Anyone that reads my blog for more than a day knows that I love the numbers part of Kansas City investment property. If the numbers don’t make sense you should just pass and go on to the next rental house possibility.
But numbers are not everything when it comes to selecting your investment properties. Given that we are human beings with different emotional needs and judgement processes we cannot discount our feelings when choosing our investment property.
The time when I see this become the most subjective is when I’m working with newer investors who are considering the purchase of a first duplex to live in half and rent the other half. I’m working with two such investors right now. It’s a great way to start. Believe me. But there’s also the human element of “do I want to live here for a year or two?” to be considered, as well.
It’s not that the duplexes the couples have been shown are beneath them or, all in all, in bad shape. It’s just that the available inventory, by in large, is not up to the standards they have set for themselves, even in their current apartment situations. I get that.
So I’ve been encouraging them, and continue to do so here since they are both readers, to know that numbers are important. No doubt. But if the numbers are reasonably close to the other investment property choices out there, though slightly lower, but have a much better school district and/or neighborhood feel and/or updated everything, then that counts, too. (That is a complicated sentence that I’m sure my 8th grade teacher Mrs. Sanders would mark through with her red marker.)
Keep the numbers in mind when you purchase a prospective Kansas City investment property. If you are going to live in half for a couple years it’s okay to let those numbers “slip” a little bit. (I said a little.) Because the rents will more than likely catch up and exceed on the numbers quotient before it’s over. And you need to be proud of where you live, investment property or not.