Ultimate Taylor County Real Estate Investing Guide for 2024

BRRRR is an abbreviation of “Buy, Rehab, Rent, Refinance, Repeat”. BRRRR is a strategy for continuous expansion. It is required that you are qualified to do a “cash-out” mortgage refinance for the method to be successful.

The After Repair Value (ARV) of the rental has to equal more than the complete buying and refurbishment costs. The investment property is refinanced based on the ARV and the balance, or equity, comes to you in cash. You utilize that cash to acquire another investment property and the process begins again. This strategy allows you to steadily grow your assets and your investment revenue.

If an investor holds a substantial portfolio of investment properties, it is wise to employ a property manager and establish a passive income source. Find one of real property management professionals in Taylor County WV with the help of our comprehensive directory.

Factors to Consider

Population Growth

The growth or decline of the population can signal if that area is interesting to rental investors. When you find good population growth, you can be confident that the region is attracting likely tenants to the location. The community is attractive to companies and employees to locate, work, and raise households. This equates to stable tenants, greater lease revenue, and more potential buyers when you want to unload the asset.

Property Taxes

Property taxes, regular maintenance costs, and insurance directly affect your returns. Excessive real estate taxes will decrease a real estate investor’s income. If property tax rates are excessive in a given community, you probably want to look in a different location.

Price to Rent Ratio

The price to rent ratio (p/r) is a signal of how high of a rent can be charged compared to the cost of the asset. If median property values are high and median rents are weak — a high p/r, it will take more time for an investment to pay for itself and reach good returns. You will prefer to discover a low p/r to be assured that you can set your rental rates high enough for acceptable returns.

Median Gross Rents

Median gross rents show whether a location’s lease market is reliable. You should discover a location with stable median rent expansion. Reducing rents are a bad signal to long-term rental investors.

Median Population Age

Median population age will be similar to the age of a typical worker if an area has a strong source of tenants. You’ll find this to be true in communities where people are migrating. If working-age people aren’t entering the region to take over from retiring workers, the median age will increase. This is not good for the future financial market of that market.

Employment Base Diversity

A diversified employment base is what an intelligent long-term rental property owner will look for. When the area’s workers, who are your renters, are hired by a diversified combination of businesses, you can’t lose all of your renters at the same time (as well as your property’s market worth), if a dominant employer in the area goes bankrupt.

Unemployment Rate

You can’t get a stable rental income stream in a region with high unemployment. Non-working individuals won’t be able to pay for products or services. People who still keep their jobs may find their hours and incomes reduced. This may cause missed rents and lease defaults.

Income Rates

Median household and per capita income level is a critical tool to help you discover the markets where the renters you prefer are residing. Rising wages also tell you that rental fees can be hiked over the life of the investment property.

Number of New Jobs Created

The strong economy that you are on the lookout for will be producing a large amount of jobs on a regular basis. The individuals who fill the new jobs will have to have housing. Your strategy of renting and acquiring more assets needs an economy that will produce enough jobs.

School Ratings

School rankings in the city will have a huge impact on the local real estate market. When a business evaluates an area for possible relocation, they remember that first-class education is a must for their workers. Business relocation creates more renters. Property prices rise thanks to additional employees who are buying houses. You can’t find a dynamically growing housing market without quality schools.

Property Appreciation Rates

Real estate appreciation rates are an integral part of your long-term investment scheme. Investing in real estate that you aim to keep without being positive that they will improve in price is a formula for failure. You do not want to allot any time examining regions showing weak property appreciation rates.

A furnished residential unit where clients stay for shorter than a month is called a short-term rental. Short-term rentals charge a higher rate each night than in long-term rental business. Because of the high rotation of tenants, short-term rentals entail more regular maintenance and sanitation.

Short-term rentals appeal to clients travelling for work who are in the area for several nights, those who are moving and want transient housing, and holidaymakers. Any property owner can transform their home into a short-term rental unit with the services provided by virtual home-sharing websites like VRBO and AirBnB. Short-term rentals are deemed as a good technique to kick off investing in real estate.

Short-term rental properties involve dealing with renters more repeatedly than long-term rental units. Because of this, owners deal with issues repeatedly. Consider controlling your exposure with the aid of one of the best real estate lawyers in Taylor County WV.

Factors to Consider

Short-Term Rental Income

You have to determine how much income has to be earned to make your effort successful. Knowing the usual rate of rental fees in the city for short-term rentals will help you select a good community to invest.

Median Property Prices

When acquiring investment housing for short-term rentals, you need to determine the amount you can allot. Search for communities where the purchase price you need is appropriate for the current median property prices. You can fine-tune your property search by analyzing median market worth in the area’s sub-markets.

Price Per Square Foot

Price per sq ft provides a general idea of property prices when considering comparable properties. A home with open entrances and vaulted ceilings cannot be compared with a traditional-style property with bigger floor space. If you take note of this, the price per sq ft may provide you a broad estimation of real estate prices.

Short-Term Rental Occupancy Rate

The ratio of short-term rental units that are currently filled in a community is vital data for a rental unit buyer. A high occupancy rate indicates that an extra source of short-term rentals is necessary. Low occupancy rates communicate that there are already too many short-term rentals in that location.

Short-Term Rental Cash-on-Cash Return

To find out whether you should invest your cash in a specific rental unit or location, calculate the cash-on-cash return. Take your expected Net Operating Income (NOI) and divide it by the cash amount you’re ready to invest. The return is shown as a percentage. The higher it is, the more quickly your investment will be returned and you’ll start generating profits. When you get financing for part of the investment budget and put in less of your own cash, you will realize a higher cash-on-cash return.

Average Short-Term Rental Capitalization (Cap) Rates

Average short-term rental capitalization (cap) levels are generally utilized by real estate investors to evaluate the value of investment opportunities. A rental unit that has a high cap rate and charges typical market rents has a strong value. Low cap rates show higher-priced properties. Divide your expected Net Operating Income (NOI) by the property’s market worth or purchase price. The answer is the yearly return in a percentage.

Local Attractions

Short-term rental properties are desirable in areas where tourists are attracted by events and entertainment sites. Tourists go to specific communities to watch academic and sporting events at colleges and universities, see competitions, support their children as they participate in kiddie sports, have fun at annual festivals, and go to adventure parks. Outdoor scenic attractions such as mountainous areas, lakes, beaches, and state and national parks can also invite potential renters.

When a property investor acquires a property for less than the market worth, renovates it so that it becomes more attractive and pricier, and then disposes of the house for a profit, they are referred to as a fix and flip investor. To keep the business profitable, the investor needs to pay less than the market value for the property and determine the amount it will take to rehab it.

You also need to analyze the resale market where the home is positioned. The average number of Days On Market (DOM) for homes sold in the area is critical. Disposing of the property fast will help keep your expenses low and secure your revenue.

Help motivated real property owners in locating your firm by listing your services in our directory of the best Taylor County cash house buyers and top Taylor County property investment companies.

In addition, coordinate with Taylor County real estate bird dogs. These experts concentrate on quickly uncovering profitable investment prospects before they are listed on the open market.

Factors to Consider

Median Home Price

The region’s median housing price could help you locate a desirable community for flipping houses. Low median home values are a hint that there must be a good number of houses that can be bought below market worth. This is a crucial element of a successful investment.

If market data shows a sudden decrease in real property market values, this can highlight the availability of possible short sale houses. Investors who work with short sale negotiators in Taylor County WV get regular notices about potential investment real estate. You’ll learn additional information concerning short sales in our article ⁠— How Can I Buy a Short Sale Home?.

Property Appreciation Rate

The shifts in property prices in a region are vital. Predictable increase in median values indicates a strong investment environment. Accelerated price surges could indicate a market value bubble that isn’t sustainable. You could end up buying high and selling low in an unstable market.

Average Renovation Costs

A careful study of the market’s renovation expenses will make a substantial difference in your area choice. The time it requires for acquiring permits and the local government’s regulations for a permit request will also affect your decision. You want to understand if you will be required to hire other professionals, such as architects or engineers, so you can be ready for those costs.

Population Growth

Population information will tell you if there is an expanding necessity for housing that you can produce. Flat or decelerating population growth is an indication of a poor market with not an adequate supply of buyers to validate your risk.

Median Population Age

The median residents’ age can also tell you if there are potential homebuyers in the city. If the median age is the same as the one of the average worker, it is a positive sign. Employed citizens can be the people who are potential home purchasers. The goals of retirees will most likely not be a part of your investment venture plans.

Unemployment Rate

You want to have a low unemployment level in your prospective location. An unemployment rate that is lower than the US average is preferred. If the city’s unemployment rate is less than the state average, that’s a sign of a preferable financial market. If you don’t have a dynamic employment environment, a location cannot supply you with abundant home purchasers.

Income Rates

Median household and per capita income levels tell you if you can obtain enough buyers in that region for your houses. The majority of individuals who buy a house have to have a home mortgage loan. To have a bank approve them for a home loan, a home buyer can’t be spending for monthly repayments a larger amount than a certain percentage of their wage. The median income numbers will tell you if the community is eligible for your investment efforts. Specifically, income increase is crucial if you prefer to expand your investment business. Building expenses and housing prices go up periodically, and you want to be sure that your target clients’ salaries will also improve.

Number of New Jobs Created

The number of jobs generated each year is vital insight as you reflect on investing in a particular area. Residential units are more conveniently liquidated in a market with a dynamic job environment. Additional jobs also lure employees relocating to the location from other districts, which additionally invigorates the real estate market.

Hard Money Loan Rates

Investors who sell rehabbed properties frequently employ hard money loans rather than regular mortgage. This enables investors to immediately pick up desirable real estate. Discover hard money lenders in Taylor County WV and contrast their rates.

In case you are unfamiliar with this loan type, understand more by reading our guide — What Is Hard Money?.

In real estate wholesaling, you locate a property that real estate investors would think is a good deal and enter into a contract to buy it. When a real estate investor who needs the residential property is spotted, the purchase contract is assigned to them for a fee. The property is bought by the investor, not the wholesaler. You are selling the rights to buy the property, not the property itself.

The wholesaling form of investing includes the engagement of a title firm that comprehends wholesale purchases and is savvy about and engaged in double close deals. Find Taylor County title companies for real estate investors by utilizing our list.

Read more about this strategy from our comprehensive guide — Wholesale Real Estate Investing 101 for Beginners. When using this investing tactic, list your firm in our list of the best real estate wholesalers in Taylor County WV. That will enable any likely partners to see you and reach out.

Factors to Consider

Median Home Prices

Median home prices are essential to discovering regions where residential properties are being sold in your real estate investors’ purchase price point. A place that has a good supply of the below-market-value residential properties that your investors need will display a below-than-average median home price.

Rapid weakening in real estate market values may lead to a supply of houses with no equity that appeal to short sale property buyers. Short sale wholesalers can reap advantages using this opportunity. However, there may be risks as well. Gather more details on how to wholesale short sale real estate in our thorough article. Once you are keen to begin wholesaling, search through Taylor County top short sale attorneys as well as Taylor County top-rated foreclosure law offices directories to find the best counselor.

Property Appreciation Rate

Median home value trends are also vital. Many real estate investors, like buy and hold and long-term rental landlords, notably want to find that residential property prices in the community are growing consistently. A shrinking median home price will indicate a poor rental and home-buying market and will turn off all kinds of real estate investors.

Population Growth

Population growth data is a contributing factor that your prospective investors will be aware of. If they find that the population is expanding, they will presume that new housing is a necessity. This combines both leased and resale properties. A market with a declining population does not interest the real estate investors you need to purchase your purchase contracts.

Median Population Age

A good housing market for investors is agile in all areas, particularly renters, who become home purchasers, who move up into more expensive houses. This needs a robust, stable employee pool of citizens who feel confident enough to buy up in the real estate market. That is why the location’s median age should be the age of skilled workers in the workplace.

Income Rates

The median household and per capita income demonstrate constant improvement continuously in cities that are ripe for real estate investment. Surges in rent and purchase prices will be sustained by rising wages in the market. That will be important to the real estate investors you are trying to draw.

Unemployment Rate

Investors will carefully evaluate the area’s unemployment rate. Late rent payments and lease default rates are prevalent in communities with high unemployment. Long-term investors won’t acquire a house in a place like that. High unemployment causes problems that will prevent interested investors from purchasing a house. This can prove to be tough to reach fix and flip investors to acquire your buying contracts.

Number of New Jobs Created

Knowing how soon fresh job openings are created in the community can help you see if the house is located in a vibrant housing market. New jobs produced draw a high number of workers who look for spaces to rent and buy. Long-term investors, like landlords, and short-term investors such as rehabbers, are attracted to regions with consistent job appearance rates.

Average Renovation Costs

An essential variable for your client investors, especially house flippers, are rehabilitation expenses in the region. When a short-term investor fixes and flips a house, they have to be prepared to unload it for a higher price than the whole expense for the acquisition and the renovations. Seek lower average renovation costs.

Purchasing mortgage notes (loans) is successful when the note can be acquired for less than the remaining balance. This way, the investor becomes the mortgage lender to the original lender’s debtor.

Performing loans mean loans where the homeowner is always current on their mortgage payments. They earn you stable passive income. Non-performing mortgage notes can be rewritten or you may buy the property for less than face value through foreclosure.

Eventually, you might have a large number of mortgage notes and need more time to service them on your own. In this case, you might hire one of loan servicers in Taylor County WV that will essentially convert your investment into passive income.

When you conclude that this strategy is a good fit for you, include your company in our directory of Taylor County top mortgage note buying companies. Showing up on our list sets you in front of lenders who make lucrative investment possibilities available to note investors such as you.

Factors to consider

Foreclosure Rates

Performing loan investors seek regions that have low foreclosure rates. High rates might indicate opportunities for non-performing loan note investors, but they should be careful. The neighborhood ought to be strong enough so that note investors can complete foreclosure and liquidate collateral properties if required.

Foreclosure Laws

Successful mortgage note investors are fully knowledgeable about their state’s regulations concerning foreclosure. They will know if their law dictates mortgages or Deeds of Trust. When using a mortgage, a court will have to allow a foreclosure. You only have to file a public notice and begin foreclosure steps if you are working with a Deed of Trust.

Mortgage Interest Rates

Mortgage note investors acquire the interest rate of the loan notes that they purchase. That interest rate will unquestionably influence your profitability. Interest rates influence the plans of both types of note investors.

Traditional lenders price dissimilar mortgage interest rates in various regions of the US. Private loan rates can be slightly higher than traditional rates because of the larger risk accepted by private lenders.

A mortgage loan note investor ought to be aware of the private as well as conventional mortgage loan rates in their regions at any given time.

Demographics

When note buyers are determining where to invest, they’ll review the demographic statistics from considered markets. It’s important to find out if a suitable number of residents in the area will continue to have good paying jobs and wages in the future.
Mortgage note investors who like performing notes choose regions where a large number of younger individuals have good-paying jobs.

Note investors who buy non-performing mortgage notes can also make use of vibrant markets. A resilient local economy is needed if investors are to find homebuyers for properties they’ve foreclosed on.

Property Values

Note holders want to see as much home equity in the collateral as possible. When you have to foreclose on a loan with lacking equity, the foreclosure sale may not even cover the amount invested in the note. As loan payments reduce the amount owed, and the market value of the property increases, the borrower’s equity grows.

Property Taxes

Payments for house taxes are normally sent to the lender along with the loan payment. The lender passes on the property taxes to the Government to ensure the taxes are paid on time. If mortgage loan payments are not current, the lender will have to either pay the taxes themselves, or they become past due. If property taxes are past due, the municipality’s lien supersedes all other liens to the head of the line and is satisfied first.

If a municipality has a history of increasing tax rates, the combined home payments in that region are consistently growing. This makes it difficult for financially challenged homeowners to make their payments, so the loan could become past due.

Real Estate Market Strength

A vibrant real estate market with strong value increase is helpful for all categories of mortgage note investors. It is crucial to know that if you have to foreclose on a property, you will not have difficulty obtaining a good price for the collateral property.

Note investors also have a chance to create mortgage notes directly to homebuyers in consistent real estate communities. This is a profitable source of revenue for successful investors.

A trust owning income-generating properties and that offers shares to the public is a REIT — Real Estate Investment Trust. This was initially conceived as a method to permit the typical investor to invest in real estate. The typical investor can afford to invest in a REIT.

Shareholders’ involvement in a REIT is passive investment. The exposure that the investors are accepting is diversified among a selection of investment assets. Investors are able to sell their REIT shares anytime they need. Something you cannot do with REIT shares is to select the investment real estate properties. The properties that the REIT chooses to purchase are the ones your funds are used to buy.

Mutual funds containing shares of real estate firms are referred to as real estate investment funds. Any actual real estate is possessed by the real estate businesses, not the fund. These funds make it doable for more people to invest in real estate. Fund members might not collect regular distributions the way that REIT participants do. The profit to the investor is produced by changes in the worth of the stock.

You can locate a fund that focuses on a specific kind of real estate firm, like residential, but you can’t choose the fund’s investment real estate properties or markets. Your choice as an investor is to pick a fund that you rely on to handle your real estate investments.