Are you hoping to make a real estate investment in Kansas City, MO? It's a city with a high median annual salary and sustained population growth.
It's clearly a great real estate market for new and seasoned investors. However, if you've never owned a rental property before, you'll still be scratching your head.
This guide will demystify the real estate market for you. We'll also show you how a real estate agent can help you with your investments. Read on to learn what you should know.
Location Matters
Your first step should be to explore Kansas City to figure out which neighborhoods you'd like to invest in. A small property in an ideal location will bring in a higher rental income than a large property in a less ideal location.
A real estate agent can analyze different neighborhoods for you. They'll let you know which ones have the highest demand. They can also tell you the demographics, population growth, median income, etc., for different locations.
Vacation Properties Offer More
You can choose to offer long-term rentals to full-time residents. Or you can choose short-term rentals for tourists. Both are great investments, but the latter can often be a better investment.
As you shop around for a property, you may wish to consider investing in a tourist-centered area. While turnover might be higher, the cash you bring in might be higher.
You Can Improve Your Property Value
Properties can appreciate or depreciate based on a variety of factors. If you want your property to appreciate in value, you can play a huge part in this.
For example, you can work to enhance your home's curb appeal. If a property looks attractive from the outside, potential tenants are more likely to see what's inside!
Something as simple as tending to your front yard or repainting your house can improve curb appeal.
Small or Big?
Should you invest in a small property or a big one? This doesn't have a clear answer and the trend skews in both directions.
According to one study, most Americans prefer larger homes. However, Americans under 30 prefer smaller homes.
These younger Americans prioritize proximity to amenities. Older Americans want larger properties, even if they're further from amenities.
What is the best real estate investment? The answer depends on what demographic you wish to target. It's best to consult your real estate agent.
Some real estate agents would recommend that you target the majority demographic. Others would suggest that you focus on a niche demographic as this will have less competition.
Hire a Real Estate Agent
Now you know the advantages of hiring a real estate agent. They'll play an important role when you decide to buy a rental property in Kansas City.
Once you've bought a property, you'll need to manage it well to run a successful business. This is when you'll want to hire a professional property manager to handle your landlord tasks for you.
PMI Destination Properties is the leading property management company for Kansas City landlords. We'll be glad to help you! Contact us today.
