County top mortgage servicers and redesignate your notes as passive investments.

When you choose to follow this investment model, you ought to put your business in our list of the best mortgage note buying companies in Greeley County KS. When you do this, you’ll be noticed by the lenders who market profitable investment notes for procurement by investors like you.

Factors to consider

Foreclosure Rates

Low foreclosure rates are an indication that the community has opportunities for performing note purchasers. High rates could indicate investment possibilities for non-performing note investors, but they have to be careful. If high foreclosure rates are causing an underperforming real estate environment, it could be challenging to get rid of the collateral property if you seize it through foreclosure.

Foreclosure Laws

It is important for note investors to know the foreclosure regulations in their state. Are you dealing with a mortgage or a Deed of Trust? A mortgage requires that the lender goes to court for authority to start foreclosure. Investors don’t need the judge’s agreement with a Deed of Trust.

Mortgage Interest Rates

Mortgage note investors inherit the interest rate of the mortgage loan notes that they purchase. This is a big factor in the investment returns that you earn. Regardless of which kind of investor you are, the loan note’s interest rate will be important to your calculations.

The mortgage rates charged by traditional mortgage lenders are not identical everywhere. Private loan rates can be slightly higher than conventional mortgage rates because of the greater risk taken on by private mortgage lenders.

Profitable investors routinely search the rates in their region offered by private and traditional mortgage companies.

Demographics

When mortgage note buyers are choosing where to invest, they will review the demographic statistics from likely markets. It is essential to find out if a sufficient number of people in the community will continue to have stable jobs and incomes in the future.
Note investors who prefer performing notes seek markets where a large number of younger people hold good-paying jobs.

Note investors who seek non-performing notes can also take advantage of dynamic markets. If these note investors have to foreclose, they’ll have to have a vibrant real estate market when they sell the collateral property.

Property Values

The greater the equity that a homeowner has in their property, the more advantageous it is for you as the mortgage note owner. If the value isn’t higher than the loan balance, and the mortgage lender has to foreclose, the collateral might not sell for enough to repay the lender. The combination of loan payments that lessen the mortgage loan balance and annual property value appreciation raises home equity.

Property Taxes

Payments for real estate taxes are most often given to the lender simultaneously with the loan payment. This way, the mortgage lender makes certain that the taxes are submitted when due. If mortgage loan payments aren’t being made, the lender will have to choose between paying the property taxes themselves, or the property taxes become delinquent. If a tax lien is filed, the lien takes first position over the lender’s loan.

If an area has a record of growing tax rates, the combined home payments in that municipality are regularly increasing. Homeowners who have a hard time making their loan payments may fall farther behind and eventually default.

Real Estate Market Strength

Both performing and non-performing note buyers can work in a strong real estate environment. As foreclosure is a necessary element of note investment strategy, growing property values are crucial to discovering a strong investment market.

Strong markets often show opportunities for private investors to generate the first mortgage loan themselves. For experienced investors, this is a valuable part of their investment strategy.

Some real estate investment companies are structured as a trust called Real Estate Investment Trusts or REITs. This was originally conceived as a method to empower the everyday person to invest in real property. Shares in REITs are affordable for most investors.

Participants in REITs are totally passive investors. The liability that the investors are accepting is diversified within a collection of investment properties. Shareholders have the right to unload their shares at any time. However, REIT investors don’t have the ability to select specific real estate properties or markets. Their investment is limited to the real estate properties chosen by the REIT.

Mutual funds owning shares of real estate businesses are referred to as real estate investment funds. Any actual real estate is held by the real estate companies, not the fund. Investment funds may be an affordable method to include real estate in your appropriation of assets without avoidable exposure. Fund members may not collect usual disbursements the way that REIT members do. The return to the investor is generated by increase in the value of the stock.

You may choose a fund that focuses on particular categories of the real estate industry but not particular locations for individual property investment. As passive investors, fund members are content to let the management team of the fund determine all investment choices.