Top Tips When Buying Investment Property in Kansas City
Are you ready to invest in Kansas City? To help you navigate the real estate investment industry, our team from SCUDO Real Estate & Property Management has put together a list of the top tips real estate investors should know.
There was a time when the chief investment options were stocks, mutual funds, and bonds. While these options are still available, more rewarding, lucrative and stable opportunities have arisen in real estate investment!
Investment properties offer an exciting way to build your portfolio, create wealth, and enjoy a stable income. However, successfully acquiring and managing a rental property requires research, planning, and a considerable amount of funds.
Taking the advice of experienced and reputable property experts can make all the difference in the success of your investment. Below you can find information and tips on investing in Kansas City properties from the experienced team at SCUDO Real Estate & Property Management!
Why Kansas City?
Nicknamed KC, Kansas City has been performing well from a real estate perspective. The number of active listings is reducing steadily, which is an indicator of continuous purchases, and the property market is experiencing an appreciation in value.
With the strong demand for real estate, Kansas City is growing steadily to meet the property needs of individuals, multi-person households, and even corporations!
The growth of Kansas City can be attributed to a significant boost in the city’s population. Over the past decade, the population in KC’s suburbs has grown substantially. In fact, Kansas City is the most populated metropolitan area in the State of Missouri! People are moving to Kansas City on an almost daily basis to take advantage of the increased job postings in the area.
According to U.S. Bureau of Labor Statistics, the employment sectors in KC with strong growth patterns include construction, trade and transportation, manufacturing, hospitality, and professional services. Some of the major companies with facilities and headquarters in the city include Ford, General Motors, Sprint Nextel, YRC Worldwide, Interstate Bakeries, and the Dairy Farmers of America!
This bodes well for future landlords as you can rest assured that your potential renters have the money to pay for accommodation.
Our Top Tips for Buying a Kansas City Investment Property
You can set yourself on the right path by adhering to the following tips from the experienced and professional team at SCUDO Real Estate!
Target Emerging Neighborhoods
One of the factors that make property such a good investment is its longevity. Once you have acquired an investment property in a good location, you can reap the financial benefits for decades to come! For these reasons, the experts at SCUDO Real Estate recommend investing in emerging neighborhoods.
These kinds of neighborhoods offer greater growth potential when compared to already established areas. In addition, properties in established communities will cost you far more than those in emerging neighborhoods! Depending on the location, you may even get to take advantage of tax benefits as local authorities often seek to attract new buyers,
Don’t Neglect Property Maintenance
As a potential property investor in Kansas City, you are probably looking forward to enjoying a stable income from your investment property. However, the condition of your property will determine how soon a tenant can move in and start leasing the space. If you find yourself taking on significant repairs and renovations it can affect your potential profits.
Before buying, we recommend that you hire a home inspector to conduct a thorough examination of the property’s foundation, sub-structure and development. The results of the inspection can also influence the price at which you purchase the property!
This proactive mindset should also be adopted once the property is being leased out. It is important to conduct regular property inspections which include checking for possible defects and safety and health hazards. Having this sort of foresight will reduce your maintenance costs in the long run and guarantee your investment property remains in good condition.
Hire a Property Manager
Many new real estate investors are confident that they can comprehensively meet the needs of their property and its tenants. While this may be true, effective property management requires that you put in ample time, effort, and resources.
Also, a lack of industry knowledge can pose a risk to the viability of your investment. By outsourcing your property management you can significantly reduce the risk to your investment.
Property owners in Kansas City can rely on the professional services of the leading property management company in the area, SCUDO Real Estate & Property Management.
By hiring SCUDO Real Estate you can rest assured that all your rental property issues will be taken care of! Rent will be collected on time, tenant issues resolved promptly, and the property will be kept in good condition. We conduct all of our services in compliance with relevant local, state and federal laws.
Diversification of Risk
Any prudent investor knows about the importance of diversifying risks. “Don’t put all your eggs in one basket” is one piece of advice that will serve you well when planning real estate investments.
Ultimately, try to avoid sinking all of your resources into the same type of real estate or in a small geographic area. Making similar investments means exposing a large portion of your portfolio to the same risks. Consider investing over a larger area by crossing State lines.
When you’re not well-versed in the area you’re investing in, the experience and expertise of a local property management company such as SCUDO Real Estate can make a huge difference!
There is no foolproof formula or failsafe guide for real estate investing. However, leveraging the experience and expertise of professionals in the field can prove useful throughout your journey in Kansas City property ownership. The expert tips above can help ensure that you enjoy the full benefits of property ownership and leasing.
SCUDO Real Estate & Property Management is a brokerage and full-service property management company, offering quality solutions tailored to meet our clients’ needs. Not only will we guide you through your real estate journey but we will also offer you sound advice to protect you from potential financial and legal pitfalls along the way!
Are you worried about the costs of our services? Don’t be! As a locally owned company, we consider ourselves a part of the community and offer competitive prices for all of our services!
Get in touch with us today to receive a quote for our investment and property management services.