So you’re ready to invest in Kansas City. You’ve spent time getting your ducks in a row and are ready to invest in property in the Kansas City market. But you aren’t sure what to buy. You could be an out of state investor that has heard about all of the great cash flowing areas in Kansas City, or you could be local and are just getting started. When it comes to investing there are many different options to choose from, but what choice is best for you?
We’ve all heard it….Location, Location, Location
We’ve all heard the saying….location, location, location. One of the most important factors when choosing an investment property in Kansas City is the location. Rental property in great neighborhoods will more than likely attract a lot of potential renters, this will then give you the opportunity to properly screen your prospective tenants and pick the best one. One very important factor of a great investment property is the location! When searching look for things that make the area great. Things like new development, updates in infrastructure, recent sales and property values. You may also want to look at crime statistics and the quality of schools. All of these things will make an area more desirable for possible renters. I
A Purchase Price That Matches Your Goals
I work with investors all around the country and many of them try to hit something called the 1% rule when they are purchasing a property. The 1% rule is where the rent of the investment property meets at least 1% of the purchase price. If it meets this rule the investment should yield positive cash flow. In order to find properties that meet this rule it’s important that you know the market rents in that area. An agent with investing experience can help guide you to areas that meet that rule. If you need help finding those areas in Kansas City, just let me know, I’m happy to help.
Let’s say you find this amazing deal in a neighborhood that’s going through a revitalization. There is a lot of development going on and people are really interested in living in this area. Let’s also say that it meets the 1% rule and that you will get a positive return on your investment. The next question you need to ask is how does it look? Is it in good shape? Does it have curb appeal, or at least the potential to have curb appeal? If it’s in great shape and is a good deal you likely found a good investment. If it’s not in great shape, you might be ale to get it for less than the market value and still have a potentially great property on your hands. If you write an offer and it get’s accepted the final step is to have it inspected. Make sure you know about any potential costs.