I was reminded again all weekend long how lucky those of us that live in the Kansas City area have it when it comes to investment property ownership. As many of you know I love talking with Jeff Brown regarding investment property. When we talk single family homes he says “no way” in San Diego. I know the same is true throughout much of the coastal areas.
It seems, however, that in many/most places between the Ohio River and the Rocky Mountains that we can choose to own single family homes as investment property. Sure, it takes a little more up front capital to make the numbers work for you and not against. But really, is putting 20%-25% down on a vehicle that will take you to retirement such a horrible thing?
Depending on your situation I may sometimes recommend 10% down on a duplex. Other times I may recommend 25% down on a single family home. Especially if we can pick up the rental home $10,000, $20,000 or even $40,000 below market. No, you will not be able to turn it around and sell it right away for a profit in this soft market. But what that the intent anyway?
Think golf. Different clubs for different results. California real estate investing has a pretty narrow scope, now. Maybe one or two clubs left in the bag. But the California real estate investor, like the Maryland real estate investor, does have a choice. Get on a plane. Visit Kansas City. I think you’ll like what Kansas City has to offer in the way of investment property.