Just the basics here for owning and operating Investment Property in Kansas City or elsewhere.
The Four Basic Benefits of Investment Property
- Cash Flow Before Taxes
- Principal Reduction
- Tax Benefits (Depreciation, etc.)
Quick, (seemingly) witty tips to help you not go bankrupt with investment property…
- Buy on numbers, not gut-feelings
- Investing and speculating are two different things
- Look to the meat of the market for whatever market you are in (i.e., the meat might be 3 bedroom, 2 bath homes for rent close to medical centers or schools priced between $150,000 & $170,000)
- Allow for the unexpected (trite, I know)
- Have reserve funds
- Don’t proceed too quickly
- Don’t procrastinate
- Get objective advice from someone with rental property
- This blog
- Building Wealth One House At A Time by John Schaub
Last tip: Discernment is required. The ability to understand your own position, feelings, goals and actions and how they fit into what you are hearing and learning.
Owning investment property does not take a rocket scientist. It does take planning, effort and money. Anyone can do own investment property successfully.