Maybe you’ve stayed in a few Airbnb rentals, or you’ve watched a friend as they manage an apartment building. Maybe you have your eye on a little bungalow that would make the perfect long-term rental property. If you have money to invest, you may be asking: is real estate a good investment?
There are a few things to consider, such as whether you would enjoy the management and maintenance coordination that comes with owning a rental property.
There’s always the option to outsource these tasks, but it’s important to look at how it will impact your profit on the rental if you do.
Before making a real estate investment, get to know the market. You’ll make a smarter purchase and be happier with your long-term returns if you do research first and can make a confident investment.
Here are a few things you should know for determining whether real estate is a good investment in Kansas City:
Rental rates in Kansas City are on the rise. While rentals across the country have increased by around 17% between 2012 and 2018 for a three-bedroom home, the rate in Kansas City has increased by 23%.
People are flocking to Kansas City. Maybe it’s the barbecue. Maybe it’s the Chiefs. Maybe it’s the awesome. People want to live in Kansas City. While the national population growth comes in around 5%, Kansas City is growing a bit faster at 6%.
Think about short-term rentals. If you want to capitalize on the tourism that draws visitors to Kansas City every year, you may want to check out the possibility of a rental that could be listed on Airbnb or vrbo.com. The only catch is that there are new ordinances in Kansas City that require you to register your property as such, so take the time to do the paperwork.
Check out individual neighborhoods. Before answering the question, “Is real estate a good investment in Kansas City?” you really need to research the specific location.
For instance, while long-term rental comes with a monthly income of $1,186 compared to a monthly Airbnb income of $2,061, the rates of a short-term rental will fluctuate wildly depending on the location’s proximity to attractions.
Ready to check some rental properties? Even if you’re not sure where to begin, the team at Dani Beyer Real Estate is ready with insight and recommendations for your investments. Contact us for more information on rental real estate.
Is real estate a good investment in Kansas City? When you work with Dani Beyer Real Estate, you bet it is!