Real estate investing when done properly can have a tremndous impact on wealth over time. It not only can provide a consistent cash flow stream, but can also appreciate over time and add equity to your portfolio. Real estate is also a great hedge against inflation because rental rates tend to rise with inflation which will increase your income as the cost of living goes up. As a result, you can continue living life on your terms, with the security of your well-diversified real estate portfolio to carry you through. Now that you’ve aligned your finances, set out your investment strategy, and are ready to invest in real estate in Kansas City, you also need to recognize the warning signs that could be there that mean you should avoid doing the deal.
Before buying that property and potential money pit, take a few moments to familiarize yourself with some of the red flags to be aware of when buying Kansas City investment properties.
Focus
When starting out a search for Kansas City investment property it’s important to determine what and where you’ll invest in and then carefully follow a strategy to achieve the highest returns. Real estate investing can be exciting, especially for those investors who can combine personal or other business interests with the properties they buy. Like the buyers at BD Real Estate Solutions, talking to a seasoned professional real estate investor like the buyers at BD Real Estate Solutions can help you zero in on the market sector best suited to your interests.
Know the Market
Investors need to be dedicated and focus time staying on top of the local Kansas City market. It’s wise for investors at any level, from beginners to real estate tycoons, to seek input from accomplished investors to help them make any necessary strategic changes to the holdings in their portfolios. The buyers at BD Real Estate Solutions live and work in Kansas City and are an integral part of the daily workings of the real estate market and share these influential factors with our investors.
Best Location
As the old saying goes, location, location, location. Nothing is more important when searching for investments properties than buying in the right location. You can always update the buildings you buy and make it the nicest in the area, but if it’s in a location that isn’t good for investing there really isn’t much that you can do to if you aren’t getting the rents or tenants you want. One strategy is to examine the potential long term value that you could attain in an area then if the numbers look good start looking for the lowest priced property you can get that will work in your budget. You’ll really want to become an expert on the areas you are considering. You’ll want to know crime rates, proximty to good schools, and what amenities are availible in the area such as shopping, dining, and parks. The absolute best way to do this if possible is to get your feet on the ground in the area. If you can’t physically get there yourself, then you’ll want to consider working with an investor friendly Realtor to help you make the best choices possible. Nothing can top standing on the ground at the location and taking a good look, listening, and smelling around to ensure that you aren’t shocked to find that you’re near a continual source of foul odors or noise.
Appraise
You must understand valuation when buying an investment property in Kansas City. The property’s value is a determinant in the outcome of investment analysis and many other formulas that help decide if a particular property will bring the highest returns and is the best property available for you to add to your real estate portfolio. Professional buyers like those at BD Real Estate Solutions can help you run the numbers and locate the best investment for your hard-earned money. The team you build to assist you with your real estate investment business can make all of the difference in your success, and never is that more apparent than during the inspection phase of a purchase. You’ll benefit from working with professional investors like those at BD Real Estate Solutions, who have spent years building a team from every walk of the real estate, construction, and banking industry, ready to jump into action.
Inspection
You don’t know how many times I’ve walked into a property whether that be an investment or a home that someone is considering buying to live in and on the listing it says recently renovated. When I see that now that’s almost always a red flag and the reason is that a lot of people that have recently renovated a home are trying to cover up issues. That’s why it’s going to be very important for you to have a highly qualified master inspector come out and inspect your potential property. Depending on the work done you’ll also want to check and see if permits were pulled. You could potentially run into a lot of problems if it’s discoverd down the road that permits weren’t pulled on the property you bought. You don’t want to run into legal issues because of negligence from someone else.
Benefit from the shared knowledge of highly experienced professional investors by making us your team at BD Real Estate Solutions, and sidestep costly errors. Let the pros help you realize your dreams and build a secure future through a robust real estate investment portfolio. The above are just a few considerations that the pros at BD Real Estate Solutions know to watch for when buying an investment property in Kansas City. And don’t forget to ask about the current inventory at BD Real Estate Solutions of the best investment properties available in Kansas City. Call BD Real Estate Solutions at (913) 708-1185.