We want to be your #1 Beckley WV Real Estate Resource!

Betty J Moore, Beckley WV RealtorThis section is a mixture of our newest listings, select Beckley Real Estate Data and some of the testimonials and accolades that our agents have received from happy clients. If you see a home that looks interesting, call or contact us!

 

~ Betty

Aug. 22, 2021

Evaluating Beckley Real Estate Investing Using The 1% Rule

The 1% Rule: A Real Estate Investing Tool

Most experienced real estate investors have probably heard of the 1% rule. The 1% rule is a tool investors use to help you determine whether the monthly income you earn from a rental property will provide sufficient revenue to cover expenses and return a reasonable rate of return on your investment.

How Does The 1% Rule work?

The 1% rule states that when evaluating properties, investors should calculate monthly rent to be at least 1% of the total purchase price including repairs that are required to make the property ready to rent.  The idea is that if you can meet or exceed the 1% rule, you should be able to meet your monthly expenses and generate a positive cash flow on the property. 

So how does the 1% rule work in real life? Well, let’s say you’re looking at investing in a rental property in Beckley WV that costs $100,000 that requires $25,000 in repairs prior to renting it. Using the 1% rule, you should be able to charge $1,250 in monthly rent. If you are securing a mortgage to finance the purchase you would want to make sure that your payment + expenses are less than your expected rent of $1,250.  The difference between your mortgage + costs = your profit.  Simple right?  But does the 1% Rule always work?

When It Works

The 1% rule can be helpful in quickly prescreening rental properties. If you’re evaluating different properties, then using the 1% rule can help you quickly narrow down which properties may be a good investment. From there, you can do additional research on those properties.

When It Doesn't Work

The 1% rule shouldn’t be used as the determining factors as to whether or not you’ll invest in a property. Before buying a rental property, you should always consider the neighborhood, the condition of the property, and current market trends. And the 1% tool is best used when you’re looking at smaller single-family homes. If you’re looking at high-priced markets or multifamily units, then 1% rule may be too small.

Applying The 1% Rule To Beckley Real Estate

According to BestPlaces.net Beckley West Virginia Homes For Rent the median rent for Beckley area homes is as follows:

Median means that 50% of the available units of a given size rent for less and 50% of the available units of a given size rent for more each month. 

  • 1 Bedroom Home or Apartment $585 Monthly*
  • 2 Bedroom Home or Apartment $693 Monthly*
  • 3 Bedroom Home or Apartment $984 Monthly*
  • 4 Bedroom Home or Apartment $1,181 Monthly* 

 *Rent for any given house, condo, or apartment will vary based on area, condition of the property, market conditions, and market demand. 

 

See Current Beckley Homes And Condos For Rent 

A current Beckley WV Home for Rent is listed at $1,250 a month which is above the median rent listed above, which is fine as long as the market supports it.  This home has 3 Bedrooms, 1 Bath and 1,900 SqFT and is close to the Beckley WVU campus.  Applying the 1% rule to this property means that the investor should have no more than $125,000 invested in this house via purchase and repairs. Ideally, the investor in this home would be making a good return on investment at this level taking into account his expenses and mortgage.  In general expenses less the mortgage should not exceed 50% of rent, this is referred to as the 50% rule. This does not include any mortgage payment (if applicable) but includes property taxes, insurance, vacancy losses, repairs, maintenance expenses, and owner-paid utilities.

So a hypothetical analysis of this property is as follows:

  • Purchase Price $125,000
  • 1% Rule Expected Rent $1,250 per a month
  • 50% Rule Expected costs $625
  • Gross Profit $625
  • Mortgage Costs at 80% Financing for 30 Years at 3.92% $461.
  • Net Profit = 625-461 = $164 a month

Your actual costs and profit may vary.  For instance if the purchase price of this house was $100,000 and mortgage was based on $80,000 the monthly mortgage payment would drop to $378 a month, increasing the net profit to $247 a month.  So as you can see the 1% is a minimum rent, you definitely would want more rent if the market supports it and your negotiations around purchasing the property should take into account the maximizing of your profit.

 

See Beckley WV Homes For Sale Less Than $125,000

Summary

The 1% rule isn’t foolproof, but it can be a good initial tool to quickly evaluate whether a rental property is a good investment. As a general rule of thumb, it should be used as an initial prescreening tool to help you narrow down your list of options followed up by detailed rental and market evaluation.

The investing information provided on this page is for educational purposes only. Betty J. Moore and Associates Realtors does not offer Real Estate Investment advice nor does it recommend or advise investors to buy or sell any Real Estate for any particular purpose nor guarantee any return on investment.  Use of this information is at your own risk.

 

 

April 4, 2021

Beckley Real Estate Market March 2021 Compared To Prior Year

 

The Beckley Real Estate Market continues to be on fire.  Inventory available continues at historic lows with only 2.6 months worth of homes available compared to 5.5 months one year ago, even though new listings increased 54 homes to 129 compared to 75 one year ago.

Median and Average Home prices were up 22% and 19% year over year. Average Days on the Market (DOM) fell a modest 5 days from 150 to 145.  Deeper analysis of DOM data shows homes in certain price ranges are selling much faster, especially in the $300,000 to $399,000 range, down from 170 days to 47 days.

We see these trends continuing due to several factors such as low interest rates, low rates of new home construction due to increasing material prices, increase in demand from millennials  buying there first homes and others upgrading there homes as they work more from home and are willing to move farther from work.

Homes going under contract on the first day for full price are becoming more common while bidding wars not seen since the early 2000's are starting to erupt more.  If you are ready to list your Beckley Real Estate For Sale, get Beckley's #1 Realtor Betty J. Moore & Associates to list it for you.  Call us now at 681-254-5200 to talk to a Real Estate Direct Marketing Specialist now!

 

  Mar-20 Mar-21 +/- %
         
UNITS SOLD                      76  95               19.00  125%
UNITS AVAILABLE FOR SALE                    417  248                 (169) 59%
MONTHS INVENTORY AVAILABLE                     5.5                        2.6                 (2.88) 48%
+ HOMES MADE AVAILABLE FOR SALE                      75                       129               54.00  172%
MEDIAN  $         104,182   $           127,000         22,818.00  122%
AVERAGE  $         131,182   $           156,061         24,879.00  119%
DOM                    150                       145                (5.00) 97%
DOLLAR VOLUME RESIDENTIAL  $      9,969,850   $      14,825,750    4,855,900.00  149%
         
         
Key DOM Data        
Price Ranges        
140,000 - 159,999 125 69              (56.00) 55%
160,000 - 179,999 108 115                 7.00  106%
180,000 - 199,999 203 133              (70.00) 66%
200,000 - 249,999 114 137               23.00  120%
250,000 - 299,999 183 146              (37.00) 80%
300-000 - 399,999 170 47            (123.00) 28%
500,000 - 749,999 283 71            (212.00) 25%
Posted in Market Updates
March 23, 2021

Beckley's Best Realtors Gives You The App You Need

Betty J. Moore and Associates has an App for that!

 

Looking for your new home?  Want to be updated the minute a listing in your desired area hits the market?  We have an app for that!  Along with Betty J. Moore's new website comes our companion App, MoveTo.

 

Download the MoveTo app and find the home of your dreams! MoveTo taps into our Website to provide you with the most up-to-date, accurate listings for all Beckley Real Estate Listings.

 

To get started first register for an account on our website at BettyJMoore.com.  Then go to the Apple App Store or Google App store depending on the phone you have an download the MoveTo App to your phone.  Login to it with your email address and cell phone number that you used to register on our web site and you are ready to start your search for the home of your dreams.

 


Our MoveTo’s most popular features:

 

• Quick and Flexible Searching: Search for properties in your desired neighborhood in a list or map view, and even search based on your current location.

• Saved Searches: Create custom saved searches that will automatically update you when new homes that fit your search hit the market via real-time push notification.

• Favorite Properties: Keep track of your favorite properties by saving them to your account.

• Tour Scheduling: Schedule tours with your favorite real estate agent with the click of a button.

• Property Sharing: Share your favorite properties with your friends and family via email or by posting to your social media accounts.

 

Perform Map Searches, Compare Properties, Schedule Showings, Setup Notifications for Searches so you know when new properties hit the market you are interested in!

Perform Real Time Searches With Beckley Real Estate App From Betty J. Moore and Associates Realtors

 

Get Realtime Updates on New Listings The Minute They Hit The Market!

Perform Real Time Searches With Beckley Real Estate App From Betty J. Moore and Associates Realtors

 

Posted in Market Updates
July 31, 2017

Curious About Local Real Estate?

Receive the Latest Local Market Stats

Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

Get Local Market Reports Sent Directly to You

You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates