Property Management and Investment Properties

June 9, 2019 Off By Real Estate Club of America

Please note that we are NOT the original writers of this blog post. All credit goes to the original writers. Find the original post as published at this link: https://kcinvestmentproperty.wordpress.com/2019/03/28/property-management-and-investment-properties/

Please note that we are NOT the original writers of this blog post. All credit goes to the original writers.

There have been a lot of changes in my career and the investment property business since 2004 when I returned to Kansas City.  I arrived in boom. And now we’re (at the end?) in another boom.
Yes, I predict those times 2006-2008 in Kansas City.  The bust began in KC when the banks stopped lending in September 2008.  Needless to say, the coasts experienced the shift much sooner. Still, this is time is a little different;

  • Red hot seller’s marketplace
  • Low/Reasonable interest rates
  • 100% loans for anyone using a 620 credit score or above
  • Investor loans with 90, 95 as well as 100% LTV
  • Investor loans that include rehab money

Look, I believe wholeheartedly in property investing.  Owning income property is a great way to hedge inflation while earning from the 4 Benefits of Real Estate Investing. Timing can matter.  If you’re planning on buying and renting property for the next three to four years I’d be super careful.  If you’re planning on owning rental homes for another seven years or more, I’kindly say green light.  After all, time is your friend when you own real estate.

Wow.  I just realized I’ve now been working with investment properties in Kansas City for fifteen years now and before that two years in Tulsa.  In addition, I have been employed as a property manager in Kansas City since 2006. 
Or even a slow down in the Midwest?  Does that mean that the buy, rehab and hold is still a excellent strategy…that keeps getting better?  (Note that link is from 2011…can’t get those yields or prices now.)  Does any of that really matter and the economy will still change here in the middle of the country?
Rental property homes are at a premium at this time. West coast (and East) are flooding in to KC driving prices higher and higher and yields lower and lower.  I’ve seen this before;

  • While both time had/have limited seller stock, this time there is real limited inventory…we just don’t have sufficient housing units
  • The new-builds occurring are WAY ABOVE what most first time home buyers can afford

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