The Kansas City real estate market is considered one of the fastest growing markets in the entire United States. Growth is consistent, demand is increasing, and supply is limited. With active listings on the decline and median prices on the incline, Kansas City is booming.
That’s what makes a real estate investment in Kansas City so attractive to investors and those looking to enter the real estate market. When done correctly, you can turn a massive profit with a small investment, which is something all investors dream of when buying and selling houses.
With that said, real estate investors need to understand the market they’re buying into and make smart decisions when turning a profit. It’s easy to lose money when you don’t know what you’re doing, but easy to make it when you have the right tools, resources, experience, support, and advice.
Don’t worry, we’re going to break down everything you need to know about making a real estate investment in Kansas City, Missouri – also known as KCMO. We want everyone to have an opportunity to cash in with the real estate market, so let’s go over some of our biggest tips!
Different Ways to Make a Real Estate Investment
Let’s be honest, there are a variety of ways you can invest in real estate and there’s no right or wrong answer, so long as it fits your budget and capability. Of course, that’s what makes real estate professionals so popular – there are ways for just about anyone to start investing.
Here are five of the most popular ways to invest in real estate in the Kansas City area:
- Real Estate Investment Trust – buying shares of a real estate investment trust (REIT) is one of the easiest ways to invest in real estate without a lot of cash, energy, or effort.
- Real Estate Crowdfunding – if you’re interested in a more hands-on approach without a lot of cash, you might want to consider real estate crowdfunding platforms and projects.
- Invest In Your Own Home – whether or already own a home or are looking to buy one for yourself, you can turn it into a long-term investment by making smart decisions now.
- Rental Properties – purchasing a home and using it as a rental property is a good way to make money in the short-term and long-term by renting it out or going through Airbnb.
- Flipping Properties – another popular way to invest in real estate is by flipping homes. This is where you buy a house at a low price, fix it up, and sell it at a much higher price.
You don’t always need to have a lot of cash or buying power. You don’t always need to have the time, energy, or effort. And you definitely don’t need to have the experience. While all those things certainly help, there are endless ways to find success with real estate investments today.
Location, Location, Location
Alright, so you’ve narrowed your location down to Kansas City. That’s a great option, given the current growth in the Kansas City housing market. Still, there are over 240 neighborhoods that make up the Kansas City area and you’ll need to narrow that location down even more.
For example, some of the best Kansas City neighborhoods to invest in are Volker, Downtown, Leawood, Overland Park, Brookside, Waldo, River Market, Parkville, Smithville, and the Crossroads Arts District. Make sure you do your research before targeting a specific location.
Home Inspections & Appraisals
Once you zero in on a location, it’s time to start looking for the right house to invest in. There are going to be a lot of options available, but they’re not all going to be the best or right option for you. With an investment, your main goal is to turn a profit and not all homes are going to supply that.
Before you get too attached to a home, it’s important that you have the home inspected – that way, you can see what’s wrong with it. You should also get it appraised – that way, you know the Kansas City home values. Finally, look at the comps in the area – that way, you understand the potential.
Make a Reasonable Offer
Now that you’ve found your home and you feel confident that you can make a profit, your next goal is to buy the home at the right price. You’ll have to take into account the appraisal, the home inspection, the state of the market, and how much money you expect to put into the home.
Once you make a reasonable offer, you have to wait for the seller to either accept the offer or send a counteroffer (or decline, but hopefully that doesn’t happen so let’s stay positive). You might have to negotiate, but you should always maintain that profit margin we’re all after.
Maintenance & Upkeep
Buying a home is often the first step, but turning it into a profit often takes renovations, upkeep, and maintenance over the long-term – especially if you’re renting it out to someone, living in the home yourself, or flipping the home. When done correctly, you will see a return on the expense.
The truth is not all homes are going to be move-in ready when you buy it. In fact, homes that require work can sometimes be the homes you see the most profit – especially since they’re usually listed at a lower price. If you can make the right changes, you’ll see the desired profit.
Selling Your Home for a Profit
Anyone that’s interested in real estate investing in Kansas City will eventually want to sell their home. That might be a couple months or a year after buying the home, or it might be 20 years from the moment you buy the home. Either way, you’ll want to sell the home for more than you paid for it.
Finding the right buyer can be hard – especially finding the right buyer at the right price. Some homeowners might be in a position where they need to sell fast and don’t have the time to wait around for the right buyer. If that’s the case, you should contact us at Sell Your House Fast Kansas City!
