If you are thinking about investing in Kansas City real estate, locating the right property can be a painstaking process. You’ll need to ensure the home you’re looking at will generate positive cash flow. To do that you’ll need to have your costs estimated pretty close to the actual figures. Then you’ll need to find the right rent rate and make sure that you keep the vacancy down. So, when you’re looking for that first income property, what’s the easiest way to narrow down the right property?
First off, for the first time in about five years the spring market has brought out a lot of buyers in Kansas City. So to avoid too much competition do your research up front and seek out area’s where you’re less likely to find yourself in a bidding war. Also there are several real estate investing clubs in town. These forums are full of knowledge that will help you along the way. It’s not a bad plan to investigate a few property management companies too.
So far this 2012 market is crazy! Demand for quality rentals and move in ready homes is up tremendously from this time last year. Of course the good news in that statement is that even novice investors should easily be able to find tenants to rent their homes. However you’ll want to make sure you qualify your tenants properly. Poor tenant choice can lead to a lot of expense down the road. Make sure you understand all the fair housing laws when you’re screening your tenants... otherwise you could wind up with some extra legal fees too! For this reason alone, many investors will hire property management firms or leasing agents.
Rental demand is up and it’s a great time to start real estate investing. Depending on your experience you may want to start with a condo or town house. The lesser maintenance is sometimes comforting to a new landlord. Of course that maintenance is paid for with HOA’s that can sometimes be very high and cut into your cash flow, so the risk vs. reward should be analyzed carefully.
An experienced Realtor can help you find the right investment property, provide expert advice and refer you along to the right professionals to help you along your journey. If you ever have any questions on the Kansas City rental market, please don’t hesitate to contact me any time.