Why should you even consider buying a Kansas City investment property?
Purchasing an investment property in Kansas City or in any market is a huge decision that will have a major impact on your life. You could begin adding significant wealth or you could make a major mistake by not preparing and could negatively impact your future. Before you buy any type of real estate investment there are a few key questions you should ask yourself before you sign on the dotted line.
If you’ve paid any attention at all to Kansas City real estate you know that we have had a very solid market for the last few years. We have had steady recovery in a lot of sectors including real estate since the last recession. House prices have steadily risen while interest rates have remained at record lows. Now is a very good time to consider buying that first KC rental.
Are you financially ready to buy?
Can you afford to buy an investment property? The first thing you should check is if you are financially fit. Just like any type of investment there are certain risks that an investor takes when buying property. Buying your first investment is almost always going to cost more than you initially think. You may be able to afford the purchase price of the rental, but can you cover the repair costs? Inevitably there are going to be hidden costs when you buy an investment. You may need spend some money on repairs before you are able to rent out the property to tenants. Will you be able to cover those costs?
If you have any vacancies right away will you be able to cover the mortgage payments without the rental income? It’s easy to get into trouble if you aren’t prepared from the outset when investing. Go through your finances early on in the process and make sure that you’re financially ready to begin the process.
Are you ready to be a landlord?
Have you taken the time to really sit back and think if you’re ready to be a landlord? Are you prepared to get calls at random times from tenants and addressing any issues they bring up? Being a landlord can be a great experience but if you’re not prepared, you may want to consider hiring a property manager to help with the rental.
Have you looked at the neighborhood?
Have you taken the time to drive the neighborhood and check to see that the property you are considering buying is in a desirable area? Kansas City is full of a variety of diverse neighborhoods some are great for owning investments while others are places it would be best to stay away from.
Take a look at the neighborhood and the amenities available to people living in that area. Are there shopping centers, libraries, grocery stores, or even parks?
Have you done all of your research?
Kansas City is one of the top markets in the United States when it comes to real estate investing. Even though we have a great market you have to make sure that you’ve researched all of the variables that could impact the property. You must go into the purchase of a property knowing with absolute certainty that you’re making a good investment.
Buying your first investment is a very exciting experience but don’t let that excitement get in the way of you making sound decisions. If the the investment doesn’t make sense financially, or if it’s in an undesirable neighborhood that excitement is soon going to give way to frustration when you realize that you’ve made a mistake.
Do your research and make sure that you have everything ready to go and you will have a much greater chance at being a successful real estate investor.
If you’d like more information on investing in the Kansas City market feel free to contact me, I’d love to help!