Are you thinking of buying Kansas City area real estate investment property? Are you wondering;
- How do I keep from paying too much?
- What part of town should I buy in?
- How do I go about managing the property, setting the rent, screening the tenants?
These are some of the questions, and more, that you are asking yourself right now.
Paying Too Much
Look, let me make this simple. If you are a first time reader here it may take you a while to understand that I don’t mince words nor do I speak in absolutes. Here it is; It is really, really, really, really difficult to get the “bargains” all the books, tapes and seminars keep telling you about.
Real estate is on an 11 year climb. Yes, I said eleven. Sooner or later we KNOW there will be a correction to the market. There has to be. History demands it. Having said that, if you buy “at market” and you rent “at market” and you allow time to be on your side, there are precious few ways you can actually lose money.
Real estate investing isn’t easy. It is not rocket science, either.
Let’s just say you buy “at market” a 3 bedroom 2 bath home in Olathe, Kansas. Most likely, you’ll buy in the $220,000 – $260,000 window. I’ll assume you’ll put down 25% (the best way to get the best interest rates) and that you will amortize the loan over 30 years.
$260,000 purchase price with 25% down ($65,000)
Principal and Interest Payment $842
Insurance and Taxes $465
Total payment $1,307
In Olathe, this house would rent between $1,675 and $1,775 depending on the time of year, location, etc. So your Cash Flow Before Taxes would be somewhere in the $372 – $400/mo range, before property management.
This return doesn’t even take into account the other 4 Ways You Make Money Owning a Rental Property.
If you’d like to know more about our real estate services, reach out to us. We can go into depth on this conversation. I’d love to hear from you. Send me an email to Chris(at)AdAstraKC.com
You know to use the at symbol. I’m just keeping the bots from harvesting my email everyday.