Ultimate Surry County Real Estate Investing Guide for 2024

A long-term rental system that includes Buying a home, Renovating, Renting, Refinancing it, and Repeating the process by spending the cash from the refinance is called BRRRR. BRRRR is a strategy for continuous expansion. It is essential that you be able to receive a “cash-out” mortgage refinance for the strategy to work.

You add to the value of the investment property above the amount you spent buying and rehabbing it. Then you receive a cash-out mortgage refinance loan that is calculated on the superior market value, and you withdraw the balance. You employ that cash to purchase an additional investment property and the operation begins anew. You acquire additional assets and constantly expand your rental revenues.

After you have created a substantial list of income creating real estate, you might decide to allow someone else to oversee your operations while you collect repeating net revenues. Locate one of property management agencies in Surry County VA with the help of our comprehensive directory.

Factors to Consider

Population Growth

Population increase or fall tells you if you can expect reliable results from long-term real estate investments. A growing population usually illustrates active relocation which equals additional tenants. The area is attractive to businesses and employees to move, work, and create families. Growing populations create a strong renter reserve that can handle rent growth and homebuyers who help keep your property values high.

Property Taxes

Property taxes, upkeep, and insurance costs are examined by long-term lease investors for computing expenses to assess if and how the investment strategy will work out. High real estate tax rates will hurt a property investor’s profits. Areas with steep property taxes are not a reliable situation for short- or long-term investment and should be bypassed.

Price to Rent Ratio

The price to rent ratio (p/r) is a clue to what amount of rent can be collected in comparison to the value of the property. An investor will not pay a high sum for an investment property if they can only collect a low rent not letting them to repay the investment in a appropriate timeframe. A high p/r tells you that you can collect less rent in that market, a lower one says that you can charge more.

Median Gross Rents

Median gross rents illustrate whether a location’s rental market is dependable. Median rents must be growing to validate your investment. Declining rents are a bad signal to long-term investor landlords.

Median Population Age

Median population age in a reliable long-term investment environment must equal the typical worker’s age. This can also show that people are migrating into the market. When working-age people are not coming into the area to take over from retiring workers, the median age will go up. That is a poor long-term financial scenario.

Employment Base Diversity

Having diverse employers in the city makes the economy less unstable. When the citizens are employed by only several dominant enterprises, even a slight interruption in their operations might cause you to lose a lot of tenants and expand your exposure significantly.

Unemployment Rate

High unemployment equals smaller amount of renters and an unpredictable housing market. Otherwise strong businesses lose clients when other employers retrench people. Those who continue to keep their jobs can discover their hours and salaries cut. Even tenants who are employed may find it hard to stay current with their rent.

Income Rates

Median household and per capita income level is a helpful indicator to help you navigate the regions where the renters you are looking for are living. Increasing incomes also show you that rental rates can be raised throughout the life of the property.

Number of New Jobs Created

The more jobs are consistently being provided in a community, the more reliable your tenant supply will be. The individuals who fill the new jobs will need a residence. This allows you to acquire more lease real estate and fill existing vacancies.

School Ratings

School reputation in the area will have a large effect on the local residential market. When an employer assesses a market for potential relocation, they know that good education is a necessity for their employees. Business relocation attracts more renters. Homeowners who move to the area have a beneficial influence on housing values. For long-term investing, search for highly ranked schools in a potential investment location.

Property Appreciation Rates

Real estate appreciation rates are an indispensable ingredient of your long-term investment plan. You need to ensure that the odds of your investment increasing in price in that city are good. Subpar or dropping property worth in a region under review is unacceptable.

Residential real estate where renters reside in furnished accommodations for less than a month are known as short-term rentals. Short-term rental owners charge a steeper price a night than in long-term rental properties. These houses may involve more periodic care and cleaning.

Average short-term tenants are people taking a vacation, home sellers who are relocating, and people traveling on business who prefer a more homey place than hotel accommodation. House sharing portals such as AirBnB and VRBO have opened doors to numerous residential property owners to join in the short-term rental industry. This makes short-term rental strategy an easy approach to endeavor residential real estate investing.

The short-term rental strategy involves interaction with tenants more frequently in comparison with annual lease properties. That results in the owner having to constantly manage complaints. You might want to protect your legal bases by engaging one of the top Surry County real estate lawyers.

Factors to Consider

Short-Term Rental Income

Initially, determine how much rental income you must have to achieve your anticipated return. A region’s short-term rental income rates will quickly reveal to you if you can predict to achieve your estimated income figures.

Median Property Prices

You also have to know the budget you can afford to invest. The median market worth of property will tell you if you can manage to be in that city. You can tailor your area survey by looking at the median values in specific sub-markets.

Price Per Square Foot

Price per sq ft can be affected even by the design and floor plan of residential properties. If you are comparing similar kinds of property, like condominiums or stand-alone single-family homes, the price per square foot is more reliable. Price per sq ft may be a quick way to compare multiple communities or properties.

Short-Term Rental Occupancy Rate

The demand for additional rentals in a city may be determined by studying the short-term rental occupancy rate. When almost all of the rental properties have few vacancies, that location demands new rentals. If landlords in the city are having problems filling their existing properties, you will have difficulty finding renters for yours.

Short-Term Rental Cash-on-Cash Return

Cash-on-cash return is a method to calculate the profitability of an investment venture. Divide the Net Operating Income (NOI) by the amount of cash used. The answer comes as a percentage. High cash-on-cash return means that you will get back your investment quicker and the investment will earn more profit. If you take a loan for a fraction of the investment amount and spend less of your funds, you will receive a higher cash-on-cash return.

Average Short-Term Rental Capitalization (Cap) Rates

This benchmark compares property value to its yearly income. As a general rule, the less money a property costs (or is worth), the higher the cap rate will be. If cap rates are low, you can expect to spend a higher amount for investment properties in that city. The cap rate is determined by dividing the Net Operating Income (NOI) by the price or market value. The result is the annual return in a percentage.

Local Attractions

Short-term rental units are desirable in locations where visitors are attracted by events and entertainment venues. This includes top sporting tournaments, youth sports contests, schools and universities, big concert halls and arenas, carnivals, and amusement parks. At specific times of the year, areas with outdoor activities in the mountains, at beach locations, or near rivers and lakes will attract crowds of tourists who need short-term housing.

The fix and flip strategy means buying a home that needs fixing up or renovation, putting more value by enhancing the property, and then liquidating it for its full market price. The essentials to a lucrative investment are to pay less for real estate than its full market value and to accurately calculate the budget you need to make it marketable.

It’s a must for you to be aware of what homes are being sold for in the city. Locate a community with a low average Days On Market (DOM) metric. Selling real estate fast will help keep your expenses low and guarantee your returns.

In order that property owners who need to liquidate their home can easily locate you, highlight your availability by utilizing our catalogue of the best home cash buyers in Surry County VA along with top real estate investing companies in Surry County VA.

In addition, team up with Surry County bird dogs for real estate investors. Experts in our directory concentrate on acquiring little-known investments while they are still unlisted.

Factors to Consider

Median Home Price

Median home value data is a key indicator for assessing a prospective investment location. Lower median home prices are an indication that there may be a steady supply of real estate that can be purchased below market worth. You must have cheaper houses for a lucrative fix and flip.

When regional data signals a fast decrease in real estate market values, this can point to the accessibility of potential short sale homes. You will learn about potential opportunities when you join up with Surry County short sale facilitators. Find out how this works by reading our article ⁠— What Are the Steps to Buying a Short Sale Home?.

Property Appreciation Rate

Dynamics means the path that median home values are taking. You are searching for a constant increase of the city’s real estate prices. Unsteady value shifts aren’t good, even if it is a significant and sudden surge. You may wind up buying high and selling low in an hectic market.

Average Renovation Costs

Look closely at the possible repair costs so you’ll understand if you can reach your goals. The time it will take for getting permits and the local government’s regulations for a permit application will also affect your decision. To create a detailed budget, you will want to know whether your plans will be required to use an architect or engineer.

Population Growth

Population information will tell you whether there is steady necessity for residential properties that you can sell. Flat or decelerating population growth is a sign of a feeble environment with not an adequate supply of purchasers to justify your investment.

Median Population Age

The median residents’ age is a simple indicator of the presence of possible homebuyers. The median age in the market needs to equal the age of the regular worker. Workers are the individuals who are potential home purchasers. Individuals who are preparing to leave the workforce or have already retired have very particular residency requirements.

Unemployment Rate

You aim to see a low unemployment level in your target community. It must certainly be less than the nation’s average. A positively strong investment market will have an unemployment rate lower than the state’s average. Non-working individuals won’t be able to acquire your houses.

Income Rates

Median household and per capita income levels advise you if you can find enough purchasers in that location for your residential properties. When property hunters purchase a property, they normally need to borrow money for the purchase. The borrower’s income will determine the amount they can afford and whether they can buy a property. The median income indicators will show you if the market is preferable for your investment endeavours. You also prefer to have salaries that are increasing consistently. To keep pace with inflation and soaring construction and material expenses, you should be able to periodically adjust your purchase rates.

Number of New Jobs Created

The number of jobs created on a continual basis indicates whether salary and population growth are feasible. Homes are more quickly sold in a region with a strong job environment. Competent trained professionals taking into consideration purchasing a home and settling opt for relocating to places where they won’t be unemployed.

Hard Money Loan Rates

Investors who buy, rehab, and liquidate investment homes are known to enlist hard money and not normal real estate financing. This lets investors to immediately pick up undervalued real estate. Locate top-rated hard money lenders in Surry County VA so you may compare their costs.

Those who are not experienced in regard to hard money lending can uncover what they should know with our article for newbies — What Does Hard Money Mean?.

Wholesaling is a real estate investment approach that entails locating residential properties that are interesting to real estate investors and signing a sale and purchase agreement. An investor then ”purchases” the contract from you. The owner sells the house to the real estate investor instead of the wholesaler. You are selling the rights to the purchase contract, not the house itself.

This strategy involves using a title firm that is knowledgeable about the wholesale contract assignment operation and is capable and inclined to coordinate double close deals. Find title services for real estate investors in Surry County VA on our website.

Read more about how wholesaling works from our extensive guide — Wholesale Real Estate Investing 101 for Beginners. While you go about your wholesaling activities, place your firm in HouseCashin’s directory of Surry County top wholesale real estate investors. This will help your potential investor purchasers find and call you.

Factors to Consider

Median Home Prices

Median home prices in the region will show you if your ideal price level is possible in that location. Reduced median purchase prices are a solid indicator that there are plenty of homes that could be acquired for less than market price, which real estate investors have to have.

A rapid downturn in property worth could be followed by a sizeable selection of ’upside-down’ houses that short sale investors search for. Short sale wholesalers frequently gain benefits from this strategy. Nevertheless, be cognizant of the legal risks. Learn more concerning wholesaling a short sale property with our comprehensive guide. When you have decided to try wholesaling these properties, make certain to employ someone on the list of the best short sale attorneys in Surry County VA and the best real estate foreclosure attorneys in Surry County VA to assist you.

Property Appreciation Rate

Property appreciation rate boosts the median price stats. Investors who plan to sell their investment properties later on, such as long-term rental landlords, require a region where real estate purchase prices are growing. A dropping median home value will show a poor leasing and home-buying market and will disappoint all kinds of real estate investors.

Population Growth

Population growth stats are something that investors will consider thoroughly. If they know the community is expanding, they will decide that additional housing units are a necessity. This combines both leased and ‘for sale’ real estate. When a region is losing people, it does not require more residential units and real estate investors will not look there.

Median Population Age

Real estate investors have to see a steady real estate market where there is a good source of tenants, first-time homeowners, and upwardly mobile citizens moving to larger homes. A place with a huge employment market has a steady source of tenants and purchasers. That’s why the region’s median age needs to be the age of skilled workers in the employment market.

Income Rates

The median household and per capita income should be on the upswing in a strong real estate market that investors want to work in. If tenants’ and homebuyers’ wages are getting bigger, they can contend with surging lease rates and residential property prices. That will be critical to the property investors you are looking to work with.

Unemployment Rate

Investors will carefully evaluate the region’s unemployment rate. Tenants in high unemployment regions have a challenging time paying rent on schedule and many will miss rent payments completely. Long-term investors who depend on uninterrupted lease payments will lose money in these cities. Renters cannot transition up to homeownership and existing owners cannot liquidate their property and shift up to a larger residence. This is a concern for short-term investors purchasing wholesalers’ contracts to repair and resell a house.

Number of New Jobs Created

Learning how soon new jobs are created in the market can help you see if the property is located in a reliable housing market. Fresh jobs produced draw a large number of employees who require houses to lease and purchase. Long-term real estate investors, such as landlords, and short-term investors like flippers, are gravitating to places with consistent job appearance rates.

Average Renovation Costs

An imperative variable for your client investors, specifically fix and flippers, are rehab expenses in the community. The purchase price, plus the costs of repairs, should amount to lower than the After Repair Value (ARV) of the house to allow for profit. The less expensive it is to renovate a home, the better the area is for your future contract clients.

Mortgage note investing involves buying debt (mortgage note) from a lender at a discount. When this occurs, the investor takes the place of the debtor’s lender.

When a loan is being paid as agreed, it is thought of as a performing loan. Performing loans give you monthly passive income. Non-performing mortgage notes can be restructured or you may buy the property for less than face value through foreclosure.

Someday, you could have multiple mortgage notes and have a hard time finding more time to handle them by yourself. In this case, you can opt to employ one of loan servicers in Surry County VA that will essentially turn your investment into passive income.

When you decide to try this investment method, you ought to put your project in our list of the best companies that buy mortgage notes in Surry County VA. Joining will make your business more noticeable to lenders providing desirable possibilities to note buyers like you.

Factors to consider

Foreclosure Rates

Mortgage note investors looking for valuable mortgage loans to buy will hope to uncover low foreclosure rates in the market. Non-performing note investors can carefully take advantage of locations with high foreclosure rates too. However, foreclosure rates that are high sometimes signal a slow real estate market where selling a foreclosed house may be challenging.

Foreclosure Laws

Mortgage note investors are expected to know their state’s regulations concerning foreclosure prior to investing in mortgage notes. Are you faced with a mortgage or a Deed of Trust? A mortgage dictates that the lender goes to court for approval to start foreclosure. You only need to file a public notice and begin foreclosure steps if you are utilizing a Deed of Trust.

Mortgage Interest Rates

Acquired mortgage notes have a negotiated interest rate. That rate will undoubtedly impact your profitability. Interest rates influence the strategy of both sorts of mortgage note investors.

Conventional interest rates may differ by up to a quarter of a percent around the United States. Private loan rates can be moderately more than conventional rates considering the higher risk accepted by private mortgage lenders.

Mortgage note investors ought to always be aware of the present market mortgage interest rates, private and conventional, in potential investment markets.

Demographics

When note investors are deciding on where to purchase notes, they look closely at the demographic data from reviewed markets. The region’s population growth, employment rate, employment market increase, wage levels, and even its median age contain valuable data for investors.
A youthful expanding community with a strong employment base can provide a stable income flow for long-term mortgage note investors searching for performing mortgage notes.

Non-performing note investors are interested in comparable indicators for other reasons. If foreclosure is required, the foreclosed collateral property is more conveniently unloaded in a good real estate market.

Property Values

Note holders want to find as much home equity in the collateral as possible. If you have to foreclose on a mortgage loan with lacking equity, the sale might not even repay the balance invested in the note. The combined effect of loan payments that lessen the mortgage loan balance and yearly property value appreciation raises home equity.

Property Taxes

Usually homeowners pay real estate taxes via lenders in monthly installments along with their loan payments. This way, the mortgage lender makes sure that the taxes are paid when payable. The lender will need to compensate if the mortgage payments cease or they risk tax liens on the property. If a tax lien is filed, it takes first position over the lender’s loan.

If a community has a record of increasing property tax rates, the combined home payments in that community are regularly increasing. Past due clients might not have the ability to keep paying increasing mortgage loan payments and could cease making payments altogether.

Real Estate Market Strength

Both performing and non-performing mortgage note buyers can do well in an expanding real estate market. Since foreclosure is a necessary element of mortgage note investment planning, appreciating real estate values are crucial to discovering a profitable investment market.

A vibrant real estate market might also be a lucrative environment for creating mortgage notes. It is another phase of a note buyer’s career.

A REIT, or Real Estate Investment Trust, means a company that makes investments in income-producing properties. This was initially done as a way to enable the regular investor to invest in real property. Most people today are capable of investing in a REIT.

Investing in a REIT is considered passive investing. The risk that the investors are accepting is distributed among a group of investment assets. Investors can unload their REIT shares whenever they want. One thing you can’t do with REIT shares is to determine the investment properties. Their investment is confined to the investment properties selected by their REIT.

Mutual funds owning shares of real estate companies are known as real estate investment funds. Any actual real estate is owned by the real estate firms, not the fund. Investment funds may be an inexpensive way to include real estate in your allocation of assets without needless liability. Investment funds aren’t required to distribute dividends like a REIT. The worth of a fund to someone is the anticipated growth of the price of its shares.

You may choose a fund that concentrates on particular categories of the real estate business but not specific areas for individual real estate property investment. Your selection as an investor is to select a fund that you believe in to manage your real estate investments.