Ultimate Union County Real Estate Investing Guide for 2024

BRRRR means “Buy, Rehab, Rent, Refinance, Repeat”. BRRRR is a system for continuous growth. This strategy hinges on your capability to extract cash out when you refinance.

When you have concluded repairing the house, the market value must be higher than your total acquisition and rehab costs. Then you take a cash-out refinance loan that is calculated on the larger property worth, and you take out the balance. You purchase your next property with the cash-out amount and begin anew. You buy more and more houses or condos and continually expand your rental revenues.

When an investor owns a significant collection of investment homes, it is wise to hire a property manager and create a passive income source. Find one of the best investment property management firms in Union County OR with the help of our comprehensive directory.

Factors to Consider

Population Growth

Population growth or decrease shows you if you can count on reliable returns from long-term property investments. If you see vibrant population increase, you can be confident that the region is pulling potential tenants to the location. Moving companies are attracted to increasing areas offering reliable jobs to people who move there. A growing population develops a certain base of renters who can keep up with rent increases, and an active seller’s market if you need to sell your properties.

Property Taxes

Property taxes, maintenance, and insurance spendings are considered by long-term rental investors for determining costs to predict if and how the investment strategy will pay off. High expenses in these areas jeopardize your investment’s profitability. If property taxes are too high in a given city, you probably want to look elsewhere.

Price to Rent Ratio

The price to rent ratio (p/r) is a comparison of median property values and median rental rates that will indicate how high of a rent the market can tolerate. How much you can collect in an area will determine the sum you are able to pay depending on how long it will take to pay back those funds. The lower rent you can charge the higher the p/r, with a low p/r indicating a better rent market.

Median Gross Rents

Median gross rents are a true barometer of the acceptance of a rental market under examination. You are trying to find a location with stable median rent increases. If rents are shrinking, you can drop that location from discussion.

Median Population Age

Median population age should be close to the age of a normal worker if a community has a consistent source of tenants. This can also show that people are moving into the market. A high median age means that the current population is retiring with no replacement by younger workers relocating in. That is an unacceptable long-term economic prospect.

Employment Base Diversity

A varied employment base is what a smart long-term rental property investor will search for. If the community’s workers, who are your tenants, are employed by a diverse combination of employers, you will not lose all all tenants at the same time (and your property’s market worth), if a significant enterprise in the city goes bankrupt.

Unemployment Rate

High unemployment equals smaller amount of renters and an uncertain housing market. People who don’t have a job cannot buy products or services. People who continue to keep their jobs may find their hours and salaries decreased. Even tenants who are employed may find it difficult to pay rent on time.

Income Rates

Median household and per capita income information is a valuable tool to help you navigate the areas where the renters you want are located. Improving salaries also inform you that rental prices can be raised over the life of the property.

Number of New Jobs Created

The strong economy that you are hunting for will create a large amount of jobs on a constant basis. The employees who are hired for the new jobs will require housing. This allows you to buy additional lease assets and fill existing empty units.

School Ratings

The rating of school districts has a powerful impact on real estate values across the city. Employers that are considering relocating need good schools for their workers. Reliable renters are a consequence of a strong job market. Homebuyers who move to the city have a positive influence on property market worth. You will not run into a dynamically growing residential real estate market without highly-rated schools.

Property Appreciation Rates

The foundation of a long-term investment strategy is to keep the asset. You need to ensure that the chances of your investment raising in price in that neighborhood are promising. Low or shrinking property worth in a location under evaluation is not acceptable.

Residential units where renters reside in furnished units for less than thirty days are referred to as short-term rentals. Long-term rental units, such as apartments, require lower rental rates a night than short-term rentals. Because of the increased number of tenants, short-term rentals involve additional regular repairs and sanitation.

Short-term rentals are popular with people traveling on business who are in the city for a couple of days, people who are relocating and need short-term housing, and excursionists. House sharing websites such as AirBnB and VRBO have opened doors to many real estate owners to get in on the short-term rental business. This makes short-term rental strategy a feasible technique to try residential real estate investing.

Destination rental unit owners require dealing one-on-one with the renters to a greater degree than the owners of yearly leased properties. Because of this, owners handle issues repeatedly. Consider defending yourself and your assets by joining any of lawyers specializing in real estate law in Union County OR to your team of experts.

Factors to Consider

Short-Term Rental Income

First, find out the amount of rental income you must have to meet your expected profits. A quick look at a region’s present typical short-term rental prices will tell you if that is the right community for your endeavours.

Median Property Prices

You also need to know the budget you can afford to invest. To find out if a city has opportunities for investment, look at the median property prices. You can narrow your community search by looking at the median price in specific sub-markets.

Price Per Square Foot

Price per sq ft provides a general idea of property prices when looking at similar real estate. When the designs of potential properties are very contrasting, the price per square foot might not give a precise comparison. If you take note of this, the price per square foot can give you a general estimation of local prices.

Short-Term Rental Occupancy Rate

The ratio of short-term rentals that are presently filled in an area is important information for a rental unit buyer. A high occupancy rate indicates that a fresh supply of short-term rental space is required. When the rental occupancy rates are low, there is not much place in the market and you must look in a different place.

Short-Term Rental Cash-on-Cash Return

A short-term rental’s cash-on-cash return can tell you if the property is a logical use of your cash. Divide the Net Operating Income (NOI) by the total amount of cash used. The answer is a percentage. The higher the percentage, the sooner your invested cash will be returned and you’ll start getting profits. Mortgage-based purchases will show higher cash-on-cash returns as you are utilizing less of your own cash.

Average Short-Term Rental Capitalization (Cap) Rates

This metric shows the comparability of investment property value to its yearly return. An investment property that has a high cap rate and charges average market rental prices has a high value. When cap rates are low, you can assume to pay more money for rental units in that city. You can obtain the cap rate for possible investment real estate by dividing the Net Operating Income (NOI) by the Fair Market Value or listing price of the investment property. The percentage you will get is the property’s cap rate.

Local Attractions

Big public events and entertainment attractions will attract visitors who will look for short-term rental units. Vacationers come to specific locations to attend academic and sporting events at colleges and universities, see professional sports, cheer for their children as they participate in fun events, have the time of their lives at yearly festivals, and stop by amusement parks. Outdoor attractions like mountains, waterways, coastal areas, and state and national nature reserves can also bring in potential tenants.

To fix and flip a home, you need to pay lower than market worth, complete any needed repairs and updates, then dispose of it for after-repair market worth. Your estimate of fix-up costs must be correct, and you have to be capable of purchasing the home for lower than market worth.

Analyze the prices so that you know the accurate After Repair Value (ARV). You always want to research the amount of time it takes for homes to sell, which is illustrated by the Days on Market (DOM) information. To successfully “flip” a property, you must resell the renovated house before you have to shell out capital to maintain it.

To help distressed residence sellers locate you, place your firm in our catalogues of cash house buyers in Union County OR and property investment companies in Union County OR.

Also, search for the best property bird dogs in Union County OR. Professionals in our directory focus on securing distressed property investments while they are still unlisted.

Factors to Consider

Median Home Price

The location’s median home value will help you spot a suitable community for flipping houses. You’re hunting for median prices that are low enough to hint on investment possibilities in the region. You have to have lower-priced properties for a lucrative deal.

If market information signals a fast decrease in real property market values, this can indicate the accessibility of potential short sale houses. Real estate investors who work with short sale facilitators in Union County OR receive continual notices concerning potential investment real estate. Discover more regarding this type of investment by reading our guide How to Buy a Short Sale Property.

Property Appreciation Rate

Dynamics means the trend that median home prices are taking. Fixed growth in median prices articulates a vibrant investment market. Property purchase prices in the market should be going up consistently, not abruptly. When you’re buying and liquidating fast, an erratic environment can harm your investment.

Average Renovation Costs

You will need to evaluate construction expenses in any prospective investment location. Other spendings, such as certifications, can inflate your budget, and time which may also turn into additional disbursement. To draft an accurate financial strategy, you will have to find out if your plans will have to involve an architect or engineer.

Population Growth

Population increase is a strong gauge of the reliability or weakness of the city’s housing market. If the number of citizens isn’t growing, there isn’t going to be a good source of homebuyers for your real estate.

Median Population Age

The median residents’ age is a factor that you may not have taken into consideration. The median age in the market needs to be the one of the average worker. A high number of such citizens reflects a substantial pool of home purchasers. The goals of retired people will probably not be a part of your investment venture plans.

Unemployment Rate

When assessing a city for real estate investment, search for low unemployment rates. The unemployment rate in a potential investment city should be less than the national average. When the area’s unemployment rate is less than the state average, that is a sign of a preferable financial market. Without a vibrant employment base, a city won’t be able to supply you with enough homebuyers.

Income Rates

Median household and per capita income are an important gauge of the robustness of the home-purchasing environment in the city. When home buyers purchase a home, they typically have to take a mortgage for the purchase. To be issued a home loan, a borrower can’t spend for a house payment a larger amount than a certain percentage of their income. Median income will help you analyze whether the standard home purchaser can afford the property you plan to flip. You also prefer to have wages that are going up continually. When you need to raise the price of your houses, you have to be sure that your clients’ wages are also rising.

Number of New Jobs Created

Knowing how many jobs are created per annum in the region adds to your confidence in a region’s real estate market. An increasing job market indicates that a larger number of prospective home buyers are comfortable with buying a house there. Competent trained professionals taking into consideration purchasing real estate and settling prefer moving to areas where they will not be out of work.

Hard Money Loan Rates

Investors who buy, rehab, and sell investment homes prefer to engage hard money and not normal real estate loans. Doing this allows investors make lucrative ventures without hindrance. Discover real estate hard money lenders in Union County OR and estimate their interest rates.

People who are not well-versed concerning hard money lenders can find out what they should know with our article for those who are only starting — What Is Private Money?.

Wholesaling is a real estate investment approach that involves finding homes that are desirable to real estate investors and putting them under a sale and purchase agreement. However you do not buy the home: once you control the property, you allow someone else to become the buyer for a fee. The real buyer then finalizes the acquisition. The wholesaler does not sell the property itself — they just sell the purchase contract.

Wholesaling hinges on the participation of a title insurance firm that’s comfortable with assignment of real estate sale agreements and comprehends how to proceed with a double closing. Find real estate investor friendly title companies in Union County OR on our list.

Read more about how wholesaling works from our extensive guide — Wholesale Real Estate Investing 101 for Beginners. While you conduct your wholesaling venture, place your company in HouseCashin’s directory of Union County top property wholesalers. This will help your potential investor purchasers find and contact you.

Factors to Consider

Median Home Prices

Median home prices in the area being considered will roughly tell you whether your real estate investors’ required properties are located there. Low median values are a good indication that there are plenty of properties that could be bought under market price, which real estate investors have to have.

Accelerated worsening in real property market worth could result in a supply of homes with no equity that appeal to short sale investors. This investment plan frequently provides several different advantages. But, be aware of the legal challenges. Find out more concerning wholesaling a short sale property from our extensive instructions. If you determine to give it a go, make sure you have one of short sale legal advice experts in Union County OR and property foreclosure attorneys in Union County OR to confer with.

Property Appreciation Rate

Median home purchase price dynamics are also critical. Some real estate investors, including buy and hold and long-term rental landlords, particularly want to find that residential property prices in the market are going up consistently. Both long- and short-term investors will avoid a location where housing purchase prices are decreasing.

Population Growth

Population growth statistics are something that investors will consider in greater detail. An increasing population will need new housing. This involves both leased and ‘for sale’ properties. If a region is declining in population, it doesn’t necessitate more residential units and real estate investors will not look there.

Median Population Age

A vibrant housing market requires individuals who are initially renting, then transitioning into homebuyers, and then buying up in the housing market. In order for this to take place, there has to be a steady workforce of potential tenants and homebuyers. If the median population age equals the age of working people, it shows a robust real estate market.

Income Rates

The median household and per capita income in a strong real estate investment market should be going up. Increases in rent and asking prices have to be supported by improving income in the region. Investors have to have this in order to achieve their estimated returns.

Unemployment Rate

Investors whom you offer to take on your sale contracts will consider unemployment numbers to be a crucial bit of information. Delayed rent payments and default rates are prevalent in cities with high unemployment. This upsets long-term investors who want to lease their investment property. High unemployment creates uncertainty that will stop people from buying a house. This is a challenge for short-term investors buying wholesalers’ agreements to repair and flip a home.

Number of New Jobs Created

The frequency of new jobs being created in the region completes an investor’s estimation of a prospective investment site. Job production suggests more workers who need housing. Long-term investors, like landlords, and short-term investors like rehabbers, are attracted to locations with consistent job creation rates.

Average Renovation Costs

Renovation costs have a important influence on a flipper’s profit. Short-term investors, like home flippers, won’t earn anything when the purchase price and the improvement expenses total to more money than the After Repair Value (ARV) of the property. The less expensive it is to rehab a property, the friendlier the city is for your potential contract buyers.

Mortgage note investing professionals buy debt from mortgage lenders if the investor can obtain the note for less than the balance owed. When this occurs, the note investor becomes the borrower’s mortgage lender.

Performing notes mean loans where the borrower is always current on their mortgage payments. Performing notes give consistent cash flow for you. Non-performing loans can be re-negotiated or you could acquire the collateral at a discount through foreclosure.

One day, you could have a large number of mortgage notes and have a hard time finding more time to oversee them without help. In this case, you might enlist one of mortgage loan servicers in Union County OR that would basically convert your portfolio into passive income.

Should you decide to pursue this strategy, append your venture to our list of companies that buy mortgage notes in Union County OR. Once you do this, you will be seen by the lenders who announce lucrative investment notes for acquisition by investors like yourself.

Factors to consider

Foreclosure Rates

Investors looking for valuable loans to acquire will hope to uncover low foreclosure rates in the market. Non-performing note investors can carefully make use of places with high foreclosure rates too. The locale ought to be robust enough so that note investors can foreclose and unload collateral properties if called for.

Foreclosure Laws

It is imperative for note investors to study the foreclosure laws in their state. Are you faced with a mortgage or a Deed of Trust? A mortgage requires that the lender goes to court for permission to foreclose. A Deed of Trust permits you to file a notice and proceed to foreclosure.

Mortgage Interest Rates

Purchased mortgage loan notes contain an agreed interest rate. Your investment return will be affected by the mortgage interest rate. Interest rates are important to both performing and non-performing note buyers.

Traditional interest rates may vary by up to a quarter of a percent throughout the United States. The higher risk accepted by private lenders is shown in higher loan interest rates for their mortgage loans compared to traditional loans.

Profitable mortgage note buyers routinely review the rates in their market set by private and traditional mortgage firms.

Demographics

If note investors are determining where to purchase mortgage notes, they’ll research the demographic data from potential markets. The community’s population increase, unemployment rate, employment market increase, income standards, and even its median age contain important information for note investors.
Note investors who invest in performing mortgage notes seek areas where a large number of younger individuals hold good-paying jobs.

Mortgage note investors who look for non-performing notes can also make use of strong markets. If foreclosure is called for, the foreclosed house is more conveniently unloaded in a growing property market.

Property Values

Lenders need to see as much home equity in the collateral property as possible. If the property value is not significantly higher than the loan amount, and the lender needs to start foreclosure, the house might not sell for enough to repay the lender. As loan payments decrease the amount owed, and the market value of the property goes up, the borrower’s equity goes up too.

Property Taxes

Escrows for real estate taxes are most often given to the lender simultaneously with the loan payment. The lender pays the payments to the Government to make sure they are paid promptly. If the borrower stops paying, unless the loan owner remits the property taxes, they will not be paid on time. Tax liens leapfrog over all other liens.

If an area has a history of growing property tax rates, the total home payments in that city are constantly growing. Borrowers who are having difficulty affording their loan payments could fall farther behind and eventually default.

Real Estate Market Strength

Both performing and non-performing mortgage note investors can be profitable in an expanding real estate environment. It’s important to know that if you are required to foreclose on a property, you won’t have difficulty getting an appropriate price for the collateral property.

Strong markets often generate opportunities for private investors to make the first mortgage loan themselves. It is an added phase of a note investor’s career.

Many real estate investment companies are structured as trusts called Real Estate Investment Trusts or REITs. Before REITs were invented, real estate investing was too pricey for most people. Most people these days are capable of investing in a REIT.

Shareholders’ involvement in a REIT falls under passive investing. Investment exposure is spread across a package of investment properties. Shareholders have the capability to liquidate their shares at any moment. But REIT investors don’t have the ability to choose specific investment properties or markets. Their investment is confined to the properties chosen by their REIT.

A Real Estate Investment Fund is a mutual fund that owns stocks of real estate businesses. The fund doesn’t own real estate — it holds shares in real estate firms. This is another way for passive investors to allocate their investments with real estate avoiding the high entry-level investment or exposure. Fund participants might not get regular distributions the way that REIT participants do. Like any stock, investment funds’ values increase and decrease with their share price.

You can find a real estate fund that focuses on a particular type of real estate business, such as multifamily, but you can’t suggest the fund’s investment assets or locations. As passive investors, fund shareholders are content to let the administration of the fund make all investment decisions.