Ultimate Pitt County Real Estate Investing Guide for 2024

The acronym BRRRR is an illustration of a long-term investment strategy — Buy, Rehab, Rent, Refinance, Repeat. If you want to grow your investments, the BRRRR is a proven strategy to follow. This method depends on your capability to remove cash out when you refinance.

When you have finished refurbishing the rental, its market value has to be more than your complete purchase and fix-up expenses. Then you extract the equity you produced from the investment property in a “cash-out” mortgage refinance. This money is placed into one more property, and so on. You add growing investment assets to the balance sheet and rental revenue to your cash flow.

If your investment real estate collection is big enough, you may outsource its oversight and collect passive income. Discover Pitt County investment property management companies when you search through our directory of professionals.

Factors to Consider

Population Growth

The expansion or decline of a market’s population is a valuable benchmark of the area’s long-term desirability for rental property investors. A growing population usually demonstrates vibrant relocation which equals new tenants. Businesses consider such an area as an appealing community to relocate their enterprise, and for employees to move their families. Increasing populations maintain a strong renter mix that can afford rent increases and home purchasers who help keep your asset values high.

Property Taxes

Property taxes, similarly to insurance and upkeep spendings, may be different from market to market and have to be reviewed carefully when predicting potential returns. Excessive payments in these areas threaten your investment’s profitability. If property tax rates are excessive in a particular city, you probably need to look somewhere else.

Price to Rent Ratio

The price to rent ratio (p/r) is a contrast of median property prices and median lease rates that will indicate how much rent the market can handle. An investor will not pay a high price for a rental home if they can only demand a small rent not letting them to repay the investment within a appropriate timeframe. A high price-to-rent ratio shows you that you can set modest rent in that community, a lower one signals you that you can collect more.

Median Gross Rents

Median gross rents demonstrate whether an area’s lease market is strong. You are trying to discover a location with consistent median rent increases. If rental rates are going down, you can eliminate that area from discussion.

Median Population Age

Median population age will be nearly the age of a normal worker if a community has a consistent supply of renters. You will discover this to be true in areas where people are relocating. When working-age people aren’t coming into the market to replace retirees, the median age will go higher. An active economy can’t be bolstered by retired individuals.

Employment Base Diversity

A diversified employment base is what a wise long-term investor landlord will look for. When there are only a couple significant employers, and one of them relocates or disappears, it can lead you to lose tenants and your property market worth to decline.

Unemployment Rate

You will not get a stable rental income stream in a location with high unemployment. Non-working individuals will not be able to pay for goods or services. Workers who still have workplaces may discover their hours and salaries cut. Current renters may delay their rent in these conditions.

Income Rates

Median household and per capita income will let you know if the renters that you are looking for are residing in the area. Your investment analysis will include rental charge and asset appreciation, which will be determined by wage augmentation in the market.

Number of New Jobs Created

The more jobs are consistently being generated in a region, the more dependable your tenant inflow will be. The people who fill the new jobs will need a residence. This allows you to buy additional lease properties and replenish current vacancies.

School Ratings

Local schools will have a significant impact on the property market in their neighborhood. When a company assesses an area for possible expansion, they keep in mind that quality education is a must-have for their employees. Business relocation attracts more renters. Recent arrivals who buy a house keep housing values up. Highly-rated schools are an essential component for a vibrant property investment market.

Property Appreciation Rates

High property appreciation rates are a necessity for a viable long-term investment. You need to ensure that the chances of your asset appreciating in price in that location are good. Subpar or shrinking property worth in an area under examination is not acceptable.

A furnished residence where renters stay for shorter than 30 days is regarded as a short-term rental. Short-term rentals charge more rent each night than in long-term rental properties. These units may require more continual maintenance and sanitation.

Short-term rentals are used by business travelers who are in the region for a couple of 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 via platforms like AirBnB and VRBO. Short-term rentals are considered an effective method to get started on investing in real estate.

Short-term rental owners require working one-on-one with the tenants to a larger extent than the owners of longer term leased properties. This means that landlords deal with disputes more frequently. Ponder protecting yourself and your portfolio by adding any of real estate law firms in Pitt County NC to your network of professionals.

Factors to Consider

Short-Term Rental Income

You need to decide how much rental income has to be produced to make your investment profitable. A glance at a community’s current typical short-term rental rates will tell you if that is an ideal location for you.

Median Property Prices

When acquiring property for short-term rentals, you must figure out the budget you can allot. To check whether a market has potential for investment, study the median property prices. You can adjust your real estate search by looking at median prices in the city’s sub-markets.

Price Per Square Foot

Price per square foot can be impacted even by the style and layout of residential units. If you are comparing similar kinds of property, like condominiums or individual single-family homes, the price per square foot is more reliable. Price per sq ft may be a quick method to compare multiple communities or residential units.

Short-Term Rental Occupancy Rate

A closer look at the community’s short-term rental occupancy rate will inform you whether there is demand in the site for additional short-term rental properties. A region that needs additional rental housing will have a high occupancy rate. If investors in the market are having issues renting their existing units, you will have trouble renting yours.

Short-Term Rental Cash-on-Cash Return

A short-term rental’s cash-on-cash return will tell you if the venture is a reasonable use of your money. You can calculate the cash-on-cash return by determining your Net Operating Income (NOI) and dividing it by your cash being invested. The percentage you get is your cash-on-cash return. When an investment is lucrative enough to repay the amount invested fast, you will get a high percentage. If you borrow a fraction of the investment and put in less of your money, you will see a higher cash-on-cash return.

Average Short-Term Rental Capitalization (Cap) Rates

Average short-term rental capitalization (cap) rates are largely used by real property investors to assess the value of rentals. A rental unit that has a high cap rate as well as charges typical market rental prices has a high value. When cap rates are low, you can assume to pay a higher amount for rental units in that region. You can determine the cap rate for possible investment real estate by dividing the Net Operating Income (NOI) by the market worth or asking price of the property. This shows you a percentage that is the annual return, or cap rate.

Local Attractions

Short-term rental properties are desirable in regions where sightseers are attracted by events and entertainment venues. Individuals visit specific areas to watch academic and athletic activities at colleges and universities, see professional sports, cheer for their kids as they compete in fun events, have fun at annual carnivals, and go to adventure parks. Outdoor tourist sites such as mountainous areas, waterways, beaches, and state and national parks will also draw future tenants.

When a home flipper buys a property under market worth, repairs it and makes it more attractive and pricier, and then resells the home for revenue, they are called a fix and flip investor. The essentials to a successful fix and flip are to pay less for real estate than its present value and to accurately compute the budget you need to make it saleable.

It is critical for you to understand the rates homes are going for in the region. The average number of Days On Market (DOM) for homes sold in the region is important. As a ”rehabber”, you will need to sell the repaired house right away in order to stay away from carrying ongoing costs that will reduce your profits.

In order that real estate owners who need to sell their home can conveniently locate you, highlight your availability by using our list of the best property cash buyers in Pitt County NC along with the best real estate investors in Pitt County NC.

Also, search for the best bird dogs for real estate investors in Pitt County NC. These professionals specialize in rapidly discovering profitable investment opportunities before they hit the market.

Factors to Consider

Median Home Price

The market’s median housing price should help you find a desirable community for flipping houses. When purchase prices are high, there may not be a consistent supply of run down houses in the location. This is an important element of a profitable rehab and resale project.

When your examination indicates a fast decrease in housing market worth, it might be a heads up that you will uncover real estate that fits the short sale requirements. You will hear about possible opportunities when you partner up with Pitt County short sale processors. You will uncover more data regarding short sales in our extensive blog post ⁠— How Can I Buy a Short Sale Home?.

Property Appreciation Rate

Dynamics relates to the route that median home prices are taking. You have to have a region where real estate values are constantly and continuously on an upward trend. Speedy price surges can reflect a market value bubble that isn’t practical. When you’re buying and liquidating quickly, an erratic environment can sabotage you.

Average Renovation Costs

You’ll want to estimate building costs in any prospective investment market. The manner in which the local government processes your application will have an effect on your venture too. If you need to show a stamped set of plans, you will need to include architect’s fees in your budget.

Population Growth

Population information will inform you if there is an increasing necessity for housing that you can sell. If there are buyers for your renovated houses, the numbers will indicate a positive population growth.

Median Population Age

The median population age is a direct sign of the availability of possible homebuyers. It better not be lower or higher than that of the usual worker. Individuals in the area’s workforce are the most steady home buyers. People who are planning to exit the workforce or have already retired have very restrictive housing requirements.

Unemployment Rate

While assessing a location for investment, look for low unemployment rates. An unemployment rate that is less than the national median is a good sign. A really solid investment city will have an unemployment rate lower than the state’s average. To be able to buy your improved homes, your prospective clients have to work, and their clients as well.

Income Rates

Median household and per capita income amounts advise you whether you will see enough home purchasers in that location for your homes. The majority of individuals who purchase a home have to have a mortgage loan. The borrower’s income will show how much they can afford and whether they can buy a property. The median income statistics will show you if the area is eligible for your investment efforts. You also want to have incomes that are going up over time. To keep pace with inflation and increasing construction and material expenses, you have to be able to regularly raise your purchase rates.

Number of New Jobs Created

The number of employment positions created on a regular basis shows whether salary and population growth are sustainable. A growing job market communicates that a larger number of prospective home buyers are receptive to investing in a house there. Additional jobs also lure workers coming to the city from another district, which further invigorates the real estate market.

Hard Money Loan Rates

People who purchase, rehab, and sell investment properties like to employ hard money instead of traditional real estate financing. Hard money funds allow these buyers to take advantage of pressing investment possibilities right away. Locate top-rated hard money lenders in Pitt County NC so you can compare their costs.

Someone who wants to learn about hard money financing products can learn what they are as well as the way to utilize them by reading our article titled How Do Hard Money Lenders Work?.

Wholesaling is a real estate investment strategy that entails scouting out houses that are interesting to real estate investors and putting them under a purchase contract. But you don’t close on it: after you control the property, you get another person to become the buyer for a price. The owner sells the home to the investor instead of the wholesaler. The real estate wholesaler does not sell the property — they sell the contract to purchase it.

The wholesaling form of investing includes the engagement of a title company that understands wholesale purchases and is informed about and engaged in double close purchases. Find title services for real estate investors in Pitt County NC on our list.

Our extensive guide to wholesaling can be read here: A-to-Z Guide to Property Wholesaling. When using this investing tactic, include your business in our directory of the best property wholesalers in Pitt County NC. This will help your potential investor customers find and contact you.

Factors to Consider

Median Home Prices

Median home values in the area will tell you if your ideal purchase price range is achievable in that market. A market that has a sufficient pool of the below-market-value residential properties that your customers require will display a below-than-average median home price.

Rapid deterioration in real estate prices might lead to a lot of houses with no equity that appeal to short sale property buyers. This investment plan frequently brings multiple particular benefits. Nonetheless, it also presents a legal liability. Find out about this from our detailed article Can You Wholesale a Short Sale?. When you’ve resolved to try wholesaling these properties, be sure to engage someone on the directory of the best short sale law firms in Pitt County NC and the best foreclosure attorneys in Pitt County NC to help you.

Property Appreciation Rate

Median home value changes explain in clear detail the housing value picture. Some real estate investors, including buy and hold and long-term rental investors, particularly need to find that residential property values in the region are growing consistently. Both long- and short-term real estate investors will ignore a market where residential market values are decreasing.

Population Growth

Population growth information is something that your prospective investors will be familiar with. An expanding population will need more residential units. They realize that this will involve both rental and owner-occupied residential units. When a community isn’t expanding, it does not need new houses and real estate investors will look elsewhere.

Median Population Age

A robust housing market requires individuals who start off renting, then transitioning into homebuyers, and then buying up in the residential market. This takes a vibrant, consistent labor pool of individuals who feel optimistic enough to step up in the residential market. A place with these attributes will display a median population age that corresponds with the working citizens’ age.

Income Rates

The median household and per capita income in a stable real estate investment market need to be increasing. Income increment shows a market that can deal with rent and home listing price surge. Real estate investors need this if they are to reach their anticipated returns.

Unemployment Rate

Real estate investors will pay close attention to the region’s unemployment rate. Renters in high unemployment locations have a challenging time making timely rent payments and some of them will skip payments entirely. Long-term investors who rely on stable lease payments will lose revenue in these cities. High unemployment builds uncertainty that will stop interested investors from buying a property. This makes it tough to find fix and flip investors to purchase your purchase agreements.

Number of New Jobs Created

The amount of jobs created per annum is a vital part of the housing structure. More jobs appearing draw a large number of workers who require houses to rent and buy. Long-term investors, like landlords, and short-term investors like flippers, are gravitating to areas with strong job production rates.

Average Renovation Costs

Renovation spendings will be essential to most real estate investors, as they normally buy cheap neglected houses to update. When a short-term investor repairs a home, they have to be prepared to sell it for a larger amount than the whole expense for the acquisition and the improvements. Lower average renovation costs make a location more attractive for your priority buyers — flippers and landlords.

Mortgage note investing professionals buy debt from lenders when the investor can buy the loan for less than the outstanding debt amount. The borrower makes remaining loan payments to the mortgage note investor who is now their new lender.

When a loan is being paid as agreed, it is thought of as a performing note. Performing loans give you long-term passive income. Some note investors want non-performing loans because when they cannot satisfactorily rework the mortgage, they can always obtain the collateral at foreclosure for a below market price.

At some time, you could build a mortgage note collection and find yourself lacking time to oversee your loans by yourself. At that point, you may need to use our list of Pitt County top residential mortgage servicers and reassign your notes as passive investments.

Should you determine to adopt this plan, append your project to our list of companies that buy mortgage notes in Pitt County NC. Being on our list places you in front of lenders who make lucrative investment possibilities available to note investors such as yourself.

Factors to consider

Foreclosure Rates

Performing note purchasers prefer regions that have low foreclosure rates. High rates might signal opportunities for non-performing loan note investors, however they should be cautious. The locale needs to be robust enough so that investors can foreclose and unload collateral properties if required.

Foreclosure Laws

Investors are expected to understand their state’s laws regarding foreclosure before pursuing this strategy. Are you working with a Deed of Trust or a mortgage? When using a mortgage, a court will have to approve a foreclosure. Investors do not need the judge’s agreement with a Deed of Trust.

Mortgage Interest Rates

The mortgage interest rate is determined in the mortgage notes that are acquired by investors. Your mortgage note investment profits will be influenced by the mortgage interest rate. Interest rates impact the strategy of both sorts of mortgage note investors.

Traditional interest rates can differ by up to a quarter of a percent around the US. Mortgage loans supplied by private lenders are priced differently and may be more expensive than conventional loans.

Profitable mortgage note buyers regularly search the mortgage interest rates in their region set by private and traditional mortgage companies.

Demographics

When mortgage note buyers are deciding on where to purchase notes, they’ll examine the demographic statistics from potential markets. It’s critical to determine whether a suitable number of citizens in the city will continue to have good jobs and incomes in the future.
Performing note buyers want homeowners who will pay on time, generating a consistent income stream of loan payments.

Mortgage note investors who seek non-performing mortgage notes can also take advantage of strong markets. A strong regional economy is needed if they are to find homebuyers for properties on which they have foreclosed.

Property Values

The more equity that a homeowner has in their property, the better it is for you as the mortgage loan holder. If you have to foreclose on a mortgage loan without much equity, the foreclosure auction may not even repay the balance invested in the note. As mortgage loan payments lessen the balance owed, and the value of the property increases, the borrower’s equity grows.

Property Taxes

Normally, lenders receive the house tax payments from the homeowner each month. By the time the taxes are due, there should be adequate funds being held to take care of them. If the homeowner stops paying, unless the lender remits the property taxes, they will not be paid on time. If a tax lien is filed, it takes first position over the mortgage lender’s loan.

If an area has a history of increasing property tax rates, the combined home payments in that community are constantly expanding. Borrowers who are having a hard time making their loan payments might drop farther behind and ultimately default.

Real Estate Market Strength

An active real estate market having regular value increase is helpful for all categories of note investors. Since foreclosure is an essential element of note investment strategy, growing property values are key to finding a strong investment market.

Growing markets often provide opportunities for private investors to make the first loan themselves. This is a strong source of revenue for experienced investors.

A REIT, or Real Estate Investment Trust, means a company that makes investments in income-producing properties. This was originally invented as a method to permit the everyday investor to invest in real estate. Most people today are able to invest in a REIT.

Investing in a REIT is called passive investing. Investment liability is spread across a group of real estate. Participants have the option to liquidate their shares at any moment. Something you cannot do with REIT shares is to choose the investment assets. You are restricted to the REIT’s collection of real estate properties for investment.

Real estate investment funds are basically mutual funds that specialize in real estate businesses, such as REITs. The fund doesn’t hold properties — it holds shares in real estate businesses. This is an additional way for passive investors to allocate their investments with real estate without the high startup expense or exposure. Real estate investment funds are not required to pay dividends like a REIT. The return to the investor is generated by growth in the worth of the stock.

You can find a fund that focuses on a distinct kind of real estate firm, such as multifamily, but you cannot choose the fund’s investment real estate properties or markets. Your decision as an investor is to pick a fund that you trust to oversee your real estate investments.