What happens when rental properties in Kansas City becomes more of a hassle than an investment?
Owning and maintaining rental properties in Kansas City can be a challenge. For some of us, we have already experienced the realities of this and know exactly all that is involved in this statement. For the rest of us, who have yet to experience it but are itching to crawl into the Real Estate market whether through investing in rental properties or by getting involved in buying and flipping properties. Either way, we are about to learn some of the negatives and positives of being in this market and where we as investors can get involved to help in more than one way!
It’s an exciting market. Always changing and always evolving.
Pros And Cons of Rental Properties
There are several advantages and disadvantages to owning and keeping up with rental properties in Kansas City. Let’s look at a few of each.
- If everything lines up right, you can put a lot of money in your bank account quickly. For example, if you own a house that you rent out for $1,000 per month, that house when fully occupied will put $12,000 per year back into your accounts.
- Depending on the housing market, the value of the homes that you own can go up and you can benefit from the increased value of your home. This is always a great benefit to owning rental properties. You can benefit without doing anything or even flip the houses that you own in an area at the time of increase.
- Sweat Equity means doing things like repainting the home, adding new siding, refinishing the inside, doing some basic landscaping to the yard. This an add on value to the home without significant financial cost. This is always a bonus and can be fully enjoyed by homeowner and tenant who is renting it.
- Owning rental property in Kansas City can mean a bunch of little disadvantages that really add up in cost. Depending on how well that you take care of your properties and how well your tenants take care of your property will determine how much money will have to go out for repairs and a million other tiny problems.
- If there is no diversity in where you own your property, then it can be hard on you if the housing market goes downhill in the area where you own all your housing. You can end up losing money on your housing at that point or you can wait and for the market to go back up in that specific area. Diversify is the key to avoiding this issue.
Tenant Risks. There are more than one of these.
- You could go for a long period of time without any tenant to pay your monthly mortgage amount.
- Some tenants may cause more wear and tear than others.
- Some tenants may live there but don’t pay their mortgage (for whatever their reasons are) and you end up having to kick them out. Sometimes, if they’re a tenant with bad character, you might end up with court expenses to get them evicted from your property. This would be the worst scenario.
We Buy Rental Properties!
If your rental properties in Kansas City have turned into a nightmare, we can help. If your property has been a burden instead of a blessing, please consider selling your rental property to us. As investors, we will buy your headache “As Is” even with undesirable renters.