Ultimate Juneau County Real Estate Investing Guide for 2024

The term BRRRR is an illustration of a long-term rental strategy — Buy, Rehab, Rent, Refinance, Repeat. When you want to increase your investments, the BRRRR is an excellent strategy to utilize. An important piece of this program is to be able to take a “cash-out” mortgage refinance.

The After Repair Value (ARV) of the house has to equal more than the total acquisition and renovation costs. Then you get a cash-out refinance loan that is computed on the higher property worth, and you take out the balance. You acquire your next property with the cash-out money and do it anew. You buy more and more properties and continually grow your lease revenues.

If your investment real estate portfolio is large enough, you can delegate its oversight and generate passive income. Discover the best Juneau County property management companies by browsing our list.

Factors to Consider

Population Growth

The growth or shrinking of the population can indicate whether that location is interesting to landlords. A booming population often demonstrates vibrant relocation which translates to additional tenants. Employers see this as an attractive place to situate their enterprise, and for employees to situate their households. This equals stable renters, greater lease income, and more possible homebuyers when you intend to unload your property.

Property Taxes

Property taxes, upkeep, and insurance expenses are examined by long-term rental investors for computing expenses to estimate if and how the investment will be successful. Unreasonable real estate taxes will hurt a real estate investor’s profits. If property tax rates are unreasonable in a given community, you probably want to look somewhere else.

Price to Rent Ratio

The price to rent ratio (p/r) is an illustration of what amount of rent can be collected in comparison to the value of the investment property. The rate you can charge in a market will define the price you are able to pay determined by how long it will take to repay those funds. The less rent you can collect the higher the price-to-rent ratio, with a low p/r showing a better rent market.

Median Gross Rents

Median gross rents signal whether an area’s lease market is robust. Search for a continuous expansion in median rents year over year. If rents are going down, you can scratch that market from deliberation.

Median Population Age

Median population age will be close to the age of a normal worker if a city has a consistent supply of tenants. If people are relocating into the city, the median age will not have a challenge staying at the level of the labor force. If you find a high median age, your source of tenants is reducing. That is an unacceptable long-term financial picture.

Employment Base Diversity

Having various employers in the area makes the economy not as unpredictable. When your tenants are employed by only several dominant businesses, even a slight problem in their business might cost you a lot of renters and increase your risk tremendously.

Unemployment Rate

You won’t be able to reap the benefits of a secure rental cash flow in a locality with high unemployment. Non-working individuals cannot buy goods or services. This can result in a large number of layoffs or shrinking work hours in the area. Even tenants who are employed may find it challenging to stay current with their rent.

Income Rates

Median household and per capita income will hint if the tenants that you want are living in the region. Rising incomes also inform you that rental rates can be hiked over the life of the property.

Number of New Jobs Created

The reliable economy that you are searching for will be creating a large amount of jobs on a regular basis. A larger amount of jobs equal more renters. This guarantees that you will be able to retain a sufficient occupancy level and acquire additional properties.

School Ratings

School ratings in the district will have a big effect on the local residential market. When a business owner explores a community for possible expansion, they remember that quality education is a requirement for their workforce. Business relocation creates more tenants. Real estate market values rise with additional employees who are homebuyers. You will not find a vibrantly growing residential real estate market without highly-rated schools.

Property Appreciation Rates

High real estate appreciation rates are a prerequisite for a profitable long-term investment. You have to be positive that your assets will rise in price until you want to sell them. Substandard or dropping property value in an area under evaluation is inadmissible.

A furnished house or condo where tenants stay for shorter than a month is called a short-term rental. The per-night rental rates are usually higher in short-term rentals than in long-term units. Because of the high rotation of renters, short-term rentals need additional regular upkeep and sanitation.

Short-term rentals are mostly offered to individuals traveling for business who are in town for a few nights, people who are migrating and want transient housing, and backpackers. Ordinary property owners can rent their houses or condominiums on a short-term basis using sites such as AirBnB and VRBO. This makes short-term rental strategy a feasible technique to pursue residential property investing.

Short-term rental owners necessitate dealing one-on-one with the renters to a greater extent than the owners of annually leased units. This leads to the landlord being required to regularly deal with protests. You might need to protect your legal exposure by working with one of the best Juneau County real estate law firms.

Factors to Consider

Short-Term Rental Income

You must imagine the amount of rental income you are searching for based on your investment analysis. Being aware of the average rate of rent being charged in the community for short-term rentals will allow you to choose a preferable location to invest.

Median Property Prices

Thoroughly evaluate the amount that you are able to spare for additional real estate. Hunt for locations where the purchase price you have to have matches up with the present median property worth. You can also use median values in targeted sections within the market to select cities for investing.

Price Per Square Foot

Price per sq ft could be inaccurate if you are looking at different units. If you are examining the same kinds of real estate, like condominiums or stand-alone single-family homes, the price per square foot is more consistent. You can use the price per square foot information to get a good broad picture of home values.

Short-Term Rental Occupancy Rate

The need for additional rentals in a region can be seen by studying the short-term rental occupancy rate. When the majority of the rental units are filled, that area necessitates additional rentals. If property owners in the community are having issues renting their existing properties, you will have difficulty filling yours.

Short-Term Rental Cash-on-Cash Return

To determine if you should invest your cash in a specific property or market, look at the cash-on-cash return. Take your projected Net Operating Income (NOI) and divide it by the cash amount you’re ready to invest. The resulting percentage is your cash-on-cash return. High cash-on-cash return indicates that you will recoup your capital more quickly and the purchase will be more profitable. When you take a loan for a fraction of the investment and use less of your own money, you will realize a higher cash-on-cash return.

Average Short-Term Rental Capitalization (Cap) Rates

One metric conveys the value of real estate as a revenue-producing asset — average short-term rental capitalization (cap) rate. Generally, the less a property will cost (or is worth), the higher the cap rate will be. Low cap rates show more expensive rental units. You can determine the cap rate for potential investment property by dividing the Net Operating Income (NOI) by the Fair Market Value or listing price of the residential property. The percentage you will get is the property’s cap rate.

Local Attractions

Short-term renters are usually tourists who come to a region to enjoy a yearly significant event or visit unique locations. This includes major sporting tournaments, children’s sports activities, colleges and universities, big auditoriums and arenas, festivals, and theme parks. Outdoor tourist sites like mountains, waterways, coastal areas, and state and national parks will also invite potential tenants.

The fix and flip approach involves purchasing a property that requires repairs or renovation, generating added value by upgrading the property, and then liquidating it for a better market price. To be successful, the flipper must pay below market price for the house and compute the amount it will cost to rehab it.

You also want to know the resale market where the property is positioned. Select a city that has a low average Days On Market (DOM) metric. As a “house flipper”, you’ll need to sell the fixed-up home right away so you can stay away from maintenance expenses that will lessen your profits.

So that homeowners who have to unload their home can readily locate you, showcase your status by using our catalogue of companies that buy houses for cash in Juneau County WI along with top real estate investing companies in Juneau County WI.

Additionally, look for top bird dogs for real estate investors in Juneau County WI. These specialists specialize in rapidly locating profitable investment ventures before they come on the marketplace.

Factors to Consider

Median Home Price

When you hunt for a profitable market for home flipping, look into the median housing price in the neighborhood. You’re looking for median prices that are modest enough to show investment opportunities in the city. This is a principal component of a fix and flip market.

If your examination entails a sudden drop in house market worth, it could be a heads up that you’ll uncover real estate that meets the short sale criteria. Real estate investors who partner with short sale processors in Juneau County WI get continual notices regarding possible investment real estate. Uncover more regarding this type of investment described by our guide How Do I Buy a Short Sale Property?.

Property Appreciation Rate

The shifts in real estate prices in a location are crucial. You need a market where real estate values are regularly and consistently going up. Home values in the area should be growing steadily, not quickly. You could wind up purchasing high and selling low in an unsustainable market.

Average Renovation Costs

You will want to research construction expenses in any prospective investment community. Other spendings, like permits, could inflate expenditure, and time which may also turn into an added overhead. You want to know whether you will have to employ other professionals, like architects or engineers, so you can get prepared for those expenses.

Population Growth

Population growth is a strong gauge of the strength or weakness of the region’s housing market. Flat or negative population growth is an indication of a poor environment with not an adequate supply of buyers to justify your investment.

Median Population Age

The median residents’ age can additionally show you if there are enough home purchasers in the location. When the median age is equal to the one of the usual worker, it’s a good sign. A high number of such people shows a significant source of home purchasers. The needs of retirees will probably not suit your investment project plans.

Unemployment Rate

When checking a market for investment, keep your eyes open for low unemployment rates. It should certainly be lower than the national average. If it is also less than the state average, that is even more desirable. If you don’t have a vibrant employment environment, a community cannot supply you with enough home purchasers.

Income Rates

Median household and per capita income are a reliable sign of the robustness of the home-buying conditions in the location. When home buyers purchase a home, they typically have to take a mortgage for the home purchase. Homebuyers’ eligibility to qualify for financing relies on the level of their salaries. Median income will help you know whether the regular home purchaser can afford the property you plan to list. You also want to have incomes that are expanding continually. When you need to raise the asking price of your houses, you need to be certain that your customers’ income is also improving.

Number of New Jobs Created

Knowing how many jobs are created per year in the community can add to your assurance in a community’s economy. A larger number of people acquire homes when their community’s financial market is generating jobs. With a higher number of jobs generated, more potential homebuyers also relocate to the community from other locations.

Hard Money Loan Rates

Real estate investors who sell renovated real estate often use hard money funding instead of conventional financing. This enables them to immediately pick up desirable properties. Locate the best hard money lenders in Juneau County WI so you can compare their charges.

In case you are inexperienced with this loan product, discover more by studying our informative blog post — Hard Money Loans Guide for Real Estate Investors.

As a real estate wholesaler, you enter a contract to buy a residential property that other investors will be interested in. However you do not buy the house: once you control the property, you get an investor to take your place for a price. The property under contract is bought by the real estate investor, not the wholesaler. You are selling the rights to buy the property, not the house itself.

This strategy requires using a title company that’s knowledgeable about the wholesale contract assignment operation and is capable and predisposed to coordinate double close purchases. Find Juneau County title companies for real estate investors by reviewing our directory.

To learn how wholesaling works, read our detailed article Complete Guide to Real Estate Wholesaling as an Investment Strategy. As you manage your wholesaling business, put your company in HouseCashin’s directory of Juneau County top home wholesalers. This way your desirable clientele will learn about your location and contact you.

Factors to Consider

Median Home Prices

Median home prices in the area will tell you if your preferred price range is achievable in that location. Since investors need properties that are on sale for lower than market value, you will need to see reduced median purchase prices as an implicit hint on the potential supply of residential real estate that you may acquire for less than market value.

A quick decrease in the market value of real estate could generate the sudden appearance of properties with owners owing more than market worth that are desired by wholesalers. This investment strategy often brings multiple different perks. However, there might be liabilities as well. Find out more concerning wholesaling a short sale property from our extensive explanation. Once you’re keen to begin wholesaling, look through Juneau County top short sale attorneys as well as Juneau County top-rated mortgage foreclosure attorneys directories to locate the appropriate counselor.

Property Appreciation Rate

Property appreciation rate boosts the median price statistics. Many investors, including buy and hold and long-term rental landlords, specifically want to know that residential property market values in the region are expanding steadily. Declining purchase prices show an equally poor leasing and housing market and will scare away investors.

Population Growth

Population growth statistics are an important indicator that your potential real estate investors will be familiar with. A growing population will have to have additional housing. There are more individuals who rent and more than enough clients who buy houses. When a community is not expanding, it does not require additional residential units and real estate investors will invest in other locations.

Median Population Age

A vibrant housing market needs people who are initially leasing, then moving into homeownership, and then buying up in the housing market. A city that has a large employment market has a steady supply of tenants and purchasers. A location with these features will have a median population age that is the same as the working person’s age.

Income Rates

The median household and per capita income in a robust real estate investment market have to be increasing. When renters’ and home purchasers’ salaries are getting bigger, they can handle surging lease rates and home purchase costs. Successful investors stay away from places with poor population wage growth statistics.

Unemployment Rate

Real estate investors whom you offer to close your contracts will deem unemployment statistics to be an important piece of insight. Renters in high unemployment regions have a challenging time paying rent on schedule and some of them will miss payments completely. Long-term investors will not buy a home in a place like that. Renters cannot step up to ownership and current homeowners can’t liquidate their property and shift up to a more expensive home. Short-term investors will not risk being pinned down with a unit they can’t sell immediately.

Number of New Jobs Created

Understanding how soon new jobs are produced in the community can help you determine if the home is located in a reliable housing market. People relocate into an area that has additional job openings and they need a place to live. Long-term investors, such as landlords, and short-term investors that include rehabbers, are gravitating to regions with consistent job creation rates.

Average Renovation Costs

An imperative consideration for your client investors, especially fix and flippers, are renovation expenses in the location. The price, plus the costs of improvement, must amount to less than the After Repair Value (ARV) of the home to allow for profitability. Lower average restoration spendings make a community more profitable for your main customers — flippers and landlords.

Mortgage note investing includes obtaining a loan (mortgage note) from a lender for less than the balance owed. When this occurs, the investor takes the place of the client’s mortgage lender.

Performing loans are loans where the debtor is always current on their loan payments. Performing notes are a repeating source of cash flow. Some mortgage note investors want non-performing loans because when the mortgage note investor cannot satisfactorily re-negotiate the mortgage, they can always obtain the collateral at foreclosure for a below market amount.

One day, you could have a lot of mortgage notes and necessitate additional time to manage them by yourself. In this case, you could enlist one of residential mortgage servicers in Juneau County WI that will basically convert your investment into passive cash flow.

If you decide to pursue this method, add your business to our directory of promissory note buyers in Juneau County WI. Once you’ve done this, you will be discovered by the lenders who announce profitable investment notes for procurement by investors such as you.

Factors to consider

Foreclosure Rates

Low foreclosure rates are a sign that the region has opportunities for performing note investors. If the foreclosures are frequent, the market may nevertheless be profitable for non-performing note investors. If high foreclosure rates have caused a weak real estate environment, it might be challenging to liquidate the property if you seize it through foreclosure.

Foreclosure Laws

Investors want to know the state’s laws concerning foreclosure prior to buying notes. They’ll know if the law requires mortgage documents or Deeds of Trust. You might have to receive the court’s approval to foreclose on a property. A Deed of Trust authorizes you to file a notice and continue to foreclosure.

Mortgage Interest Rates

The mortgage interest rate is indicated in the mortgage loan notes that are purchased by note buyers. This is a big element in the returns that you reach. Interest rates affect the plans of both sorts of mortgage note investors.

Traditional lenders charge different mortgage interest rates in various regions of the country. Private loan rates can be slightly higher than traditional loan rates because of the greater risk taken on by private mortgage lenders.

A mortgage note buyer needs to be aware of the private and conventional mortgage loan rates in their communities all the time.

Demographics

An efficient note investment strategy incorporates an assessment of the community by utilizing demographic data. The neighborhood’s population increase, unemployment rate, job market increase, wage standards, and even its median age contain important data for note investors.
A young expanding community with a diverse employment base can generate a stable income stream for long-term investors hunting for performing mortgage notes.

Non-performing note buyers are looking at related components for various reasons. If these note buyers want to foreclose, they’ll need a strong real estate market when they liquidate the REO property.

Property Values

Note holders need to find as much home equity in the collateral as possible. If the investor has to foreclose on a loan with little equity, the foreclosure auction may not even pay back the amount owed. Growing property values help raise the equity in the collateral as the homeowner reduces the amount owed.

Property Taxes

Most borrowers pay real estate taxes through lenders in monthly portions when they make their loan payments. This way, the lender makes sure that the taxes are submitted when due. If loan payments aren’t current, the lender will have to either pay the property taxes themselves, or the property taxes become past due. If taxes are delinquent, the government’s lien supersedes any other liens to the front of the line and is satisfied first.

Because tax escrows are combined with the mortgage loan payment, increasing taxes indicate higher mortgage loan payments. This makes it difficult for financially weak borrowers to meet their obligations, and the mortgage loan might become past due.

Real Estate Market Strength

Both performing and non-performing note buyers can succeed in a good real estate environment. Because foreclosure is a necessary element of mortgage note investment strategy, appreciating property values are key to discovering a profitable investment market.

Mortgage note investors additionally have an opportunity to create mortgage notes directly to homebuyers in reliable real estate regions. It’s another phase of a mortgage note buyer’s career.

A trust buying income-generating properties and that sells shares to the public is a REIT — Real Estate Investment Trust. REITs are developed to enable everyday people to invest in properties. Shares in REITs are not too costly for most investors.

REIT investing is considered passive investing. The risk that the investors are taking is distributed among a collection of investment real properties. Investors can liquidate their REIT shares anytime they need. Investors in a REIT are not able to suggest or select real estate properties for investment. You are restricted to the REIT’s collection of assets for investment.

A Real Estate Investment Fund is a mutual fund that owns stocks of real estate firms. The fund does not hold properties — it holds shares in real estate businesses. These funds make it feasible for additional people to invest in real estate properties. Real estate investment funds aren’t obligated to distribute dividends like a REIT. Like any stock, investment funds’ values rise and go down with their share market value.

You may select a fund that specializes in a targeted kind of real estate you’re expert in, but you don’t get to determine the geographical area of each real estate investment. Your selection as an investor is to select a fund that you believe in to oversee your real estate investments.