Ultimate Union County Real Estate Investing Guide for 2024

The term BRRRR is an illustration of a long-term rental plan — Buy, Rehab, Rent, Refinance, Repeat. This is a way to increase your investment assets rather than own one investment property. This strategy depends on your capability to take money out when you refinance.

The After Repair Value (ARV) of the asset needs to equal more than the complete acquisition and refurbishment costs. Next, you remove the value you created out of the asset in a “cash-out” refinance. This cash is put into a different property, and so on. You acquire more and more properties and constantly expand your lease income.

Once you’ve created a large portfolio of income producing residential units, you might prefer to authorize someone else to oversee all rental business while you get recurring income. Discover Union County investment property management companies when you search through our directory of experts.

Factors to Consider

Population Growth

Population growth or loss shows you if you can expect reliable results from long-term real estate investments. When you find robust population expansion, you can be confident that the community is pulling possible renters to it. Moving companies are drawn to growing cities providing reliable jobs to people who move there. This equals stable renters, higher lease revenue, and a greater number of possible homebuyers when you need to unload your rental.

Property Taxes

Property taxes, similarly to insurance and upkeep costs, can differ from place to place and must be reviewed carefully when assessing possible returns. Excessive payments in these areas jeopardize your investment’s profitability. Excessive property tax rates may indicate an unreliable area where expenditures can continue to rise and should be treated as a red flag.

Price to Rent Ratio

The price to rent ratio (p/r) is an illustration of how much rent can be collected compared to the acquisition price of the asset. If median home values are strong 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. The less rent you can demand the higher the p/r, with a low p/r showing a better rent market.

Median Gross Rents

Median gross rents are a true benchmark of the desirability of a rental market under discussion. Hunt for a stable increase in median rents over time. If rents are declining, you can scratch that community from discussion.

Median Population Age

Median population age in a strong long-term investment market must reflect the typical worker’s age. This may also illustrate that people are relocating into the community. If you find a high median age, your supply of tenants is declining. This isn’t promising for the future financial market of that location.

Employment Base Diversity

A varied amount of enterprises in the area will increase your prospects for better income. If workers are concentrated in a couple of major employers, even a little interruption in their operations might cause you to lose a lot of renters and raise your risk immensely.

Unemployment Rate

High unemployment results in a lower number of renters and an uncertain housing market. Normally profitable companies lose customers when other businesses retrench workers. The remaining workers might find their own salaries cut. Even people who have jobs may find it challenging to pay rent on time.

Income Rates

Median household and per capita income level is a critical indicator to help you pinpoint the cities where the renters you want are living. Rising incomes also show you that rental rates can be increased throughout your ownership of the investment property.

Number of New Jobs Created

An increasing job market equates to a steady stream of tenants. A market that creates jobs also increases the amount of participants in the housing market. Your strategy of leasing and buying additional real estate requires an economy that will provide enough jobs.

School Ratings

Community schools can cause a significant influence on the real estate market in their location. Companies that are considering moving require good schools for their employees. Relocating companies bring and attract prospective tenants. Homeowners who move to the region have a beneficial effect on housing prices. You will not discover a dynamically soaring residential real estate market without good schools.

Property Appreciation Rates

Real estate appreciation rates are an imperative part of your long-term investment strategy. Investing in properties that you intend to maintain without being sure that they will improve in price is a blueprint for failure. You do not need to spend any time reviewing cities with poor property appreciation rates.

A furnished apartment where tenants reside for less than 4 weeks is called a short-term rental. Long-term rental units, like apartments, charge lower payment per night than short-term ones. Because of the high rotation of tenants, short-term rentals need more regular care and sanitation.

Short-term rentals are used by people traveling for business who are in town for several days, those who are moving and need transient housing, and sightseers. House sharing websites such as AirBnB and VRBO have enabled a lot of property owners to participate in the short-term rental business. Short-term rentals are considered a smart way to kick off investing in real estate.

The short-term rental housing venture involves interaction with tenants more regularly in comparison with annual rental properties. Because of this, investors deal with problems regularly. Think about handling your liability with the aid of one of the good real estate attorneys in Union County GA.

Factors to Consider

Short-Term Rental Income

You need to determine the amount of rental income you’re searching for according to your investment analysis. Understanding the standard rate of rental fees in the community for short-term rentals will help you choose a profitable area to invest.

Median Property Prices

You also must decide the budget you can manage to invest. To find out if a community has opportunities for investment, look at the median property prices. You can also employ median market worth in localized neighborhoods within the market to choose locations for investment.

Price Per Square Foot

Price per sq ft could be misleading when you are looking at different properties. If you are examining the same types of property, like condos or separate single-family homes, the price per square foot is more reliable. It may be a fast method to compare multiple sub-markets or residential units.

Short-Term Rental Occupancy Rate

The need for new rental units in a location can be determined by examining the short-term rental occupancy level. If almost all of the rentals have tenants, that location needs more rentals. If investors in the community are having issues renting their current units, you will have trouble finding renters for yours.

Short-Term Rental Cash-on-Cash Return

A short-term rental’s cash-on-cash return will show you if the venture is a good use of your own funds. You can compute the cash-on-cash return by taking your Net Operating Income (NOI) and dividing it by your cash investment. The answer is a percentage. If a venture is profitable enough to pay back the capital spent fast, you’ll receive a high percentage. Financed ventures will have a stronger cash-on-cash return because you will be utilizing less of your funds.

Average Short-Term Rental Capitalization (Cap) Rates

This metric compares rental property worth to its annual return. High cap rates mean that properties are available in that community for decent prices. Low cap rates show more expensive rental units. You can determine the cap rate for potential investment real estate by dividing the Net Operating Income (NOI) by the Fair Market Value or purchase price of the investment property. The answer is the yearly return in a percentage.

Local Attractions

Short-term rental properties are desirable in cities where tourists are attracted by events and entertainment sites. Vacationers come to specific cities to watch academic and athletic activities at colleges and universities, see professional sports, support their children as they participate in kiddie sports, have the time of their lives at annual carnivals, and drop by theme parks. At particular seasons, locations with outside activities in mountainous areas, coastal locations, or near rivers and lakes will attract crowds of people who need short-term residence.

To fix and flip a residential property, you have to pay lower than market worth, make any necessary repairs and updates, then liquidate the asset for higher market price. To be successful, the investor must pay below market worth for the house and determine how much it will cost to rehab it.

Explore the housing market so that you understand the actual After Repair Value (ARV). You always have to analyze the amount of time it takes for listings to close, which is illustrated by the Days on Market (DOM) data. Selling the home without delay will keep your costs low and maximize your revenue.

In order that home sellers who need to get cash for their house can effortlessly find you, highlight your status by using our catalogue of the best real estate cash buyers in Union County GA along with the best real estate investment companies in Union County GA.

Also, hunt for bird dogs for real estate investors in Union County GA. Professionals discovered on our website will assist you by rapidly finding possibly profitable ventures ahead of the opportunities being listed.

Factors to Consider

Median Home Price

The area’s median home value could help you spot a good city for flipping houses. Low median home prices are an indication that there should be a good number of real estate that can be bought below market value. You have to have lower-priced properties for a profitable fix and flip.

If market data signals a quick drop in property market values, this can point to the availability of possible short sale properties. You will hear about potential investments when you partner up with Union County short sale processors. Discover how this works by reading our article ⁠— How Do You Buy a House in a Short Sale?.

Property Appreciation Rate

The shifts in real property prices in an area are vital. You’re eyeing for a steady increase of local property market values. Erratic price shifts are not desirable, even if it is a significant and sudden growth. You could end up buying high and liquidating low in an unstable market.

Average Renovation Costs

Look thoroughly at the possible rehab costs so you’ll understand whether you can achieve your targets. The time it will take for acquiring permits and the local government’s rules for a permit request will also impact your decision. You have to know whether you will need to use other specialists, like architects or engineers, so you can get ready for those spendings.

Population Growth

Population increase figures provide a peek at housing demand in the community. When the population is not expanding, there is not going to be an ample pool of purchasers for your fixed homes.

Median Population Age

The median residents’ age is a straightforward indicator of the supply of preferable homebuyers. It should not be lower or higher than the age of the average worker. People in the regional workforce are the most steady house buyers. People who are about to depart the workforce or are retired have very particular residency needs.

Unemployment Rate

If you run across a community having a low unemployment rate, it’s a good sign of likely investment prospects. An unemployment rate that is less than the national median is what you are looking for. When the city’s unemployment rate is less than the state average, that is an indicator of a good financial market. If you don’t have a robust employment base, a market cannot supply you with abundant home purchasers.

Income Rates

Median household and per capita income are a great sign of the scalability of the home-purchasing market in the area. Most individuals who purchase residential real estate have to have a home mortgage loan. To obtain approval for a mortgage loan, a home buyer can’t spend for housing greater than a specific percentage of their wage. The median income data will show you if the community is preferable for your investment endeavours. Particularly, income increase is crucial if you plan to scale your business. If you need to increase the asking price of your residential properties, you want to be sure that your home purchasers’ wages are also growing.

Number of New Jobs Created

Understanding how many jobs are created every year in the city can add to your assurance in an area’s economy. A growing job market means that more people are amenable to investing in a home there. Fresh jobs also attract wage earners coming to the city from other places, which additionally reinforces the local market.

Hard Money Loan Rates

People who acquire, renovate, and flip investment properties opt to enlist hard money instead of conventional real estate funding. This strategy lets them complete lucrative ventures without delay. Discover private money lenders in Union County GA and analyze their interest rates.

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

In real estate wholesaling, you locate a residential property that investors may count as a profitable opportunity and enter into a sale and purchase agreement to purchase the property. When a real estate investor who approves of the property is found, the sale and purchase agreement is sold to them for a fee. The property is bought by the real estate investor, not the wholesaler. The real estate wholesaler doesn’t sell the residential property itself — they simply sell the purchase contract.

The wholesaling mode of investing includes the engagement of a title insurance company that comprehends wholesale deals and is informed about and involved in double close deals. Find title companies for real estate investors in Union County GA in our directory.

To learn how real estate wholesaling works, read our comprehensive article What Is Wholesaling in Real Estate Investing?. When employing this investing method, list your business in our list of the best house wholesalers in Union County GA. This way your prospective customers will know about your location and reach out to you.

Factors to Consider

Median Home Prices

Median home values in the region will show you if your designated purchase price point is viable in that market. As real estate investors need properties that are available for less than market price, you will want to see lower median purchase prices as an implicit hint on the potential source of houses that you may acquire for below market value.

A fast decrease in real estate values could be followed by a sizeable selection of ’upside-down’ houses that short sale investors hunt for. Wholesaling short sale houses repeatedly delivers a list of particular benefits. Nonetheless, it also produces a legal liability. Gather additional data on how to wholesale a short sale property in our comprehensive guide. Once you want to give it a try, make sure you employ one of short sale law firms in Union County GA and mortgage foreclosure attorneys in Union County GA to work with.

Property Appreciation Rate

Median home price dynamics are also vital. Many investors, including buy and hold and long-term rental investors, particularly need to know that residential property market values in the market are expanding steadily. Shrinking values indicate an unequivocally weak rental and housing market and will scare away investors.

Population Growth

Population growth statistics are a predictor that real estate investors will look at thoroughly. If they find that the population is expanding, they will conclude that additional housing is needed. There are more individuals who rent and more than enough customers who buy houses. If a location is shrinking in population, it doesn’t need more residential units and investors will not look there.

Median Population Age

A profitable housing market for investors is strong in all areas, including tenants, who become home purchasers, who transition into bigger properties. This takes a vibrant, reliable labor force of residents who feel confident enough to move up in the housing market. When the median population age matches the age of working locals, it indicates a strong real estate market.

Income Rates

The median household and per capita income show steady increases over time in areas that are desirable for investment. Income increment proves a community that can handle lease rate and real estate purchase price surge. That will be vital to the property investors you need to work with.

Unemployment Rate

Real estate investors whom you approach to purchase your sale contracts will regard unemployment rates to be a crucial bit of insight. High unemployment rate prompts many tenants to pay rent late or default completely. Long-term investors who depend on uninterrupted rental income will do poorly in these communities. Renters cannot move up to homeownership and existing owners can’t liquidate their property and shift up to a larger residence. Short-term investors won’t take a chance on being pinned down with a home they can’t liquidate quickly.

Number of New Jobs Created

The frequency of jobs generated on a yearly basis is a critical part of the residential real estate picture. Job creation signifies more employees who have a need for housing. Employment generation is helpful for both short-term and long-term real estate investors whom you count on to take on your wholesale real estate.

Average Renovation Costs

Renovation expenses will be crucial to many investors, as they typically purchase bargain distressed houses to fix. The cost of acquisition, plus the expenses for rehabbing, should amount to less than the After Repair Value (ARV) of the real estate to ensure profitability. Lower average remodeling costs make a region more desirable for your priority buyers — rehabbers and long-term investors.

Mortgage note investors obtain debt from lenders if the investor can obtain the note for less than face value. This way, the purchaser becomes the lender to the first lender’s debtor.

When a loan is being repaid on time, it is considered a performing note. Performing notes earn repeating income for investors. Some investors buy non-performing notes because if they cannot satisfactorily restructure the mortgage, they can always take the property at foreclosure for a below market amount.

Someday, you might have a large number of mortgage notes and have a hard time finding additional time to service them on your own. At that point, you may need to use our directory of Union County top mortgage loan servicers and redesignate your notes as passive investments.

If you determine to utilize this strategy, add your venture to our list of promissory note buyers in Union County GA. This will help you become more visible to lenders offering desirable possibilities to note investors like you.

Factors to consider

Foreclosure Rates

Investors searching for valuable loans to buy will prefer to find low foreclosure rates in the community. Non-performing note investors can carefully make use of cities that have high foreclosure rates as well. If high foreclosure rates are causing a weak real estate market, it may be tough to get rid of the collateral property after you foreclose on it.

Foreclosure Laws

Experienced mortgage note investors are thoroughly well-versed in their state’s laws for foreclosure. Are you working with a mortgage or a Deed of Trust? While using a mortgage, a court will have to allow a foreclosure. A Deed of Trust enables you to file a notice and proceed to foreclosure.

Mortgage Interest Rates

Purchased mortgage notes come with a negotiated interest rate. This is a significant element in the returns that you reach. Regardless of the type of investor you are, the note’s interest rate will be significant to your forecasts.

Conventional interest rates can differ by up to a 0.25% around the country. Mortgage loans supplied by private lenders are priced differently and may be higher than conventional loans.

A mortgage note buyer needs to be aware of the private as well as conventional mortgage loan rates in their regions all the time.

Demographics

An efficient mortgage note investment strategy includes an examination of the community by utilizing demographic data. It is crucial to determine whether a suitable number of residents in the market will continue to have good employment and incomes in the future.
Performing note buyers seek borrowers who will pay without delay, creating a consistent income flow of loan payments.

Non-performing note purchasers are reviewing related components for other reasons. If these note buyers have to foreclose, they’ll require a vibrant real estate market when they unload the repossessed property.

Property Values

Note holders need to see as much home equity in the collateral property as possible. This increases the possibility that a potential foreclosure sale will repay the amount owed. Appreciating property values help increase the equity in the collateral as the borrower pays down the balance.

Property Taxes

Escrows for house taxes are typically sent to the lender along with the loan payment. The mortgage lender passes on the property taxes to the Government to make sure the taxes are paid promptly. If loan payments are not current, the lender will have to choose between paying the property taxes themselves, or the property taxes become past due. If a tax lien is filed, it takes precedence over the mortgage lender’s note.

Since tax escrows are included with the mortgage payment, growing taxes indicate higher mortgage payments. Past due borrowers might not have the ability to keep paying increasing loan payments and could stop making payments altogether.

Real Estate Market Strength

Both performing and non-performing note investors can thrive in a vibrant real estate market. They can be confident that, if required, a repossessed property can be liquidated at a price that is profitable.

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

A trust owning income-generating real estate and that offers shares to the public is a REIT — Real Estate Investment Trust. This was first conceived as a method to allow the everyday person to invest in real estate. The average person is able to come up with the money to invest in a REIT.

Shareholders’ participation in a REIT is passive investing. REITs oversee investors’ exposure with a diversified group of assets. Participants have the capability to unload their shares at any moment. One thing you cannot do with REIT shares is to choose the investment real estate properties. The assets that the REIT chooses to purchase are the ones you invest in.

Real estate investment funds are in essence mutual funds that concentrate on real estate companies, including REITs. The fund does not own properties — it owns interest in real estate businesses. This is another method for passive investors to spread their portfolio with real estate without the high startup expense or risks. Fund members might not receive typical distributions the way that REIT shareholders do. The value of a fund to an investor is the anticipated appreciation of the price of the shares.

You can find a real estate fund that focuses on a specific type of real estate business, like commercial, but you can’t propose the fund’s investment real estate properties or locations. You must depend on the fund’s directors to determine which locations and assets are selected for investment.