As the largest city in the state of Missouri and the geographical center of the entire United States, Kansas City has a consistently booming real estate market that sees thousands of people investing in properties in this area each year. So, as someone who plans to become a real estate investor for the first time, you should set your sights on the said city. After searching for bestrealestatedirectory.com – rental properties in Kansas City online, here are four tips you can use while choosing the right investment property for you:
- Find out about the current crime rate in the area where your potential investment property is.
Despite Kansas City offering a lot of good things to anyone who wants to visit it, the said place has unfortunately earned infamy for having the fifth highest murder rate throughout the entire USA. This doesn’t mean, though, that you should avoid investing in Kansas City real estates.
Instead of assuming outright that the said place might not be a safe place to live in, do the following so that you’ll have a better view of the crime levels throughout the whole city:
- Visit the Kansas City Police Department and talk to the police officers about the safety situation in the area.
- Talk to some locals in Kansas City as they might know more about any crimes occurring there, some of which don’t get reported to the police.
- Figure out the type of real estate property that you want to invest in Kansas City.
As a first-time real estate investor who has set their sights on Kansas City, you’ll have to choose from any of these three major types of property that you can purchase:
- Vacant lot
If you don’t feel like investing in an established piece of rental property and you want one built from the ground up, you can opt to buy vacant land in Kansas City. However, given that the said place is a busy metropolitan area, most vacant lots you’ll find there might have had previous structures built on top of them that already got demolished.
- Residential property
The most common rental properties that you’ll encounter in Kansas City are residential, from apartments to condominium units. Because the said place sees a lot of transferees each year, you can use that to your advantage by investing in a residential rental property and renting it out to people who just moved there and are looking for a good place to live in.
- Commercial property
If you want to earn a higher income than what you’ll get in residential real estate, you should invest in a rental property that’s for commercial use. Kansas City has a thriving business community, some of which might want to consider renting your property and turn it into an office space, restaurant, bar, or any other use that they see fit for it.
- Know how much budget you have for investing in a real estate property in Kansas City.
Cities generally demand a higher real estate property price than other places. So, you should expect to spend more when investing in a piece of real estate in Kansas City, Missouri. Get ready to invest around $146,100 for a residential rental property there and more than that if you want a commercial one instead.
- Consider investing in a real estate property that’s near a college or university in Kansas City.
Kansas City has several colleges and universities. Some students in these higher learning institutions might want to rent a place nearby where they could live until they finish their studies. You can capitalize on this by investing in a residential real estate property that’s near any college or university.
However, you may have to brace yourself for high tenant turnover if you only accept students in your rental property who might move in for only one semester and then transfer elsewhere after. If you don’t fill any vacancies in your rental property quickly, you risk losing money.
So, when renting out your property that’s near a college or university, try to reduce high tenant turnover by doing the following:
- Open up your rental property to college or university faculty and staff, too.
- Choose student tenants who are sure about renting a room or unit in your rental property for at least an entire academic year or more.
- Ensure that every tenant in your property can afford to pay the monthly rent that you’ve set.
Kansas City is famous for its distinctive barbecue, longstanding tradition of jazz, and their public library’s façade that looks like a giant bookshelf. Whether it’s any of the reasons or some other that ultimately convinced you to invest in a Kansas real estate, you’ll want to apply the four tips listed above when choosing the right investment property so that you’ll get the most out of this money-making opportunity.