Ultimate Hundred Real Estate Investing Guide for 2024

BRRRR means “Buy, Rehab, Rent, Refinance, Repeat”. BRRRR is a system for consistent expansion. This method rests on your ability to withdraw cash out when you refinance.

When you are done with fixing the home, its market value must be higher than your combined acquisition and rehab spendings. Next, you take the value you produced out of the property in a “cash-out” mortgage refinance. You purchase your next asset with the cash-out amount and begin anew. You add improving assets to the portfolio and lease revenue to your cash flow.

When your investment real estate portfolio is big enough, you might delegate its oversight and generate passive income. Locate Hundred real property management professionals when you search through our directory of professionals.

Factors to Consider

Population Growth

The expansion or decrease of the population can signal if that area is interesting to landlords. A booming population usually illustrates active relocation which translates to new tenants. Businesses consider this as an attractive region to relocate their company, and for employees to relocate their families. Increasing populations grow a strong renter mix that can handle rent increases and home purchasers who help keep your asset values high.

Property Taxes

Property taxes, just like insurance and maintenance expenses, can be different from market to market and have to be considered carefully when predicting possible profits. Investment property located in excessive property tax areas will provide smaller returns. Excessive property tax rates may predict an unreliable area where expenses can continue to increase and must be treated as a warning.

Price to Rent Ratio

The price to rent ratio (p/r) is a clue to how high of a rent can be charged compared to the purchase price of the investment property. An investor will not pay a large price for an investment asset if they can only charge a limited rent not letting them to pay the investment off within a reasonable timeframe. The lower rent you can demand the higher the price-to-rent ratio, with a low p/r illustrating a stronger rent market.

Median Gross Rents

Median gross rents are a true barometer of the approval of a rental market under discussion. Median rents must be going up to justify your investment. If rental rates are shrinking, you can drop that location from deliberation.

Median Population Age

Median population age in a reliable long-term investment environment must reflect the normal worker’s age. This could also signal that people are migrating into the area. When working-age people aren’t coming into the community to follow retiring workers, the median age will go higher. A thriving real estate market can’t be sustained by retirees.

Employment Base Diversity

A diversified employment base is what a smart long-term rental property owner will search for. If there are only one or two major hiring companies, and one of such relocates or goes out of business, it can make you lose renters and your property market rates to decline.

Unemployment Rate

High unemployment results in fewer renters and an unstable housing market. People who don’t have a job will not be able to pay for products or services. This can cause increased retrenchments or fewer work hours in the city. This may increase the instances of late rent payments and tenant defaults.

Income Rates

Median household and per capita income will demonstrate if the tenants that you are looking for are residing in the region. Your investment analysis will include rent and property appreciation, which will be based on wage augmentation in the city.

Number of New Jobs Created

An increasing job market equates to a regular stream of renters. An economy that produces jobs also adds more stakeholders in the housing market. This allows you to buy additional lease real estate and backfill existing unoccupied units.

School Ratings

The status of school districts has a strong influence on housing prices throughout the city. When an employer evaluates a region for potential relocation, they keep in mind that good education is a must for their employees. Reliable renters are the result of a steady job market. Homeowners who come to the community have a beneficial effect on housing prices. For long-term investing, look for highly endorsed schools in a prospective investment market.

Property Appreciation Rates

The foundation of a long-term investment plan is to hold the asset. You have to ensure that the chances of your asset going up in market worth in that community are strong. You don’t need to spend any time navigating markets that have weak property appreciation rates.

A furnished house or condo where clients stay for less than a month is regarded as a short-term rental. Long-term rentals, like apartments, impose lower payment a night than short-term ones. Because of the high number of occupants, short-term rentals entail additional recurring repairs and tidying.

Short-term rentals are mostly offered to individuals traveling on business who are in the city for several days, people who are moving and need short-term housing, and tourists. Regular real estate owners can rent their houses or condominiums on a short-term basis with portals such as AirBnB and VRBO. A convenient technique to enter real estate investing is to rent a residential unit you currently possess for short terms.

The short-term rental strategy requires dealing with tenants more regularly in comparison with annual lease properties. That leads to the investor being required to frequently handle grievances. You may need to cover your legal exposure by engaging one of the top Hundred real estate lawyers.

Factors to Consider

Short-Term Rental Income

Initially, determine the amount of rental revenue you must earn to meet your projected profits. A quick look at a market’s recent typical short-term rental rates will tell you if that is a strong area for you.

Median Property Prices

Carefully assess the amount that you can afford to spend on new real estate. The median values of real estate will show you if you can manage to be in that community. You can narrow your property search by evaluating median market worth in the area’s sub-markets.

Price Per Square Foot

Price per sq ft can be influenced even by the style and floor plan of residential units. When the designs of potential properties are very different, the price per sq ft may not help you get a correct comparison. You can use the price per sq ft data to see a good general idea of property values.

Short-Term Rental Occupancy Rate

The percentage of short-term rental units that are presently filled in a city is important data for an investor. A high occupancy rate signifies that a fresh supply of short-term rental space is required. If landlords in the area are having problems renting their current units, you will have difficulty finding renters for yours.

Short-Term Rental Cash-on-Cash Return

To find out whether you should put your capital in a certain investment asset or community, evaluate the cash-on-cash return. You can compute the cash-on-cash return by determining your Net Operating Income (NOI) and dividing it by your cash investment. The result will be a percentage. High cash-on-cash return means that you will recoup your money faster and the purchase will be more profitable. Loan-assisted investments will have a stronger cash-on-cash return because you’re utilizing less of your capital.

Average Short-Term Rental Capitalization (Cap) Rates

This benchmark shows the comparability of property value to its yearly return. High cap rates show that investment properties are accessible in that community for decent prices. If investment properties in a market have low cap rates, they usually will cost more money. You can determine the cap rate for potential investment property by dividing the Net Operating Income (NOI) by the market worth or listing price of the property. The percentage you get is the investment property’s cap rate.

Local Attractions

Short-term renters are usually travellers who visit an area to enjoy a recurrent major event or visit unique locations. Individuals come to specific communities to watch academic and sporting events at colleges and universities, be entertained by professional sports, cheer for their children as they participate in fun events, have the time of their lives at annual fairs, and stop by amusement parks. Must-see vacation spots are found in mountainous and coastal areas, alongside lakes, and national or state parks.

The fix and flip approach means buying a home that demands improvements or rebuilding, generating additional value by enhancing the building, and then selling it for its full market price. Your calculation of renovation spendings has to be accurate, and you have to be able to buy the unit below market value.

You also need to know the housing market where the house is situated. Look for a region with a low average Days On Market (DOM) indicator. As a “house flipper”, you will have to put up for sale the improved real estate without delay in order to stay away from maintenance expenses that will lower your returns.

So that homeowners who have to unload their property can easily locate you, highlight your status by using our list of the best cash house buyers in Hundred WV along with the best real estate investment firms in Hundred WV.

Additionally, team up with Hundred real estate bird dogs. These specialists specialize in rapidly finding good investment prospects before they hit the market.

Factors to Consider

Median Home Price

When you look for a desirable location for house flipping, research the median housing price in the city. You’re seeking for median prices that are modest enough to show investment possibilities in the market. This is a crucial element of a profit-making fix and flip.

If market information shows a fast decline in real property market values, this can highlight the accessibility of potential short sale properties. You can be notified about these possibilities by partnering with short sale processing companies in Hundred WV. Discover how this is done by reviewing our guide ⁠— How Do You Buy Short Sale Homes?.

Property Appreciation Rate

Dynamics relates to the trend that median home market worth is treading. You want a market where home market values are regularly and consistently moving up. Volatile market worth changes aren’t good, even if it is a remarkable and quick increase. You could end up buying high and selling low in an unstable market.

Average Renovation Costs

A careful study of the market’s construction expenses will make a substantial impact on your location choice. Other costs, such as certifications, may inflate your budget, and time which may also turn into an added overhead. To create a detailed financial strategy, you’ll have to know if your construction plans will be required to use an architect or engineer.

Population Growth

Population increase is a strong indicator of the reliability or weakness of the region’s housing market. Flat or decelerating population growth is an indication of a weak environment with not a good amount of purchasers to validate your risk.

Median Population Age

The median residents’ age is a direct indicator of the accessibility of desirable home purchasers. The median age in the area must be the age of the typical worker. People in the local workforce are the most dependable house purchasers. Aging individuals are preparing to downsize, or relocate into senior-citizen or retiree communities.

Unemployment Rate

When you find a city that has a low unemployment rate, it’s a strong indicator of likely investment opportunities. The unemployment rate in a future investment area needs to be less than the national average. When it is also lower than the state average, it’s much better. If you don’t have a vibrant employment base, a location cannot supply you with abundant homebuyers.

Income Rates

Median household and per capita income rates advise you if you can obtain adequate buyers in that market for your residential properties. When families acquire a property, they usually need to get a loan for the home purchase. The borrower’s income will dictate the amount they can afford and whether they can purchase a home. Median income will let you determine whether the standard home purchaser can afford the houses you are going to market. Specifically, income growth is critical if you need to grow your investment business. Construction spendings and home purchase prices rise periodically, and you need to be sure that your prospective homebuyers’ salaries will also get higher.

Number of New Jobs Created

The number of jobs created yearly is useful insight as you contemplate on investing in a specific region. A growing job market indicates that a higher number of prospective home buyers are amenable to purchasing a house there. With additional jobs generated, new prospective buyers also come to the area from other places.

Hard Money Loan Rates

Real estate investors who flip upgraded properties often utilize hard money loans in place of conventional loans. This enables investors to immediately purchase desirable properties. Find the best private money lenders in Hundred WV so you can review their costs.

Someone who needs to understand more about hard money loans can discover what they are as well as the way to utilize them by reviewing our resource for newbies titled How Hard Money Lending Works.

In real estate wholesaling, you search for a property that real estate investors may think is a profitable opportunity and enter into a contract to purchase it. An investor then “buys” the contract from you. The real buyer then completes the purchase. The real estate wholesaler doesn’t sell the property — they sell the rights to buy it.

The wholesaling mode of investing involves the use of a title insurance company that comprehends wholesale deals and is informed about and engaged in double close transactions. Discover real estate investor friendly title companies in Hundred WV on our website.

Discover more about this strategy from our comprehensive guide — Wholesale Real Estate Investing 101 for Beginners. When you choose wholesaling, add your investment business in our directory of the best wholesale real estate companies in Hundred WV. This will let your future investor customers locate and reach you.

Factors to Consider

Median Home Prices

Median home prices in the city being considered will quickly tell you whether your investors’ required investment opportunities are positioned there. Below average median purchase prices are a good indication that there are enough residential properties that could be purchased under market price, which real estate investors prefer to have.

A rapid downturn in housing values may lead to a high selection of ’upside-down’ houses that short sale investors hunt for. Short sale wholesalers can gain benefits from this strategy. Nonetheless, it also raises a legal risk. Find out about this from our detailed article Can I Wholesale a Short Sale Home?. Once you are ready to begin wholesaling, look through Hundred top short sale attorneys as well as Hundred top-rated foreclosure law offices lists to locate the appropriate counselor.

Property Appreciation Rate

Property appreciation rate enhances the median price statistics. Many investors, such as buy and hold and long-term rental investors, notably need to see that home market values in the market are growing consistently. Both long- and short-term investors will ignore a market where housing market values are decreasing.

Population Growth

Population growth data is an indicator that investors will consider in greater detail. If the community is multiplying, new housing is required. Investors understand that this will combine both leasing and owner-occupied residential units. When a community is losing people, it doesn’t need new residential units and real estate investors will not look there.

Median Population Age

A profitable housing market for real estate investors is agile in all aspects, especially renters, who turn into homebuyers, who move up into bigger homes. For this to be possible, there has to be a strong workforce of potential renters and homebuyers. That’s why the location’s median age needs to be the age of skilled workers in the employment market.

Income Rates

The median household and per capita income display stable increases over time in places that are good for investment. Income improvement shows a market that can absorb rent and housing price increases. That will be critical to the real estate investors you want to reach.

Unemployment Rate

The community’s unemployment rates will be an important aspect for any prospective wholesale property buyer. Renters in high unemployment markets have a hard time making timely rent payments and a lot of them will stop making payments entirely. This hurts long-term real estate investors who need to lease their investment property. High unemployment causes problems that will stop interested investors from buying a house. Short-term investors will not take a chance on getting cornered with real estate they cannot sell fast.

Number of New Jobs Created

The amount of additional jobs being generated in the region completes a real estate investor’s assessment of a potential investment location. New jobs produced lead to more employees who look for places to rent and buy. Whether your purchaser pool is comprised of long-term or short-term investors, they will be drawn to a city with consistent job opening production.

Average Renovation Costs

An essential consideration for your client investors, specifically fix and flippers, are rehabilitation costs in the city. When a short-term investor flips a home, they want to be able to dispose of it for more than the combined sum they spent for the purchase and the rehabilitation. The cheaper it is to renovate a property, the better the area is for your future contract buyers.

Note investing means obtaining a loan (mortgage note) from a mortgage holder at a discount. When this occurs, the note investor takes the place of the debtor’s lender.

Performing notes mean mortgage loans where the homeowner is regularly on time with their payments. Performing notes provide stable income for investors. Some investors like non-performing notes because when he or she cannot successfully restructure the loan, they can always obtain the collateral property at foreclosure for a low price.

Ultimately, you might grow a number of mortgage note investments and not have the time to service them without assistance. When this develops, you might select from the best loan servicing companies in Hundred WV which will designate you as a passive investor.

Should you want to take on this investment method, you should place your project in our directory of the best mortgage note buying companies in Hundred WV. Appearing on our list puts you in front of lenders who make profitable investment opportunities available to note investors such as yourself.

Factors to Consider

Foreclosure Rates

Performing note buyers try to find markets with low foreclosure rates. Non-performing note investors can cautiously take advantage of places with high foreclosure rates as well. If high foreclosure rates have caused a slow real estate environment, it may be difficult to liquidate the collateral property if you foreclose on it.

Foreclosure Laws

Successful mortgage note investors are completely well-versed in their state’s laws regarding foreclosure. They’ll know if the law dictates mortgage documents or Deeds of Trust. Lenders may have to get the court’s permission to foreclose on a mortgage note’s collateral. A Deed of Trust permits you to file a public notice and continue to foreclosure.

Mortgage Interest Rates

The mortgage interest rate is indicated in the mortgage loan notes that are bought by note buyers. Your investment return will be impacted by the interest rate. No matter the type of investor you are, the mortgage loan note’s interest rate will be crucial to your calculations.

The mortgage rates quoted by traditional mortgage firms aren’t equal in every market. Mortgage loans offered by private lenders are priced differently and can be higher than conventional mortgages.

Note investors should consistently be aware of the current market interest rates, private and conventional, in potential investment markets.

Demographics

An efficient mortgage note investment strategy uses an assessment of the community by using demographic data. The region’s population growth, employment rate, job market growth, income standards, and even its median age hold important data for mortgage note investors.
A young expanding area with a strong job market can contribute a consistent revenue stream for long-term note buyers hunting for performing notes.

The identical community could also be advantageous for non-performing note investors and their end-game strategy. A vibrant local economy is required if investors are to reach buyers for collateral properties on which they have foreclosed.

Property Values

Note holders like to see as much home equity in the collateral as possible. When the property value isn’t significantly higher than the loan amount, and the lender wants to start foreclosure, the house might not sell for enough to repay the lender. Growing property values help increase the equity in the property as the homeowner reduces the balance.

Property Taxes

Most borrowers pay property taxes via mortgage lenders in monthly portions while sending their loan payments. By the time the taxes are payable, there needs to be enough funds in escrow to pay them. If the homebuyer stops paying, unless the loan owner takes care of the taxes, they won’t be paid on time. Property tax liens take priority over all other liens.

If an area has a history of growing tax rates, the combined home payments in that community are constantly increasing. This makes it difficult for financially challenged homeowners to stay current, so the mortgage loan might become delinquent.

Real Estate Market Strength

A growing real estate market showing regular value appreciation is helpful for all kinds of mortgage note investors. The investors can be confident that, when required, a defaulted property can be liquidated at a price that makes a profit.

Growing markets often present opportunities for note buyers to originate the initial loan themselves. It is an added phase of a mortgage note investor’s career.

A REIT, or Real Estate Investment Trust, is a business that makes investments in income-generating properties. Before REITs were invented, real estate investing used to be too expensive for many citizens. REIT shares are not too costly for the majority of investors.

Shareholders in such organizations are entirely passive investors. Investment liability is diversified throughout a group of properties. Investors are able to unload their REIT shares whenever they want. Members in a REIT are not able to suggest or pick real estate properties for investment. Their investment is limited to the assets owned by the REIT.

A Real Estate Investment Fund is a mutual fund that holds stocks of real estate firms. Any actual real estate is owned by the real estate companies, not the fund. This is another method for passive investors to spread their portfolio with real estate avoiding the high entry-level cost or risks. Where REITs have to distribute dividends to its members, funds don’t. The worth of a fund to an investor is the projected appreciation of the worth of the fund’s shares.

You can select a fund that focuses on a distinct kind of real estate firm, like commercial, but you can’t propose the fund’s investment assets or locations. Your decision as an investor is to pick a fund that you trust to oversee your real estate investments.